Getting Out of a Timeshare Can Be Tricky: Legal Pitfalls and Solutions

While some timeshare owners are content with their investment, others feel stuck with something they rarely use. Timeshares can come with annual maintenance fees and hassles, whether you use the property or not.

Unfortunately, it is often difficult to end a timeshare agreement. Before paying the upfront costs and signing a timeshare contract, make sure you understand your legal options.

Many states allow you to back out of a timeshare within a certain period. For legal advice on timeshares, speak with an experienced real estate lawyer.

Understanding Timeshare Programs

Resort vacations are a dream for many. The timeshare industry enables middle-income Americans to take a resort trip every year. You can buy a recurring week each year and have your vacation accommodations taken care of for the future. Some companies partner with exchange programs so owners can trade to visit a different resort.

The vacation ownership idea took off. But with the increase in timeshare sales also came scammers and predatory schemes, including misrepresentation and the lack of an exit option from ever-increasing fees. To understand your rights and exit strategies, make sure you review your contract with an attorney.

Review Your Timeshare Contract To Determine What You Own

First, review your contract to determine what you own. These agreements may have a mortgage on the property, as well as separate obligations to make annual payments (usually as maintenance fees). The timeshare may also have additional fees for exchange membership.

Increasingly, the industry has moved away from selling deeded estate interests in favor of rights of use, such as “points-based” or “vacation club” designations. A right-to-use timeshare is a contract for fees that provides no ownership or equity interest. Typically, right-to-use licenses are for a term of years and will eventually expire. Either way, timeshare developers are very unlikely to allow you to simply quit an unwanted timeshare.

Timeshare companies make it very difficult to cancel, says Fort Lauderdale consumer law attorney Brendan Sweeney. “Consumers get preyed on. People are in vacation mode when they enter these contracts and don’t take the time to read the details. The salespeople count on that.”

You may have options to terminate the timeshare agreement. Options to explore include:

Option 1: Sell the Timeshare

The timeshare resale market is not robust, but it exists. Don’t anticipate getting back what you paid in upfront payments for timeshare ownership. However, if your goal is simply to be out from under the ongoing obligation, selling is the best option.

Yearly fees will add up over time to more than you paid in the timeshare purchase in the first place, and can make selling cheap still a good deal. If you do decide to sell, here are a few important factors to keep in mind:

Beware Soliciting Third Parties

Do not sell through any third party who solicits your business and/or asks for payment in any amount prior to selling your property. These are scams.

“Resellers are almost all boiler rooms,” Sweeney says, referring to operations utilizing high-pressure, deceptive sales tactics. “I know of one operation that I traced to an auto body shop in Orlando.”

Ask the Timeshare Company About a Buyback

Start by approaching the resort or timeshare company to see if they want to buy back the property from you. There may even be a right of first refusal in your purchase contract, meaning that they get first dibs on buying.

Don’t Sign Over Your Interest Until Approval

Don’t sign over any deeded interest until you’re sure the transaction is approved and processed with the timeshare agency. Include language from your state statutes regarding timeshare resale.

Consider a Deed-back

If the timeshare company won’t buy it, Sweeney recommends a deed in lieu of foreclosure or deed-back. In a deed-back deal, you negotiate with the timeshare company to simply return the property to them. Contact the timeshare about their deed-back program.

He cautions that the agreement must comply with certain rules and require the company’s consent, and strongly advises working with a lawyer. “They’re not openly giving these negotiated resolutions, but this is the way to get out.”

Option 2: Rent Your Timeshare

If you need to recoup the expense of the annual fees, you may want to simply rent out your week. Check your contract for possible restrictions on transfers, including limits on what you can charge.

Option 3: Cancel, Terminate, or Void the Timeshare Contract

You may be able to get out based on principles of contract law. Many states have a cooling-off period during which a party can rescind the contract. The time limit varies by state and jurisdiction. Some states count calendar days, while others count business days.

For example, in Florida, you have 10 days from the date you receive the signed purchase documents to cancel your timeshare and have your money refunded.

State-by-State Timeshare Rescission Periods

The following table lists timeshare rescission periods by state. However, there are specific requirements for sending a timeshare cancellation letter. Check your state laws and consult a lawyer to understand your rights to cancel where you live.

