Laws and Rules for Timeshare Rescission



In a timeshare arrangement, the owner of a piece of property sells the right to use the property for a specified number of weeks per year, over a specified number of years. The transaction is similar to any other real estate purchase, in that the buyer signs a contract agreeing to pay the purchase price for the right to use the timeshare interval. Under contract law, getting out of the contract is known as rescission. California state law gives timeshare impulse buyers seven days to change their minds and rescind the contract.

Cooling Off Period

State law recognizes that many buyers feel pressured into making an unwanted timeshare purchase, due to wearing and sometimes aggressive sales pitches. Thus, buyers have the right to walk away from a deal for any reason within seven calendar days of signing the purchase contract or receiving the timeshare public report, whichever is later. This right is non-waivable, meaning the timeshare company cannot force you to give up your termination rights or impose a lesser rescission period.

timeshare release


Exercising the Right

By law, your timeshare contract must contain, in conspicuous type face, a notice of your right of rescission and the procedure you must follow to exercise your rights. This procedure is relatively simple -- you write to the seller indicating that you wish to cancel the contract. Some contracts attach a preprinted rescission form for you to complete. The contract must spell out the name and address of the company or individual to contact, and whether you should hand carry your rescission letter or send it by certified mail.

Fees and Penalties

As long as you notify the seller in writing that you wish to rescind the contract within the allotted seven-day time period, the contract falls away and the seller must return your deposit. You do not have to have, or give, a reason for the cancellation. Timeshare sellers cannot impose a cancellation fee, even if the contract says they can. If they ask for money to rescind the contract, you legally can refuse to pay.

After the Rescission Period Expires

If you fail to cancel the contract within the seven-day rescission period, you lose your cooling off rights. However, you still may be able to cancel the contract. The California courts are usually willing to release a buyer from his timeshare contract if the buyer is a victim of fraud or has been deceived in some way. Thus, if the timeshare seller misrepresented your ability to sell the timeshare interval or the investment's financial returns, for example, you may be able to file a lawsuit. Failing that, the only way to get a refund is by selling your timeshare on the resale market.

cancel timeshare within 5 days



Timeshares are designed to give people a cost effective way to own real estate in markets they might not otherwise be able to afford, or be able to travel to easily. When you buy a piece of a property rather than the whole property, you ensure you get to use if for a certain period of time at a fraction of the cost of buying it outright. If you ever decide to get rid of your timeshare, there are ways to legally dispose of it . In some instances, it is possible to dispose of a timeshare without the help of an outside company.

1. Review the terms of the timeshare contract. Ensure that the contract was purchased and not leased. If the timeshare was leased, there is no way to permanently transfer liability to another party. The lessor will need to continue making all required payments until the lease ends or find someone to assume the lease. Always ensure that the timeshare contract does not prohibit lease assumption prior to finding someone to take over the lease.

timeshare cancellation letter sample


2. Contact the timeshare company and inquire about the availability of buybacks. Some companies buy back timeshares at a reduced cost in exchange for eliminating liability on the part of the owner. The amount of money saved from not having to pay timeshare fees might offset the low amount offered for the actual timeshare.

3. Visit online auction sites and look for those that have sections dedicated to the auction of timeshares. The sheer volume of users on the auction sites might make finding a buyer much easier than advertising locally using newspaper classifieds or other traditional methods.

4. Find a timeshare marketing company that does not require payment upfront. Avoid any company that requests any form of payment before a transfer.

how to get out of a timeshare mortgage


Things You Will Need

 Timeshare contract.

Tip

Almost all timeshare contracts include clauses that provide for a fee when a timeshare is transferred. Review the contract to find out what fees will be incurred on the transfer of the timeshare.

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