How To Get Out of a Timeshare Legally

Written by: Chuck McDowell Updated: Apr 05, 2024 Published: Feb 22, 2022 9 minute read

Are you stuck in a timeshare you can no longer afford or never wanted in the first place? If so, you are not alone - many people find themselves in similar situations. Fortunately, there are steps you may be able to take on how to get out of a timeshare legally and without facing costly consequences. This article will cover what options you may have to get out of your timeshare agreement.

What Is a Timeshare

A timeshare (vacation ownership) is a property with fractional ownership shared between multiple parties (timeshare owners). Each owner has the right to use the property for a specific period each year. Timeshares are typically located in popular vacation destinations like beaches or ski resorts. A professional property management company often manages timeshare properties. The management company is responsible for maintaining the property, collecting fees from the owners, and managing the reservations for each unit.

Why Do People Want to Cancel Their Timeshare?

According to a study conducted by Wesley Financial Group, LLC, 71% of timeshare owners feel they were misled during their timeshare purchase. Nearly 100% of the survey respondents picked one of 5 lies that occurred during the timeshare sales meeting:

1. Length of timeshare presentation (17%)

2. How easy would it be to cancel the timeshare agreement (20%)

3. The investment value of the timeshare (22%)

4. How easy would it be to book their timeshare (20%)

5. They were told maintenance fees wouldn't increase (20%)

There are 9.9 million timeshare owners in the U.S. Of the estimated 8.4 million people who regret buying a timeshare, the common sentiment is disappointment with their purchase, citing money, fear, confusion, intimidation, and distrust as the reasons for their displeasure. Despite these numbers, the timeshare industry remains one of the most successful vacation providers in the U.S.

What Are the Four Elements of a Timeshare Agreement?

The four elements of a timeshare agreement are the description of your timeshare, obligations and default notices, forum/venue clauses, and cancellation/rescission clauses. Before canceling your vacation membership, you should understand the terms and conditions of your timeshare purchase.

Timeshare Description

There are three types of timeshares offered in today's market. A deeded timeshare, also known as a fixed-week timeshare. A flexible week timeshare. Or, a vacation club membership (points-based) that, in theory, allows you to reserve time at various timeshare resorts. Each of these options offers a range of flexibility with your vacation. Before canceling your timeshare, know which one you own is best.


In the obligation sections, the resort explains your payment requirements. These include monthly mortgage payments, annual maintenance fees, HOA payments, special assessment payments, and even fees that can be incurred from renting out or reselling your timeshare. 

Obligations and default notices, along with the forum/venue clauses, are where many pitfalls occur. Although maintenance and special assessment fees are not scams, per se, they are clauses and contractually binding agreements that lean heavily in favor of the timeshare exchange. You must pay the fees, or you may suffer the consequences of foreclosure.

Venue Clauses

A venue or forum clause (may be written as a "choice of law" or "venue selection clause") protects the timeshare resort from having legal action taken against them outside of a single court. Worst-case scenario, the venue clause may even declare that you cannot take legal action outside of the state in which the resort resides.

Cancellation and Rescission Laws​

A rescission or cancellation clause states that you may cancel your timeshare within a few days of purchase. In most cases, it's between 5 and 15 days, but it varies from state to state. A timeshare company will typically require you to write a cancellation (rescission) letter to cancel your timeshare.

Any cancellation letter you send must comply with the terms of the agreement and relevant laws. If it doesn't, there's a good chance your letter won't be successful, leaving you in a difficult situation.

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Tips for Negotiating with a Timeshare Company to Cancel Your Agreement

Although your options are slim post-rescission, there are a few ways to negotiate relief with your resort. You can seek point consolidation if you own a points-based timeshare. Or, see if your timeshare company rewards mortgage fulfillment and offers a deed-back program. If these options fail, you may be able to negotiate to pay off your timeshare early. However, don't be discouraged if you cannot agree.

How Much Does it Cost to Cancel a Timeshare?

On average, the cost to cancel a timeshare is around a few thousand dollars. The cost of a timeshare greatly depends on the resort, the owner's debt, the length of timeshare ownership, and the terms of the original timeshare agreement.

