Purchasing a Timeshare

If you purchase a timeshare at a resort, there is a rescission period for canceling your purchase. The rescission period, which is a window of time, varies on a state-by-state basis and is from five to ten days. That is the timeframe that a consumer can opt to cancel their transaction, typically by writing a letter to the resort company with which they did business. According to studies of the timeshare industry, the rescission rate for timeshares may be as high as 15%. However, there is reason to believe that, were the situation slightly different, the rate could be more, because “85% of all buyers regret their purchase,” according to many studies, citing reasons including money, fear, confusion, intimidation, and distrust. So, if consumer satisfaction is so low, why isn’t the rescission rate even higher than it already is? Much of it comes down to the circumstances that surround this important consumer protection measure, many of which make it difficult to figure how or when to take advantage of the rescission period. First, there is the matter that, in order to rescind your timeshare interest purchase, the buyer almost always has to contact the seller in writing. While this may seem like a small quibble, it can actually pose a number of challenges for consumers. For one thing, consider that many timeshare purchases occur while the buyer is already on a vacation or staying at a resort. While it is certainly not outside of the realm of possibility, it is hardly realistic to expect someone to cut their vacation time short in order to take the time to research how to properly write a rescission letter, much less to find a post office and pay for stamps in an unfamiliar locale where they may not be immediately available. Letters of cancellation must include the following information; the purchaser’s name as it is written on the contract, the purchaser’s address, phone number, and email address, the name of the timeshare company, the timeshare description, and the date the timeshare was purchase, and clearly state that “the purpose of the letter is to rescind the contract.” It is also common for the necessary address, which is often not the resort address to only be found by a careful review of the purchase agreement. Even then, it may be difficult because the rescission rules are never clearly pointed out in the paperwork and a sales representative does not have to give a buyer accurate information because they are protected by what is called the “license to lie” clause. The clause negates all oral representations made prior to and during the presentation, making only the written contract provision representations legally binding.

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Timeshares By Owner

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