How to Get Out of a Timeshare Contract Legally

There’s a lot to love about timeshare ownership, but it also isn’t for everyone. If you’ve decided to move on from your timeshare, getting out of it should be easy, right? Well, it can be! There are ways to get rid of your ownership that are convenient and risk-free, but not all of them are safe. In fact, there are some pitfalls you’ll need to steer clear of. So, there’s a few things you should know if you want to say goodbye to your timeshare. Fortunately, you’ve come to the right place to learn about them! We’ll cover everything you need to know about how to get out of a timeshare safely.

Before You Decide to Sell Your Timeshare

There are a few options all timeshare owners should consider before making the big decision to get out of their timeshare. First, ask yourself if your problem is that you’re no longer interested in this specific timeshare property. If that’s the case, depending on your resort company, there may be a solution! Many vacation clubs, like Hilton Grand Vacations, offer a points-based program. With these programs, you have a home resort you can visit, but you’ll also have access to plenty of other resorts from that brand. Depending on your resort company, you could also take advantage of a vacation exchange program. These programs allow you to trade your points or weeks for a stay at one of thousands of other resorts around the world in a vacation exchange network. So instead of staying at the same resort each year, you can mix it up from time to time!

Renting Out Your Timeshare

Do you like your ownership but feel guilty about not using it each year? If so, there’s another option all timeshare owners should know about. You can rent out your vacation ownership for years when you’re not using it. That way, you’ll be able to put some money back in your pocket and help pay off the annual maintenance fees for the property. This way, you can avoid the guilt of feeling like you’ve “wasted a year” while paying those fees off. Plus, you’ll be able to go back to the resort for years when you want to.

Safe Ways to Get Out of a Timeshare

Finding the best way to get out of a timeshare may feel difficult. When you buy a timeshare, you’re buying a product that’s meant to be used for a lifetime. Of course, that means searching for ways to get rid of a timeshare can be tricky. Luckily, that doesn’t mean there aren’t any; it just means that they require a little bit of work on your part, like calling your developer or selling it on the resale market.

When looking for options to get out, remember that if you miss payments on your maintenance fees, it can hurt your credit score. This is something we want to avoid so it won’t affect any big purchases you make in the future. Let’s dive into how to get rid of your timeshare—without ruining your credit.

Why Understanding State Laws and Contract Terms Matters

Before you make any moves to exit your timeshare, it’s crucial to brush up on the rules and fine print that apply to your specific situation. Every state has its own guidelines for how and when you can legally cancel or transfer your timeshare. Your contract might come with its own set of requirements and timelines. Overlooking these details can lead to surprises, like extra fees or even legal headaches.

By familiarizing yourself with both the local laws and your contract’s terms, you put yourself in the best position to make a clean break from your timeshare. For example, some states require you to continue paying maintenance fees until the process is officially complete. Others might limit your cancellation window to just a few days. Taking the time to understand these details means you’ll avoid costly mistakes. It will also ensure your exit is as smooth as possible.

The Rescission Period

The easiest way of getting out of a timeshare is also one of the most situational. The timeshare rescission period is a window of time shortly after you’ve purchased a timeshare, where you can simply cancel the contract. In other words, you can get rid of the timeshare, no strings attached. So, if the timeshare rescission period is so straightforward, why doesn’t everyone use it to get out of their timeshare? Well, this rescission period tends to be very brief; often only three to fifteen days. After that, this will not be an option, so you’ll have to act fast to get rid of your timeshare. If the rescission period has already ended, don’t worry! This is just one way to say goodbye to your ownership.

Contact Your Developer About Exit Options

If your rescission period is over and you’re past the window to walk away without consequences, don’t lose hope—there are still avenues to explore. One of the first steps you should consider is reaching out directly to your resort or timeshare developer. Many leading vacation ownership companies, like Wyndham Destinations, offer certified or formal exit programs for owners who are no longer able to use their timeshare. These programs often include specific options, such as:

• Deed-back programs: If you’ve paid off your loan and all of your fees, some companies will allow you to transfer the timeshare back to them.
• Hardship exceptions: In cases of financial hardship, health issues, or major life changes, many developers are willing to review individual situations and work with you on potential solutions.

