The timeshare industry is well known for using aggressive and sometimes deceptive sales tactics. It’s not uncommon for someone to attend a sales presentation simply to get a freebie, then end up buying a timeshare.
If you’ve bought a timeshare and regret it, you might be able to cancel the deal. But you’ll have to move quickly and follow the right procedures.
How Timeshares Work
The two main kinds of timeshare interests are “deeded” and “right to use.”
- Deeded timeshares. With a deeded timeshare, you actually own a percentage of the timeshare unit, along with other people who purchased interests in that unit.
- Right-to-use timeshares. If you buy a right-to-use timeshare interest, you purchase the right to use the property.
Deeded and right-to-use timeshares are sometimes points-based. You can use the points to stay at various associated resorts. This type of arrangement is often called a “vacation club” or “vacation membership.”
How to Get Out of a Timeshare Deal
Because timeshares involve high-pressure sales and are so complicated, just about all states—and some foreign countries—have laws that allow people who have recently bought one to cancel their purchase.
How Long Do You Get to Cancel a Timeshare Contract?
A timeshare buyer usually gets three to fifteen days, depending on state law, to back out of the deal. The cancellation period usually starts when the buyer signs a purchase contract or receives certain legal disclosures.
Your contract should clearly state the number of days you have to rescind (cancel) the contract. If it doesn’t, or if you think the contract is wrong, look up your state’s law on timeshare contracts or talk to an attorney.
How to Cancel a Timeshare Contract
Often, a timeshare buyer has to cancel the transaction in writing. Even if the law says you can orally cancel a timeshare contract, it’s a good idea to prepare and send the seller a cancellation letter. Without written evidence, the seller could say you didn’t cancel by the deadline or didn’t cancel at all, and you could have trouble proving you legally voided the timeshare agreement.
Preparing a cancellation letter. Sometimes, timeshare laws don’t provide details about what should go in the letter. Generally, though, it’s a good idea to include the following information:
- the current date
- your full name as shown in the timeshare contract
- your home address, telephone number, and email address
- the name of the timeshare seller
- a detailed description of the timeshare you bought, including your legal interest (you can use the description in the paperwork you received)
- the date you bought the timeshare, and
- a clear statement that you are canceling the contract.
Delivering a cancellation letter. Generally, under state law, a timeshare buyer has to send a cancellation letter to the seller by registered or certified mail, or personally deliver the letter to the seller. Whichever method state law requires, you should follow the instructions exactly and be sure to cancel before the deadline passes. Otherwise, the cancellation won’t be valid.
If you buy a timeshare in another county, that country’s laws (or perhaps the law of the state, province, etc.) will say whether you get a cancellation period and, if so, how to deliver a cancellation notice.
Getting Help
Again, if you’ve bought a timeshare, the purchase contract you signed should tell you how many days you have to cancel and the process for delivering a cancellation letter. To verify how much time you have to get out of a timeshare deal and the procedures to follow, consider talking to a real estate attorney or timeshare attorney in the state where the timeshare is located.
If you've purchased a timeshare abroad and want to learn about your cancellation rights, consult an attorney or a consumer protection agency in that country.
Keep in mind that the amount of time you get to cancel is probably quite short if you get that right. So, it's best to get information about your specific rights as soon as possible.