Looking for a timeshare cancellation service? There are a few things you should know before choosing a company. We’ve been in business since 2000 and have seen just about everything in the timeshare industry at this point. These facts will help you avoid scams and make a better timeshare cancellation decision.
Before we get to those steps below, you will also want to consider selling your timeshare since cancellation services do not provide a financial return for the owner.
Timeshare cancellation means you'll be giving it back, whereas selling it means you get some money for it and also get out of your annual fees. Please contact us through the form on this page for more details or proceed to the information outlined below.
1. Almost every state in the U.S. has something called a rescission or “cancellation” period for timeshare. This is a period of time that consumers have the right to cancel the timeshare purchase they made at the resort and obtain a full refund.
Each state has different rescission periods, but they usually range on average from 3 to 7 days. Usually, information about this recession period will be mentioned somewhere in your resort sales agreement. Perhaps in a tiny font.
It doesn’t matter what company you purchased your timeshare from. It could have been Wyndham, Marriott, Hilton, Hyatt, Disney etc. All new timeshare purchases are eligible for rescission if purchased in a U.S. state where such laws exist.
If you purchased your timeshare in Mexico and live in the U.S., you won’t be eligible for rescission under U.S. law. Mexico does have a five business-day rescission period law of its own though. If eligible, you can expect a full refund within 15 business days.
There are some stories of timeshare owners who have tried to rescind in Mexico and have faced some opposition from the resort. Sometimes the resort may even tell you that rescinding isn’t possible or that you must pay a fee to rescind. This is not true. If this happens to you, we encourage you to contact the Office of the Federal Prosecutor for the Consumer in Mexico known as PROFECO.
If you’ve purchased your timeshare within the last 3 to 7 days and wish to cancel, make sure you follow your state’s instructions closely. For example, to rescind your timeshare contract you will almost always need to mail in a written letter that states your intention to rescind. If you don’t follow the state’s instructions perfectly there is a chance that you’ll be unable to engage in a timeshare cancellation.
2. Watch out for companies that tell you your timeshare isn’t worth anything. It is true that your timeshare has decreased in value if you originally purchased it from a resort, but it likely still has some value. Our handy market analysis tool will show you the average asking price of timeshare resales at your resort.
3. Be aware of schemes that involve transferring your timeshare out of your name into a ‘shell’ company. A ‘shell’ company is usually a bogus LLC set up for the sole purpose of timeshare cancellation. The idea here is to transfer the timeshare ownership to the bogus ‘shell’ company so you are no longer responsible for it. When the resort sends out the maintenance fee bill to the bogus ‘shell’ company, the bill never gets paid and the resort is forced to initiate foreclosure.
The ‘shell’ company doesn’t have any assets or people to sue, so you may be in the clear. However, this isn’t always the case. Sometimes the cancellation company cannot transfer the ownership out of your name even when they’ve told you they have. When this happens you’re out the payment to the cancellation company and you’re still responsible for the maintenance fees of your timeshare.
Instead of paying a timeshare cancellation company thousands of dollars to supposedly ‘cancel’ your timeshare, why not advertise it for sale or rent on BuyaTimeshare.com instead? We’re accredited by all leading timeshare organizations including ARDA, CRTA and AMDETUR and we’ve received over $100 million in offers over the past two years alone. Call 1-800-640-6886 or fill out the contact form on this page to get started.
The first way timeshare cancellation works is through the initial cooling-off period when the timeshare is first purchased from the resort or through the developer. Nearly every state has a timeframe when the timeshare contract can be cancelled, usually within the first 7-10 days following the purchase.
This time period varies by state so you should contact the state in which your timeshare is located to find out. It’s important that you check your original purchase contract to review the process and adhere to the process exactly as it is laid out. You’ll need to provide written notification to the resort or developer so make sure you follow the details precisely.
One point to consider is that often the clock starts on the date the original contract was signed so, for example, if you purchased your timeshare on day two of a seven day vacation and wait until you get home to check the details, you may have already lost five days of your cooling off period.
After you are beyond the initial timeframe for cancelling your timeshare contract, it is really up to the resort as to whether they will consider your request to cancel.
Some companies have emerged in recent years claiming they can cancel your timeshare contract. Otherwise known as timeshare exit companies, they say that for an upfront fee as high as $5,000 they can represent an owner and work with the resort on a cancellation. The reality is that only the resort or developer can authorize a cancellation. Contacting the resort to request a cancellation is something an owner can do themselves without the need to involve a third-party company. Plus, these companies have come under regulatory and legal scrutiny over the years from state regulators and attorneys general.
