While it is true that a timeshare contract is a binding legal document, it is often mistakenly thought that such a contract cannot just be canceled. In fact, most timeshare companies maintain that their contracts cannot be canceled.
This misconception is perpetuated by timeshare companies and user groups that are funded, maintained and controlled by the timeshare industry.
The truth of the matter is, under the law, contracts are subject to being canceled for a variety of reasons, including fraud and error.
In addition, a person who is burdened by the obligations of a contract may “terminate” the contract and no longer be bound by the contract for reasons other than breach.
“Cancellation” occurs when either party terminates the contract for breach of the other and its effect is the same as “termination” except that the canceling party also retains any remedies for breach of the entire contract or any unfulfilled balance. “Uniform Commercial Code 2106 (4); see 13 Corbin (Rev. ed.), §73.2; 13 Am.Jur.2d (2000 ed.)
“Termination” occurs when either party, pursuant to a power of attorney created by agreement or by law, terminates the contract in any way other than by default. Uniform Commercial Code sec. 2106 (3)
Since it is the law of the country, that a breach of contract by one party to the contract may result in the other party being released from their obligations under the contract, the notion that one is bound forever by a timeshare contract is erroneous as a matter of law.
The purpose of this article is to provide a ray of hope to those timeshare owners who are no longer interested in being tied to their timeshare and their financial obligations for life.
For starters, when you first purchase your timeshare, most states have a rescission or “cool-down” period during which timeshare buyers can cancel their contracts and receive a refund of their deposit. This is known as the “right of withdrawal”.
However, once this period expires, most timeshare companies will lead you to believe that your contract cannot be canceled and, from that point on, you are obligated in perpetuity to pay the escalating maintenance fees that accompany timeshare ownership.
Additionally, timeshare property advocates would have you believe that once the initial “right of rescission” expires, the only legal way to terminate timeshare contracts involves a transfer of ownership, whether by selling, donating or giving away. .
In fact, most timeshare user groups and virtually all timeshare companies want you to believe that under no circumstances will a timeshare company voluntarily take back your timeshare. Again, this is not true.
What is certain is that most timeshare companies will not voluntarily take back your timeshare. As will be seen below, when faced with litigation or the possibility of litigation, many timeshare companies will in fact take back their timeshare or simply agree to release the timeshare owner from any future liability in relation to the timeshare contract. shared.
Before I discuss the latest developments in canceling a timeshare, I’d like to spend a little time on the more traditional means of canceling or getting rid of an unwanted timeshare.
As mentioned above, the traditional way to get rid of an unwanted timeshare is through a sale, donation, or transfer.
On the topic of selling a timeshare, many unsuspecting timeshare owners looking to get rid of their timeshare downfall pray to listed companies proposing to put their timeshare up for sale. Such businesses have been investigated by the State Attorney General for fraudulent and deceptive practices and a proposed timeshare seller who wants to sell his timeshare obligation should first consider selling his timeshare by listing it on sites like eBay or Craigslist.
Other options are to list it through the developer, if the developer handles resales, or through a timeshare resale broker. One thing the proposed timeshare seller should not do is pay an upfront fee for the sale of your timeshare. It is these prepayment practices that have come under the scrutiny of state attorneys general.
Another frequently discussed solution to the problem of how to free yourself from the financial burdens of your timeshare is to donate the timeshare. Where once there were a number of organizations that accepted written timeshare donations, with the ever-increasing burden of maintenance fees that seem to increase each year, these organizations are a dying breed.
Transferring ownership to a third party who will simply take over the annual maintenance obligations is another “exit strategy.” However, these people will not pay you for the timeshare and in many cases the timeshare company will simply refuse to acknowledge the transfer or alternatively impose onerous resort transfer fees, causing the transfer to a third is prohibitive for those facing financial difficulties.
In recent years, however, new techniques have emerged promoted by real estate attorneys who specialize in timeshare litigation. These techniques reached their final fruit in a series of lawsuits filed in California that resulted in the release of each and every claimant from their timeshare contracts.
Similar actions have been taken, all seeking damages for the kind of fraudulent and deceptive conduct often used by timeshare sellers to induce unwitting potential owners to sign on the dotted line.
Such conduct includes the following statements, generally made at the time the timeshare was sold:
to. That the purchased timeshare interest would appreciate and the resale price and value would increase over time.
B. That the acquired timeshare interest can be freely exchanged, transferred and sold.
vs. That the purchased timeshare interest was a financial investment.
D. That the purchased timeshare interest would result in the buyer receiving reservation priority over non-purchasing vacationers who wish to stay in one or more of the properties owned and / or maintained by the defendant, timeshare.
As a result of the filing of such actions, timeshare companies have become much more willing to release timeshare owners from their timeshare obligations even without resorting to litigation.
To take advantage of this solution, you must hire an attorney familiar with timeshare laws and the various techniques for terminating a timeshare contract.
In short, don’t believe the naysayers who tell you it’s impossible to get out of a timeshare contract. If you are the victim of one or more of the above misrepresentations, you may also be able to cancel your timeshare contract.
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