Even though it's true that a timeshare contract is a legally binding document, it is mistaken to think that such a contract cannot be cancelled. While most timeshare companies contend that their contracts are non-cancellable, this is simply not true. This timeshare myth, that the contracts are perpetual and can never be cancelled is perpetuated by timeshare developers and user groups that are funded maintained and controlled by the timeshare industry.
The truth of the matter is, that under the law, contracts are cancellable for a variety of reasons, including fraud and mistake. Moreover, a person who is burdened by the obligations of a contract may "terminate" it and no longer be bound by the contract for reasons other than breach.
"Cancellation" occurs when either party puts an end to the contract for breach by the other and its effect is the same as that of 'termination' except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance." Uniform Commercial Code 2106(4); see 13 Corbin (Rev. ed.), 73.2; 13 Am.Jur.2d (2000 ed.)
"Termination" occurs when either party, pursuant to a power created by agreement or by law, puts an end to the contract otherwise than for its breach. Uniform Commercial Code sec. 2106 (3)
Since it is the law of the land, that a breach of contract by a party to the contract may result in the other party being released from their obligations under the contract, the notion that one is forever bound by a timeshare contract is erroneous as a matter of law.
The author hopes that this article will provide a ray of hope to those timeshare owners who are no longer interested in being tied to their timeshare and its lifetime of financial obligations.
To start, when you first purchase your timeshare, most states have a rescission, or "cooling off," period during which timeshare buyers may cancel their contracts and have their deposit returned. This is known as the "right of rescission."
Once this period expires, however, most timeshare companies will have you believe that their contract is not cancellable and you are thereafter bound in perpetuity to pay the ever increasing maintenance fees that go along with timeshare ownership.
The proponents of timeshare ownership would have you believe moreover, once the initial "right of recession" expires, transfer of ownership whether by selling, donating or giving it away is the only legal way to end timeshare contracts.
In fact, most timeshare user groups and virtually all timeshare companies want you to believe that under no circumstances will a timeshare company voluntarily take back their timeshare. This again, is not true.
What is true is that most timeshare companies will not willingly take back their timeshare. When faced, however, with litigation or the potential of litigation, most timeshare companies will in fact either take back their timeshare or simply agree to release the timeshare owner from any future obligations.
Before I discuss the latest developments in cancelling a timeshare, I'd like to devote a little time to the more traditional means of cancelling or getting rid of an unwanted timeshare.
As mentioned above, the traditional means of ridding oneself of an unwanted timeshare is through a sale, donation or transfer.
One of the problems in selling a timeshare, is that many unwary timeshare owners fall prey to listing companies that propose to list their timeshare for sale at prices simply not justified by the open market. These listing companies have been under investigation for fraudulent and deceptive practices. It is therefore recommended that a proposed timeshare seller wishing to sell his or her timeshare obligation, should first consider selling their timeshare by listing it on sites like eBay or Craigslist.
Another traditional option is to list your timeshare through the developer or through a timeshare resale broker. One thing the proposed timeshare seller should not do is pay an advance fee for the sale of their timeshare because it is just such practices which have fallen under the scrutiny of state Attorney Generals from coast - to - coast.
Another frequently discussed solution to the problem of how to be released from your timeshare's financial burdens, is to donate the timeshare. Where there once were a number of organizations that accept deeded-timeshare donations, with the ever increasing burden of maintenance fees which seem to go up every year, such organizations are a vanishing breed.
Another frequently discussed "exit strategy" is transferring ownership to a third party who will merely take over the yearly maintenance obligations. It is important to mention, these persons won't pay you for the timeshare. Moreover, the timeshare company, in many cases, will simply refuse to recognize the transfer or alternatively impose onerous resort transfer fees making those that are faced with financial difficulties more prohibitive to transfer to a third party.
In recent years, however, new techniques pioneered by real estate attorney's who specialize in timeshare litigation have emerged. These techniques reached their ultimate fruition in a series of lawsuits filed in California on behalf of a group of timeshare owners who wanted nothing more than the complete release, termination and cancellation of their timeshare interests.
Other similar actions have followed, all seeking damages for the type of fraudulent and deceptive conduct that is frequently utilized by timeshare sales people to induce unwitting potential owners to sign on the dotted line.
The following representations are typical of the false promises typically made at the time the timeshare was sold:
a. That the timeshare interest purchased would appreciate and increase resale price and value over time.
b. That the timeshare interest purchased could be freely
exchanged, transferred and sold.
c. That the timeshare interest purchased was a financial
investment.
d. That the timeshare interest purchased would result in the
purchaser receiving booking priority over non - purchasing
vacationers wishing to stay at one or more of the
properties owned and/or maintained by the defendant.
As a result of the filing of such actions, timeshare companies have become much more amenable to releasing timeshare owners from their timeshare obligations even without resort to litigation.
If you are interested in getting out of your timeshare, you should retain an attorney who is familiar with timeshare laws and the various methods of terminating a timeshare contract.
In conclusion, do not believe the unscrupulous companies who tell you that it is impossible to get out of a timeshare contract. Should you be victim of timeshare fraud, you too may be able to terminate your timeshare contract.
