How to Legally Cancel Your Timeshare Contract

That lengthy document that you signed but didn’t read at the end of your marathon like, high-pressure times share sales presentation was a legally binding contract that very likely has no expiration date. It was meant to last forever, even after you are gone. It is also very likely that there is no cap on the fees you signed up to pay and that those fees can and will increase at the whim of the resort.

You were told that if you bought that timeshare, you could go anywhere in the world whenever you wanted, right? How is that working out? Are you able to book anything anywhere at a time that’s convenient for you?

You were probably not told that the resort rents out its accommodations to the general public and that the general public wants to go there the most at the same time you want to go.

You wonder what happens if I quit paying my fees before my contract is legally rescinded. You can be subjected to the harassment of the collections process, your credit can be damaged or ruined, you can be foreclosed upon and incur all of those costs, you can be sued in court, and the resort, your creditor, can even open an estate for you in probate court after you are dead and file a claim against it. The resort can sue whomever inherits the timeshare if they don’t pay the fees. The resort can even report you to the IRS using a 1099 form and you can liable for payment of substantial, additional income taxes.

If you are fed up with your timeshare, what are your options? How to dispose of a timeshare legally? It is really possible to cancel a timeshare?

Depending upon your circumstances, there may be an option for you.

First, you may try the do it yourself option. Contact your resort and see if they have an exit program. Try to negotiate a complete release from your contract. Odds are good that you will be told that the only way to cure your timeshare troubles is to buy more timeshare, or points. Beware of any so-called “exit program” where the resort employee tries to sell more points to you and to take more of your hard-earned money to solve a problem that the resort caused in the first place.  Be sure that any release that is signed is a complete release of any and all claims that the resort may possibly have against you.

If you are not successful in your negotiations with a billion-dollar resort, you may seek legal counsel. Look for an attorney who has two qualifications: 1 ) experience with timeshare law and resorts and 2) litigation experience. Litigation means that your attorney with actually file a lawsuit for you if necessary. Ask your prospective attorney to send copies of the petitions or complaints that she has filed against timeshare resorts on behalf of owners to you. If the firm has never sued a resort, it’s probably time to seek a different firm.

Many resorts are more willing to negotiate with attorneys because they know that most timeshare owners have no experience negotiating with billion-dollar companies and most owners don’t know how to file and handle lawsuits or initiate an arbitration.

Attorneys can hit resorts where it hurts: in the wallet. It costs substantial amounts of money for resorts to defend themselves when they are sued, or when arbitration is initiated. Instead of incurring these expenses, the resorts may choose to just offer an owner a release from their contract, or even give a refund, before the suit is filed or before the arbitration is initiated.  It could very well be less expensive for the resort to just release you as opposed to incurring the legal fees involved with a lawsuit or arbitration.

In your timeshare contract, you may have agreed to arbitration instead of filing a lawsuit in civil court. You may have agreed that the arbitration will occur somewhere across the country. An experienced timeshare attorney can advise you regarding whether the arbitration provision is binding and whether you and your lawyer must really travel across the country to attend the arbitration, or whether there are other options available to you. Often, the resort has to pay the filing fee for the arbitration which can be thousands of dollars.

If you hire an attorney, send your timeshare contract to them immediately. Most resorts will absolutely refuse to share a contract with an attorney who represents an owner unless ordered to do so by a court or arbitrator.

A judge of a civil court or a professional arbitrator has the power to cancel, or rescind, your timeshare contract under certain circumstances. The legal term for canceling a contract is called rescission.

If you were lied to during the timeshare sales presentation, then you were the victim of fraud or negligent misrepresentation. The unlawful merchandising practices act of your state was probably violated. If you were a victim of these practices, then a judge or arbitrator has the power to cancel or rescind your contract, but a lawsuit will need to be filed or arbitration must be initiated before rescission or cancelation can occur. Even then, then are no guarantees. Each situation must be evaluated on a case by case basis. The more lies that were told during the sales presentation, the better the case will be.

Finally, some states grant an owner a much longer rescission or cancellation period after the contract was signed if the resorts do not precisely follow the law in that state. Sometimes the right to cancel or rescind can last for years.  This varies from state to state if this option is available to you at all. You may have been told about a very short rescission or timeshare cancellation period after the signing of the contract that only lasted for five or seven or ten days. This is not always the case. The cancellation or rescission period could last for years. Situations vary in different states, and an experienced timeshare attorney can advise you regarding whether or not you qualify for this type of cancellation which does not require the filing of a lawsuit or the initiation of arbitration.

And always remember that the choice of a lawyer is an important decision that should not be based upon advertising alone.

How to Cancel Timeshare after Grace Period?

A timeshare can start to feel like a burden after a certain amount of time. With the surge in associated charges and ever-increasing maintenance fees, many timeshare owners are eager to get out of timeshare contract.

Canceling a timeshare contract is not easy. The proper legal term for “canceling” is rescission, as in rescission of a contract.

One might consider reselling their timeshare contract but doing so without falling victim to timeshare scams is difficult, and there is usually no market for timeshares. Other owners at your resort may be offering to give their timeshare away for free. You can do a Google search to see the amounts for which timeshares are being sold online.

Getting legal help from an attorney or timeshare lawyer might give you a chance to legally cancel your timeshare.

