Timeshares are a popular vacationing option for families and couples who want to spend regular vacations in high-demand destinations. However, it’s important to understand the full costs of a timeshare contract before you sign on the dotted line. This includes both initial purchase and maintenance fees, as well as resale or cancellation penalties. The good news is that you can get out of a timeshare contract if you find it unsuitable for your needs or if you were misled by the salesperson.
There are many different types of timeshare contracts, with varying lengths and types of ownership. For example, deeded timeshares grant you ownership rights to the property for a specific week each year. The disadvantage of this type of timeshare is that it’s a perpetual agreement (meaning your obligations last for life) and it’s difficult to sell or transfer. There are also floating week and points-based agreements, which provide flexibility and variety. However, these are often tied to a deeded or perpetual agreement and can be expensive to cancel.
If you’re considering a timeshare, it’s important to read the contract thoroughly and consider whether the company you’re buying from has a history of complaints or unethical business practices. Additionally, it’s worth investigating the property’s resale value and if current owners are satisfied with their purchase. You may also want to work with a lawyer who specializes in timeshare law.
During the sales process, you’ll likely be pressured to sign a contract quickly. If you’re unsure about the terms, ask the salesperson to explain them or take the contract back for review. It’s also a good idea to read the contract in its entirety after you sign it to ensure there aren’t any hidden fees or charges.
Another critical factor to consider is whether or not your timeshare contract includes a “force majeure” clause. This is a legal excuse that prevents you from holding the developer responsible for damages caused by an extraordinary event outside of their control. Typical reasons for this clause include natural disasters, war, or government shutdowns.
Finally, you should be aware of any arbitration or mandatory dispute resolution clauses in the timeshare contract. These can limit your ability to file a lawsuit in the appropriate court and could force you to travel to a timeshare resort’s headquarters to resolve the issue.
In some cases, you may be able to use your state’s rescission laws to cancel your timeshare contract. This is the best way to get out of a timeshare contract, but it’s important to understand how these laws work and what your options are for terminating the agreement. You should also keep your contact information up to date with the timeshare company so they can communicate any changes or new terms to you. This will help protect your rights in case your rescission period expires. You should also keep your lawyer informed of any new developments with your contract. They’ll need to know the details of your situation in order to provide the most effective representation possible.