State	Rescission Period	State Statute
Alabama	5 calendar days	Ala. Code § 34-27-53
Alaska	15 calendar days	Alaska Stat. § 34.08.580
Arizona	10 calendar days	Ariz. Rev. Stat. § 32-2197.03
Arkansas	5 calendar days	Ark. Code § 18-14-409
California	7 calendar days	Cal. Bus. & Prof. Code § 11238
Colorado	5 calendar days	Colo. Rev. Stat. § 6-1-703
Connecticut	5 calendar days	Conn. Gen. Stat. § 42-103cc
Delaware	5 business days	Del. Code tit. 6, § 2824
Florida	10 calendar days	Fla. Stat. § 721.10
Georgia	7 days (excl. Sundays and holidays)	O.C.G.A. § 44-3-172
Hawaii	7 calendar days	Haw. Rev. Stat. § 514E-8
Idaho	5 calendar days	Idaho Code § 55-1804
Illinois	5 calendar days	765 ILCS 101/10-25
Indiana	72 hours (excl. Sundays and holidays)	Ind. Code § 32-32-3-7
Iowa	5 business days	Iowa Code § 557A.14
Kansas	3 business days	Kan. Stat. § 50-640
Kentucky	3 business days	Ky. Rev. Stat. § 367.397
Louisiana	7 calendar days	La. Rev. Stat. § 9:1131.10
Maine	10 calendar days	Me. Rev. Stat. tit. 33, § 592
Maryland	10 calendar days	Md. Code, Real Prop. § 11A-114
Massachusetts	3 business days	Mass. Gen. Laws ch. 183B, § 38
Michigan	9 business days	Mich. Comp. Laws § 559.184
Minnesota	5 business days	Minn. Stat. § 82A.11
Mississippi	7 calendar days	30 Miss. Code. R. 1601-8.7
Missouri	5 calendar days	Mo. Rev. Stat. § 407.620
Montana	3 calendar days*	Mont. Code § 30-14-504
Nebraska	3 business days	Neb. Rev. Stat. § 76-1716
Nevada	5 calendar days	Nev. Rev. Stat. § 119A.410
New Hampshire	5 calendar days	N.H. Rev. Stat. § 356-B:50
New Jersey	7 calendar days	N.J. Stat. § 45:15-16.67
New Mexico	7 calendar days	N.M. Stat. § 47-11-5
New York	7 business days	13 NYCRR 24.3
North Carolina	5 calendar days	N.C. Gen. Stat. § 93A-45
North Dakota	No state law	No statute
Ohio	3 business days*	Ohio Rev. Code § 1345.22
Oklahoma	5 calendar days	Okla. Stat. tit. 71, § 643
Oregon	5 calendar days	Or. Rev. Stat. § 94.836
Pennsylvania	5 calendar days	63 Pa. Stat. § 455.609
Rhode Island	5 business days	R.I. Gen. Laws § 34-41-4.06
South Carolina	5 calendar days	S.C. Code § 27-32-40
South Dakota	7 calendar days	S.D. Admin. Rules 20:69:12:21
Tennessee	10 or 15 days	Tenn. Code § 66-32-114
Texas	6 calendar days	Tex. Prop. Code § 221.041
Utah	5 calendar days	Utah Code § 57-19-12
Vermont	3 business days*	Vt. Stat. tit. 9, § 2454
Virginia	7 calendar days	Va. Code § 55.1-2221
Washington	7 calendar days	Wash. Rev. Code § 64.36.150
Washington, D.C.	15 calendar days	D.C. Code § 42-1904.02
West Virginia	10 calendar days	W. Va. Code § 36-9-5
Wisconsin	5 business days	Wis. Stat. § 707.47
Wyoming	3 business days*	Wyo. Stat. § 40-12-104

*Applies to home solicitation sales, which may include timeshare presentations

Terminating for Misrepresentations or Undue Pressure

Beyond this, you may still be able to terminate the agreement for misrepresentations or undue pressure exerted on you during the sales process. For example, you may have been told that the timeshare:

• Would appreciate in value
• Was easily sellable (including back to the company)
• Could be easily traded for other locations with no additional expense
• The timeshare company would rent the timeshare for you if you didn’t want to use it

Sweeney recommends reviewing your contract with an attorney to identify any violations or misrepresentations.

Option 4: File a Complaint

There are several administrative and government agencies responsible for protecting consumers. The more these agencies are aware of widespread problems, the more likely they are to take corrective action.

Agencies include the Better Business Bureau (BBB), the state attorney general, and the Consumer Financial Protection Bureau. In addition, you can make a fuss with local news media, which could encourage a timeshare company that wants to avoid negative publicity to settle with you.

Option 5: Stop Paying

Another option is to simply stop paying fees and allow the matter to go into collection or foreclosure. This will have serious implications for your credit score and should only be undertaken as a last resort. Even if you’re contemplating default, contact the timeshare company first and seek a financial hardship resolution. 

Timeshare law is not well-known and can be difficult to manage on your own. Timeshare companies often have their own legal team. Having knowledgeable representation on your side can help level the field.

Find an Experienced Lawyer

Ultimately, Sweeney says purchasing a timeshare is a “serious agreement, with serious repercussions, like buying a house,” and recommends bringing in a lawyer as early in the process as possible. Contact a local real estate lawyer for help with getting out of a timeshare.