Monthly Archives: December, 2017

What You Need To Know If You Want To Cancel A Timeshare Contract

Do you have a timeshare contract you no longer want to be party to?

Timeshares seem like a great deal, until they’re not. The upfront fees can be as much as $19,000, plus annual maintenance fees. Not a small amount by any means.

Many people sign up for a timeshare while on vacation, then realize it’s a costly mistake. They are generally a bad choice in the long run. And if you hold on to a timeshare you don’t want, it will cause unnecessary expense and become a headache.

If you find yourself owning a timeshare after coming home from a vacation there may still be a way to get out of your timeshare. Keep reading, because you’re about to find out how you may be able to have your timeshare contract canceled.

Give Your Timeshare Back to the Resort

First things first, this is going to be a painful process getting out of your timeshare and you are going to lose money, in fact, it may even cost you more money to rid of your timeshare.

Contact the resort and see if they will take back. However, understand this is rare and they are not obligated to take back the timeshare because you changed your mind. However, trying to sell your timeshare is almost always a bad idea. Why? There is no resale value, you can find them everyday on Ebay(R) for $1.00, yes that’s one dollar. People sell them just to get out of the lifetime of annual maintenance fees.

In order for them to consider your offer, you need be in good standing and the unit should be paid off. You may be able to do a “deed back”, which means signing the deed or interest over to the resort. It’s most likely you won’t get any money for it and you may have to pay a fee to transfer.

Approach the condo association and find out if the resort is open to your offer. Whatever you do, don’t stop paying maintenance fees as it will damage your credit and lead to foreclosure. Then you won’t have a property, and you’ll still be liable for the fees.

Check the Law on Rescission in Your State

There is a legal way to cancel a timeshare contract that can work if you act in time. When you sign the document, it is a legal and valid contract. This means it’s covered by normal contract law.

“Rescinding” basically means the act of you canceling your obligations under the contract. The time period you have to rescind will be stated in the contract, and you can check your state’s laws as well.

Usually, this period is between three to fifteen days. If you were pressured into signing up for a timeshare a few days ago and regret it, the time to act is now.

Cancel a Timeshare Contract in Writing

In order to go ahead with the cancellation, you must do it in a certain way. The standard method to cancel a timeshare contract is to send your decision in writing.

For detailed instructions, you must look at your contract’s cancellation policy. It will usually specify that the cancellation letter includes certain things. Some of these might include the purchase date, your personal information, and a timeshare description.

It’s vital that your letter includes a clear intention to cancel. You don’t need to state a reason for your cancellation. But it’s good form to include a request for a confirmation that your letter was received.

It’s not a good idea to call, as the salesperson will usually try to persuade you not to cancel. If you do call the company, be sure to speak to a manager. Definitely don’t speak to the same salespeople who sold you the timeshare in the first place!

Delivering the Cancellation

The method of delivery is extremely important for the timeshare cancellation to be effective. It will be specified in your timeshare contract and can range from hand delivery to certified mail.

If you don’t follow the instructions exactly, it’s possible your rescission could be rejected. Be sure to make copies of the letter before you send it. Also, make copies of your agreement and any other relevant documents if you send the originals. Be sure to mail it certified return receipt.

Refinance the Timeshare Loan

Sometimes the timeshare itself isn’t the problem, the loan you took out for it is. You can keep your timeshare by refinancing your loan so that you don’t have to cancel a timeshare contract.

It’s not mandatory to stick with the rate the timeshare developer gave you. While you will need a good credit record, this option can shave a lot off your repayments.

Shop around for the best options. Once you have moved your loan to another lender, this opens up possibilities. You can then look into getting rid of your timeshare because you don’t have a high mortgage to pay.

What to Do If the Cancellation Period Has Passed

What should you do if you can’t cancel a timeshare contract?

In this case, selling the timeshare is the easiest option. Sadly, a timeshare isn’t like a normal property. It doesn’t increase in value year by year.

Even if you sell it at a loss, however, you will have gotten out of a costly contract. Your best bet is can contact a licensed firm that specializes in timeshare matters. You can also look for a buyer yourself by posting an ad on the internet, however SELLER BEWARE! This is laden with scams and most people lose money pursuing this path, again the sad fact is there is no resale value for the majority of all timeshares.

Another choice you can make is to donate the timeshare to a charity.

A local charity can sell the use your week at an auction to raise money. If you get a bigger organization, they can even take over the payments. The great thing about donating is that you can get a tax deduction to offset the money you’ve spent on the timeshare. This is far more difficult to do than it appears.

Get a Lawyer to Cancel a Timeshare Contract

While there are some steps you can take to cancel a timeshare contract yourself, in most instances, you will need professional help. Or your time to cancel may have passed and you need to find other options. In a case like that, you should get in touch with a trusted timeshare attorney.

A lawyer may also be able to find a way to get you out of your contract even if the rescission period has passed.

