When acquiring a timeshare, you have a couple of options for selecting a resort. You can opt for a fixed timeshare, allowing you to return to the same location annually, or a points-based system, which lets you pick your desired resort each year. These timeshares provide upscale lodgings and outstanding facilities. However, timeshares come with a price tag.
Be prepared to face significant initial expenses and ongoing maintenance fees. Once these costs are withdrawn from their bank accounts, many timeshare buyers start seeking ways to terminate the agreement as soon as possible. To successfully exit a timeshare purchase, a timeshare cancellation letter is necessary.
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What is timeshare cancellation?
Timeshare cancellation refers to the process of legally terminating a timeshare contract or agreement. Timeshare owners may seek cancellation for various reasons, such as financial constraints, dissatisfaction with the property or its management, or a change in personal circumstances that makes continued ownership impractical.
Typically, timeshare cancellation involves submitting a written request, known as a timeshare cancellation letter, to the timeshare company or resort. This letter outlines the owner’s intention to exit the agreement and the reasons for the decision. The cancellation process can be complex and may require the assistance of legal professionals or specialized timeshare exit companies to navigate the contractual terms and conditions.
Timeshare Cancellation Letter Templates
Effectively cancel your timeshare agreement with confidence using our comprehensive collection of Timeshare Cancellation Letter Templates. A timeshare cancellation letter is a written document that formally notifies the timeshare company of your intent to cancel your timeshare contract. Our customizable and printable templates provide a structured framework for composing a clear and legally binding cancellation letter. Our templates cover essential aspects such as your contact information, timeshare details, reasons for cancellation, and any additional supporting documentation.
By utilizing our Timeshare Cancellation Letter Templates, you can assert your rights, protect your interests, and navigate the cancellation process smoothly. Whether you’re a timeshare owner seeking to terminate your agreement or a legal professional assisting clients in timeshare cancellations, our templates offer a valuable tool to ensure a proper and documented cancellation process. Streamline the cancellation process, maintain legal compliance, and achieve freedom from your timeshare obligations with our user-friendly templates. Download now and confidently navigate the timeshare cancellation process.
Understanding Timeshare Options (Right to Use vs. Shared Deeded Contracts)
Timeshare buyers are presented with two primary options.
Right to Use Contract
A Right to Use contract, also known as a shared lease, involves multiple people purchasing the same property, effectively sharing the usage rights. Each buyer gains the privilege to use the property for a designated period each year for a specific number of years. The downside to this timeshare model is the inability to rent or sell it, as it does not grant any ownership rights or interest. To exit such a timeshare arrangement, cancellation is the only option. Buyers may want to research timeshare cancellation letter samples to ensure they cover all necessary details in their cancellation request.
Shared Deeded Contract
With a Shared Deeded contract, all timeshare buyers hold equal ownership of the property, dividing it amongst themselves. Each owner is allotted a predetermined set of weeks for using the property. The benefit of this type of timeshare is the owner’s ability to sell, gift, or bequeath the property. If they decide to cancel, they can submit a timeshare cancellation letter within the permitted timeframe.
Different Types of Timeshares
Beginning in the mid-1970s, the United States experienced a substantial surge in condominium construction. As competition intensified, property owners sought innovative methods to alleviate their surplus inventory. This marked the inception of the timeshare concept. Over the years, the industry has undergone significant transformation, giving rise to a diverse range of timeshare offerings. The following presents an overview of the primary timeshare types available today:
Fixed Week Timeshare
A fixed week timeshare assigns owners a specific week, or weeks, each year during which they have the exclusive right to use their designated property. This model offers the advantage of predictability and guarantees access to the property during the predetermined time. However, it may be less flexible for those looking to vacation during different weeks or seasons.
Floating Week Timeshare
Floating week timeshares provide more flexibility, as owners can choose their desired week within a specific season or range of weeks each year. This allows for variation in vacation planning but may also require reservations in advance to secure preferred dates. The downside is that availability may be limited during high-demand periods, as other owners may be competing for the same weeks.
Points System Timeshare
In a points system timeshare, owners are allocated a certain number of points annually, which they can use to book stays at various resorts within the timeshare network. This model offers the most flexibility, as points can be used for different resorts, unit sizes, and lengths of stay. Points may also be saved or borrowed from future years, providing even greater versatility in vacation planning. However, owners may face limited availability during peak seasons and must manage their points wisely to maximize their benefits.
