How Do I Cancel a Timeshare Contract?

When people enter into a timeshare contract, they usually dream of having affordable vacations well into the future. But then buyer's remorse sometimes sets in, perhaps as they realize that their purchase was impulsive and that the odds of using the property in question at a time of year that works are slim.

Fortunately, you might be able to cancel the timeshare contract if you act quickly. Because time is of the essence when rescinding a timeshare purchase, make sure you follow the correct cancellation procedures.

Why Do People Cancel Timeshare Contracts?

When you purchase a timeshare, you might be purchasing an interest in a piece of real estate, often a resort condominium. This type of timeshare is called a "deeded" timeshare. (However, if you buy a right-to-use timeshare interest, you don't get a legal interest in the property.)

Timeshare sellers are notorious for putting the hard sell on potential buyers. It's not unheard of for a vacationer to attend a sales presentation solely to get a free bottle of wine or a round of golf and then walk out as a timeshare owner.

Others sign timeshare contracts with a bit more forethought, only to realize later that the deal is not as good as it originally seemed. For example, many timeshare buyers are unaware of their obligation to pay taxes, fees, and assessments on the property. When adding up the total financial cost, many people change their minds.

Can You Legally Cancel a Timeshare Contract?

Because of the nature of timeshare selling, most states in the U.S. have enacted laws that allow timeshare buyers to cancel contracts if they act quickly. Some other countries, including Mexico, have also passed such laws.

So, if you've entered into a timeshare contract and are having second thoughts, you have the legal right to cancel the contract. But you'll have to act quickly.

How Long Do I Get to Cancel a Timeshare Contract?

Your timeshare contract should clearly state the number of days you have in which to rescind (cancel) the contract. If it doesn't or if you think the contract is wrong, check your state's law on timeshare contracts.

How Can I Cancel a Timeshare Contract?

Usually, you must cancel a timeshare contract in writing. Even if a written letter or document isn't required, it's highly recommended. Include the following information in your cancellation letter:

• your name as it appears on the contract
• your address, phone number(s), and email address
• the name of the timeshare company or association
• a description of the timeshare
• the date you purchased the timeshare, and
• a statement that you are rescinding the contract (for example, "I am contacting you within the rescission period to cancel this timeshare contract).

In most cases, you don't have to list a reason for canceling the timeshare contract.

How Should I Send My Timeshare Cancellation Letter?

Your contract should specify the manner in which you must deliver the cancellation letter. Sometimes you can hand-deliver the cancellation notice and other times you must deliver the letter by registered or certified mail. Be sure to:

• follow the instructions exactly, and
• deliver the letter within the cancellation time period.

If you don't include the correct information or deliver the letter in the manner specified in the contract, your cancellation might not be valid.

How to Cancel After the Cancellation Period Has Expired

In certain states and in limited circumstances, you might be able to cancel your timeshare contract after the rescission period has passed. Usually, however, this will entail bringing a lawsuit against the timeshare company. Contact an attorney for advice.

Getting Help

If you need more information about timeshare laws or how to cancel a timeshare purchase, consider talking to a local consumer protection lawyer.

Be aware that if you buy a deeded timeshare and don't make the payments, you might face a foreclosure. In that case, you'd want to talk to a foreclosure lawyer.