Go ahead and contact us today, our consultation is free. The sooner you call, the sooner you can get out from under your costly timeshare.

Too Good To Be True: Hidden Timeshare Fees Create A Nightmare For Consumers

Everyone loves the idea of having a dream vacation each year. Owning a place to run away to when you get the chance. It’s cheaper and easier than finding a hotel every year.

Many people choose to own a timeshare. They have fantasies of making incredible memories and taking amazing getaways.

This all seems wonderful until hit by the hidden fees.

Keep reading to learn more about timeshare fees.

Take Your Time, Know The Terms

There are four main types of timeshares. Each has their own terms and conditions. It is important to know everything you are agreeing to.

Whether you have a fixed week timeshare or a points contract, reading the contract is vital. The small print is full of information you will want to know.

It can be difficult to say no when a salesperson is pressuring you. Especially if you are enjoying a weekend on the Timeshare company’s dime.

It’s crucial you take your time. Sales staff and contracts word information in favor of the business, not the buyer. You need to know what all the clauses of the contract are committing you to.

An informed buyer is less likely to face surprises of hidden timeshare fees. They can add up in a short period of time and be more expensive than expected if you don’t do your research.

Paying the Taxman

One common fee that surprises people is timeshare taxes. These are usually on a per night basis. Timeshare taxes often start at $20 a night and get higher depending on the location of the timeshare.

Annual hidden timeshare fees can run anywhere from a few hundred dollars to more than a thousand. It’s always wise to have a timeshare attorney look at the contract and deal with the legal issues.

The resort can raise the associated fees each year. You’ll be responsible for paying them whether you use your timeshare or not.

Maintenance Timeshare Fees

There will always be annual maintenance fees for your timeshare. These can be due once a year or on a monthly schedule depending on the resort or company involved.

Maintenance fees are not fixed. You can end up having increased expenses if the resort does major renovations or repairs.

This fee pays for the maintenance of the property. It can change depending on where it’s located and who’s running it. The average annual maintenance fee for timeshares is approximately $660.

Properties can be reassessed at any time. If maintenance fees are not paid, your timeshare may go into foreclosure.

Utility Costs

Some mistakenly believe utilities are a part of maintenance fees but this is not true. The timeshare owner’s responsible for paying all utilities for the period of time they use it.

Real Estate Associated Timeshare Fees

When a timeshare is sold there will be real estate associated fees tacked onto the cost. Transfer fees, recording fees, and assessment fees may all be expected.

You will have to pay real estate associate fees when you buy or sell your timeshare. These fees can add up to thousands of dollars and should be noted in the initial contract.

Unexpected fees and rules associated with timeshares in foreign countries may arise.

Resale

It can be almost impossible to sell your timeshare once locked in. Many sellers end up doing so at a huge loss.

It is worth noting any losses in the sale of a timeshare are not eligible as a capital loss claim with the IRS.

Most states have opt-out clauses for timeshares. This allows for a buyer to change their mind for a short period of time after signing the contract.

In Florida, for example, buyers have 10 days to change their mind. The company must return their money within 20 days if a buyer changes their mind.

Travel Costs

You are responsible for all associated travel costs. These can add up in no time when the whole family is vacationing.

This should be a consideration when buying a timeshare. Flights, gas, rental cars and insurance all need to be budgeted in.

If the timeshare is outside of the country you may have added expenses. This includes passport fees, travel, health insurance, and meal allowances during travel days.

It is wise to consult a lawyer specializing in timeshare sales. This will ensure you are aware of all fees. They will advise you of any expenses you may not be expecting.

Time is Money

Last year a timeshare seemed like a great idea. This year things have changed. You can no longer use the timeshare because of health or financial reasons.

Now you want out of the contract but don’t know what to do.

The first thing to remember is that timeshares are not real estate investments. It is unlikely that you will make money on the sale. In fact, most often sellers take a loss on the sale.

You Want Out

After consulting a lawyer, you have a few options available to try and sell your timeshare.

Timeshare exchange systems allow owners to trade theirs for another of equal value. This will open options for places you can vacation. Most timeshares include the exchange program in their initial contract. The company will include the first year in the sale but owners pay for later years.

Many looking to get rid of their timeshare will hire a reseller. The FTC warns sellers to do research to ensure everything is legal and above board.

There can be many hidden costs associated with the sale of your timeshare as well. This is especially true when outsourcing the sale.

Thousands of scams get reported yearly and consumers are often warned to be vigilant. It is important to read the contract and be aware of all clauses, fees, and charges in the small print.

Any contracts for timeshares in foreign countries are not protected by US laws. It is important to consult a professional with expertise in timeshares and international contracts.

Isn’t a Life Sentence

Owning a timeshare doesn’t have to be a life sentence. If you consult a timeshare lawyer to discuss your options, it is possible to free yourself from the stress.

Check out our blog for more information on freeing yourself from your unwanted timeshare.