There are more than 9 million households who own a timeshare. As of 2016, the timeshare industry had grossed over $9 billion. There will be times when the timeshare will be great for vacation. Many people have been willing to pay nearly $20,000 for a share of a vacation home. When the thrill has left and people who desire to no longer have a timeshare, there are few options of exiting a timeshare. It not impossible but methods are limited. A timeshare depreciates in value quickly and it is sometimes difficult to attract a buyer when a person is trying to sell their timeshare. It is important to understand the type of timeshares being sold.
Types of Timeshares Available
Any type of Timeshare Exit Strategy used will be influenced by the type of timeshare. There are a few types of timeshares. The fee simple timeshare ownership allows a person to purchase deeded interest in the property. The deeded interest will be recorded with the authorities that govern real estate. Once recorded, the person receives a title in perpetuity. The other types of timeshares are:
• Right to Use (RTU)
The RTU timeshare a person only purchases the right to use the property, but a person does not own an interest in the property. A person owning RTU will have the right to use the property for several years that normally over 20 years. Once the 20 years or longer has passed, the property goes back to the owner. RTU is common for timeshares outside of the United States. The Leasehold timeshare provides ownership rights as seen in a fee simple timeshare. The leasehold timeshare is different because the contract has a specified end date. There will be cases when a person may be unable to travel and will seek a solution to get out of owning a timeshare.
Overview of Methods of Getting Out of a Timeshare
The first method would be to contact the entity that sold the timeshare. There may be a chance a person will be able to negotiate their way out of the unwanted timeshare. A person may want to inquire about any buyback plan available with the company who sold the timeshare. When a person fails to negotiate an exit solution, a person may attempt to rent or resale their timeshares. There are a few third-party companies who are online who are willing to find buyers or renters of timeshares. A person can give the timeshare away. The money paid for the timeshare will be lost when a person decides to give the timeshare away. The use of timeshare cancellation is another method to get out of a timeshare. There are third-party companies who will be able to facilitate the cancellation. It can cost thousands of dollars to utilize the services of companies who will facilitate the timeshare cancellation. Timeshare cancellation can take years to resolve. Many timeshare owners decide to utilize the service of a lawyer with experience in timeshare law. An experienced lawyer will be able to litigate when a breach of contract occurs and the lawyer will be able to draft cancellation letters.