If you have signed a timeshare contract and find yourself changing your mind, you can cancel the said contract if you act immediately. You can exit timeshare, but time is important in the rescission of a contract, so make sure to follow the correct procedure.
When buying a timeshare, what you’re getting is an interest in a piece of real estate, usually a resort condominium. Sellers are known for their hard-sell method. They approach people in public and offer them some freebie, provided they attend a short presentation. The presentation is not short and usually attendees leave the presentation as timeshare owners. They sign the contract without reading the fine print. A lot of them do not know that aside from the purchase price, they have to pay annual fees, taxes and other assessments. After giving it considerable thought, a lot of these buyers change their mind. If they act quickly, they can still exit timeshare.
How to Cancel Your Contract
- Cancel within the cancellation period – The contract should have a rescission period. This is the time the buyer can change his mind and rescind the contract. If the contract doesn’t have a rescission period, contact the consumer protection office.
- Cancel in writing – Cancel the contract in writing even if you are told that doing so is not required. It is for your protection that everything is in black and white. Make sure the following is clear in your cancellation letter:
- Your name should be how it appears in the contract.
- Indicate your complete address, telephone number and email address.
- Indicate the name of the timeshare company.
- Write a description of the timeshare. Make sure it is the same with how it was described in the contract.
- Indicate the date you bought the timeshare.
- A clear statement that you are rescinding the contract. Example: I am putting in writing my intention to cancel this timeshare contract. This letter is signed and submitted within the rescission period indicated in the said contract
- Delivery of the cancellation letter – The contract should have a clear procedure on how to deliver the cancellation letter. They may require that you hand-deliver the letter or have it sent by registered mail. Be sure to follow the instruction clearly and deliver the letter within the rescission period or your cancellation may be invalid.
Post Rescission Period
There may be instances when you might be able to cancel your timeshare contract when the rescission period has lapsed. However, this usually entails a lawsuit against the timeshare company. You will need a real estate attorney for advice and assistance.