Why Is It So Hard To Exit A Timeshare?
Signing up for a timeshare is simple, but exiting one can be totally exhausting.
In situations where timeshare purchasers find themselves not receiving the benefits and amenities the seller promised, they may regret their decision. Timeshare owners decide the timeshare is no longer suitable for them and try to cancel their ownership. Unfortunately, this process is complicated for many owners.
Typically, the company that sells you the timeshare isn’t the same company as the property owner, which can limit the seller’s responsibility once you’ve purchased the timeshare. Other variables also make it difficult to leave after you’ve signed and purchased.
What Is a Timeshare?
Timeshares are vacation properties that people own or have the right to use during specific times of the year. They are a great idea, in theory — you have planned vacations every year.
But timeshare companies are infamous for making you feel stuck in your purchase when you want to get out. The $10.5 billion industry can make a vacation go from a luxury to a burden.
People may want to cancel their timeshare because of life changes or financial situations. If vacation companies want you to have a positive experience with them, then why are timeshares so hard to get out of?
Timeshare Paperwork and Documents
Resorts can take many actions to keep you from leaving. A major reason why it can be painful to get out of your timeshare is the mountain of paperwork and documents that sellers include with your purchase.
The day you sign for your purchase, the seller may hand over a pile of documents that include unfamiliar words and phrases. Like many processes that require an agreement to terms and conditions policies, people may skip past the never-ending pages of paragraphs to get to the signing because they’re thrilled about their new purchase.
Buyers might be unaware of the clauses in the paperwork that can affect the means of their agreement. Passages including the right of refusal, right of survivorship and perpetuity clause are provisions that people may find in various timeshare documents. These clauses make it feel impossible to exit.
If you’re unaccustomed to these provisions, here’s how they work:
- Right of refusal: When referring to timeshare paperwork, the right of refusal explains that the resort has the right to get back your timeshare under certain circumstances.
- Right of survivorship: If the right of survivorship is listed in your documents, this means that if the owner of the timeshare dies, then the timeshare becomes an inheritance, and someone in their family is responsible for upholding the timeshare.
- Perpetuity clause: This clause means that the buyer owns the part of the property for their lifetime.
Timeshare companies are notorious for attempting to distract people as they try to read and sign agreements. If you’ve already purchased the timeshare and want to get out of it, read through all the paperwork from the purchase and see what options you may have to leave.
Timeshare Companies Are Finding It Difficult to Sell to New Customers
Timeshare companies are currently experiencing the effects of having a bad reputation. It is becoming increasingly difficult for resorts to find new customers and receive the money they need to stay afloat. The resorts function off the profit from annual maintenance fees their clients pay and the initial cost of signing up a new client.
With fewer new clients paying initial fees and current clients finding ways out of their timeshares, these companies have noticed a large decrease in their profits.
Companies used to buy back timeshares when owners didn’t make payments or said they no longer wanted to own their units. After the company purchased the timeshare back, they would resell it and make clients content with their service.
This practice is definitely a thing of the past. Many aspects of the timeshare business have changed, and these companies still want to profit. Companies noticed that it was hard to resell the surrendered units and were no longer receiving the yearly maintenance fees.
Without receiving maintenance fees, timeshare companies find it difficult to continue operating. These companies need to find a way to keep payments coming. The fix they decided on was to refuse the option for owners to terminate their timeshare agreement. This lead to their poor reputation.
The effort of self-preservation makes timeshares nearly impossible to get out of, and people should be aware of this change in the industry when attempting to get out of their purchase.
Timeshare Financial Difficulties
People who sell timeshares can give an amazing sales pitch about how great a deal you can get when you buy a timeshare. They explain how you’re getting your money’s worth, but how true is that?
The financial burden of a timeshare can become overwhelming and debilitating. It’s the main reason many people want to get out of their timeshare commitment. Perhaps your financial situation changed, or you’re not receiving the amenities the seller promised you.
If the company is telling you that you can’t get out of the timeshare, the financial difficulties can weigh heavily on your shoulders. People experiencing financial issues because of their timeshare can have their whole life flipped upside down. Their relationships can struggle, and they may have to alter their spending habits.
Like many businesses, timeshare companies are in it to make a profit. The change in their industry has caused them to aim for client retention in a way that may be harmful to the client financially. It’s important to know all of your options if you’ve purchased a timeshare and keep your financial situation as a main deciding factor.
Do You Need Help Exiting a Timeshare?
If you’re ready to leave your timeshare, it can be challenging to understand what your options are and how to establish a plan to get out. Sometimes, a timeshare company can threaten more financial downfall if you stop paying fees or won’t consider any reason for wanting to leave the timeshare.
Let EZ Exit Now look into your timeshare situation. EZ Exit Now is one of the nation’s best timeshare cancellation companies and deeply cares for our clients. We may be able to help you leave your timeshare in a responsible and ethical manner.
If you’re ready to start the process of getting out of your timeshare, contact our caring staff today or give us a call to learn more about our timeshare exiting process.