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Timeshare Agreement Loopholes

No matter how much resort brokers downplay the significance, buying a timeshare comes with immense financial obligations. Often, a purchase like this carries substantial risk with little reward. Hence, the all too common feeling of "buyer's remorse" for timeshare owners.

A study by the University of Central Florida (UCF) concluded that 85% of consumers in the industry regret their purchase. From the lofty maintenance fees and mortgage payments to the abundance of misinformation in timeshare sales pitches, it's no wonder so many timeshare buyers are dissatisfied. Owners curious about potential timeshare loopholes to get out of their agreement will find this article of the utmost importance.  

Why Is It Difficult To Get Out of a Timeshare Agreement?

Simply put, the timeshare resorts make it so. Almost every owner would be out after the first year if it were easy. Resorts do not want to see their clients walk away, so they do whatever it takes to ensure that doesn't happen. Following are a few examples of why getting out of a timeshare agreement can be problematic:

  • Misinformation and Lies Are Routine: The average timeshare vendor is not honest. Much of what is promised in a timeshare presentation, such as an easy exit plan, never come to fruition. 
  • Timeshares Are a Lifetime Agreement with Annual Maintenance Fees: More times than not, a timeshare agreement is written in perpetuity, meaning it lasts indefinitely. Not only that, but there are also annual maintenance fees. Permanent financial obligations make it difficult to walk away from.
  • Entrapping Clients in Perpetuity Profits the Timeshare Industry: As long as resorts can keep clients entrapped, they charge annual fees at full profit. 

Common Loopholes Out of Timeshare Ownership

A misconception about timeshares is that they're impossible to get rid of. While timeshare developers go to extreme lengths to enforce their client's sales agreement, there is sometimes an escape clause. Below is a list of common loopholes to back out of a timeshare purchase agreement:

Use the Rescission Period

The best way out of a timeshare is to rescind the purchase. Alas, it's not always the easiest. The rescission period, also known as the "cooling-off" period, is the only time in which timeshare owners can cancel and receive a full refund. However, as with everything, the rescission periods have a limited grace period. More times than not, buyers miss the opportunity. Each state has different laws and regulations, but the standard is a 1-2 week rescission period at most.

Rescinding a timeshare typically entails writing a rescission letter and delivering it to the original sellers. Learn more about the process of writing a timeshare cancellation letter.

Ask the Resort to Take It Back

When the chance of rescission slips away, the next best option is to ask the resort developer to consider accepting the property back. Some timeshare companies are open to providing a deed-back program. Albeit, this is limited to deed-back clauses. Nevertheless, it's worth inquiring about before looking at other solutions.

Be cautious when interacting with timeshare representatives, as they may attempt to upsell you on property upgrades instead. An upgrade may sound like an easy fix but seldom do they work out in the owner's favor. 

Transfer to Family or Friends

If the resort will not take the timeshare back, maybe a friend or family member would be interested in owning it? To make for a smooth and effortless process, be upfront about the transfer closing costs and annual maintenance fees. Just because timeshare ownership wasn't appropriate for you doesn't mean your family or friends can't enjoy it.

Donate to a Charity

Too often, timeshare agreements are designed to entrap owners indefinitely. That is why some owners give their timeshare property away. That includes offering it to a timeshare donation company or charity. Donating a timeshare may not recoup your losses, but it makes a positive change. Compared to the next timeshare exit strategy, this route can prevent a long and complicated process.

List in the Timeshare Resale Market

The most typical exit strategy is reselling. Owners with deeded agreements often have the right to list their timeshare for sale in the secondary market. To resale, there needs to be a willing buyer and a closing company to authenticate the transaction. When venturing into the resale market for timeshares, owners can enlist a real estate agent, real estate brokers, or go through an online marketplace. 

Competitively pricing a timeshare can help recoup expenses but is not guaranteed. Use caution when browsing timeshare resale sites, as many claim to be resellers only to swindle the upfront payment. Refer to the Timeshare Users Group (TUG), the largest advocacy organization to find reputable resale companies.

Rent It to Cover Expenses

Just because you no longer want to be a timeshare owner does not mean you have to get rid of the property. Developers who do not offer a deed-back program often recommend renting out the units during the allotted time. By doing so, profits can go toward the property's annual expenses. However, timeshare expenses increase, so a rental plan may be a temporary fix.

Hire a Timeshare Exit Company

For years, timeshare resorts have put innocent people in uncompromised financial predicaments. To combat this, the timeshare exit industry emerged. Resorts make it challenging to escape purchase agreements, so timeshare exit teams specialize in terminating these biased deals for the victims. Outsourcing a timeshare exit program has proven to be the best option for owners. Timeshare cancellation companies have already helped thousands of families relieve unnecessary burdens. You may be eligible for a timeshare exit company even with no other loopholes.

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Escaping a Timeshare Without Scams

Avoiding potential timeshare fraud is critical. Like the resale companies, there are timeshare exit scams taking further advantage. These are the three features for finding legitimate timeshare exit companies:

  • A Staff With Industry Experts
  • Offers a Money-Back Guarantee
  • Demonstrates Proven Success With Reviews From Past Clients

Work with a cancellation company that meets the qualities outlined above. 

Wesley Financial Group, LLC*

Wesley Financial Group, LLC* (WFG) is an excellent example of a reputable exit company. As a pioneer of the timeshare cancellation industry, WFG’s track record speaks for itself and surpasses the qualifications outlined above. With more than a decade of experience, they have canceled 16,000 timeshares and counting. If you experienced deceptive sales tactics with your timeshare purchase and are looking for a way out, it may be worthwhile to contact WFG. Their timeshare termination services may help you reach financial freedom. 

*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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