While it is true that a timeshare contract is a binding legal document, it is often mistakenly thought that such a contract cannot only be cancelled. In fact, most timeshare companies maintain that their contracts are non - cancellable. This misconception is perpetuated by timeshare companies and user groups that are funded, maintained and controlled by the timeshare industry.
Under general contract law, the truth of the matter is contracts are cancellable for a variety of reasons. Common grounds for cancellation include mistake and fraud. But there are others. Burdened by the obligations of a contract, a person moreover, may "terminate" it for reasons other than breach and as a result may no longer be bound by the contract.
"Cancellation" occurs when either party puts an end to the contract for breach by the other. Its effect is the same as that of 'termination' except that the canceling party may also sue for breach of the contract or any unperformed balance." Uniform Commercial Code 2106(4); see 13 Corbin (Rev. ed.), 73.2; 13 Am.Jur.2d (2000 ed.)
"Cancellation" occurs when a party puts an end to the contract occasioned by the breach of the other. Its effect is the same as that of 'termination' except that the canceling party also retains any remedy for damages for non - performance of any unperformed balance." Uniform Commercial Code 2106(4); see 13 Corbin (Rev. ed.), 73.2; 13 Am.Jur.2d (2000 ed.)
It is hornbook that a breach of contract may result in the other party being released from their contractual obligations. Thus, the notion that one is forever bound by a contract, of any kind, 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 you first purchase a timeshare, most states have a statutory right of rescission, or "cooling off," period during which timeshare buyers may cancel their contracts.
Once the " cooling off" period has expired, most timeshare companies will have you believe that upon this periods expiration, their contract is non - cancellable and you are bound in perpetuity to pay the 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.
Moreover, many 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, however, is simply not true.
While it is true, that most timeshare companies will not willingly take back their timeshare. When faced with litigation or the potential of litigation many timeshare companies will do one of two things; take back their timeshare or simply agree to release the timeshare owner from any future liability in connection with the timeshare contract.
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.
Unwary timeshare owners, seeking to rid themselves of their timeshare, may fall prey to listing companies that propose to list their timeshare for sale. Such companies have been under investigation by state Attorney General's for fraudulent and deceptive practices and 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.
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.
Transferring ownership to a third party who will merely take over the yearly maintenance obligations is another "exit strategy." These persons, however, won't pay you for the timeshare and in many cases the timeshare company will simply refuse to recognize the transfer or alternatively impose onerous resort transfer fees making the transfer to a third party prohibitive for those faced with financial difficulties.
New techniques pioneered by real estate attorneys who specialize in timeshare litigation have emerged in recent years. These techniques reached the summit through a series of lawsuits filed in California by a private attorney who worked on behalf of a group of timeshare owners that had wanted nothing more than the complete release, termination and cancellation of their timeshare interests.
What followed were other similar actions, each seeking damages for the deceptive and fraudulent conduct that is almost always utilized by timeshare sales people for the purpose of inducing unwitting potential owners to sign on the dotted line.
Such conduct includes representations typically made at the initial timeshare presentation:
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 sum, do not believe the naysayers who tell you that it is impossible to get out of a timeshare contract. Should you be the victim of one or more of the foregoing misrepresentations, you too may be able to cancel your timeshare contract.
Under general contract law, the truth of the matter is contracts are cancellable for a variety of reasons. Common grounds for cancellation include mistake and fraud. But there are others. Burdened by the obligations of a contract, a person moreover, may "terminate" it for reasons other than breach and as a result may no longer be bound by the contract.
"Cancellation" occurs when either party puts an end to the contract for breach by the other. Its effect is the same as that of 'termination' except that the canceling party may also sue for breach of the contract or any unperformed balance." Uniform Commercial Code 2106(4); see 13 Corbin (Rev. ed.), 73.2; 13 Am.Jur.2d (2000 ed.)
"Cancellation" occurs when a party puts an end to the contract occasioned by the breach of the other. Its effect is the same as that of 'termination' except that the canceling party also retains any remedy for damages for non - performance of any unperformed balance." Uniform Commercial Code 2106(4); see 13 Corbin (Rev. ed.), 73.2; 13 Am.Jur.2d (2000 ed.)
It is hornbook that a breach of contract may result in the other party being released from their contractual obligations. Thus, the notion that one is forever bound by a contract, of any kind, 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 you first purchase a timeshare, most states have a statutory right of rescission, or "cooling off," period during which timeshare buyers may cancel their contracts.
Once the " cooling off" period has expired, most timeshare companies will have you believe that upon this periods expiration, their contract is non - cancellable and you are bound in perpetuity to pay the 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.
Moreover, many 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, however, is simply not true.
While it is true, that most timeshare companies will not willingly take back their timeshare. When faced with litigation or the potential of litigation many timeshare companies will do one of two things; take back their timeshare or simply agree to release the timeshare owner from any future liability in connection with the timeshare contract.
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.
Unwary timeshare owners, seeking to rid themselves of their timeshare, may fall prey to listing companies that propose to list their timeshare for sale. Such companies have been under investigation by state Attorney General's for fraudulent and deceptive practices and 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.
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.
Transferring ownership to a third party who will merely take over the yearly maintenance obligations is another "exit strategy." These persons, however, won't pay you for the timeshare and in many cases the timeshare company will simply refuse to recognize the transfer or alternatively impose onerous resort transfer fees making the transfer to a third party prohibitive for those faced with financial difficulties.
New techniques pioneered by real estate attorneys who specialize in timeshare litigation have emerged in recent years. These techniques reached the summit through a series of lawsuits filed in California by a private attorney who worked on behalf of a group of timeshare owners that had wanted nothing more than the complete release, termination and cancellation of their timeshare interests.
What followed were other similar actions, each seeking damages for the deceptive and fraudulent conduct that is almost always utilized by timeshare sales people for the purpose of inducing unwitting potential owners to sign on the dotted line.
Such conduct includes representations typically made at the initial timeshare presentation:
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 sum, do not believe the naysayers who tell you that it is impossible to get out of a timeshare contract. Should you be the victim of one or more of the foregoing misrepresentations, you too may be able to cancel your timeshare contract.
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.
