Can I Cancel a Timeshare Purchase?

Timeshare Presentations and First Time Purchasers:

Timeshare presentations have become a finely tuned science.  NO ONE ever goes into a timeshare presentation wanting to buy a timeshare.  They have refined their sales process where they know exactly how many people will buy a timeshare based on the number of presentations. 

I obviously advocate owning a timeshare as I think that they can be a great travel tool to travel well, affordably and comfortably. 

However, timeshare ownership ONLY makes sense if the upfront cost is reasonable, maintenance fees are reasonable considering the amount of potential weeks you can receive, and you purchase with a reputable high quality brand (Hilton, Hyatt, Marriott, Four Seasons, Wyndham, etc.) that give you a reasonable opportunity to sell your timeshare if you no longer want to and cannot use it.  

Timeshare ownership also will ONLY make sense if you understand the systems and how to use them to maximize their value. 

If you purchase a timeshare and use it for one week of travel during the year, it will rarely if ever make sense (with the potential exception of ski weeks).  The key is to obtain more value from your week and transform that into multiple weeks of vacation.  Then, the numbers make more sense and timeshare ownership can be very worthwhile. 

The vast number of first time timeshare purchasers end up purchasing from the developer through these timeshare presentations.  They have responses to every question you can throw at them and their pitch makes a lot of sense. 

Even the main players like Hyatt and Marriott have fine tuned their presentations so it is no longer a high pressure environment but now they have transformed these pitches into a fear of losing out (FOMO).  Buy now before you lose the opportunity or before the price goes up! 

It is effective but it is not the best way to purchase a timeshare.  

Resale Purchases:

What the timeshare salespeople rarely disclose is the economic value of the timeshare.  They sell timeshares for a lot of money and as soon as you purchase from the developer, the economic value of the timeshare just plummeted.  Timeshares are sort of like cars.  The moment you drive it off the lot, it loses value. 

Some timeshares literally can lose 99% of its value after purchase and some can almost lose 100%.  When you purchase some timeshares, there is literally no resale market for them so it is difficult if not impossible to sell.  Even though you may have purchased it for $10,000 - $20,000, the value can be almost $0.00. 

These facts continue to perpetuate the ideas that timeshares are scams and not worth purchasing.  I agree that some timeshares are never worth purchasing even if they are selling for one dollar or someone is paying for you to own them. 

However, there are plenty of other timeshares that are re-sellable and will retain "some" value.  Again, if you stick with the main timeshare brands, you will likely have a much better experience. 

In my opinion, buying a timeshare on the resale market is the most economical and can actually make timeshare ownership beneficial and can make tremendous economic sense.  

Rescission:

As I mentioned, most timeshare owners purchase their first timeshare through a timeshare presentation.  The pitch made economic sense and the ability to travel around the world was intriguing.  

Many times, immediately after signing the purchase documents, these buyers will race to google and attempt to confirm that they received a great deal (as likely stated by the salespeople) and find glorious stories of many happy owners traveling around the world.  

What they normally find is a bunch of information discussing how timeshares are awful investments, many disgruntle owners and sometimes, they even find their week that they just purchased selling for pennies on the dollar. 

Unfortunately, this is common and people should do research on timeshares BEFORE going to these presentations.  If you understand some of these simple facts concerning timeshares, you can go into these presentations with more information and ask tough questions concerning the program and their broad statements concerning usage. 

For those people who made a purchase and immediately have buyers remorse, all is not lost. 

Almost all timeshare purchase contracts have the right of rescission.  The right of rescission gives the purchaser a set number of days to cancel the contract with no fees and receive their money back.  It will essentially be like the agreement never occurred.   

The time period for rescission varies from state to state but is generally around 3 to 15 days.  

The Rescission Process

The terms of the rescission process will normally be buried in the fine print of the contract.  They do not make it easy but you actually will need to read the fine print, find the rescission clause and FOLLOW THE STEPS PERFECTLY!

Unfortunately, it is never as easy as simply going back to the developer and requesting a refund.  Even if you go back the next day, the sales people will tell you to read the contract and will likely not be much help.  

The general process is that you need to send a written letter to the specific address in the contract with details of the specific timeshare that you purchased including the contract number with a clear and concise statement that you would like to cancel the contract pursuant to the right of rescission found in the contract.  I would specify the exact clause as stated in the contract. 

The letter should be signed by all people who signed the contract so if both spouses signed, both spouses should sign the rescission letter. 

I would also include a copy of the timeshare agreement. 

MAKE SURE TO SEND IT WITHIN THE REQUIRED TIMEFRAME AND MAKE SURE TO USE TRACKABLE MAIL WITH A SIGNATURE!

SEND IT VIA TRACKABLE MAIL WITH SIGNATURE, VIA REGULAR POSTAL SERVICE AND VIA CERTIFIED MAIL!  MAKE SURE YOU HAVE PROOF THAT YOU SENT IT TO THE RIGHT ADDRESS WITHIN THE REQUIRED AMOUNT OF TIME!

It is extremely important to make sure that you abide by the rescission dates.  If you miss it by one day, don't expect them to cancel it.  The salespeople were likely very friendly and easy going during the sale.  Expect the exact opposite in their assistance in cancelling their sale. 

Conclusion

Despite their reputation, timeshares are not that bad provided that you understand what you are buying and how to maximize use.  The vast majority of timeshare owners do not understand everything when they first buy and get roped into a purchase by smooth talking salespeople.  

Too often, buyers only realize the mistake after the purchase and only do research on timeshares once they are owners. 

The goal of the blog is to educate people BEFORE a purchase or help you maximize ownership after the purchase. 

As I stated, most timeshare owners purchased a timeshare directly from the developer for their first timeshare purchase.  They likely overpaid but hopefully they get enjoyment from it. 

If you purchased a timeshare from the developer and you missed the rescission period, don't dwell on it.  Try to understand the program and use strategies to maximize its use and have great vacations.  Use this information to make a different decision for your next purchase.

Buying resale for a fraction of the price of the developer pricing makes a lot of sense and can make timeshare ownership very beneficial.  The general idea is to rescind if you are within the applicable time period and search for another timeshare on the resale market. 

You will always be able to find a timeshare to purchase so do not worry about FOMO! (Fear of Missing Out!)

Have you rescinded a timeshare purchase before?  Share you story below!