Few options for leaving contract for timeshare

Q: My husband and I purchased a timeshare in August 2019. Even though we were told we could “bank” our points and go on better trips, the options were awful, so we never went anywhere. So far, we have paid $8,500 plus $700 for maintenance and $150 for club dues, and we have nothing to show for it. How can we get out of this?

A: You should start by looking at the contract you signed to see if there is an option to cancel or deed the timeshare back to the seller. Look near the end of your contract for a section called termination or cancellation or something similar to that. Note though that it is highly unlikely that you have either of these options.

Next, try calling the timeshare company. In a search on the internet, I see a program called “Certified Exit — backed by Wyndham” where it says to call it first to find out your options “for free.” Wyndham is one of the largest timeshare companies. Maybe your timeshare company has a similar program. (Or maybe it’s another way to upsell their existing customers. Be careful not to be talked into buying even more days or points!)

On your phone call, stress to them that you are never going to use the timeshare and that you simply want to cancel or do a “deed-back.” It’s probably

not a good idea to mention you have plenty of cash and no debts.

You could also try to sell the timeshare yourself. But based upon the many letters and questions I have received over the years from readers, this option will likely not succeed. Unless you own the week of Christmas in a prime location, it is usually impossible to sell a timeshare.

Without question, you should avoid the companies that promise to get you out of the contract. You know they are in business to make money, and they don’t get paid by the resort that sold you the timeshare. That leaves you as their only source for payment. Plus, they can’t do anything more than you can do on your own.

You could possibly hire a board-certified “consumer and commercial law” attorney or some other attorney who has experience with timeshares. A lawyer might be able to find a misrepresentation that was made in your contract or possibly some other reason to invalidate the purchase. But typically, this will not be the case. In the end, hiring a lawyer might cost you a lot of money, with no better results than you can get yourself.

The idea to stop paying is not a good one, but it may be your only option, especially if your call to the timeshare company gets you nowhere. You should view not paying as a last resort because the timeshare company might turn your file over to a collection agency, leading to years of inconveniences, possibly a lawsuit and no assurance you’ll ever get out of paying the annual dues and fees.

The information in this column is intended to provide a general understanding of the law, not legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipmanpc.com.