The world's greatest travel destinations are full of timeshare salesmen and resorts that are eager to sell you a costly vacation experience. Tempting incentive offers lure unsuspecting people into vacation ownership tours that evolve into pressuring sales pitches. Customers make quick purchases that are often regretted. Depending upon your circumstances, you may be able to cancel your timeshare.
Many countries mandate a rescission period in which consumers can cancel a timeshare contract without penalties or financial obligation. This can be for any reason at all, and can easily be done by sending an official letter or making a phone call to end the contract. Because phone calls are not easily documented, sending a certified letter is recommended, along with proof of receipt.
The rescission period, or cooling off period, is a short window of time, usually around five days. Timeshare salespeople may not tell you about the rescission period, or even put it into the contract as an option. However, it is a mandatory option in both the U.S. and Mexico, whether or not you are notified during the sales presentation. Each U.S. state governs its own laws on the rescission period time frame, while Mexico requires a minimum of five days to review.
If the rescission period has passed, some timeshare owners can benefit from checking their contracts for fraud. Buyers can be misled in timeshare presentations with empty promises and false benefits. Though it can be expensive, some timeshare owners choose to sue their timeshare companies for fraudulent contracts. If a court determines that the seller used misleading statements, it will likely void the contract, and enforce a refund of the purchase price to the buyer.
If a timeshare contract cannot be canceled, you may be able to sell it through a resale company. According to the Federal Trade Commission, many of these listing companies can have poor business practices, so check with the Better Business Bureau first.
Markup on timeshares is large when purchased directly from a resort. Sellers should not expect to recover all of their original costs in a sale. You may be able to retain more of your costs if you sell a timeshare on eBay or Craigslist without the aid of a listing company.
If a timeshare is on the market for a long period of time, or its value is less than 20 percent of its original cost, owners may decide to donate it to a charity in exchange for a tax deduction. Owners are able to rid themselves of unwanted membership fees and make a charitable donation at the same time.
