How to Get Out of a Timeshare

Last Updated: February 24, 2023 References

There are thousands of people who have purchased timeshare contracts but no longer want them because of escalating fees, lifestyle changes, or loss of interest in the property. It is important to watch for signs of the timeshare trap and try to avoid it in the first place. However, if you didn't manage to sidestep it, there are ways to get out of your timeshare unit once and for all.

Method 1

Method 1 of 3:

Canceling the Timeshare Contract

1
Review your timeshare contract agreement for cancellation terms. These terms are typically listed near the end of the contract in a section with a heading like, "cancellations," "severability," or "termination." Many timeshare contracts allow buyers to cancel within a short window of time after the initial purchase.^{[1]
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2
Research your state laws around contract cancellations. Even if your timeshare agreement doesn’t mention it, many states offer consumers a “cooling off” period, which allows them to cancel most contracts within a few days or weeks.
- You can find information about your state's contract laws on your state's Department of Consumer Affairs website.
- If you're having trouble deciphering your state's contract laws, you can contact your state's Office of the Attorney General for more assistance. Alternatively, if there is a consumer rights nonprofit organization in your state, they may be able to assist you.
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3
Check for language in the contract about personal liability of purchaser. Most contracts will have language stipulating that you are personally liable to continue paying timeshare maintenance fees and improvement assessments.^{[2]
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Research source} However, if your contract does not have this language, you may walk away at any time.
4
Contact an attorney who specializes in contract law or timeshare cancellations. Ask him or her if it makes sense to litigate against the timeshare company. Many timeshare companies are more likely to release an owner from the contract when they're faced with potential litigation.^{[3]
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- Ask the attorney about all liabilities, current, future, and contingent (dependent on certain circumstances).

Method 2

Method 2 of 3:

Selling the Timeshare

1
Contact the company that manages your timeshare. Let them know that you want to sell it. Some timeshare management companies help owners sell timeshares in exchange for a percentage of the sales proceeds.
- Timeshares depreciate quickly, so it can be difficult to sell a timeshare for what you originally paid. If you owe more on the timeshare than what you can sell it for, get your timeshare lender’s permission to sell it for less than the outstanding balance. This is known as a short sale.^{[4]
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2
Sell the timeshare yourself. Selling fees are minimal or nonexistent when you sell the timeshare yourself, which means you'll get to keep more of the sales proceeds. You can list the timeshare for sale on a timeshare specific website like Timeshares User Group ^{[5]
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Research source} or a site like Craigslist or eBay.^{[6]
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3
Contact a real estate agent that specializes in timeshare sales. He may be able to market your timeshare more quickly and efficiently than you can. Real estate agents typically charge a substantial fee though.
- Don’t use an upfront-fee listing company to sell your timeshare. These companies charge initial fees of hundreds or thousands of dollars and offer no guarantee of a sale. Many charge an upfront fee because they know they will likely never sell the unit. By the time you realize the unit won’t sell, it is too late to get a refund from your credit card company.
4
List your timeshare on one or more online trading sites. These trading sites allow you to trade a few weeks at one timeshare for a few weeks at someone else's timeshare. Popular services include Dial An Exchange^{[7]
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daelive.com} and RCI.^{[8]
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rci.com}
- You may need to pay a membership fee to participate in a timeshare exchange program and you'll be assessed taxes and fees on the timeshare that you trade for.^{[9]
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  Federal Trade Commission
  Website with up-to-date information for consumers from the Federal Trade Commisson
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Method 3

Method 3 of 3:

Giving Away the Timeshare

1
Ask your timeshare management company if you can deed the timeshare back to them. This practice, known as a “deedback,” transfers the property title back to the management company and releases you from future financial liability.
2
Do your best to get current on your payments and assessments before you ask about a deedback. Timeshare companies may be more likely to accept a deedback if there’s no outstanding balance on your account.
3
Donate the timeshare to a nonprofit or someone who wants it. Although you won’t get cash for the transaction, you’ll get the satisfaction of helping out a friend or a charity that can use it to raise funds. Be aware that because of the maintenance fees, fewer organizations are interested in accepting donated timeshares nowadays.^{[10]
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- Your timeshare usually needs to be completely paid off and current on fees if you want to donate it.
- You may be able to deduct the fair market value of your timeshare as a charitable deduction on your tax return. Contact a tax professional for more information.

Warnings

Don’t stop paying your maintenance fees. This only ruins your credit as you accrue additional fees and charges, including late penalties from the resort association. If you become extremely delinquent, the timeshare company may even sue you.

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Deal with your timeshare obligation before you die. A timeshare company is considered a debtor and your heirs may have to use assets in your estate to satisfy the timeshare debt.

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