When people sign a timeshare contract, they usually dream of having an affordable vacation in the future. However, sometimes we feel we have made a compulsive purchase and want to know how to cancel a timeshare contract to avoid continuing to pay unnecessarily for a service we will not use.
One of the main reasons to cancel the service is that the use of the property in question at a certain time of the year is scarce. But, it is possible to cancel as long as we act fast because time is of the essence when terminating a timeshare purchase.
Why cancel a timeshare contract?
When buying a timeshare, we buy an interest in real estate property, usually a resort condominium. Timeshare sellers are known to have very strong sales strategies for potential buyers.
It will not be uncommon for tourists to come to a sales presentation in exchange for a bottle of wine or a free round of golf and then walk out as a timeshare owner.
Others sign timeshare contracts only to realize later that the deal is not as good as it was originally. Many timeshare buyers are unaware of taxes, fees and assessments. Many people change their minds when we add up all the costs that this product will bring.
How to cancel a timeshare contract?
Because of how timeshares are sold, most U.S. states have enacted laws allowing us to cancel contracts. However, certain requirements must be met, and we must act quickly. Therefore, the first thing to know is when the contract was signed:
Act within the cancellation period.
The timeshare contract will have to state the days we have to cancel the contract. If this is not the case, or if we believe the contract is incorrect, the best thing to do is consult our state’s law on timeshare contracts.
This information can be obtained from our state’s consumer protection office. Each state may have its regulations, so it is essential to find out when is the best time to cancel.
The contract must be cancelled in writing
Generally, we must cancel a timeshare contract in writing. In some cases, a written letter or document is not required, but it will be advisable to have support about the cancellation. In this letter, we must put some crucial data such as:
- Our name as it appears in the contract.
- Address, telephone number and e-mail address.
- Name of the timeshare company or association.
- Description of the timeshare.
- Date the timeshare purchase was made.
- A statement that the contract is being rescinded.
It is unnecessary to state a reason for terminating the timeshare contract if done within the termination period. If it is done outside the period, our request will most likely be rejected, and we will not have any cancellation option.
Delivery of the cancellation letter
The timeshare contract must specify how the cancellation letter is to be delivered. Sometimes we need to provide the cancellation notice personally, and sometimes we must deliver the letter by registered or certified mail.
For this reason, we should follow the instructions exactly and deliver within the cancellation period. Failure to include the correct information in the letter, or failure to do so in the manner specified in the contract, may make the cancellation invalid.
Can the contract be cancelled after the cancellation period expires?
In some states and under limited circumstances, it will still be possible to cancel the timeshare contract after the cancellation period has expired. It will be possible occasionally but will involve filing a lawsuit against the timeshare company.
In these cases, it will be essential to contact a real estate lawyer who will offer advice. However, some resort brands have deed-back programs with in-house teams that can help us explore other cancellation solutions. For this reason, the first thing to do is contact the timeshare company to find our options.
It is important to do a thorough search because many cancellation scams and shady third-party companies will ask for thousands of dollars upfront without delivering on their promises. For this reason, it is important to do thorough research in case we need to cancel outside of the cancellation period.