How to Rescind a Timeshare Contract
- 1). Read through the timeshare contract to find the stated cancellation policy, and double-check the laws of the state in which you signed the contract. According to the "Encyclopedia of Everyday Law," there are grace period laws in virtually every state, but they can vary widely. For example, in Florida you can legally rescind the contract within 10 calendar days, but Nevada only gives five days.
- 2). If you are still within the grace period, immediately take the required steps to legally rescind the contract. The process varies by state, but it usually involves notifying the timeshare seller in writing. Send your notification with return receipt requested so that you can prove the date on which it was sent and the fact that it was received by the seller.
- 3). If the timeshare seller contacts you and tries to talk you out of the cancellation, stay firm. If you waver and give in, the clock is still ticking. By the time you realize that you want to proceed with the cancellation after all, your grace period may be over.
- 4). If you want to rescind your contract after the grace period, think carefully through the presentation to determine whether there were any misrepresentations. If so, you may still have a legal right to rescind. According to All Experts, timeshare misrepresentation can include being told the timeshare is an investment or that it has tax benefits. If it is not deeded, being told it has equity may also be considered a misrepresentation.
- 5). If you find a misrepresentation, call or write to the timeshare seller telling him that you rescind the contract on the grounds of the specified misrepresentation. Tell him you will report him to state authorities, the Better Business Bureau, and the district attorney if he refuses to rescind the contract. Follow through with the reports in he still refuses.
- 6). If the timeshare company still will not rescind your contract and filing complaints does not help, seek third party help. There are companies, such as the Owner's Advocate, listed in the Resources, that specialize in rescinding timeshare contracts.