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?
What is A Timeshare Exit Company?
Timeshare exit 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.
The Cost of Timeshare Exit Teams
So, how much does using these services cost? While it can differ depending on which company 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.
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.
Contact Fidelity for More Information
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, send us an email at [email protected] or fill out the form below.