The Importance of Having Legal Advice in Timeshare Cancellation
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Canceling a timeshare is never an easy task, resorts are not going to be willing to give up their monthly earnings so easily and may even try to take advantage of the average consumer's ignorance of legal issues to prevent you from canceling your contract, to avoid this it is always a good idea to have legal counseling from the moment you start talking to the resort to cancel your plan, this may seem strange to many as we tend to associate legal advice with more serious matters, however if you are planning to cancel your timeshare you will be happy to know that not only are there lawyers who are willing to help you through the process, but there are associations that will help you get in touch with one.
- What is a timeshare?
- Getting rid of a timeshare
a. Methods to dispose of a timeshare:
i. Selling or renting
ii. Donating or gifting it
b. Why cancel your timeshare plan? Comparing pros and cons of canceling your timeshare plan with other alternatives
- Process of canceling your timeshare
a. The importance of having legal advice on timeshare cancellations
What is a timeshare?
To know about the cancellation of timeshares, we must start with what timeshares are. A timeshare is a type of plan offered by some resorts. This plan gives us rights and access to a property for a monthly fee. This property can be accessed in specific weeks of the year, depending on the plan and a number of years that can range anywhere from two years since the purchase of the plan until the life of the buyer.
Getting rid of a Timeshare
When we describe it like this, the idea of trying to get rid of a timeshare plan sounds kind of funny-a contract that gives you rights to a vacation property potentially for your whole life? It sounds like a dream, but the reality is that timeshare plans are often promoted by resorts in a misleading way, making promises about the monthly fees or the value of the property. Even if in case everything goes well with the sale, and you are satisfied with your purchase, the possibility of you losing interest in the property or becoming unable to keep up with the monthly payments is never off the table.
Methods to dispose of a timeshare
Once you are no longer interested in keeping a timeshare plan, getting rid of it is not easy, when you buy a timeshare plan with any resort you sign a legally binding contract specifying the responsibilities and rights of the buyer(s) over the property, and it is difficult, if not impossible to get out of this or any other contract when you do not have the proper legal knowledge and resources, that is why many people trying to get rid of their timeshare opt for options that appear to be easier and cheaper, but the truth is that none of them are as efficient as canceling the timeshare plan with the help and legal advice of a timeshare lawyer, even so it is worth analyzing some of the other alternatives to understand why exactly they are not as good as canceling the plan.
Selling or renting
This is one of the most common. Many people looking to get rid of their timeshare plan choose to sell or rent the property on their own because this option appears to be beneficial to their pockets. To explain why this is a bad idea, we must take into account two very important aspects of timeshare plans and their market:
- Zero real value: The real value of an item is the price of a good, taking into account the tangible and intangible elements of the object, and timeshare plans have no real value; unlike other types of property, the value of timeshare not only does not increase over time, but it loses value the moment it is purchased from the resort.
- Oversaturated market: The real value is not the only parameter that affects the price of a good or service. One of the most important factors to consider in determining the price of an item is the law of supply and demand; it is the basic principle of any market, and this dictates that the price of goods in a market is fixed when there is a balance between demand and supply of the good, and any change in supply or demand can cause a sudden increase or decrease in the price of a product. The public interested in timeshare plans in the first place is quite small, and with the amount of people trying to sell or rent their timeshares the supply of timeshares far exceeds the demand.
So on top of having zero real value, losing value at the time of purchase, and not increasing in value over time, timeshares also lose value by virtue of being in a market where supply overwhelmingly outstrips demand.
Knowing all this, it is not surprising to learn that most people who plan to sell their timeshare are lucky if they manage to find an interested buyer, and even luckier if they manage to recover even just 20% of their original investment.
As for renting timeshares, while they have a slightly larger market than the resale market, the value of the timeshare as a rental property is affected in the same way as the resale price, as well as being a tedious process that includes such things as advertising the property and managing the finances of the property.
Donating or gifting
This is the second option for many people. On paper, a timeshare seems like an incredible gift that we all dream of, but the truth is that a timeshare comes with monthly payments (plus additional fees in case of damage, remodeling or other special conditions) in addition to being useless if the owner cannot travel during the weeks of use established by the plan or has no interest in the destination where the property is located. Similar to giving away the plan, there is the option of donating it. As strange or funny as it may sound, there are charitable groups that accept timeshares as donations; however, these are rare, and they are not always willing to take them since, as we mentioned before, timeshare properties have no value and come with monthly fees.
Finally, the best alternative to getting rid of a timeshare plan is to cancel it. At first, this option may seem more expensive and more annoying. Getting a lawyer and talking to the resort might be a bit intimidating, but in the long run, canceling the plan will always be cheaper and more convenient. It is not always strictly necessary to contact a lawyer to cancel; all timeshare purchases in Mexico have a period of 5 business days after signing the contract, during which the contract can be canceled by simply talking to the resort. It is important to note that in these cases it is highly likely that the resort will try to avoid canceling the contract by offering alternatives to canceling or even pretending to handle the cancellation process just to do nothing.
Why cancel your timeshare plan?
Briefly compare the pros and cons of canceling your plan with other alternatives in detail
Canceling your timeshare plan will not only protect your time and mental health, but also your finances. Although hiring a lawyer may seem more expensive at first, canceling the contract will stop the monthly payments (and maintenance fees) of the timeshare plan and will also save you the expense and hassle of selling, renting or donating a timeshare. This is a guaranteed solution, as opposed to trying to sell, rent or donate the timeshare.
Process to cancel your timeshare
- Use your 5 days after signing: This step only applies if you want to cancel our contract right after signing it. In Mexico, all timeshare purchases have a window of 5 business days, counting from the next day of signing the contract to canceling it, so if you are still in that window, it is better to start your process as soon as possible. If you request to cancel the contract within this period of time, you will need to keep evidence that you requested the cancellation in a timely manner, as the resort could make you believe that it is processing your case just to do nothing, and you will need evidence of the cancellation request if you wish to proceed from this point. That is also why it is important to always try to keep any conversation we have with the resort.
- Contacting a lawyer: As mentioned above, this step often makes many people reconsider canceling their plan, either because they don't know a lawyer to contact (or there isn't one available in their area) or they think it will be too costly and embarrassing. Fortunately for all the people looking to contact a lawyer to cancel their timeshare contract and are not sure where to start, there are agencies dedicated to guide you through the process of canceling a contract and will facilitate the contact with a lawyer.
To know more about The Importance of Legal Advice in Timeshare Cancellation, contact us or call us at +1 714 277 3662 for a free consultation