Legitimate Options for Cancelling a Timeshare

Many options exist for a timeshare cancellation. The process is detailed below:

Timeshare Cancellation Process

The process for canceling a timeshare occurs in 3 stages.

  • Rescission Period
  • Write Timeshare Cancellation Letter
  • Confirmation from Timeshare Company

Rescind the Purchase

After your timeshare purchase, you have a brief rescission period, also known as a "cooling-off" period. You have the legal right to cancel your purchase and receive a full refund in return during this time. 

For a successful cancellation, you must declare and deliver your intent to the original seller within this specified time. Once the rescission deadline passes, your chances at an easy cancellation with a full refund are likely over.

Next, knowing relevant state laws regarding your right to rescission is also critical. Each state has different mandates, but most only allow five to fifteen days for timeshare buyers to rescind the purchase. That is little time for those on or returning from their vacations. Still, it would be best if you acted within this time window.

Write a Cancellation Letter

The rescission process usually calls for a cancellation letter to the original resort company that made the sale. When writing a timeshare cancellation letter (detailed guide), it's imperative to follow all instructions outlined in your agreement, get straight to the point of cancellation, and request a confirmation response.

If you require a cancellation letter, be sure to include the following:

  • The Names on the Signed Agreement
  • The Name of the Timeshare Developer
  • Today's Date
  • The Purchase Date
  • The Agreement Paperwork Number
  • The Amount of the Original Purchase Price
  • A Statement Declaring Your Cancellation
  • Your Contact Information: Mailing Address, Phone Number, & Email

Rescission Letter Template:

Here is a sample template for a rescission letter:


Date: _______________

To: _______________

Subject: Notice of Rescission

Dear _______________,

I am writing to formally notify you of my intention to rescind the agreement between _______________ and _______________, dated _______________.

According to the terms of the agreement, I have the right to cancel the agreement within _______________ days of its execution. I am exercising this right and hereby provide notice of my intention to cancel the agreement.

Please confirm that you have received this notice and that the agreement has been terminated. I expect to receive a full refund of any payments made under the agreement within _______________ days of the date of this letter.

Thank you for your prompt attention to this matter. If you have any questions or concerns, please do not hesitate to contact me.


[Your name]


Ensure Timeshare Company Receives the Cancellation Letter

Just as important as the instructions are when writing your cancellation letter, the delivery instructions are equally significant. Resorts are sticklers with rescission periods, so you must ensure your letter arrives before the deadline. Send it via registered or certified mail to get notified of the delivery. Remember, the timeshare company may let your letter slip through the cracks if you can not prove it was delivered.

Timeshare Cancellation Impact on Credit Score

If you can no longer make payments on your timeshare and you negotiate with the resort, you may experience a deed-in-lieu contract rather than a foreclosure. Either cancellation can significantly impact your credit - especially if you have unpaid maintenance or special assessment fees. 

Outstanding payments can prevent you from transferring your timeshare to a reseller, back to the resort, or even to a charity or family member. That can lead to the resort taking legal action to settle debts, affecting your credit score.

Alternative Options to Travel Club Cancellation: 5 Strategies

Attempt To Give Your Timeshare Back To The Resort

The first thing to do when trying to give back your timeshare to the resort is to check your agreement to see if your resort offers a deed-back program. Giving your deed back to the resort allows the resort to reclaim and resell the property to someone else. If you're looking for a low-priced way to get rid of your timeshare, a deed back is your best bet.

When negotiating with timeshare representatives, be sure to do so with caution. Often, owners seek help, and the resort tries to upsell them on an upgrade that will supposedly resolve all of their issues. Rarely do timeshare upgrades ever make an owner's life easier.

Sell Your Timeshare

Selling your timeshare is complex, and your timeshare agreement may even have a clause like "the right of first refusal" (ROFR), which allows the timeshare developer to buy the timeshare before you can sell it to anyone else. If you missed the rescission period and the resort will not take it back, you may have to do the heavy lifting yourself. One option that timeshare companies recommend is selling your timeshare. However, they fail to mention how complicated reselling them can be.

