Legally Getting Rid of Your Timeshare: A Comprehensive Guide

Quick answer

• Explore reputable timeshare resale companies or cancellation services.
• Understand your contract’s resale restrictions or buy-back clauses.
• Consider gifting or donating the timeshare if you can’t sell it.
• Be wary of scams promising guaranteed, quick solutions.
• Consult a legal professional specializing in timeshare law.
• Factor in ongoing maintenance fees and property taxes.

Who this is for

• Timeshare owners who no longer wish to use or own their property.
• Individuals seeking legitimate ways to exit their timeshare commitment without incurring further financial burden.
• People who have been unsuccessful with traditional resale methods.

What to check first (before you act)

Your Timeshare Contract

Review your original purchase agreement carefully. Look for any clauses related to resale, buy-back programs offered by the developer, or exit policies. Understanding these terms is crucial before pursuing any exit strategy.

Your Financial Situation

Assess your current financial health. Are you current on your maintenance fees and any associated mortgage payments? Knowing your financial standing will help you determine what exit strategies are feasible and what potential costs you might incur.

Your Goal and Timeline

Define what you hope to achieve. Is your primary goal to recoup your initial investment, simply get rid of the property, or avoid future fees? Your objective will influence the best approach. Also, consider how quickly you need to exit the timeshare.

Outstanding Debt

If you financed your timeshare purchase, check the outstanding balance and interest rate. This will help you understand the financial implications of selling or exiting.

Credit Score Impact

Understand how different exit methods might affect your credit score. For example, defaulting on payments or failing to transfer ownership properly could negatively impact your credit.

Step-by-step (simple workflow)

1. Gather All Documentation

What to do: Collect your original timeshare purchase contract, any amendments, payment records, and correspondence with the developer or management company.
What “good” looks like: You have a complete file of all relevant documents in one accessible place.
A common mistake and how to avoid it: Not having all the paperwork. Avoid this by taking the time to locate and organize everything before you start your research.

2. Understand Your Contract’s Terms

What to do: Read your contract for clauses on resale, buy-back options, or any stipulated exit periods.
What “good” looks like: You clearly understand any rights or restrictions related to selling or transferring your timeshare.
A common mistake and how to avoid it: Assuming there’s a simple “out.” Avoid this by reading the fine print; many contracts have specific, sometimes restrictive, resale clauses.

3. Research Resale Options

What to do: Investigate legitimate timeshare resale companies. Look for companies with transparent fees, a good track record, and positive customer reviews.
What “good” looks like: You have identified a few reputable companies that specialize in selling timeshares.
A common mistake and how to avoid it: Falling for “guaranteed sale” promises. Avoid this by being skeptical of companies that guarantee a sale price or a quick sale, as these are often red flags for scams.

4. Explore Cancellation Services

What to do: If selling isn’t viable, research timeshare cancellation companies. These services aim to legally terminate your contract.
What “good” looks like: You’ve found companies with clear processes and fee structures, and you’ve verified their legitimacy.
A common mistake and how to avoid it: Hiring a company without checking their credentials. Avoid this by looking for reviews, checking with the Better Business Bureau, and understanding their success rates and fee structure.

5. Consider Gifting or Donating

What to do: See if you can gift your timeshare to a family member or friend, or donate it to a charity that accepts such contributions.
What “good” looks like: You’ve found a willing recipient or a charity that can take ownership, potentially offering a tax deduction.
A common mistake and how to avoid it: Assuming gifting is free. Avoid this by understanding that there may still be transfer fees, closing costs, and the recipient will assume all future obligations.

6. Contact the Developer

What to do: Reach out to your timeshare developer to inquire about any official buy-back programs or exit strategies they might offer.
What “good” looks like: You have a clear understanding of any options the developer provides, including associated costs.
A common mistake and how to avoid it: Not contacting the developer first. Avoid this by checking if the developer has a formal exit program, as this can sometimes be the most straightforward route.

7. Consult a Legal Professional

What to do: Seek advice from an attorney specializing in timeshare law. They can review your contract and advise on the best legal exit strategy.
What “good” looks like: You have received expert legal counsel tailored to your specific situation.
A common mistake and how to avoid it: Trying to navigate complex legal issues alone. Avoid this by recognizing when professional legal expertise is necessary to ensure a compliant and effective exit.