Because policies and contract terms can differ widely between developers, it’s important to communicate directly with your company to understand what programs might be available. The bottom line? It never hurts to ask; sometimes, a simple phone call can set the exit process in motion. Or at least, it can provide clarity on your next steps.

Understanding Deed-Back Programs

Another option to consider when trying to exit your timeshare is a deed-back program. But what exactly does that mean? A deed-back program allows eligible owners to return their timeshare ownership directly to the resort or developer. This effectively ends ownership responsibilities, including maintenance fees.

These programs often apply if your timeshare is fully paid off and your account is in good standing (meaning you don’t owe any back fees). Each developer handles things a bit differently, so the process and requirements may vary. Not every resort offers a deed-back option, but asking about it is always worth your time. If your developer is part of the ARDA Coalition for Responsible Exit mentioned earlier, you’re more likely to find deed-back or similar solutions that help you transition out of ownership safely and securely.

Talk to Your Developer About Buying Back Your Property

Some developers and resorts may be willing to work with you on buying back your ownership or allowing you to give it back to them. There is no guarantee; depending on your timeshare contract, it may be worth seeing what you are able to find out with a quick call to your home resort.

Most of the best major brands and vacation clubs in the industry are members of ARDA, the American Resort Development Association. If you didn’t know already, ARDA aims to protect all parties of the timeshare industry—including owners! Your developer or club is likely also a part of the Coalition for Responsible Exit. Here, you can find your club’s recommended resale or exit options.

Wyndham, for example, offers the Wyndham Cares program, which is a free resource to help their owners with questions on where to turn if they need options on how to get out of their timeshare. They also offer Certified Exit—Backed by Wyndham. In some cases, Wyndham will take back your timeshare for qualified owners.

Gift Your Timeshare to a Family Member or Friend

Instead of moving on from your ownership by selling it or giving it back to the developer, someone you know may want it! Millions of families love their timeshares because of their flexibility, supreme accommodations, and outstanding experiences. Give the greatest gift of all with vacations to a friend or family member. Keep in mind that if a loved one takes over the timeshare agreement, they will also be taking over the payments.

Is Defaulting on Your Timeshare Illegal? What You Need to Know

So, what happens if you decide to just stop paying your timeshare loan or those looming maintenance fees? First, let’s clear up a common misconception: defaulting, meaning failing to make your scheduled payments, isn’t illegal. However, there are some pretty unpleasant consequences to watch out for.

Here’s what can happen if you decide to walk away from your payments:

• Credit Score Damage: Defaulting can show up as a blemish on your credit report, making it more difficult to secure loans or credit cards in the future.
• Collections & Foreclosure: The resort or lender might send your account to a collections agency, and you could face foreclosure on your timeshare. This means the property can be repossessed, and the delinquency will become public record.
• Potential Legal Action: In some cases, your lender may pursue legal action to recover the money owed. That could result in a court judgment against you, which adds even more stress to an already sticky situation.
• Penalties & Fees: Late fees and interest can rack up quickly, making the final bill even more daunting.

While letting your payments lapse might seem like the easiest escape route, the long-term headaches usually outweigh the short-term relief. If you’re feeling overwhelmed, it’s always better to explore alternatives, whether that means talking to your developer, selling, or gifting your timeshare, before going down the road of default.

Can I Cancel My Timeshare Contract?

There are services out there where timeshare exit companies will work with you and the resort developer to cancel your timeshare. While they promise to help you, it can be tricky to know which companies to avoid. What’s more, it’s quite often that groups calling themselves a timeshare exit company will tell you that they will take over the payments of your ownership, and this might not be true.

