A timeshare contract is a type of agreement that allows an individual to share a vacation property. It can be either deeded or non-deeded. Regardless of the kind of timeshare, however, it should have a cooling-off period. This period is meant to give consumers time to review the agreement and decide if they want to cancel it. The law stipulates that a timeshare seller cannot waive a consumer’s right to cancel during this time. Moreover, the closing of a sale should not take place until the buyer has received all documents necessary for the sale.
Getting out of a timeshare contract is difficult, but it is possible. The most effective way to do so is to use the rescission period, which is the time that you have within which you can cancel the contract. This is often not easy to do, though. Many timeshare companies will try to stop you from canceling, and even if they don’t, the process is complicated. Fortunately, you can get help from a company that specialises in timeshare exit.
If you are still within the rescission period, it is important to write a letter as soon as you can. Generally, you don’t need to provide reasons for the cancellation, but it is a good idea to put your request in writing. You should also look at your contract for specific details on how to deliver the letter. Some agreements require that you deliver it in person, while others allow you to send it by certified mail.
In a recent case brought to the Consumer Goods and Services Ombudsman84, a consumer signed a timeshare agreement with her friend. She later realised that she would not be able to afford the monthly instalment on her own, so she wanted to cancel the agreement. According to the Consumer Protection Act (CPA), she had a legal right to do so, but she did not use her cooling-off period.
It is clear that consumers in timeshare, long-term holiday products, exchange contracts and resale agreements need high levels of protection. This necessitates the development of consolidated legislation to govern these types of contracts. This will enable a more effective and uniform application of the law in these areas. It will also assist in preventing consumers from entering into timeshare and other holiday-related agreements that do not comply with the CPA. In addition to this, a penalty system that penalises traders for failing to comply with the law should be introduced. This will encourage compliance and help the industry to improve its reputation. In the end, this will benefit all consumers in South Africa and Kenya.