Steps On How To Cancel A Timeshare Contract

By Walter Butler


Timeshare contracts are quite attractive because they allow one to get easy and pretty steady earnings. For those not familiar, these are basically deals that allow one to have part ownership on a piece of property and earn interest or capital gains based on how much he or she has invested. It is like investing in a mutual fund but on a specific real estate property. In the event that one wants to opt out though, he or she must learn how to cancel a timeshare contract.

One thing to remember about these kinds of contracts is that they are very attractive. Because they are sold as shares of interest, they cost low and have a pretty high return of investment. Due to that, the sellers can actually hard sell their way in and get a buyer to avail of the interest. However, a lot of financial costs would pop out later on, which is why many people change their minds.

Luckily though, the law is on the side of the investors. These contracts are actually pretty easy to get out of if one knows how to and if one will act quickly. If one determines that the deal is not worth it, act fast.

Now, before anything else, one must first digest the contract properly to see all the terms and conditions stipulated. One of the things that the buyer has to look out for would be the cancellation clause. As per state laws, the sellers are required to always put a cancellation clause where buyers can opt out if they opt out within a grace period.

When looking for these clauses, one has to first look for the keywords cancellation or rescission. The next thing that one has to look out for would be the cancellation period wherein a specific number of days, weeks, or months is given wherein one can terminate the deal. If those two things are not found in the agreement, then either request the seller to put it there or do not take the deal.

If one finds out that he or she is still within the cancellation period and wants to back out, then the first thing that has to be done would be to write in a formal letter. Never cancel the contract verbally because it will not hold any weight should any legal action be taken against the seller. Details to include would be buyer name, seller name, buyer contact details, seller contact details, description, investment terms, date of purchase, and cancellation statement.

While not really required, it is also good to put the reasons for termination. In the event that a court hearing or lawsuit will have to come about, at least the reasons are stated. After writing the letter, send it and keep a copy.

Now, there might be some people who will ask whether it is still possible to terminate after the cancellation period. It is possible in some states, but more legal action is required from then on. That is why it is better to do it the proper way instead of go through the hassle of a court case.




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