Do you own a timeshare? My condolences. You have the equivalent of a sticky bomb in your portfolio.
For many timeshare owners, what once seemed like a great vacation investment can quickly become a financial burden. Rising maintenance fees, restrictive timeshare contracts, and limited resale options often leave owners searching for a legal way out.
If you are trying to get rid of a timeshare legally, understanding your options — and avoiding common scams — is critical.
What Is a Timeshare and Why Is It So Hard to Exit?
A timeshare is a form of shared real estate ownership, typically involving a condominium in a vacation destination. Buyers purchase the right to use the property during specific periods each year.
While this may sound appealing, most timeshare contracts come with long-term obligations, including annual maintenance fees, whether you use the property or not.
Timeshares are often described as “easy to get into, difficult to get out of.” The resale market is limited, and many buyers quickly realize their exit options are not as simple as expected.
Texas Timeshare Laws and the Rescission Period
Texas regulates timeshares under a law creatively called the “Texas Timeshare Act”, which provides important protections for consumers. The Act applies to any timeshare property in existence on or after August 26, 1985, and portions of the Act even apply to timeshare properties located outside of Texas.
One of the most important protections is the rescission period, which is a short window after purchase during which a buyer can cancel the timeshare contract without penalty.
- The rescission period is your easiest and most effective timeshare cancellation option
- After this period expires, exiting becomes significantly more complicated
If you are still within your rescission period, act immediately. This is the simplest way to cancel a timeshare legally.
Why Timeshares Create Problems in Estates
Executors and trustees often struggle with timeshares during probate and estate administration.
Timeshare ownership can:
- Create ongoing financial obligations through maintenance fees
- Be difficult to sell in the timeshare resale market
- Be rejected by beneficiaries who do not want the burden
Because fiduciaries have a duty to properly manage assets, disposing of a timeshare can become a legal and logistical challenge.
Can You Just Stop Paying Your Timeshare?
In short: no.
If you stop paying maintenance fees, you are in default under your timeshare contract. This can lead to:
- Damage to your credit score
- Collection actions
- Potential legal consequences
While some owners consider this approach, it is rarely a sound exit strategy.
Legal Timeshare Exit Options
1. Contact the Resort About Exit Programs
Start by contacting your timeshare company directly. Some offer:
- Exit programs
- Deed-back or “back program” options
These programs allow timeshare owners to surrender their interest under certain conditions.
2. Sell on the Timeshare Resale Market
You may attempt to find buyers through:
- Licensed real estate professionals
- Online resale platforms
However, the timeshare resale market is notoriously difficult. Many properties sell for little or no value.
3. Rent the Timeshare
Some owners offset maintenance fees by renting out their timeshare.
This is not a true exit strategy, but it may help reduce financial strain while you explore other options.
4. Give the Timeshare Away
In some cases, you may be able to transfer ownership or gift it to another party willing to assume the obligation.
However, Texas law prohibits transferring a timeshare to someone who cannot reasonably afford the ongoing costs.
5. Donate to Charity
Certain charities accept deeded timeshare donations. This may:
- Help you get rid of the timeshare
- Provide a potential tax deduction
Not all charities accept timeshares, so careful vetting is required.
6. Work With an Attorney
If your contract contains legal issues or you were misled during the sale, an attorney can help evaluate:
- Possible contract defenses
- Misrepresentation claims
- Timeshare cancellation strategies
This is often the safest path for complex situations.
Beware of Timeshare Exit Scams
One of the biggest risks for timeshare owners is falling victim to scams.
Many so-called timeshare exit companies promise quick results but charge large upfront fees with little to no outcome.
Red Flags to Watch For:
- Requests for upfront fees
- Guarantees of a fast exit
- Claims of having “buyers ready”
- Pressure tactics
The Federal Trade Commission has repeatedly warned about timeshare scams targeting desperate owners, and has some excellent materials on its website about resale tips and reseller scams.
What Timeshare Owners Need to Keep in Mind
- Timeshares come with ongoing maintenance fee obligations
- The rescission period is the easiest way to cancel
- Legitimate exit options exist, but require careful planning
- The resale market is limited
- Avoid scams, especially companies demanding upfront fees
Hammerle Morris is Here to Help With Your Timeshare
If you are struggling to get rid of a timeshare legally or are concerned about your options, it may be time to seek legal guidance.
Virginia Hammerle is an attorney whose practice includes probate law, estate planning, guardianship, and business litigation.
