How Much Does It Cost to Cancel a Timeshare

If you are currently considering timeshare cancellation, you've probably wondered how much it will cost. Well, the good news is it likely won't cost you more than what those timeshare companies will continue to charge you if you don't cancel. 

Please continue reading below, where we'll discuss everything you need to know about the costs of the timeshare cancellation process. 

What is Timeshare Cancellation?

Timeshare cancellation typically involves a timeshare exit company negotiating with your resort company to remove you from the vacation property agreement. Cancellation is needed when timeshare owners miss their purchase's rescission period. Now instead of simply writing a cancellation letter, negotiations may be necessary to terminate a timeshare agreement. With timeshare cancellation being a relatively new business industry, having an option like an exit program is a powerful help for distressed consumers.

It’s important not to confuse timeshare cancellation companies with timeshare resale companies. The Federal Trade Commission warns owners to steer clear of timeshare scams. Avoid companies asking you to pay upfront fees simply to list your timeshare for sale in the secondary market. Sadly, they’re possibly trying to take advantage of you.

Legal timeshare cancellation also comes at a cost, but you get the assurance of professional assistance. How much does it cost? That isn't easy to answer as it varies due to the exit strategy you need. Furthermore, the associated fees differ from client to client.

What is the Average Cost to Get Out of a Timeshare?

Nobody's timeshare purchase agreement is the same. Therefore, the average cost for cancellation varies considerably for each owner. The total expense comes down to your unique situation. Here are questions regularly asked by timeshare exit companies that help determine a person’s cancellation cost:

• Which timeshare company sold it to you?
• How long have you owned the timeshare?
• Have you paid off the timeshare property in full?
• If not, how much of your timeshare mortgage loan remains?
• Also, how much is your annual maintenance fee?
• Are you behind on any of these monthly payments? Facing a collection agency or a timeshare foreclosure? 
• Are there stipulations regarding cancellation in your timeshare agreement?
• What timeshare exit method do you choose?

Why Does The Cost of Canceling A Timeshare Vary?

What is the Average Cost of a Timeshare Per Year?

Many disgruntled timeshare owners question why it is so expensive to exit. In short, timeshares come at a high price themselves. According to the American Resort Development Association (ARDA), the average per weekly interval sales price for timeshares is $22,942. Many buyers have to take out a mortgage even to afford it at that price. 

On top of the upfront costs and mortgage payments, timeshare owners are also responsible for annual maintenance fees. ARDA reports that the average cost for these fees is $1,000 but largely depends on the size of the unit. Just as the sales price of timeshares trends upward, so does maintenance, as these fees increase by nearly five percent each year. While timeshares may get marketed as a one-time purchase, some owners find the payments never-ending. 

The Two Most Productive Timeshare Cancellation Methods

Now that you know what a timeshare exit is and understand different exit methods, let’s look at the most effective cancellation options. We have two distinct styles for timeshare cancellation: the attorney-backed and non-attorney-backed processes.

Attorney Backed Timeshare Exit

If your timeshare mortgage payments are unpaid or behind on your timeshare maintenance fee payments, you may have to go this route. The attorney-backed process includes a timeshare cancellation company that works directly with a timeshare attorney. The attorney negotiates with the timeshare resort developer on your behalf to cancel your agreement. In an ideal situation, this process takes several months to complete. However, sometimes it can take several years.

How Much Do Lawyers Charge to Get out of a Timeshare?

Generally, lawyers charge between $4,000 and $15,000 to represent regretful timeshare owners looking to get out. It can take attorneys anywhere between a few months to a couple of years to cancel the timeshare agreement outright. It's worth noting that not everyone's timeshare situation is the same, and therefore the costs for an attorney-backed exit can vary. 

Non-Attorney Backed Timeshare Exit

Rather than using a timeshare attorney, this process involves a timeshare cancellation company. The company negotiates directly with the timeshare developer for a real estate title transfer to remove you from the original property agreement. The timeline for this process is typically quicker than the attorney-backed process, but it usually comes with additional fees.

Timeshare Cancellation Fees

Before you cancel your timeshare agreement, you need to understand the fees associated with a cancellation. A basic understanding of these fees will help you negotiate with timeshare cancellation companies.

• Cancellation Fees: Timeshare cancellation fees go directly to the timeshare cancellation company. These fees vary based on your situation.
• Transfer Fees: If you choose the non-attorney-backed process for your timeshare cancellation, transfer fees are necessary for the real estate brokers of your title transfer. These fees go directly to the timeshare developer and are considered processing fees to complete your title transfer.
• Settlement Fees: Not always required, but sometimes settlement fees are required for a timeshare cancellation. Typically, these additional fees only occur if you're behind on your timeshare payments and the resorts want to recoup some of your missing costs.

Reasons Why You Should Cancel Your Timeshare

Most timeshare owners eventually get to the point where they decide to cancel their timeshare. Here are some of the most common reasons:

• Financial Motives: Many cancellations are due to the financial strain of timeshare obligations. Properties' maintenance and special assessment fees regularly increase, causing financial distress for many timeshare owners.
• Family Arrangements: Timeshares often get purchased for family trips. However, family situations frequently change. Whether it's a move, a divorce, or a family member passing away, a change in a family can make timeshare ownership less ideal.
• Traveling Restrictions: Timeshares are typically perpetual, meaning they are life-long agreements. Well, eventually, people tend to stop traveling. At this point, a timeshare becomes burdensome.
• Limited Timeshare Scheduling: A common complaint from timeshare owners is the lack of availability at resorts. Nobody wants to deal with scheduling restrictions after paying tens of thousands of dollars for their property.
• Deceptive Sales Tactics: Many timeshare buyers claim salespeople misled them when purchasing their timeshare. The timeshare industry has become notorious for its deceptive sales tactics.

Final Thoughts

How much does it cost to cancel an unwanted timeshare? It’s tough to say. Still, there’s a lot of time and money to be saved through a cancellation. The best way to cancel is through a trustworthy timeshare exit business with a history of successful cancellations.

Wesley Financial Group, LLC is an excellent example of the timeshare exit industry. They’ve been terminating timeshare agreements for over ten years. Reach out to their cancellation experts today to learn more! 

Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes and not intended to substitute for professional advice, legal or otherwise.