Common Legal Timeshare Exit Mistakes to Avoid During Cancellation
You’ve stumbled across a landscape strewn with pitfalls, and you are trying to get rid of an onerous timeshare contract. With more than 15 years of experience in the timeshare-exit industry, the Resort Victory team has navigated every trick in the book.
We’ll share the most frequent legal blunders timeshare owners commit while seeking an exit, and how to avoid them. This guide is an important tool—not only to learn what can go wrong but to make sure you’re prepared to avoid the expensive and stressful timeshare exit mistakes others make.
1. Don’t Overlook that One Clause in the Contract
When you made your timeshare agreement, you might have glossed over or even skipped over several sections of the contract. That’s a huge mistake. Often, the timeshare contracts are thick with clauses that benefit the resort or management company. For example:
- “Forever” or endless clauses burdening heirs & assigns.
- Significant transfer fees or onerous resale provisions that make reselling or transferring impossible
- Ambiguous cancellation or exit provisions that tend to leave you locked in.
If you attempt to escape without first studying these clauses, you may face breach of contract penalties and maintenance fee charges that can reach into the millions.
Tip: You should always get a complete copy of your contract and read (or have someone read) it before you take exit steps.
2. Overlooked Rescission or Grace Period: Wait Too Late, And It Could Be Years!
Many states and localities also mandate that the resort company provide you with a limited “cooling-off” or rescission period following your signing or receipt of the contract disclosures. If you wait too long, you lose the easiest and most affordable route to cancel your timeshare.
Common Timeshare Exit Mistakes:
- Forgetting to write down the date on your planner.
- Believing in someone’s word or input from a salesperson without creating a paper trail.
If you don’t notify them that you are rescinding within the required time period, in most cases, you will be stuck with the contract and have little to no rights. So you’ll be on the hook for maintenance fees, assessments, and any other commitments for years or perhaps decades. Don’t worry, Resort Victory is available to help in such situations.
Tip: After you sign the timeshare contract, identify the rescission deadline. Work before it gets too late.
3. Ceasing Payments Without A Legal Plan: The Unseen Legal Pitfall
It might seem like common sense to stop paying once you’re done, but if you haven’t legally canceled your timeshare, that’s a serious mistake. This is the biggest mistake we see at Resort Victory that leaves owners, who have no legal exit or plan, paying maintenance/fees, and then stopping one day.
Why is this Dangerous?
- The resort/developer can initiate collection, fines, judgments, or foreclose.
- Your credit rating may be destroyed and impact other borrowing.
- The breached contract could still be enforced, and you face liability for your default.
Tip: Never stop paying those bills until you have a documented, legal release of your contract (or an exit path) through the right channels.
4. Not Documenting Everything: The Easy Way to Lower Risk
Documentation is paramount when it comes to contract exit. The most common issue is trusting in human memory, verbal assurance, or simple emails. In legal matters, though, you need evidence.
Examples:
- Sellers verbally describe benefits (“you’ll be able to trade anywhere”), but the contract language makes that untrue, and it can be a misrepresentation.
- You send cancellation notices, but you don’t have delivery confirmation of them or a copy.
- Their fees and obligations, or terms of transfer, are subsequently contested.
Tip: Retain copies of everything, such as your signed contract, all correspondence, payment records, notices sent, and responses received. When in doubt, send your cancellation letter by certified mail if you can.
5. Selecting the Wrong Timeshare Exit Company
If you’re planning to get out of your timeshare through a service, you must choose the right partner. We’ve seen scam exit companies thrive by taking advantage of desperate or frustrated timeshare owners.
Warning Signs to Spot:
- Hefty upfront fees and no way to guarantee reasonable success.
- Contracts that restrict you from seeking legal timeshare advice from your own attorney.
- Businesses claim guaranteed fast exits or a 100% success rate (that’s hardly ever the case).
Resort Victory has well over 15 years under our belts; we know which exit paths deliver results (and which ones don’t).
Tip: Check credentials, request track records, look for consumer complaints, make sure the contract doesn’t restrict your rights, and remember that a legitimate exit takes time.
6. Counting on Resale or “Buy-Out” Offers to be Fair
Another common mistake is believing you’ll be able to resell your timeshare, or that a “buy-back” offer from the resort will readily be offered. In practice:
- The value of timeshares is not increasing, and there is virtually no secondary market.
- Some companies that specialize in getting you out promise to “sell your share in 90 days” for a fee, but it’s not the truth.
- Resorts can charge exorbitant transfer fees or require the buyer to be approved in advance, effectively stopping a true resale.
Tip: Be skeptical of resale options. Make sure that you know the real market for your timeshare and don’t think your investment can be turned around quickly. Resort Victory recommends concentrating on exit strategies.
7. Ignore State/Consumer-Protection Laws
Contracts are one thing, but so are the laws that govern them. Some important legal concepts that timeshare owners miss:
- Laws against misrepresentation in the sale of goods or unfair contract terms.
- Disclosures and the rescission period in your state.
- Sometimes, the resort’s failure to meet state legal requirements can justify terminating your contract.
Tip: Inquire about state limits on rescinding a timeshare or consumer laws. A timeshare exit company with deep experience will know how to leverage these laws for your benefit.
8. Falling for the “Free Exit” Lie
It can be tempting to think you can walk away from a timeshare with no expense. But the truth is: There’s no free exit for everyone.
Timeshare Exit Mistakes Made:
- Depending on the liars who claim, “Just send the letter and we’ll let you go.”
- Having faith in a timeshare exit company that claims you should “just stop paying.”
Tip: Realize that a rightful exit will have a price (time, paperwork, maybe some appeal processes). Resort Victory gives you practical timeshare advice and doesn’t push into the miracle pitch that many have.
9. Leaving without a Release: One of The Biggest Pitfalls
Finally, the mother of all legal timeshare exit mistakes is behaving as if you are done, without obtaining a formal contract termination, deed release, or any other clear legal closure. Without a formal exit letter, you are still open to claims, back charges, and potential legal action at the resort.
Pro tip: Do not cease active negotiations until your resort has offered you a valid, signed release, or unless the contract is declared null and void according to the law. Keep all documentation safe.
Trust Resort Victory Exit Experts
With 15 years in the exit industry, Resort Victory has the experience you can rely on. We have guided hundreds of exit cases, gained awareness of the legal traps above, and created protocols to reduce the risk of timeshare exit mistakes.
When you decide to invest with Resort Victory, that doesn’t mean you’re signing your name away for a pushy sales presentation. You’re led by 15 years of experience, grounded in transparency, and dedicated to getting you actual results.
