A Comprehensive Guide to Timeshare Cancellation: Your Queries Answered

• Timeshare cancellation involves exiting a timeshare purchase without penalties and obtaining a full refund upon contract release.
• Most states mandate buyers to cancel their timeshares during the rescission period, which typically ranges from 3 to 15 days after purchase.
• Prepare an official cancellation letter and dispatch it via certified mail to the timeshare company before midnight on the final day of your state’s rescission period.

Timeshare cancellation refers to exiting a timeshare contract without facing penalties. Investing in a timeshare is a substantial commitment, and individuals may have a change of heart after making the initial deposit and signing the contract. Cancelling a recent timeshare purchase without incurring penalties means being released from the contract with a full refund, and it's achievable if prompt action is taken.

• You are not obligated by law to provide a reason or justification for your cancellation to the seller.

In most states, buyers must cancel a timeshare within 3 to 15 days. Following the purchase of a timeshare, you enter a legally mandated “cooling off” or “rescission” period during which you have the legal right to withdraw from the timeshare contract—without any questions asked. The specific duration varies by state, but typically falls within 3 to 15 days for rescission. To be released from your contract without incurring penalties, you must send a formal cancellation notice to the seller within this rescission period.

• For instance, in Colorado, buyers have 5 days to rescind a timeshare agreement, while in Washington, the period is 7 days.

Review the timeshare agreement to determine your state's rescission period. Typically, your state’s rescission timeframe is indicated somewhere within the contract, though it might be concealed in the fine print. If you're unable to locate this information, research your state’s specific laws regarding rescission periods online.

• The contract may contain special cancellation instructions (again, check the fine print). Ensure you precisely adhere to any specific instructions provided. For instance, certain companies may require cancellation letters to be sent via certified or registered mail.

Draft an official cancellation letter promptly. Even if your state permits verbal cancellation, it's essential to submit your cancellation notice in writing to maintain a paper trail and demonstrate compliance with state regulations. After composing your cancellation letter, print a hard copy to mail to the timeshare company.

• Remember to print several additional copies of the letter for your records.

Send the letter via certified mail before the rescission period expires. In most states, a timeshare cancellation is considered effective on the date the cancellation letter is postmarked. As long as the postmark date falls before midnight on the final day of your state's rescission period, you should successfully complete the cancellation process.

• Using certified mail guarantees you receive a return receipt confirming that you dispatched the letter within the applicable rescission period.

Clearly state your intention to cancel and provide all contract particulars. While you're not obligated to justify the cancellation in your letter, it’s crucial to emphasize in the opening sentences that the letter's purpose is to rescind the contract. Use a straightforward approach like, 'I am contacting you within the rescission period to terminate this timeshare contract.' Additionally, include the following details in your letter:

• Current date
• Your name as stated in the contract
• Your address, telephone number, and email
• Name of the timeshare company
• Concise description of the timeshare (extracted from the timeshare documentation)
• Date of timeshare purchase

Reach out directly to the timeshare company regarding exit options. Inform them of your desire to explore an exit plan and inquire about any deed-back or surrender programs they offer. The company or developer will outline their available exit solutions and the eligibility criteria. While you may not recover any funds already paid, deed-back and surrender programs provide a means to exit the timeshare without further financial obligation.

• Some states permit cancellations post-rescission deadline, necessitating legal representation and potentially lengthy proceedings.
• Consider leasing out your timeshare to assist in covering costs (subject to approval by the timeshare developer).
• Exercise caution with third-party timeshare exit firms—many are fraudulent, requiring upfront payments without delivering promised services.
• If your timeshare is fully paid off, gifting it to a friend or family member is an option. While no monetary compensation is involved, they assume responsibility for future maintenance fees on the property.