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Cancel Your Timeshare Payments
What is Timeshare?
Timeshare is an agreement where multiple individuals collectively buy the rights to a vacation property for a specific period. In a timeshare agreement, the property is divided into equal time intervals, usually every week, that is allocated to different owners. Each owner is granted the right to use the property for their designated period, often on an annual basis.
The drawbacks of these timeshare agreements weigh more than their advantages. Investing in a timeshare may not be the best choice if you want to gain a good profit. It is not beneficial to buy a timeshare due to many reasons, a few of which are;
- Timeshares are high in cost, such as ongoing maintenance fees etc.
- People’s vacation preferences may change over time, but you will be bound to the same location until the contract ends.
- Long-term financial commitments are common in timeshares which may cause problems if your financial situation changes over time.
- Scams and frauds are increasing in timeshare contracts, where developers can charge you more than the property’s actual value or misguide you to persuade you to buy timeshares.
- If your timeshare is not in a high-demand area, you will face problems in reselling it and may also have to bear a loss.
- If you think that you do not want to continue your timeshare contract, there are a few ways to cancel your Timeshare payments;
- Reselling the property through resale companies, online resale websites, etc.
- Timeshare exit companies can help you get out of your timeshare contract.
- The timeshare cancellation policy includes a rescission period in which you can cancel your contract without facing a penalty.
This article will elaborate on why you should not be investing your money in Timeshare and how you can cancel your contract if you have already bought a Timeshare.
Common types of Timeshare contracts
- In fixed-week contracts, you won the property or a part of the whole property for a specific week each year. This is the most common and traditional type.
- Whereas floating week allows you to choose a week from the available weeks within the pre-decided time frame or season. But there are reservation issues in peak seasons like summers as the demand is high at that time.
- Right-to-use contract allows you to own the place for some specific years and the property goes back to the developer after the assigned period.
- The week of the stay moves forward every year in rotating week contracts which takes away the freedom to come according to your preference and flexibility.
- Biennial Timeshare is when you are allowed to use the place every other year.
Why should you not invest in Timeshare?
- The maintenance fees and mortgage of properties are high in locations popular for vacations. These costs are to be paid annually as these contracts are annual-based. This way, these vacation properties may cost more than the usual vacation expenses.
- Over time, the preferences of people change, which can make them get bored of the same vacation spot hence the vacation property they have paid for will not be of any use.
- As we live in a rapidly changing world, people’s financial situations change in an instant, but Timeshare contacts come with long-term commitments, which may lead to problems for people in the future.
- The interest rates on Timeshare are 11-22%, so it means the mortgage will become 3x the amount you will be paying at the start.
- It can be difficult to resell the property as the supply of these Timeshare properties exceeds the demand in the market, so they are often resold at a loss. Whereas in some cases, the value of the property declines, which will also lead to loss.
- Contractors in this field have been reported as being dishonest with the customers as people were not properly told about the costs and other important clauses of the contract.
Ways to Cancel Timeshare Payments
Some companies specialise in helping timeshare owners resell their properties. These companies often have a network of potential buyers and can assist with marketing and negotiations. Timeshare properties can be resolved through resale companies, online resale websites, buyback programs, etc.
- There are certified companies that help you sell your property. These companies already have potential buyers to buy your property, they can help you negotiate and market your property.
- Online platforms like eBay, Craigslist, RedWeek, and Timeshare Users Group (TUG) can help you in reselling your timeshare. By listing your timeshare on these platforms, you can find people willing to buy the property.
- Buyback programs are when the contractor who sold you the property is willing to buy it back from you. However, these programs have different types of limitations and rules, which may cause a financial loss.
Even if these resale options do not work out for you, you can try to resale the property within your friend circle or family. If no one is willing to buy the timeshare, the last option is to rent it out to someone who wants to rent the property for a short period. This will at least cover the primary expenses of the timeshare for a while.
Timeshare Exit Companies
Exit companies help people to get out of their timeshare contracts. They can help you terminate or transfer your timeshare ownership. These companies are gaining recognition in recent years as many people are bearing losses or have been scammed recently by timeshare contractors.
- These companies can help you cancel your contract by using legal clauses mentioned in your contract which you may have missed.
- They can also resale your property by promoting it on their websites and presenting the property in the market. It is easier for them to resale the property as they already have connections in the market, which may make the resale procedures easier for you.
- They can also assist you in donating the property to charity. Most people buy timeshares as an investment, so there may be other options for them, but people who are willing to donate it can seek help from the exit companies.
These are the most common benefits exit companies can provide you if you want to get rid of your timeshare contracts. Although it is crucial to thoroughly check and research before approaching any exit company, as frauds and scams are common in these scenarios.
Timeshare Cancellation Policy
‘Rescission period’ can help you get out of your timeshare contract if the property was recently bought. The rescission period is a specific time limit mentioned by the developer in your contract. If your rescission period has not ended yet, you will face no problem in returning the property to its developer.
- The time limit may vary from location to location, but it is usually from 3 to 10 days. In this period, you can cancel your timeshare contract without bearing a penalty, or you might have to bear a small amount of loss which solely depends on the policies of the property you have purchased.
- If you feel like the property may have a decline in its value in the future, or you think that the property is more expensive than it should be, then you should look into the mentioned rescission period and return the property to the developer.
- Cancelling your contract within the rescission period requires you to write a formal letter to the timeshare company, which can be sent through any social platform so that there is proof of delivery.
- The letter requires a few basic things like your name, contact details, rescission period, cancellation request, your signature, a copy of the contract or other relevant documents, etc.
In case you do not know how to interpret your contract or the rescission period has ended, we recommend you seek legal advice by consulting an attorney.
- A legal advisor will look into your contract and tell you about all the potential benefits and drawbacks of cancelling your contract.
- If your rescission period is still ongoing, your attorney will provide you with all the measures you should take to cancel the contract. They will also help you with the written letter to make sure that the letter meets all the legal requirements.
- If the rescission period has passed, your attorney will guide you about the policies mentioned in the contract for the cancellation process and will get you through the process if you are still willing to.
Kindly visit our website for more information regarding timeshare contracts and cancellation policies. You can also contact us for a free consultation session through Live Chat. Our team can help you find legitimate exit companies that offer escrow, so you won’t have to pay any up-front fees. Knowing the policies and your legal rights is important so you can escape your timeshare contracts.
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