8. Negotiate and Finalize Exit

What to do: Work with your chosen exit method (resale, cancellation, legal action) to complete the process, ensuring all paperwork is signed and fees are paid.
What “good” looks like: You have received confirmation that your ownership has been legally transferred or your contract has been terminated, and you are no longer responsible for the timeshare.
A common mistake and how to avoid it: Incomplete transfer of ownership. Avoid this by ensuring all legal documents are properly filed and recorded with the relevant authorities to confirm you are no longer the owner.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Paying upfront fees to an unknown company	Financial loss; company disappears without fulfilling obligations.	Research companies thoroughly; look for escrow services and avoid upfront fees.
Ignoring maintenance fees and property taxes	Debt accumulation, potential legal action, and negative credit impact.	Keep paying until ownership is legally transferred or contract is terminated.
Relying on “guaranteed exit” companies	Scams; loss of money with no resolution.	Be skeptical of guarantees; look for proven track records and transparent processes.
Failing to legally transfer ownership	You remain liable for fees, taxes, and potential future issues.	Ensure all legal paperwork is filed and recorded correctly.
Not understanding contract clauses	Missed opportunities for buy-back or specific exit programs.	Read your contract thoroughly or have a lawyer review it.
Attempting to sell without proper marketing	Prolonged ownership and continued fee obligations.	Use reputable resale companies or work with professionals.
Giving the timeshare away without proper transfer	You remain responsible if the recipient abandons it.	Ensure a legal transfer of ownership occurs.
Not consulting a legal expert when needed	Ineffective or legally problematic exit strategies.	Seek legal advice for complex situations or when unsure of your rights.

Decision rules (simple if/then)

• If your contract has a buy-back clause, then explore that option first because it may be the simplest and most cost-effective way to exit.
• If you have a significant amount of equity in your timeshare (i.e., it’s worth more than you owe), then prioritize resale options because you may be able to recoup your investment.
• If your timeshare is underwater (worth less than you owe or has little resale value) and you want out quickly, then consider reputable cancellation services or legal assistance because these may be the only viable paths.
• If you are current on all payments and have a clear goal to exit without financial loss, then investigate gifting or donating the timeshare because it might provide a tax benefit.
• If you are struggling to pay maintenance fees and are behind on payments, then act immediately to explore exit options because continued non-payment will lead to debt and credit damage.
• If a company promises a quick sale at a high price with no effort on your part, then be very suspicious because this often indicates a scam.
• If you are unsure about the legality of a proposed exit strategy, then consult a timeshare attorney because they can provide expert guidance and protect your interests.
• If you want to avoid future fees and responsibilities, then ensure the exit process includes a full and legal transfer of title or contract termination because incomplete processes leave you liable.
• If the developer offers an exit program, then evaluate it carefully because it might be a viable option, but compare it to independent services.
• If your goal is to get rid of the timeshare as quickly as possible, then prioritize options that have a proven track record for speed, while still prioritizing legitimacy.

FAQ

Q: Can I just stop paying my timeshare fees?

A: No, stopping payment will lead to debt, potential legal action, and damage to your credit score. You remain legally obligated until ownership is properly transferred or the contract is terminated.

Q: How long does it take to get rid of a timeshare?

A: The timeframe varies greatly depending on the method used, contract terms, and the efficiency of the parties involved. It can range from a few months to over a year.

Q: Are timeshare resale companies legitimate?

A: Some are, but many are not. It’s crucial to thoroughly research any company, check reviews, and be wary of upfront fees or guaranteed sales.

Q: What is a timeshare cancellation company?

A: These companies specialize in legally terminating timeshare contracts. They often use legal strategies or negotiations with developers to achieve this. Their legitimacy and success rates vary.

Q: Can I lose money trying to get rid of a timeshare?

A: Yes, it’s possible. You might incur fees for resale, cancellation, legal services, or even maintenance fees until the exit is complete. Some methods may not recoup your initial investment.

Q: What if I inherited a timeshare I don’t want?

A: The process is similar to selling an unwanted timeshare. You’ll need to review the will and contract, and explore resale, gifting, or cancellation options.

Q: Will getting rid of a timeshare affect my credit score?

A: It can, especially if you default on payments or if the exit process is handled improperly. A clean and legal transfer or termination should have a neutral or positive impact in the long run.

Q: Can I sell my timeshare on eBay or Craigslist?

A: While possible, it’s generally not recommended for a smooth exit. These platforms lack the specialized marketing and legal processes needed for timeshare transfers, and you may attract scammers.

What this page does NOT cover (and where to go next)

• Specific legal advice for your individual situation. Consult a qualified attorney for personalized guidance.
• Detailed comparisons of specific resale companies or cancellation services. Conduct your own due diligence.
• Tax implications of selling, gifting, or donating a timeshare. Consult a tax professional.
• The process of buying a timeshare. This guide focuses solely on exiting ownership.
• International timeshare exit strategies. This guide is for US-based timeshares.