Fractional Ownership Timeshare
Fractional ownership is a more upscale version of traditional timeshares, where owners purchase a larger share of a high-end property or multiple properties. This entitles them to longer stays, typically ranging from several weeks to a few months. Fractional ownership offers many of the benefits of full property ownership, including the ability to rent, sell, or transfer the share. However, the initial purchase price and ongoing costs tend to be higher than other timeshare options.
Biennial and Triennial Timeshares
Biennial and triennial timeshares operate on a every-other-year or every-third-year basis, respectively. Owners are allocated usage rights for a specific week, floating week, or a set number of points during their designated year. This option suits those who prefer to vacation less frequently or have alternate vacation plans in the off-years. However, it may be challenging to trade or exchange these timeshares due to their infrequent usage.
Each type of timeshare offers varying levels of flexibility, ownership rights, and costs. Prospective buyers should carefully consider their vacation preferences, budget, and long-term plans before deciding which timeshare model best aligns with their needs.
The Cost of Owning a Timeshare Property
The total cost of owning a timeshare property varies depending on several factors such as the type of timeshare, location, resort quality, and additional fees. Here is a comprehensive overview of the different costs associated with owning a timeshare.
Initial Purchase Price
The initial purchase price of a timeshare can range from several thousand dollars to tens of thousands of dollars. This amount depends on the type of timeshare (fixed week, floating week, points-based, or fractional ownership), the resort’s location and amenities, the unit size, and the season or demand of the property. More luxurious properties in popular destinations will generally have higher initial purchase prices.
Annual Maintenance Fees
Timeshare owners are required to pay annual maintenance fees, which cover expenses such as property upkeep, utilities, taxes, and management fees. These fees can range from a few hundred dollars to a few thousand dollars per year, depending on the resort and ownership type. It’s essential to note that maintenance fees often increase over time to account for inflation and rising operational costs.
If you participate in a timeshare exchange program to swap your timeshare week or points for a stay at another resort, you may need to pay an exchange fee. These fees can vary from $100 to $300 per exchange, depending on the exchange company and the trade’s complexity.
Owners who join a timeshare exchange network or club may be required to pay annual membership fees to access the network’s services. These fees can range from $100 to $250 per year, depending on the company and the level of membership.
In some cases, timeshare owners may be charged special assessments for unexpected expenses or significant improvements to the property. These fees are typically charged on an as-needed basis and can range from a few hundred to several thousand dollars.
Financing and Interest
If you choose to finance your timeshare purchase, interest charges will add to the overall cost. Interest rates will vary based on your credit score, loan term, and the financing institution.
In conclusion, the total cost of owning a timeshare property is influenced by a variety of factors. Prospective buyers should carefully assess these expenses, along with their personal vacation preferences and long-term plans, to determine if a timeshare is a suitable investment for their needs.
How to cancel a timeshare?
Canceling a timeshare can be a complex process that varies depending on the specific terms of your contract and the laws governing timeshare agreements in the jurisdiction where the property is located. However, there are some general steps to follow when attempting to cancel a timeshare:
Review your contract: Carefully read your timeshare agreement to understand the cancellation terms and conditions. Take note of any deadlines, specific requirements, or fees associated with canceling the timeshare.
Rescission period: Most jurisdictions have a legally mandated rescission or “cooling-off” period during which you can cancel your timeshare contract without penalty. This period typically ranges from 3 to 10 days, depending on the location. If you are still within this period, follow the cancellation procedures outlined in your contract.
Prepare a cancellation letter: Draft a timeshare cancellation letter that includes your name, contact information, contract number, property details, and a clear statement of your intent to cancel the contract. Specify your reasons for cancellation, and if applicable, refer to any relevant clauses in the contract that allow for termination.
Submit the cancellation letter: Send the cancellation letter to the timeshare company or resort via certified mail with a return receipt requested. This ensures you have proof of delivery and a record of when the letter was received. Keep a copy of the letter and any related correspondence for your records.
Follow up with the timeshare company: Monitor your account to confirm that the cancellation has been processed. Contact the timeshare company to inquire about the status of your cancellation if you don’t receive a response within a reasonable timeframe.
Seek legal assistance: If you encounter difficulties canceling your timeshare or the company refuses to honor your request, consider seeking the help of a lawyer or a specialized timeshare exit company. They can provide guidance on your legal rights and options for exiting the timeshare agreement.