Some developers have programs in place where they will listen to owners looking to give back their timeshares, so contact your resort to see if they can help. But be aware that some companies have reportedly used this as a way to upsell owners into larger ownership obligations and travel club memberships.
The short answer is yes, timeshares can be cancelled but it isn’t as easy as you may think. Much of it depends on how long you have owned your timeshare and issues such as whether there is a mortgage attached to the timeshare or any unpaid fees.
The simplest way to cancel is by using state law requiring a rescission or cooling-off period for new timeshare purchases. Nearly every state with a timeshare resort has some type of law allowing the buyer to cancel their contract within days of the initial purchase. This can often be within a 7-10 day period but it differs from state to state, so check with the state in which your timeshare is located and check your contract to find out the exact method you need to use in order to request a cancellation.
Different timeshare companies have different policies when it comes to cancellations. Presuming the owner is beyond the initial rescission period, you are basically at the mercy of the developer.
Some developers have programs in place for owners to contact them about their timeshare. These programs are primarily customer service programs and specific criteria must be met such as a mortgage-free ownership and all annual fees must be paid and up to date. Even then there is no guarantee that the resort developer will cancel your timeshare contract. Keep in mind that these programs have sometimes been used to upsell owners into larger ownership commitments or travel club programs.
Remember that you can sell your timeshare as well, so consider this option and at least you can recoup some of your costs. With cancellation programs, there is no compensation for the owner.
Because the timeshare companies do not want to cancel and thereby lose owners and the accompanying annual fees that the owner pays every year.
Resorts and timeshare developers rely on the annual fees paid by owners in order to keep the resorts up and running. Therefore, when they cancel a timeshare contract, they lose that revenue. Their fear is that if enough owners cancel, they may not have enough revenue to keep the resort operational.
The simple way for resorts to counter this is to have onsite sales and rental programs in place so new owners can be brought into the fold. The branded timeshare operations such as Wyndham and Marriott operate this way. If each timeshare resort had a way that new customers could become owners, even if it meant owner referrals to resale companies, it would make it easier to cancel a timeshare if the need arose.
This depends on the timeshare program, the company and the type of ownership. Timeshares are as varied as the color spectrum, ranging from single-site older resorts to multi-destination club programs managed by major hospitality brands. Any decision about cancelling a timeshare is really up to the resort, management company or developer, depending on their policies.
The easiest time to cancel a timeshare is within the initial rescission period following the original purchase from the resort. State law in most states where timeshares are located mandate a time period, often within 7-10 days after the purchase is made. This allows for a “buyer’s remorse” period when the contract can be rescinded, but you’ll need to refer to your sales contract and the state law where your timeshare is located to find out exactly how to cancel.
If your ownership is outside the initial rescission period, you will need to contact the resort or developer directly to see if they have a cancellation program in place. These programs are primarily designed for long-term owners who have owned and used their timeshare over a number of years. Criteria would be used such as whether the timeshare is paid off and maintenance fees are up to date.
Resorts handle owner requests on a case by case basis and many requests would fall within the financial hardship category where owners would need to document hardship just to be considered. There is no guarantee that the request would be approved, but you would need to discuss this directly with your resort.
Some third-party timeshare cancellation companies advertise their services on the internet, claiming they can cancel timeshare contracts. Remember that only the resort or developer can approve such a request, not a third-party company. They charge as much as $5,000 for their services, but owners can just contact their resort and do the same outreach on their own. Many resorts refuse to communicate with these companies and owners have much more clout since they are invested in the resort.
Costs depend on the resort or club program. Most costs come in the form of a transfer fee, processing fee or closing cost charged to the owner looking to cancel. Some resorts charge more than others and resort location can make a difference as well.
U.S. developers have been known to charge amounts such as 2x the cost of the annual maintenance fees in order to take back or deed back a timeshare back to the resort, which is essentially cancelling the ownership through a transfer process.
Mexico timeshare companies have been known to charge transfer fees as large as 5-10 times the annual maintenance fee in order to cancel. In these instances, owners are better off trying to sell their timeshare and at least recoup some of their costs. Otherwise they’ll be paying to give back their timeshare.
