The average cost of a timeshare is $22,942 per interval, according to data from the American Resort Development Association.
Owning a timeshare can be a good decision. After all, we all use and love a beautiful cabin in the wilderness. Many of these businesses even have a turnkey revenue system that allows you to operate the business.
Yet, no matter how bad your financial arrangement may be, there is a timeshare cancellation process.
So, timeshare ownership can become much like a debt mill. If you aren’t careful with which company you do business with and the terms of your contract, it can strangle your finances.
Read on to discover how to cancel your timeshare.
What Is Timeshare and How Does It Work?
A vacation property with a shared ownership model is a timeshare. In an average timeshare, you split the cost of the property with other buyers in exchange for a set amount of year access to the property.
Timeshares are also smaller accommodations located on a more considerable resort property.
1. Know Your Contract
Suppose you find yourself in a position where you need to cancel your timeshare contract. There are a few steps you can take to make the process as smooth as possible.
Gather All Documents
The first step is gathering all relevant documents when you have decided that you do want to cancel timeshares. It includes your contract, registration documents, and anything else that specifies your ownership.
Once you have these documents, you need to read through them and determine the best way to proceed with the cancellation. Some contracts have a specific process that must be followed, while others are more flexible.
If you are unsure of what your agreement requires, you can always consult with an attorney.
Read the Contract
You’ll need to check your contract to see if there’s a cancellation clause. If there is, make sure you follow the steps laid out in the agreement.
You can negotiate a cancellation with the timeshare company if there’s no cancellation clause. You can file a complaint with the FTC or your state attorney general’s office if that doesn’t work.
Pay a Cancellation Fee
Be prepared to provide proof that you have paid any outstanding fees or balances. If you have purchased a timeshare through a resale company, you need to contact them to cancel the contract.
To prevent any penalties, you must adhere to the procedures outlined in your agreement.
2. Check For a Right of Rescission
To cancel a timeshare contract, the next step is to check if there is a right of rescission. It is a legal right that allows consumers to cancel specific contracts within a designated period after signing.
If there is a right of rescission, the next step is to send a notice of rescission to the timeshare company. This notice must be in writing and received by the company within the rescission period.
The final step is to follow up with the company to ensure the contract has been canceled.
3. Notice of Cancellation
Timeshare cancellation can be a tricky process. You can take a few steps to make it as smooth as possible.
Give Notice of Cancellation
First, give notice of cancellation to your timeshare company. It can be done in writing, by email, or over the phone. Be sure to include your name, address, and contact information.
Contact Your Timeshare Resort
If you need to cancel your timeshare for any reason, you will need to provide them with your contact information and the reason for your cancellation.
They will then provide you with a cancellation form you must complete and sign. Once the form is complete, you must send it back to the resort. The resort will confirm your cancellation and send you a final statement.
Cancel Any Automatic Payments
It may mean contacting your bank or the timeshare company. Once you have followed all the necessary steps, should cancel your timeshare.
Keep a Copy of Your Cancellation Notification
It is essential to keep a copy of your timeshare cancellation notice for your records. It proves that you have taken the proper steps to cancel your timeshare contract.
Without this documentation, you may have difficulty proving to a potential buyer that the property is free and clear of any obligations.
4. Review the Cancellation Policy of Your Timeshare
When you have finally decided to cancel your timeshare, a few steps are involved in the process.
First, you will need to review the cancellation policy of your timeshare company so that you are aware of any fees or penalties associated with canceling your contract.
Most timeshare companies require that you give them written notice of your intent to cancel, and they may also need you to attend a meeting or seminar to discuss your decision.
Once you have provided the required notice and information to your timeshare company, they will cancel your contract and release you from your financial obligations.
5. Hire an Attorney
If you’re considering a canceling timeshare contract, you should know a few things.
First, you’ll need to hire an experienced attorney to help you navigate the process and protect your rights. You’ll need to attend a mandatory hearing, which will hold within 30 days of your notice.
After the hearing, the court will issue a final decision, which may or may not cancel your contract.
Process Your Timeshare Cancellation Today
If you’re ready for a timeshare cancellation, make sure to follow the steps above. Know your contract. You need to gather all documents and read them if there is a cancellation fee or penalties.
Also, notify the timeshare company. Let them know by sending or writing a letter. You also need to state why you would like to cancel the timeshare.
You can also choose to hire an attorney. Don’t forget that you’re not alone – some resources and professionals can help you cancel my timeshare contract.
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