Breaking Free: Your Practical Guide on How to Get Out of a Timeshare Permanently


Owning a vacation property seemed like a dream come true when you first signed those papers. You imagined years of sunny beaches, family bonding, and seamless getaways. But fast forward a few years, and that dream might feel more like a financial shackle. Between skyrocketing maintenance fees, difficulty booking the dates you actually want, and the realization that you are paying for something you rarely use, you are likely asking yourself: "How can I get out of a timeshare without ruining my credit or losing more money?"

If you feel trapped, you are not alone. Thousands of owners seek an exit strategy every month. The good news is that while timeshare contracts are designed to be "perpetual," there are legitimate, safe ways to relinquish your ownership. This guide explores the most effective methods to navigate the complex world of timeshare exits.

Understanding the Challenges of the Resale Market

Before diving into the solutions, it is crucial to understand the landscape. Unlike traditional real estate, a timeshare is rarely an investment that appreciates. In fact, many timeshares lose up to 90% of their value the moment the rescission period ends.

Because the market is flooded with owners trying to offload their units, "selling" a timeshare for a profit is statistically unlikely. Many units are listed on secondary sites for as low as one dollar just so the owner can stop paying the annual fees. Recognizing this reality is the first step toward a successful exit; your goal isn't usually to make money, but to stop the bleeding of ongoing costs.

Step 1: Check Your Rescission Period (The "Cooling-Off" Phase)

If you bought your timeshare very recently—within the last few days or weeks—you might be in luck. Every state has a "rescission period," which is a legally mandated window during which you can cancel a contract for a full refund, no questions asked.

  • Review your contract: Look for the "Right to Cancel" clause.

  • Act fast: These windows are typically very short, often ranging from 3 to 10 days depending on the state where the contract was signed.

  • Follow instructions exactly: You usually need to send a written cancellation letter via certified mail. Even if the salesperson tells you a phone call is enough, always send a physical letter to create a paper trail.

Step 2: Contact the Resort Directly (The Deed-Back Program)

Many owners are surprised to learn that the simplest way out might be through the resort itself. In recent years, major hospitality brands have introduced "exit" or "surrender" programs.

Why would a resort take it back?

Resorts prefer a "deed-back" or a voluntary surrender over a long, expensive foreclosure process. If you are current on your maintenance fees and your mortgage is paid off, the resort may agree to take the property back.

How to approach the resort:

  1. Contact the "Owner Resources" or "Quality Assurance" department. Avoid the sales office.

  2. Ask about "Deed-Back" or "Surrender" options.

  3. Be persistent. They may initially say no, but as policies change, a "no" today could become a "yes" tomorrow.

Step 3: The Traditional Resale Route

If the resort won't take it back, you can try to sell it on the secondary market. To do this safely, you must avoid the "upfront fee" trap.

Avoiding Scams

The timeshare resale industry is rife with scammers who promise they have a "buyer waiting" if you just pay a $2,000 marketing fee. Never pay a large upfront fee to sell your timeshare. Legitimate brokers work on commission after the sale is finalized.

Where to List

  • TUG (Timeshare Users Group): One of the oldest and most reputable forums for owners.

  • RedWeek: A highly trafficked site for rentals and resales.

  • eBay or Craigslist: Common platforms for listing units at a low price to attract buyers willing to take over the maintenance fees.

Step 4: Transferring to a Third Party

If you cannot find a buyer, you might find someone willing to take the unit for free. This is often called a "transfer." You might offer to pay the closing costs or the next year’s maintenance fees as an incentive for someone else to take over the title.

While this doesn't put money in your pocket, it achieves the primary goal: transferring the legal obligation of the annual fees to someone else. Ensure you use a reputable licensed title company to handle the paperwork to ensure the transfer is legally binding.

Step 5: Hiring a Professional Exit Company or Attorney

When the resort refuses to cooperate and the resale market fails, many turn to timeshare exit companies or specialized attorneys. This is the most expensive route, but sometimes the most effective for complex contracts.

When to Hire an Attorney

If you were a victim of high-pressure sales tactics, fraud, or misrepresentation during the sales presentation, an attorney might be able to help you breach the contract. Look for a lawyer who specializes in consumer protection or real estate law.

Vetting Exit Companies

If you choose an exit company, look for:

  • A high BBB rating.

  • Escrow payment options: Do not pay the full fee until the exit is confirmed.

  • Longevity: Choose a company that has been in business for several years.

The Financial Impact of "Walking Away"

A common question is: "What happens if I just stop paying?"

While it might seem like an easy out, stopping payments on a timeshare is similar to stopping payments on a home mortgage. The resort can send your account to collections, which will significantly damage your credit score. Eventually, they may foreclose on the property. For some owners, particularly those who are retired and do not plan on taking out new loans, the credit hit is a risk they are willing to take. However, for most, it is a last resort that should be discussed with a financial advisor.

Summary of Best Practices for a Clean Exit

To ensure you protect your finances and your peace of mind, follow these golden rules:

  1. Keep all records: Save every bill, contract, and piece of correspondence from the resort.

  2. Stay current on fees: It is much easier to negotiate an exit if you are not in default.

  3. Be wary of cold calls: If a company calls you claiming they can get you out of your timeshare, hang up. Legitimate businesses rarely use cold-calling tactics.

  4. Read the fine print: Ensure that any "exit" results in a full release of liability, so you aren't surprised by bills years later.

Getting out of a timeshare requires patience and due diligence. Whether you navigate a deed-back with the resort or work through a reputable resale platform, staying informed is your best defense against the "perpetual" nature of these contracts. You deserve to enjoy your hard-earned money on vacations that actually make you happy, without the weight of unwanted maintenance fees.