The property was impressive, the amenities were stunning, and you felt as if you could stay forever. Then the payment hits your bank account, and the financial implications begin to sink in. It’s not unheard-of for new timeshare owners to quickly rethink their purchase decision. In these cases, it’s likely you’re exploring how to alleviate buyer’s remorse, leverage your future maintenance fees, or even get your deposit back in full.

What is Timeshare Cancellation?

Timeshare cancellation is the process of exiting a timeshare purchase and receiving a full refund, without penalty. Though this is possible, there are some caveats. Most importantly, your cancellation must be executed within a certain period of time after purchase. If this is an exit route you’re inclined to take, it requires immediate attention and action.

How Does Timeshare Cancellation Work?

Following your initial purchase, you’ll enter a brief cancellation, or “cooling off” period. This window of time is legally mandated in most states. A formal notice of cancellation must be declared by you to the seller within that period in order to get your full deposit back.

If you’ve missed the cancellation window, unfortunately your opportunity for a full refund, sans penalty and additional fees, will have likely closed. However, if you’re reading this after your state’s cancellation deadline, don’t panic – there are options beyond the cancellation period. More on this below.

Act Quickly

You’ve made up your mind; this purchase just isn’t for you. Now what? Before taking any other steps, start with a thorough examination of your sales contract. Though it may be buried within confusing terminology and fine print, the contract will contain information on how to cancel your timeshare purchase. Next, you’ll want to type up your official cancellation letter and get it in the mail – and fast. 

Known as rescission, the period for timeshare cancellation varies by state, but averages only 5-7 days. Not a lot of time when you’re in full vacation mode, or in the process of traveling home. That said, it’s critical that you know what your state’s rescission period is, and then act within that window to ensure a refund.

Write a Formal Timeshare Cancellation Letter

Still have time before your rescission period closes? Great! You’ll need to write a timeshare cancellation letter to the brand with which you purchased. Even if the contract states this can be done verbally, you’ll want to make sure to get all the details in writing.

When writing your cancellation letter, be sure to include, along with your name and contact info, the following:

1. The name of your timeshare company
2. The contract number
3. The name(s) on the timeshare contract 
4. The date of purchase
5. A statement of cancellation (Quick note: You don’t need to spend valuable time expressing your reasons for cancelling. All you need is a clear and concise statement of your desire to cancel)
6. The amount you paid, including a request that this amount be returned to you.

Make Sure Your Cancellation Letter is Received

When writing your cancellation letter, don’t forget dates and copies! Be sure to date your letter and keep proof of your mailing date. Keep multiple copies as well. We can’t stress how key it is to have written records of all your timeshare cancellation correspondence, and to follow the instructions of the brand from which you purchased to a t.

A few quick examples: if your contract requests cancellation via mail, make sure it’s postmarked within your rescission period and request a return receipt. If cancelling by fax, keep a copy of the receipt with the date indicated. It may feel like an overwhelming checklist, but these steps add a not-to-miss layer of protection for you.

What if the Timeshare Cancellation Window has Passed?

Fear not! You may still have options if you find yourself beyond the rescission deadline. First, contact your timeshare company. Some resort brands have launched deed-back programs, with internal teams that can help you explore other cancellation solutions. Some states also allow cancellations post-rescission, but you’ll need to work with an attorney.

While deciding on what route to take, it’s important to keep a clear head – and do your research. Unfortunately, there’s no shortage of cancellation scams and shady third-party companies out there, many requesting thousands of dollars upfront while not delivering on their promises. The Better Business Bureau and the American Resort Development Association are great resources to help you find legitimate assistance.

There are also trustworthy resources out there if you’re past your cancellation window and choose to sell your timeshare. Timeshares Only is an ARDA and BBB-accredited resale marketplace that supports owners through the complete sale cycle, with solutions in place to offset maintenance fees in the process. 

You also have the option of renting with KOALA. Our platform connects your listing to travelers in search of stellar resorts at unbeatable prices, all while managing your annual costs.

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