5 Proven Exit Strategies
A timeshare can be a fun way to enjoy a vacation home every year, but sometimes it becomes a burden if your needs change or if you can no longer afford the payments. If you want to get out of a timeshare, you have a few options to consider. In this article, we share five tips on how to get out of a timeshare, and also point out what you should avoid.
5 Ways to Get Out of a Timeshare
1. Talk to the Timeshare Company
One of the first steps to take is to contact your timeshare company directly. Explain your situation and ask if they offer a release program or any other way to help you get out of the contract. Some companies have specific methods that accommodate owners who no longer want their timeshare. It is important to speak with them, follow their instructions and ask for all the details in writing.
2. Check the Cooling-Off Period
When you first buy a timeshare, you might have a cooling-off period. This is a short time after making your purchase when you can cancel the contract without paying a fee. Look through your documents to see if you still are within this period. If you are, act fast by following the cancellation instructions provided by the company. This option is perhaps the easiest way to cancel if you realize soon after buying that it is not right for you.
3. Use a Lawyer
Sometimes timeshare contracts can be tricky and you may need help from a legal expert. A lawyer who is experienced with timeshare laws can review your contract and offer advice on the best way to exit. They can also help you if you want to challenge any parts of the contract that seem unfair. Even though this may cost money, getting professional legal advice could save you trouble and extra expenses in the long run.
4. Sell to a Third Party Exit Company
There are companies that specialize in helping people get out of their timeshare contracts. These third party exit companies can provide a service to help you transfer or end your timeshare agreement. However, you must be careful and do your homework when considering this option because the quality of these services can vary.
5. Put It Up for Sale
If you decide that you cannot cancel the contract or get help from the company or a lawyer, selling your timeshare might be the next best choice. There are different ways to list your timeshare for sale, including online websites, auction sites or working with a real estate agent. Keep in mind that timeshares are not always easy to sell and you might not get back as much money as you paid. Still, selling your timeshare can relieve you of the annual fees and the discomfort of an unwanted property.
Options to Avoid When Getting Rid of a Timeshare
When you're trying to get rid of your timeshare, it can be tempting to take shortcuts. However, some options may seem easy but can cause bigger problems later. Here are some choices you should avoid.
1. Don’t Give It Away
Sometimes, people think about giving away their timeshare to family or friends in a bid to avoid paying fees. However, this is not a good idea because it does not free you from the contract. The papers still show you as the owner and you will remain responsible for any built-up fees.
2. Don’t Rent It Out
Renting out your timeshare may sound like an easy solution if you want help with the payments, but it frequently comes with its own problems. Renting out a timeshare means that you keep the contract and may still be tied to all the costs and requirements set by the timeshare company. Moreover, renting out a property that is used as a vacation destination can be complicated because of strict rules and maintenance fees.
3. Don’t Default on Your Payments
If you find that you are struggling with the cost, you might be tempted to simply stop making payments. Defaulting on your payments may have serious consequences, including damaging your credit score, additional fees or even legal action. This option can make your situation worse and make it harder to exit the timeshare in the future.
4. Be Careful with Third Party Exit Companies
While hiring a third party exit company can be a valid option, be cautious about whom you choose to work with. Some companies may take advantage of owners who are desperate to get rid of their timeshares. Always do thorough research, check reviews and look for any red flags. Avoid companies that promise you a quick resolution or ask for large sums of money upfront. Make sure to read any contracts carefully before signing and, if possible, have a lawyer review them as well.
Exiting a timeshare is not as simple as it may seem and it requires careful thought, research and sometimes professional help. With patience and care, you can move away from the timeshare burden and find peace of mind with your decision.