What if I have to give it back?
We have received a number of queries form owners who, for whatever reason, want to give up their Timeshare because circumstances mean they can no longer use or afford it. Here are some of the options open to Timeshare owners who wish to exit the system.
- I no longer use my Timeshare
- What options are available to me
- I can't sell it and I can't aford to keep it
- Rediscover the product
Life changes - and you may have reached a stage where you no longer require your Timeshare ownership or points. This could be for any number of reasons. Perhaps you can no longer afford the annual charges, personal circumstances may have changed (due to the loss of a partner, for example) or travel might have become increasingly difficult with advancing years or declining health.
Difficulties can arise at this stage when, for instance, family members are not interested in taking over your Timeshare and you haven't found anyone willing to purchase your weeks "second hand". You will want to know what you can do to dispose of your Timeshare.
Selling privately
You may be able to sell your Timeshare privately, but remember that rather than a purely financial investment, Timeshare is a long-term investment in holidays, so be aware that you are not likely to sell the asset for the original purchase price (this goes for any resale). Before you sell, make sure that your maintenance fees are up-to-date, or you may risk repossession. If you own points as opposed to weeks, you may need to transfer the points back to a week first, which can be a lengthy process. Lastly, you should ensure that the "Escritura" or membership certificate is made available.
Write it into your will
If you are happy with your Timeshare but you do not wish it to be passed to your children on your death, you can bequeath it back to your resort in your will. Speak to your resort or management company to discuss this option.
Resale companies
A reliable way to sell your Timeshare is through a resale company - make sure that they belong to industry trade bodies and adhere to the relevant codes of ethics and official legislation.
You should contact your resort to find out if they provide a resale service. A reputable company will adhere to the following rules set out by the Resort Development Association (RDO):
- The company is not permitted to take any upfront payment from the seller
- The buyer must be offered a cooling-off period of 14 days
- The company must not make cold calls to potential buyers
- They must not make false claims that they have a buyer interested in your Timeshare
- The resale company will explain all aspects of the sales procedure and will answer any questions
However, be cautious of companies that don't provide the above protection as offered by resorts that are members of official trade bodies. You should be wary if:
- A company "cold calls" you saying that they obtained your phone number from your resort or an exchange company, or by other seemingly legitimate means. Your details are protected by law and will not have been released to a third party
- The company claims they have a buyer for your Timeshare who is willing to pay an exceptionally high price
- You are asked to pay an upfront fee to cover administrative or legal costs
- The resale company tries to sign you up to a Holiday Club or offers you discount travel membership in exchange for your Timeshare. Be particularly wary here - it is unlikely that the company has actually taken ownership of your Timeshare, meaning you are still liable for the maintenance fees
- A firm of solicitors contacts you and requests an upfront fee, claiming that they can secure you a refund on payments you made to a resale company that has let you down
In the case of not being able to afford to pay the annual charges for the maintenance of your Timeshare, and the resort will not allow the return of the Timeshare, you can investigate the following options:
- Firstly find out whether your resort does indeed offer a resale facility - or rental options
- Obtain the latest copy of the legal documents that state the rules of your ownership. Read carefully any sections relating to cancellation and procedures for annual fee defaulting
- Explore the option of renting out your Timeshare to family or friends in order to cover the cost of fees. If your resort doesn't offer a rental facility, it may be possible to rent your Timeshare through an independent company
- Write to your resort or management company explaining why you can no longer continue your membership. Find out if there is any possible way of returning your weeks to them
- Your Owners Committee may be able to offer you advice on resignation and defaulting. It may be possible to sell your week(s) to another owner who already has a week adjacent to yours and who might wish to purchase another at reduced cost
- Many resort regulations allow clients with unpaid maintenance fees over a specific period of time to default and accept a penalty. In this case, the Timeshare will be repossessed. You can actually request this outcome by writing to your resort or its management company
- Although many companies allow you to resign your Timeshare ownership without penalty, policy varies so it is worth checking with the individual company regarding their legal terms. Factors such as length of membership and medical status can have a bearing
If none of the above is successful and you're unable to sell, rent or give away your Timeshare and there really is no alternative solution, a further possibility is to seek legal advice. But it might be helpful to revisit the reasons you purchased in the first place, and remember how you felt at the time. Is it very unlikely that you will not wish to take another holiday in the same location, or exchange for a destination closer to home - or perhaps somewhere more exotic - in the years to come? A luxury holiday in the sun each year isn't something to be sniffed at: you might find that you rediscover your enthusiasm for the product after a break of a few years.
Explore the levels of flexibility that the product gives you and find out how this can be maximised. You might still be trying to sell your Timeshare, but in the meantime it doesn't hurt to reap a few more of the benefits - you might be pleasantly surprised.
