Owning a property is made possible by a timeshare, wherein several people can become the owners of a vacation property for a certain period of time. Through a timeshare agreement, an owner can use and earn from the property during the period of ownership. Some timeshare can last for weeks while others may last longer depending on the or leased or deeded ownership or contract. If you want to get out of a timeshare agreement before your contract ends, here are some tips:
1. Review the Cancellation Terms of the Contract
Reviewing the cancellation terms of a timeshare contract or any kind of agreement is a must before entering into a deal. When you’re planning to cancel your timeshare contract, it’s also best to review the cancellation terms of the agreement you have signed. Knowing the cancellation conditions is vital as these serve as a guide about the rules you must abide by and the possible violations you must avoid.
To completely understand such terms and conditions, you can also hire a lawyer to explain and assist you with your timeshare contract. Lawyers are mainly required when you want to cancel your timeshare agreement. To help you with such, you can check out Timeshare Termination Team – How to get rid of a timeshare. For instance, if you know the contract cancellation of your timeshare, you’ll be familiar with the period required, and it can give you a clean break.
Moreover, reviewing the contract cancellation can help you choose the right way to terminate your timeshare contract. Here are some methods that are usually in the contract cancellation that you can use:
- Contract’s Rescission Period – It’s a period that allows a party to cancel the timeshare contract depending on the stated time on the deal. For instance, you can have five days to cancel your contract without incurring liability. It’s a way for individuals to cancel a contract they have no intention of dealing with, especially if they have been pressured to sign the agreement. You can also terminate the contract before the rescission period ends.
- Breach of Contract – You can terminate your timeshare agreement when one of the parties deliberately does not honor the contract. For instance, if your timeshare sales have not been delivered on time as agreed upon, then you can use it to cancel your contract.
- Impossibility of Performance – This involves two or more parties wherein each has a required function as stated in the contract. If one of the parties is unable to perform their responsibility, then you can terminate your timeshare contract because of this.
To know more about how to legally get out of a timeshare contract, watch this video:
2. Assess the Possible Liabilities When Canceling
Most contracts, including timeshare agreements, have clauses that will require you to pay improvement assessments and timeshare maintenance fees. So before canceling, you must understand these possible sanctions you may incur. Some contracts, on the other hand, don’t include such a clause. Some even have a cooling off period, or the time you can cancel the contract after you have signed such agreement depending on the days stated on the deal.
And when you decide to cancel your timeshare contract after a cooling off period, you may have to pay some liabilities. To stop your maintenance fees, you can sell your timeshare. Even when your timeshare contract has been canceled, you are not entirely free from paying the maintenance fees. So instead of earning from your timeshare investment, you’re more likely to spend more money. As an alternative, you must have different investments to avoid losing all your money. Selling your timeshare on a secondary timeshare resale market is one way to stop paying for such liabilities. You can list your timeshare agreement on resale industries, or you can contact brokers to do the sales negotiation on your behalf.
3. Know Your State Laws on Contract Cancellation
Every state has different rules when it comes to contracts, especially for cancellation. For instance, a cooling off period may be seven days for California state law while others may only last for five days.
In a contract, state laws also require timeshare contracts to have your right of rescission be written. In addition, there should be a guide on how you can exercise such a right. Arrangements, by state law, also need to indicate the fees and penalties that one may incur upon canceling the contract after the rescission period. But it must also be written that no cancellation fee is expected when a cancellation is within the cooling off period, as per state law.
Since other state laws may have specifics on such cancelation of contracts, you can visit the site of the Department of Consumer Affairs, or you can contact an attorney in your state for assistance.
With these tips, you will be guided on how to cancel your timeshare contract. Especially when you’re canceling it for personal reasons, it’s vital to know the basics that can help you have a smooth cancellation process. Before entering into an agreement, you must know the pros and cons of a timeshare. With the help of a lawyer, you can rely on having legal assistance throughout the process.