How To Prepare Your Timeshare For Sale

First, you need to find out whether reselling your timeshare is an option. What are the deciding criteria? It typically comes down to whether or not you are still paying off your timeshare mortgage loan payment. You will not be eligible for the resale market until you repay the loan.

Once you are ready to step foot into the timeshare resale market, be aware that your property is probably not worth much. To better understand your timeshare's listing price, speak with a real estate agent or look up comparable selling values online. However, unfortunately, thousands of owners are looking to get rid of their timeshare. The result is a flooded secondary market with no buyers. So, it’s unwise to expect to profit off of your timeshare resale.

By selling your timeshare, it's nearly impossible to make back what you originally paid. However, it can finally end future expenses, such as those dreadful maintenance fees. Unfortunately, for many, that's more than enough.

Rent Out Your Timeshare

An alternative option timeshare companies give clients is to rent their units out to others for a profit. Timeshare salespeople claim you will make enough money to cover your mortgage costs and other timeshare fees by renting it out. The truth is that while renting it out can help to lighten financial hardship, it is often minimal help. If you want to keep your timeshare ownership but need help covering the expenses, listing it for rent may help.

Donate Your Timeshare

Many timeshare owners struggle to resell or rent out their timeshare week and instead consider donating their property's proceeds to a charitable organization. Interested timeshare owners will need to research the exact requirements for donating their timeshares, as not all charities will accept them as donations. Some charitable organizations will accept timeshare donations and use the proceeds to fund their charitable causes, often helping less fortunate individuals and families.

Use A Timeshare Cancellation Company

Unfortunately, the timeshare exit strategies listed thus far are not too promising. Rescinding your timeshare or giving it back to the resort will only work under certain circumstances. Selling and renting out your timeshare often delivers disappointing results.

The growing number of unhappy timeshare owners is why we now have this cancellation industry. Timeshare exit services have recently become a hot commodity because they have worked for many people.

So, what is a timeshare exit company? It's a team of timeshare experts who develop exit strategies for their customers. Their solutions are customized to meet the unique needs of each customer.

Timeshare Fraud Prevention

Avoiding timeshare fraud can be difficult, yet, there are a few tips you can use to avoid getting scammed:

  1. Ask questions (i.e., "why is today the only day your deal is being offered?")
  2. Research the timeshare company.
  3. Don't make decisions while under pressure.
  4. Ask about the cancellation options before buying.
  5. Read the contract yourself.

Tips to avoid resale fraud:

  1. Check out the company or person offering to sell your timeshare
  2. Ask about the fees associated with their service
  3. Ask if they have licenses to sell a property where your vacation resort is located
  4. Ask how the reseller intends to advertise your property for sale

Alternative Vacation Options

There are many affordable alternatives to timeshare. Some of the most popular include vacation rentals (i.e., Airbnb), vacation membership programs, or traditional hotels or resorts. 

Vacation rentals: the vacation rental industry has exploded with the use of different companies like Airbnb and VRBO. Both of these companies are popular because of their ease of service. You can book a weekend stay within minutes using their mobile apps or online website.

Membership programs: While vacation clubs provide discounted trips, they could also have significant initial buy-in costs and high annual fees that are subject to change. So, be careful when looking into this alternative.

Traditional hotels and resorts: Almost all desirable vacation destinations have some fantastic and affordable resort stays in hotel rooms. Short-term payments are why hotels and resorts are such solid alternatives to timeshare locations.

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How to Get Out of a Timeshare

As you can tell, getting out of a timeshare obligation takes a lot of work. There are very few routes to take toward timeshare freedom, but you must follow one of these strategies to achieve it. Choose which method best suits your needs.

While the timeshare developer may go above and beyond to keep you tied to your agreement, you are now aware that you may be able to cut ties with them for good. You no longer have to endure the unbearable stress of unwanted timeshare ownership.

*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 only and not intended to substitute for professional advice, legal or otherwise.

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