People on vacation sometimes end up at high-pressure presentations and end up purchasing a timeshare, only to regret it later. The maintenance fees are too high, or perhaps they don’t want to spend summer after summer at the same location. With inflation on the rise, discretionary spending funds are down and people are looking for ways to cut. Although laws vary state by state regarding timeshares, there should be ways to get out of your timeshare contract, according to Lisa Schreiber of The Timeshare Crusader.
“I advise anyone looking to get out of a timeshare contract to first contact the developer to see what, if anything, they’ll do,” says Schreier. “If that fails, contact a timeshare savvy attorney, not one of a myriad of self-proclaimed exit companies.”
The structure of timeshares has been changing since the 1980s, making them a little easier to get out of according to Robert Persichitte, a financial planner from Delagify Financial. “In the past, timeshares were commonly tied to a single property,” Persichitte said. “Suppose that property was expensive to maintain, like many mountain properties or beach properties in hurricane-prone areas. As an owner, you generally have a financial obligation to pay for repairs. On the other hand, modern timeshares are connected with multiple properties and act more like a pooled vacation fund. These generally don't have a big financial burden, making them easier to walk away from.”
There are other options besides canceling the timeshare contract. Some developers let their timeshare owners advertise and rent out their units. There are companies specializing in renting out timeshares. “For most clients, it makes sense to sell a timeshare rather than surrender or cancel it,” Persichitte said. Renting a timeshare could take a while, with one case taking over three years to find a renter.
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