The Dangers of Timeshare Exit Companies

If a timeshare cancellation company tells you to stop paying annual fees, be careful. You should keep paying those fees until you receive direct confirmation from your resort developer or resort that the timeshare is no longer in your name. As a result of not making payments, your credit may be harmed. Keep this in mind when speaking to a timeshare cancellation company. These companies, also known as timeshare exit companies, claim they can help you get out of your timeshare.

From there, the company will supposedly work on your behalf to end your ownership, a process that can stretch indefinitely. However, many of these companies demand a substantial up-front fee, often in the thousands of dollars. In the worst-case scenario, the “timeshare salespeople” at the exit company may vanish after taking your money. This leaves you with no resolution and a significant financial loss. While being able to get rid of your timeshare contract like this may seem appealing, exit companies are usually more trouble than they’re worth.

How to Spot and Steer Clear of Timeshare Exit Scams

It’s unsettling but true: The process of leaving a timeshare has given rise to a whole new batch of questionable “helpers”—many of whom are more interested in your wallet than your well-being. Knowing how to identify legitimate companies versus outright scams will save you not only heartache but potentially thousands of dollars.

Here’s what to watch for:

• Hefty Upfront Fees: Any company that demands a large payment before getting started should set off alarm bells. Legitimate services will always be transparent about their fees and never guarantee miracles overnight.
• Vague Promises and High-Pressure Sales Tactics: Be cautious of companies that promise a quick, hassle-free escape or that use aggressive tactics to pressure you into signing up. If it sounds too good to be true, it probably is.
• Insistence on Stopping Payments: Some scammers might urge you to stop paying your annual fees immediately. Don’t fall for this—doing so could wreak havoc on your credit and leave you in a worse predicament.
• No Written Contract or Fine Print: A real company will give you everything in writing and encourage you to read all the details. If something feels off or they refuse to explain the contract, it’s a red flag.
• Lack of Reputation or Reviews: Before letting anyone handle your timeshare exit, do your homework. Search the company’s name with terms like “scam” or “complaint.” Check their track record with the Better Business Bureau. Don’t ignore poor ratings or frustrated customer reviews.
• Unwillingness to Answer Questions: A trustworthy company will answer your questions patiently and honestly. If you get evasive responses or a script-like pitch, move on.

If you find yourself uneasy at any point—press pause. Talk it over with someone you trust, and don’t rush any decisions. And if you do run into a scam, report it directly to the FTC at ReportFraud.ftc.gov. Staying informed is your best defense as you work to find a safe and legitimate path out of your timeshare.

Sell Your Timeshare on the Resale Market

Do none of the other ways to get rid of your timeshare appeal to you? No problem! There’s still a great way to move on from your ownership: selling it. Over the last two years, the vacation industry has benefited from a massive boom. More people than ever have started vacationing, which means more people are interested in vacation ownership. In turn, this means that people are more interested now than ever in vacation ownership. So, if you want a risk-free way of saying goodbye to your timeshare, selling it on the resale market is a great choice.

Keep Your Expectations in Check

Keep in mind that timeshares are not an investment. Much like other luxury products, like cars, the value of the property will decrease over time. As a result, it’s important to keep your expectations on how much you can sell the property for in check. It is very rare to get back what you originally paid, but many buyers use timeshare resales to dip their toes into vacation ownership, while experienced owners use the market to add to their ownership at a lower price. So, if you’re looking to get rid of your ownership and stop paying those maintenance fees, selling is a great way to do so.

Get Out of Your Timeshare with Timeshares Only

If you’ve weighed out all of your options and decided you still want to get out of your timeshare ownership, Timeshares Only can help! We’ve worked in the resale market for over 20 years, and as one of ARDA’s featured resellers, we follow a strict set of ethics that helps to keep everyone in the industry safe. Click on the link below to take the first steps to sell your timeshare.

When you work with Timeshares Only, you work with the best in the business. We’ll use our state-of-the-art marketing strategies to promote your vacation ownership to potential timeshare owners around the world. In other words, we work hard to give your ownership the best chance possible of being sold. If you have any questions, we’re here to help! Please give our timeshare experts a call at 1-800-610-2734 or email us at [email protected].