Timeshare contract can be a complicated investment. In many cases, consumers purchase timeshares that sound great at the sales pitch but end up regretting their purchase and seeking a way to get out of the agreement. The good news is that many states and countries have laws that allow a purchaser to back out of the contract within a certain period after signing it. In addition, most timeshare companies offer programs that help people exit their contracts. The first thing to do when considering a timeshare exit is to contact the company and discuss all your options.
Generally speaking, the most common type of timeshare is called an in-resort timeshare. This type of timeshare allows you to enjoy vacations at a specific resort or hotel, and the ownership is not deeded to a single owner, but rather shared amongst a group of owners—typically 52 families. The term “shared” also applies to points-based timeshares, where members earn a certain number of points each year that can be used at various destinations or properties in the resort chain.
Both types of timeshares involve a one-time purchase and annual maintenance fees. Unfortunately, many unscrupulous salespeople pressure consumers into buying the timeshare before they have a chance to carefully consider it. These tactics often include limiting the time they can attend the sales presentation and only providing limited information about the contract. Consumers who fall prey to these tactics are rushed into a decision that they may not have thought through thoroughly enough and are forced to take on an unpredictable lifetime financial burden.
As the popularity of timeshares has grown, so too have the complaints against these often-frustrating arrangements. In response to complaints, most Member States have now implemented a law that requires all sellers of timeshares to provide detailed information on the contract and its terms, as well as to comply with certain disclosure rules. The law is designed to protect consumers from deceptive and unfair practices in the sale of timeshares.
In addition to requiring disclosure information, the law contains several other provisions that are intended to improve transparency in timeshare sales. It includes requirements that the contract and information documents be written in the language of the purchaser’s Member State. It also provides a cooling off period of 14 days, during which the purchaser can cancel the contract without penalty. In addition, the law makes it a criminal offense to refuse a cancellation request or fail to provide it.
While these laws are a step in the right direction, they don’t solve all the problems that can be associated with timeshare contracts. The truth is, even if the law was perfect, there would still be unscrupulous timeshare sellers who make it difficult for consumers to exercise their rights. And as the market for timeshares continues to grow, so too will the number of consumers looking for ways out of their contracts.