Timeshares

Timeshares can be a great vacation investment, but they can also be a financial burden to some people.

We are often flooded with complaints from consumers who want to get out of their timeshare contracts.

It is possible to exit a timeshare contact, but it is not easy.

The best way to protect yourself from time share problems is to do your due diligence before you commit to a contract.

Do online research about timeshares in general and the specific timeshare company in which you are interested. Check the Better Business Bureau website https://www.bbb.org/search and the AGO’s list of organizations about which consumers have complained. https://www.mass.gov/info-details/list-of-complaints-received-by-the-attorney-generals-consumer-advocacy-and-response-division

Remember, just because a business has been complained about doesn’t mean the business did anything wrong or illegal. A significant number of consumer complaints are based on misunderstandings, not malfeasance.

Before committing to a timeshare contract, be sure to understand the “point system” that many timeshares use. In the old days, people purchased specific weeks at their timeshare. Those days are pretty much gone and have been replaced by a point system. Be sure to learn about how timeshares use “points” to determine where and when you can take your vacations.

Each timeshare operator has its own procedures for allowing timeshare subscribers to be released from their contracts. One prominent timeshare operator on Cape Cod requires:

People be current on their loan obligations
Owners try for 6 months to sell their timeshares (the operator will help with that process)
Owners view a 60-minute video about how to use their timeshares (many people are not aware of how timeshares actually work)
Those wishing to void their contracts must pay a $400 fee
Extricating from a contract also involves paying two years of maintenance fees

We have seen operators drop or modify their exit procedures in bona fide cases of severe financial or medical issues but a) these must be verified and b) they are under no obligation to do so.

If you wish out of a contract, first speak with the management company to get a full understanding of their procedures.

In our experience, operators can be reasonable about letting people out of their contracts, with certain stipulations.

Where operators may not be so reasonable is when it comes to their sales practices. Their practices can be very high pressured. One operator will not let people go home and think about making their purchase. It’s “buy it right now right here or we will sell it to someone else. You don’t get another chance.”

A particularly onerous practice is not letting potential purchasers have the sales contracts reviewed by their attorneys. Some operators on the Cape will not let consumers take the contracts home until and unless they are signed. They will point out that there is a 3-business day right of rescission in Massachusetts, so purchasers can have their contracts reviewed by an attorney and/or can changes their minds and cancel, in writing, by midnight of the third business day after signing.

Practically speaking, you are not likely to find attorneys on the Cape with nothing to do, who can drop everything, review your contract, and explain the ins and outs to you in 3 days. If you do plan to purchase a timeshare, it’s best to have your attorney standing-by to receive, read, review and explain the contract to you … And be sure to have an attorney who understands timeshare operations.

Some consumers have retained “time share exit companies” to handle their contract termination problems. These organizations charge fees for their service. Some can be effective, but we have also had complaints about them. As with the timeshare itself, it is wise to do your due diligence before retaining a time share exit company.

Some people swear by their timeshares, others swear at them. Your best protection is to do your research before you attend a timeshare sales presentation.