Be cautious of scams: When attempting to cancel a timeshare, be wary of fraudulent companies that claim to provide exit services. Thoroughly research any company you consider working with and avoid paying upfront fees without a clear understanding of the services provided and the potential outcomes.
How to write a Timeshare Cancellation Letter
Step 1: Review your contract
Before writing your cancellation letter, carefully read your timeshare agreement to understand the cancellation terms and conditions. Note any deadlines, specific requirements, and fees associated with canceling the contract.
Step 2: Gather necessary information
Collect all relevant information required for the cancellation letter, such as your name, contact details, contract number, property details, and the date of purchase. You may also want to gather any supporting documentation related to your reasons for cancellation.
Step 3: Draft your letter
Begin your letter by clearly stating your intent to cancel the timeshare contract. Follow these guidelines for writing an effective timeshare cancellation letter:
Use a professional tone and format: Write your letter in a formal, business-style format. Include your name, address, phone number, and email address at the top of the letter, followed by the date and the timeshare company’s contact information.
Reference your contract: Clearly state your contract number, property details, and the date of purchase. This information helps the timeshare company easily identify your account.
State your intent to cancel: Clearly express your intention to cancel the timeshare contract in the opening paragraph. Be concise and direct.
Explain your reasons for cancellation: Briefly outline your reasons for requesting cancellation, and if applicable, refer to any relevant clauses in the contract that allow for termination. Include any supporting documentation, if necessary.
Request confirmation of cancellation: Politely ask the timeshare company to acknowledge the receipt of your letter and confirm the cancellation of your contract.
Keep a professional and respectful tone: Maintain a polite and respectful tone throughout the letter, even if you have had a negative experience with the timeshare company.
Step 4: Proofread and edit
Carefully proofread and edit your letter to ensure it is clear, concise, and free of errors. Double-check all the details, such as the contract number and property information, for accuracy.
Step 5: Send the cancellation letter
Submit the cancellation letter to the timeshare company via certified mail with a return receipt requested. This provides proof of delivery and a record of when the letter was received. Keep a copy of the letter and any related correspondence for your records.
Step 6: Follow up with the timeshare company
Monitor your account to confirm that the cancellation has been processed. If you don’t receive a response or confirmation within a reasonable timeframe, contact the timeshare company to inquire about the status of your cancellation request.
What is the rescission period for timeshare cancellation?
The rescission or “cooling-off” period is a legally mandated timeframe during which you can cancel a timeshare contract without penalty. This period typically ranges from 3 to 10 days, depending on the jurisdiction. Check your contract and local laws to determine the specific rescission period for your timeshare.
Can I cancel my timeshare contract after the rescission period has passed?
Canceling a timeshare contract after the rescission period can be more challenging and may depend on the specific terms of your agreement and the laws governing timeshare contracts in the jurisdiction where the property is located. Consult a legal professional or a specialized timeshare exit company to discuss your options.
Will I receive a refund if I cancel my timeshare contract?
If you cancel your timeshare contract within the rescission period, you should receive a full refund of any payments made. Refunds after the rescission period will depend on the terms of your contract and the specific circumstances of your cancellation.
Can I sell or transfer my timeshare instead of canceling it?
Yes, you may be able to sell or transfer your timeshare to another party. However, the resale market for timeshares can be challenging, and you may need to sell at a lower price than your initial purchase cost. Alternatively, you can explore options such as gifting or donating your timeshare to a charity.
What are the potential consequences of canceling a timeshare contract?
Canceling a timeshare contract may result in financial penalties, loss of any payments made, or damage to your credit score if the timeshare company reports the cancellation to credit bureaus. It’s essential to carefully review your contract and understand the potential consequences before proceeding with a cancellation.
Are there companies that can help me cancel my timeshare?
Yes, specialized timeshare exit companies can assist with the cancellation process. However, it’s crucial to research any company you consider working with thoroughly, as there are fraudulent companies that claim to provide exit services. Look for reputable companies with a proven track record and avoid paying upfront fees without a clear understanding of the services provided and potential outcomes.
Can I cancel my timeshare maintenance fees?
Canceling your timeshare maintenance fees is generally not an option, as they are a contractual obligation for owners. Failure to pay maintenance fees may result in legal action, damage to your credit score, or even foreclosure of your timeshare. If you wish to be free of maintenance fees, you must cancel, sell, or transfer your timeshare ownership.