Hey Friends! Remember when you just started living on campus and you realized you had purchased a timeshare package to an extravagant family vacation resort and you didn’t even remember doing it? Of course you don’t, but someday you probably will look back on this experience and wonder how you could have spent so much money on what was essentially a vacation for life. Before you find yourself in shock, it is important to remember that you have time to make the right choice and legally cancel the contract before it is too late. So we thought today we would give you some tips on understanding the real meaning of a timeshare contract and how to utilize your legal recission period.
For those of you who don’t even know what a timeshare is, don’t worry because most of us aren’t familiar with the legal jargon and fine print until we are paying the bill. Essentially, a timeshare contract is sharing ownership or long-term use of property, usually a resort, with other “owners” or “members.” Members of a timeshare collectively own the property and take turns enjoying days at the resort every year. Timeshares are common at vacation resorts for tourist destinations, such as Florida and California. Many people sign up for these contracts expecting to save money over time since they believe they will visit the resort at least one week per year for a guaranteed number of decades. However, what many people do not know is that a timeshare is essentially “deeded property,” therefore at its heart a timeshare contract is a real estate contract. You purchase a shared interest in a home away from home and remove yourself from the possibility of choosing another place to vacation for life. The good news about this situation is that under the right circumstances, a timeshare contract can be canceled within specific time requirements. The bad news is that people do not always take the time to read the intricate details of the contract and so they are stuck paying astronomical timeshare fees.
If we are going to be honest, most people do not really think about our timeshare contract until they find themselves trying to cancel it for one of the several popular reasons. One of the most common reasons for trying to cancel a timeshare contract is financial hardship. Another reason commonly seen is that the deal was simply too good to be true. People often find that a timeshare contract is not worth the expense after a single encounter with their new vacation home. In either of these cases and others, people usually realize that they are interested in trying to legally cancel the contract within the first few months after signing it. This is called the “recission period.” The recission period is different in each state and more information on your state’s policy can be found by looking at our featured article. There are also several online tools available to sample letter to rescind timeshare contract forms, but it is important that individuals are aware of their time constraints and understand how to best utilize the rescission period.
While it is essential that students understand their rights and timing limits regarding timeshare contracts, it is equally important that we offer tips so that students are less likely to sign a timeshare contract in the first place. First, pay attention to any legal paperwork that is presented to you. While it seems pretty self-explanatory, people often sign contracts without reading commercials, fliers, or brochures. We encourage students to pay attention to details. Second, understand and ask about any and all fees attached to your timeshare contract, including membership fees. These fees can add up quickly and will inevitably reach the thousands of dollars per year. Third, take time to consider other options or alternatives to purchasing a timeshare. There are several other ways to enjoy a vacation without locking yourself into a timeshare contract. There are timeshare rental programs, for example, and prices will vary based on location. On the whole, timeshare contracts are not recommended for most individuals because it can be difficult to legally cancel a contract after the recission period has lapsed. However, there are some simple steps that students can take to ensure they feel confident signing a contract, knowing that they can legally cancel within a few months if need be. We hope this article has helped you understand the importance of being diligent with all of your purchases. Leave comments below to let us know your thoughts or experiences with timeshares. As students, we all have a lot of decisions to make that have lifetime implications. It is critical that you seek professional help and advice before moving forward with important purchases.
For more information on timeshare regulations, you can visit Consumer Financial Protection Bureau.