Owning a timeshare can be expensive. The salespeople often do a great job hiding most expenses before purchasing. Yet, there's no denying that the cost of timeshare ownership has led many to consider reselling theirs and exploring the option of a timeshare deed-back program.
According to a 2018 study by the University of Central Florida, roughly 85% of timeshare owners regret purchasing one. Ironically, that aligns perfectly with the average rate of rescission period cancellations in the timeshare industry, which is 15%. Whether owners gradually lose interest in their vacation ownership or feel deceived into the initial purchase, they eventually look to get rid of it.
Can you sell a timeshare? This guide will walk you through the steps you need to take for a timeshare dee-back program. We'll also look at a few alternative selling methods if that doesn't work.
One of the first questions timeshare owners ask when they decide to get rid of their timeshare property is whether they can sell it back to the resort. They can, but the process is tricky. See, timeshare salespeople often use the resale possibility as a selling point to potential buyers. However, this assurance is not always reliable.
Deed-back programs allow you to sell your timeshare interest back to your resort developer. Technically, you don't receive any money in return for a deed back, but it can deliver you some future savings with your mortgage payment and maintenance fee. The first step to deed the property back to the resort is finding out if it is an option.
Although many timeshare companies claim to inform owners regularly of their deed-back program's existence, it is rare for a timeshare resort to go out of its way to promote it. Capital Vacations is one such organization that has a deed-back program they call "Graceful Exit."
On their website, they promote their Graceful Exit program as:
Their site states:
"Capital Vacations should be your only source of guidance and solutions regarding your ownership. If you choose to work with any other third-party company, your options may be limited or nonexistent."
However, owners must meet two requirements to cancel their timeshare with Capital Vacations.
Canceling your timeshare with Vacation Village is possible, sort of. First, contact Vacation Village to see if they will take back your timeshare. However, this is often only an option if you just bought a timeshare, which would then qualify you for a procedure known as rescission.
Rescission laws in most states allow new timeshare owners to return their timeshares to Vacation Village and receive a full refund. Given that this is a matter of state law, Vacation Village is required to accede to your request to cancel your timeshare purchase and must do so without hesitation. The catch is that you can only revoke your timeshare purchase for one to three weeks after you've made it. You'll need to consider other options if you've already passed this window.
RCI is not a timeshare resort. To start, we must define the RCI program. This company has global affiliations with almost 4500 resorts in more than 100 nations. Nearly 4 million people belong to RCI, and they all do so to exchange their timeshare points from one of the affiliated resorts for use at another resort of their choice. Membership in RCI is frequently offered as one of the ownership "perks" at the time of the timeshare purchase by timeshare developers. In addition to the affiliated resort maintenance fee, RCI also charges an annual maintenance fee.
The similarities end at this point. If you want to stop being a member of RCI, you can do so as long as there are no outstanding exchanges. Do not expect any kind of refund if you did not pay for the RCI membership. However, if you did pay for your membership, you might be eligible for a prorated refund.
An entirely different issue arises when the affiliated resort's timeshare contract is terminated. If you own a timeshare but use RCI to spend points, you'll need to discuss cancellation with your home resort first.
There's a high chance your timeshare agreement doesn't have a deed-back clause, or you may not qualify for your resort's buyback program. When that's the case, it's still worth reaching out to resort management to see if any options are available to you.
If they refuse to accept your timeshare return, it's time to consider alternative options.
When the timeshare company declines to assist you, finding reputable help can be daunting. Resorts typically give owners two alternative options. Owners can rent their timeshare to other vacation-goers to cover their annual maintenance fees. Or they can attempt to sell the timeshare on their own or with real estate agents in the secondary market.
The resorts don't tell you how difficult achieving either of these alternatives is. Timeshare owners have consistently found it challenging to rent out their units. Even though the salespeople bragged about how easy renting out the timeshare unit would be, it's much easier said than done. The chances of recouping enough money from renting to cover the annual fees are slim.
Unfortunately, selling your timeshare is no easier. The timeshare resale market overflows with listings due to the always-increasing number of owners looking to offload their timeshare. When maneuvering through the resale market, move with extreme caution. Timeshare resale scams are rampant, and many resellers are not who they say they are.
While you should be wary of timeshare resale companies, timeshare exit companies are often an excellent exit option for a timeshare owner. Exit teams represent you as they negotiate directly with the resort to cancel your timeshare agreement.
Find a well-respected timeshare exit team within the industry with a strong history of timeshare cancellation. Positive recommendations and testimonials from past clients signify a company can be trusted to help you. With a custom strategy from industry professionals, these companies make timeshare exit look easy - even though it often isn't.
You don't want to stop paying for the timeshare, even if you can't transfer the property back to the timeshare developers. You can risk foreclosure and heavily damage your credit score by refusing to pay. Many timeshare owners still try to sell their units independently.
Here are three steps for selling your unit if you go that route:
First, look back at your original timeshare agreement and thoroughly review it. To sell your timeshare, you need all this document's vital information. You will also likely need to receive a physical copy of the deed from the resort developers.
Next, you need to accurately understand how much your timeshare is worth to get realistic resale expectations. Despite what the salespeople told you, your timeshare is not an investment, so do not be surprised that its value does not appreciate. Sadly, a timeshare's value depreciates as soon as you sign on the dotted line.
The last step is to list it for sale. However, there is usually a challenge to selling these properties as they are mortgages. Unfortunately, hundreds of timeshares get listed for proceeds of as little as one dollar. That is because owners desperately want out of their agreement, but hardly anyone is interested in making an offer. Most owners are happy enough to give their timeshare away if it rids them of recurring maintenance fees.
Timeshare scams are also heavily prevalent in the resale market, so beware of those with fraudulent motives. If you are in a situation where you were dishonestly misled into a timeshare purchase, working with a professional timeshare exit company may help.
Selling your timeshare in Florida is a relatively simple process. When considering your Florida timeshare selling options, following our steps is best.
In Florida, it is key to ensure that you follow the protocols of the timeshare resort, your contract, and the state's laws and legislation regarding timeshare sales. Finding the right buyer can be difficult even after following all these steps.
Can you return your timeshare obligation to the resort? Yes, under certain circumstances. However, most people in an unwanted timeshare deal are on their own if they want a way out. Your final solution is selling it to someone else or receiving help from a trusted timeshare cancellation company.
Contact Wesley Financial Group, LLC* to learn about such cancellation services. They have been a leader in the timeshare exit industry for over a decade, with no signs of slowing down.