Timeshare exit teams have been around for a long time appealing to owners who no longer use their timeshare. What even is a timeshare exit company? Is a timeshare exit team really necessary in selling your timeshare? How much does it cost? And is it worth it? Keep reading to learn the answers to all your burning questions.
What is A Timeshare Exit Company?
Timeshare exit teams and companies offer services to help owners exit or cancel their timeshares. Typically, they will have a group of lawyers who are dedicated to your case. The cost of services can vary greatly, as well as the results. Timeshare exit companies offer guaranteed “exits” and cancellations. Often times they paint timeshares as a scam when in reality, a lot of exit companies are the actual scammers.
What Do Timeshare Exit Teams Do?
In most cases, the legal team will typically send a letter to your timeshare developer asking them to stop contacting you. Of course, this oftentimes causes owners to default on their timeshare maintenance fees because they are misled into believing that they no longer have to pay for their timeshare. This is seldom the case. When an owner buys a timeshare, they sign a legally binding contract with the resort, stating that they will pay their annual fees. If you fail to pay, you are oftentimes in breach of that contract. This, in turn, can hurt your credit score. The only time an owner can really “cancel their timeshare” is within the rescission period as stipulated on their timeshare contract.
In Florida, this period lasts for ten days. Within that time, owners have the right to cancel their timeshare contract and purchase. After that, “canceling or exiting timeshares” is rarely as simple. Selling it or contacting your resort for help is often the best means of getting out. Rescission periods differ between states, developers, and contracts, so make sure you know your rights.
Are Timeshare Exit Companies Legitimate?
Lawyers are rarely necessary for the sale of a timeshare. Many timeshare exit teams advertise that owners are lied to when purchasing their timeshare and are therefore entitled to compensation. Many owners who no longer want their timeshares will trust these companies to cancel it for them. But much like other contracts in life, these contracts cannot simply be canceled. If it sounds too good to be true, it likely is.
Not to mention, the timeshare industry takes great measures to ensure that they are upholding ethical sales practices. Additionally, if you are a member of a timeshare who is part of ARDA, your developer is held to a higher standard of ethics. Many developers have joined ARDA’s Coalition for Responsible Exit to provide safe relief for owners.
Up Next: How to Choose A Legitimate Timeshare Resale Company
The Cost of Timeshare Exit Teams
So, how much does using these services cost? While it can differ depending on which timeshare exit team you look into, many have starting rates at upwards of $5,000, some reaching $10,000. Additionally, timeshare exit companies will often give you a money-back guarantee if they can’t get you out within a certain time frame. However, there are ways to sell your timeshare with no upfront fees.
Breaking Down Timeshare Resale Scams
1. Out of the Blue Buyers
It is a red flag if you get a call from someone out of the blue claiming to have a buyer for your timeshare, whether you intend to sell your ownership or not. It should be noted that it is illegal for a resale company to contact you without your prior consent. A genuine resale company will never make a sudden offer to buy your timeshare if you haven’t approached them earlier or given permission to be contacted.
2. “Stop Paying Your Timeshare Maintenance Fees”
One common timeshare resale scam involves cancellation attorneys or exit companies advising owners to stop paying their timeshare maintenance fees. This advice is highly problematic and should be ignored as failing to pay these dues can lead to foreclosure of your ownership and adversely impact your credit score.
3. Cancel Your Timeshare Contract
In today’s world, one of the most concerning issues is the growing number of timeshare exit teams that offer to cancel your timeshare contract. These companies may present themselves as timeshare cancellation lawyers or businesses that guarantee a refund. However, it is important to be cautious as the fine print can reveal hidden risks.
Selling Timeshare With No Upfront Fees
Most owners are unaware that they shouldn’t pay upfront fees to sell or exit their timeshare. If you are looking to sell your timeshare and have it paid off, you can list it for sale with a Licensed Real Estate Agent for free. There are no upfront fees. The only fees incurred happen when your timeshare sells. Not to mention, closing costs are negotiable and typically are paid for by the buyer.
Finding the right company to help you sell your timeshare can feel intimidating, especially with the swath of misinformation out there. We recommend contacting your developer for help and checking out the American Resort Development Association. Additionally, you can visit the BBB to find ratings on businesses to make sure they are keeping on their promises.
Check out the video below to learn more about how to sell a timeshare without upfront fees:
Contact Fidelity for More Information
Unforeseeable events may lead us to the realization that ownership can no longer be maintained. Life circumstances can shift, or our travel preferences may change. No matter why you need to sell your timeshare, Fidelity Real Estate is here to help. You don’t need to turn to pay steep upfront fees for a timeshare exit team when there are reputable companies here to help.
If you have any lingering questions, let us know. Our team of experts is here to help. We offer safe solutions for exiting your timeshare. For a free consultation to sell your timeshare, give us a call at 1 (800) 410-8326 or send us an email at [email protected].
