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 if either party, pursuant to a power set forth in the contract 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.
A ray of hope therefore does exist for those timeshare owners, who wish to no longer be their timeshare and it's lifetime of financial obligations.
When first sold a timeshare, a "right of rescission" exists. This provides is a "cooling off" period in most states that have enacted timeshare legislation. During this period timeshare buyers may cancel their contracts along with having their deposit returned.
Most timeshare companies will have you believe that, once this period expires, their contract is no longer cancellable and you are stuck for life with the obligation to pay maintenance fees for a timeshare unit that you may never again use. Be assured, however, a timeshare owner is not bound in perpetuity to pay the ever increasing maintenance fees that go along with timeshare ownership.
Proponents of timeshare ownership would have you believe that once the "right of rescission" expires the only way to rid oneself of the timeshare contract involves a transfer of ownership to a third party willing to take over the maintenance obligations.
A common misconception is that under no circumstances will a timeshare company voluntarily take back their timeshare, in fact, most timeshare user groups and virtually all timeshare companies want you to believe this.
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.
I'd like to devote a little time, before I discuss the latest developments in cancelling a timeshare, to the more traditional means of getting rid of an unwanted timeshare.
The traditional means of ridding oneself of an unwanted timeshare is through a donation, transfer, or sale as mentioned above.
In regards to the subject of selling a timeshare, many unwary timeshare owners looking to rid themselves of their timeshare fall prey to the variety of listing companies that propose to list their timeshare for sale. Fraudulent and deceptive practices by such companies have been under investigation by state Attorney General's from coast-to-coast. A proposed timeshare seller wishing to sell his or her timeshare obligation would be better served by first considering selling their timeshare by listing it on sites like eBay or craigslist.
Other options are to list it through the developer, if the developer handles re-sales, 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. It is these advance fee practices that have fallen under the scrutiny of state Attorney Generals.
Donating the timeshare is another frequently discusses solution. There are charitable organizations that may be willing to take the deed to an unwanted timeshare. However, where there once were a number of such organizations, they 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, legal techniques pioneered by real estate attorney's specializing in timeshare litigation have emerged. These techniques, which involve application of the legal principles of cancellation and termination, reached their zenith in a series of lawsuits filed in California filed by a private law firm 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.
Such conduct includes the following representations, 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 the aforementioned legal actions, timeshare companies have become more willing to release timeshare owners from their timeshare obligations, even without resort to litigation.
In order to avail yourself of such a solution, you should retain an attorney familiar with timeshare laws and the various techniques for terminating a timeshare contract.
In conclusion, do not despair nor should you take to heart those who will tell you that it is impossible to get out of a timeshare contract. If you are the victim of timeshare fraud, you too may be able to permanently rid yourself of your timeshare obligations.
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 if either party, pursuant to a power set forth in the contract 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.
A ray of hope therefore does exist for those timeshare owners, who wish to no longer be their timeshare and it's lifetime of financial obligations.
When first sold a timeshare, a "right of rescission" exists. This provides is a "cooling off" period in most states that have enacted timeshare legislation. During this period timeshare buyers may cancel their contracts along with having their deposit returned.
Most timeshare companies will have you believe that, once this period expires, their contract is no longer cancellable and you are stuck for life with the obligation to pay maintenance fees for a timeshare unit that you may never again use. Be assured, however, a timeshare owner is not bound in perpetuity to pay the ever increasing maintenance fees that go along with timeshare ownership.
Proponents of timeshare ownership would have you believe that once the "right of rescission" expires the only way to rid oneself of the timeshare contract involves a transfer of ownership to a third party willing to take over the maintenance obligations.
A common misconception is that under no circumstances will a timeshare company voluntarily take back their timeshare, in fact, most timeshare user groups and virtually all timeshare companies want you to believe this.
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.
I'd like to devote a little time, before I discuss the latest developments in cancelling a timeshare, to the more traditional means of getting rid of an unwanted timeshare.
The traditional means of ridding oneself of an unwanted timeshare is through a donation, transfer, or sale as mentioned above.
In regards to the subject of selling a timeshare, many unwary timeshare owners looking to rid themselves of their timeshare fall prey to the variety of listing companies that propose to list their timeshare for sale. Fraudulent and deceptive practices by such companies have been under investigation by state Attorney General's from coast-to-coast. A proposed timeshare seller wishing to sell his or her timeshare obligation would be better served by first considering selling their timeshare by listing it on sites like eBay or craigslist.
Other options are to list it through the developer, if the developer handles re-sales, 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. It is these advance fee practices that have fallen under the scrutiny of state Attorney Generals.
Donating the timeshare is another frequently discusses solution. There are charitable organizations that may be willing to take the deed to an unwanted timeshare. However, where there once were a number of such organizations, they 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, legal techniques pioneered by real estate attorney's specializing in timeshare litigation have emerged. These techniques, which involve application of the legal principles of cancellation and termination, reached their zenith in a series of lawsuits filed in California filed by a private law firm 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.
Such conduct includes the following representations, 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 the aforementioned legal actions, timeshare companies have become more willing to release timeshare owners from their timeshare obligations, even without resort to litigation.
In order to avail yourself of such a solution, you should retain an attorney familiar with timeshare laws and the various techniques for terminating a timeshare contract.
In conclusion, do not despair nor should you take to heart those who will tell you that it is impossible to get out of a timeshare contract. If you are the victim of timeshare fraud, you too may be able to permanently rid yourself of your timeshare obligations.
About the Author:
Looking to find the best way to get rid of your timeshare, then visit www.timesharelegalaction.com to find out more on the subject of timeshare relief.
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