But is it possible to cancel your timeshare after Grace Period?     

After your grace period, you are probably wondering if you still have a chance to cancel your timeshare. It is possible to obtain cancellation if you were a victim of fraud during the sales presentation.

Do not fall for reselling companies that guarantee to get you out of timeshare contract.

After the rescission period, there are only two ways to cancel, or rescind your contract. One, negotiate a settlement with the resort. Two, if the resort won’t negotiate a settlement, go to court (or arbitration if you signed an arbitration provision) and obtain an order of rescission from the judge or the arbitrator.

You can contact an attorney experienced in Timeshare law and try to cancel your timeshare, if you feel like you were lied to during timeshare presentations.get

Credit Blocking Does Not Cancel Your Timeshare Contract

There is a popular misconception going around these days.

A lot of people are saying that if a timeshare owner purchases a product called “credit block”, or something similar, then all of their timeshare related woes are cured.

So-called “credit blocking” does ABSOLUTELY NOTHING to cancel your timeshare contract.

While it can certainly be helpful to your credit score to contact the major credit reporting agencies and dispute inaccurate or false information or hire a timeshare attorney to do this for you, contacting the credit reporting agencies does not cancel your obligation to make the payments that you owe under your timeshare agreement.

Even if you have “credit block,” the resort can send you to collections and harass you with communications, foreclose upon you, sue you in court, issue a 1099 tax form to you which can cause you pay significant additional taxes, and even open an estate for you if you die and file a claim against your estate, or pursue payment from your heirs who inherit the timeshare.

Credit blocking is not a cure-all to your timeshare problems.

There are only two ways to cancel your timeshare contract:

  1. Negotiate a settlement agreement with the consent of the resort, or
  2. Go to court or arbitration and have the judge or arbitrator rescind or cancel your timeshare contract if you win.
 The choice of a lawyer is an important decision and should not be based solely upon advertisements.
 

Credit blocking does not cancel your timeshare contract

Top 22 Lies Frequently Told During Timeshare Sales Presentations

Timeshare Attorney points out the most common lies told during the timeshare sales presentation;

  1. A timeshare is a good investment.
  2. Your time is an investment that will increase in value.
  3. You can sell your timeshare if you don’t use it or don’t want it anymore.
  4. You can easily sell your timeshare and make a profit.
  5. Owning a timeshare is cheaper than paying for future vacations.
  6. You can rent your timeshare out to cover your maintenance fees.
  7. The resort will rent out your timeshare for you and you can make a profit.
  8. Your maintenance fees won’t increase, or they won’t go up very much.
  9. The sales presentation will only last 90 or 120 minutes.
  10. The resort will buy back your timeshare if you no longer want it.
  11. The resort will buy back your timeshare and you will make a profit.
  12. You can trade-in your old timeshare or travel club membership for this new and improved timeshare.
  13. If you buy a timeshare, it’s easy to make a reservation and you can stay there whenever you want.
  14. If you buy our timeshare, you can travel anywhere in the world whenever you want.
  15. It’s just an owner’s update meeting.
  16. A timeshare is a tax write off.
  17. You’ll be able to refinance your purchase later at a lower rate of interest.
  18. This presidential suite on the ground floor is the type of unit in which you will be staying if you buy this timeshare.
  19. We don’t rent units to non-owners or members of the public.
  20. Your family members can use your timeshare for free.
  21. Today is the only day when you can get this great price.
  22. If you get sick or have financial hardships, we will let you out of your timeshare contract.

If you were told any of these things, and they proved to be untrue, you may wish to contact an experienced timeshare attorney for a free consultation to see if you are entitled to cancel or rescind your timeshare contract, and/or to try to recover damages.

“The choice of a lawyer is an important decision that should not be based upon advertising alone.”

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What Will Happen To You If You Stop Paying Your Timeshare Fees?

What happens if i stop paying my timeshare.

Have you found that your maintenance fees are always increasing and that paying for your timeshare is increasingly difficult? So, what happens to you if you stop paying your timeshare fees?

Here are at least five things that can happen to you if you stop paying the fees called for in your timeshare contract, including the maintenance fees.

And they are all bad.

1. The resort can send you into collections and you may receive harassing phone calls, communications, and letters.

2. The resort can report you to the credit reporting agencies and ruin or damage your credit.

3. The resort can send you into foreclosure and you can lose the title to your timeshare, and get stuck with attorney fees and costs of publication of the foreclosure notice. The foreclosure can be placed on your credit report.

4. The resort can file a lawsuit against you for breach of contract and try to recover all of the fees that are owed under the contract by executing on your assets after it obtains a judgment against you. The judgment will likely appear on your credit report android or damage your credit.

5. Not even Death cancels timeshare fees. The person that inherits your timeshare owes the fees. As a creditor, the resort can file a claim against your estate in probate court.

timeshare fees inforgraphics

If you were lied to by the resort during your sales presentation, you may have the right to rescind or cancel your timeshare contract. Only a judge or arbitrator can cancel a timeshare contract without the Agreement of the resort.

If you believe that you were lied to you during your sales presentation, you may wish to contact a timeshare attorney experienced in timeshare law who can tell you whether or not you have a case for cancellation or rescission.

The choice of a lawyer is an important decision and should not be based solely upon advertisements.

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