The truth of the matter is, that under the law, contracts are cancellable for a variety of reasons, including fraud and mistake. Moreover, a person who is burdened by the obligations of a contract may "terminate" it and no longer be bound by the contract for reasons other than breach.
"Cancellation" occurs when either party puts an end to the contract for breach by the other and its effect is the same as that of 'termination' except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance." Uniform Commercial Code 2106(4); see 13 Corbin (Rev. ed.), 73.2; 13 Am.Jur.2d (2000 ed.)
"Termination" occurs when either party, pursuant to a power created by agreement or by law, puts an end to the contract otherwise than for its breach. Uniform Commercial Code sec. 2106 (3)
Since it is the law of the land, that a breach of contract by a party to the contract may result in the other party being released from their obligations under the contract, the notion that one is forever bound by a timeshare contract is erroneous as a matter of law.
The author hopes that this article will provide a ray of hope to those timeshare owners who are no longer interested in being tied to their timeshare and its lifetime of financial obligations.
To start, when you first purchase your timeshare, most states have a rescission, or "cooling off," period during which timeshare buyers may cancel their contracts and have their deposit returned. This is known as the "right of rescission."
Once this period expires, however, most timeshare companies will have you believe that their contract is not cancellable and you are thereafter bound in perpetuity to pay the ever increasing maintenance fees that go along with timeshare ownership.
The proponents of timeshare ownership would have you believe moreover, once the initial "right of recession" expires, transfer of ownership whether by selling, donating or giving it away is the only legal way to end timeshare contracts.
In fact, most timeshare user groups and virtually all timeshare companies want you to believe that under no circumstances will a timeshare company voluntarily take back their timeshare. This again, is not true.
What is true is that most timeshare companies will not willingly take back their timeshare. When faced, however, with litigation or the potential of litigation, most timeshare companies will in fact either take back their timeshare or simply agree to release the timeshare owner from any future obligations.
Before I discuss the latest developments in cancelling a timeshare, I'd like to devote a little time to the more traditional means of cancelling or getting rid of an unwanted timeshare.
As mentioned above, the traditional means of ridding oneself of an unwanted timeshare is through a sale, donation or transfer.
One of the problems in selling a timeshare, is that many unwary timeshare owners fall prey to listing companies that propose to list their timeshare for sale at prices simply not justified by the open market. These listing companies have been under investigation for fraudulent and deceptive practices. It is therefore recommended that a proposed timeshare seller wishing to sell his or her timeshare obligation, should first consider selling their timeshare by listing it on sites like eBay or Craigslist.
Another traditional option is to list your timeshare through the developer or through a timeshare resale broker. One thing the proposed timeshare seller should not do is pay an advance fee for the sale of their timeshare because it is just such practices which have fallen under the scrutiny of state Attorney Generals from coast - to - coast.
Another frequently discussed solution to the problem of how to be released from your timeshare's financial burdens, is to donate the timeshare. Where there once were a number of organizations that accept deeded-timeshare donations, with the ever increasing burden of maintenance fees which seem to go up every year, such organizations are a vanishing breed.
Another frequently discussed "exit strategy" is transferring ownership to a third party who will merely take over the yearly maintenance obligations. It is important to mention, these persons won't pay you for the timeshare. Moreover, the timeshare company, in many cases, will simply refuse to recognize the transfer or alternatively impose onerous resort transfer fees making those that are faced with financial difficulties more prohibitive to transfer to a third party.
In recent years, however, new techniques pioneered by real estate attorney's who specialize in timeshare litigation have emerged. These techniques reached their ultimate fruition in a series of lawsuits filed in California on behalf of a group of timeshare owners who wanted nothing more than the complete release, termination and cancellation of their timeshare interests.
Other similar actions have followed, all seeking damages for the type of fraudulent and deceptive conduct that is frequently utilized by timeshare sales people to induce unwitting potential owners to sign on the dotted line.
The following representations are typical of the false promises typically made at the time the timeshare was sold:
a. That the timeshare interest purchased would appreciate and increase resale price and value over time.
b. That the timeshare interest purchased could be freely
exchanged, transferred and sold.
c. That the timeshare interest purchased was a financial
investment.
d. That the timeshare interest purchased would result in the
purchaser receiving booking priority over non - purchasing
vacationers wishing to stay at one or more of the
properties owned and/or maintained by the defendant.
As a result of the filing of such actions, timeshare companies have become much more amenable to releasing timeshare owners from their timeshare obligations even without resort to litigation.
If you are interested in getting out of your timeshare, you should retain an attorney who is familiar with timeshare laws and the various methods of terminating a timeshare contract.
In conclusion, do not believe the unscrupulous companies who tell you that it is impossible to get out of a timeshare contract. Should you be victim of timeshare fraud, you too may be able to terminate your timeshare contract.
About the Author:
Want to find out more about how to be freed of yourtimeshare obligations, then visit attorney Mitchell Sussman's website and learn more about the many ways of getting rid of yourtimeshare, even if you have a mortgage.