Why Is Timeshare Cancelation So Difficult?

Why Is Timeshare Cancelation So Difficult?

Women reading a paper

Many people regret buying timeshares, as these vacation properties can drain people dry. Considering the complications that come with the scheduling system, you can rarely use the timeshares when you want.

The shared component means you could be held accountable for the damage caused by others. This, along with several other reasons, leads to people trying their best to get out of their timeshare contracts. It could be dissatisfaction with the resort or service, change of circumstances, financial reasons, and so on.

Additionally, the fact that you have virtually no ownership of the property also annoys many. Technically, renters have more rights to the property than timeshare holders. For instance, when someone wants to kick renters out, they have to give them notice.

Similarly, if the renter wants to leave, they can simply break the lease. This option isn’t available for timeshare holders because you don’t live in the unit regardless of how much the companies try to make you feel you own a part of the property. You just use it every once in a while.

The fact that you have to cover the increase in insurance, taxes, and other things make it even more horrifying! Yet resorts do everything in their power to keep you under contract. In fact, the $11 billion industry could quickly cause the vacation to go from a luxury to a burden.

Keep reading to learn why it’s so difficult to cancel timeshares and tips by expert timeshare cancellation attorneys at California’s Law Offices of Mitchell Reed Sussman & Associates for canceling the ownership as efficiently as possible.

Factors that Make it Challenging to Cancel Timeshares

#1- Limited Alternatives

When it comes to canceling timeshares, the key issue is that there are very few alternatives available. Even if you want to resell the timeshare, it isn’t easy to find suitable buyers, and when someone wants to buy a timeshare, they usually prefer purchasing a newer unit.

If you’ve got a reasonably regular payment history, chances are the resort would try its hardest to keep you around. You can rent out the property if you don’t want to use the timeshares, but you’ll need to ensure the renter makes timely payments. Otherwise, you’d be held liable for the defaults they rack up.

People also donate timeshares to charitable organizations by selling the timeshare and giving the proceeds to charity. However, in such cases, timeshares hardly appraise for what they’re worth, leading to the owner seeing a significant loss on investment.

Considering the IRS only allows claiming what the timeshare is worth at the time of the sale, you’d unfortunately not get your money back as tax write-offs either.

#2- Endless Paperwork

Contracts for timeshares can be very tricky! This also means you’ll have to deal with heaps of paperwork. Officials print tons of documents to protect themselves and make it challenging for timeshare holders if they ever decide to leave.

The paperwork is filled with industry jargon, including things like the Perpetuity Clauses, the Right of Survivorship Clause, the Right of Refusal Clause, and more. Chances are, you were distracted or didn’t truly understand what you agreed to when you signed the dotted line. When buying or selling your timeshares, the best option is to have a reliable timeshare attorney on board.

person signing a legal contract

#3- Financial Issues

Sometimes canceling timeshares can be difficult due to financial reasons. Many resorts encourage people to notoriously make down payments on credit cards. Putting hefty investments on the credit card isn’t a wise idea as the interest rates will probably skyrocket, making it difficult to pay.

Most resorts partner with collection agencies that hound the timeshare holders if they default on payments. These companies make it difficult to cancel if the holder falls behind on payments.

Get Help from Timeshare Exit lawyers in California

The best time to cancel timeshares is during the grace periods, during which you wouldn’t need to pay the maintenance or cancellation fee, too! However, if the timeshare is getting hard for you, hiring a timeshare legal service is the best way to get out of ownership.

For those in California, the Law Offices of Mitchell Reed Sussman & Associates can help look into your timeshare situation. Their timeshare exit attorneys can guide you through the process, help you file for your claim, and secure an exit for you.

Reach out to them via a quick call to learn how they can help you exit the timeshare in an ethical, legal, and responsible manner. Don’t forget to check out their podcasts or read their reviews to find out more.

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