A timeshare contract is a legal document which many so - called timeshare authorities often contend is a perpetual and non - cancellable agreement. In fact, most timeshare companies will tell you that their contacts are not cancelable. This misconception is perpetuated by timeshare companies and user groups that are funded, controlled, and maintained by the timeshare industry themselves.
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.)
"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)
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.
The purpose of this article is to 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."
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.
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.
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.
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.
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.
Listing it through the developer is another option, should the developer handles re-sales, or through a timeshare resale broker. Paying an advance fee for the sale of a timeshare is the one thing the proposed timeshare seller should not do. Advance fee practices have fallen under the scrutiny of state Attorney Generals.
The other frequently discussed solution to the problem of how to be released from your timeshare's financial burdens, is to donate the timeshare to a charity. Before the recent crash in the real estate market, this was a viable solution. Today, where there once were a number of charitable organizations that accept timeshare donations, with the ever increasing burden of maintenance fees, such organizations 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.
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 lawsuits followed, all seeking cancellation and termination for the type of fraudulent and deceptive conduct that is frequently utilized by timeshare sales people to induce unwitting potential buyers 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 obtain such a result, a timeshare owner should first retain an attorney who is familiar with timeshare laws and the various techniques that are invaluable 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.)
"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)
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.
The purpose of this article is to 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."
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.
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.
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.
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.
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.
Listing it through the developer is another option, should the developer handles re-sales, or through a timeshare resale broker. Paying an advance fee for the sale of a timeshare is the one thing the proposed timeshare seller should not do. Advance fee practices have fallen under the scrutiny of state Attorney Generals.
The other frequently discussed solution to the problem of how to be released from your timeshare's financial burdens, is to donate the timeshare to a charity. Before the recent crash in the real estate market, this was a viable solution. Today, where there once were a number of charitable organizations that accept timeshare donations, with the ever increasing burden of maintenance fees, such organizations 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.
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 lawsuits followed, all seeking cancellation and termination for the type of fraudulent and deceptive conduct that is frequently utilized by timeshare sales people to induce unwitting potential buyers 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 obtain such a result, a timeshare owner should first retain an attorney who is familiar with timeshare laws and the various techniques that are invaluable 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:
Learn more about timeshare debt relief. Stop by attorney Mitchell Sussman's website where you can find out all about how to rid yourself of an unwanted timeshare.
