Which of the following statements is true about timeshare policy cancellations

Missourians sometimes are targeted by real estate developers and resort communities to buy vacation timeshares, an arrangement in which consumers buy vacation homes, usually in a resort area, for a specific length of time each year.

The property, which typically consists of condominiums, apartments, lodges, cabins or hotel rooms, sometimes is sold by salespersons using high-pressure tactics and misleading advertising. Sometimes, the timeshare property may be a campground where members must provide their own campers or recreational vehicles.

A timeshare often carries with it a potential for liability for the owner or member. Be sure to obtain and read any restrictions and covenants filed with the recorder of deeds in the county where the timeshare resort is located.

Also, read the bylaws and rules and regulations. Sometimes, timeshare owners and members are subject to "special assessments" in addition to annual maintenance fees.

If you do not understand the full extent of your liability as a member or owner, consult an attorney before buying.

Also, beware of subsequent amendments to these documents. They may affect your liability.

Buyer Protections for Consumers

Under state law, timeshares are defined as merchandise and fall within the guidelines of Missouri's Merchandising Practices Act, Chapter 407, Missouri Revised Statutes.

Use of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or concealment of fact by a person in connection with the sale of timeshares is subject to civil and criminal penalties that may be brought by the Attorney General.

Major provisions of a state law protecting buyers are:

• A five-day right of recision. If a consumer signs a contract to buy a timeshare and then changes his mind, he has five days to cancel. The cancellation must be in writing, and cancellation is effective when the letter is postmarked. According to state law, the seller must give the buyer an 18-point, boldface printed notice of the right to cancel at the time of purchase.
• Follow through on promotional offers. The name of the business entity and all timeshare operations involved in the promotion must be included in promotional literature. This material also must contain the deadline by which all prizes are to be awarded, the odds of winning each prize and the manufacturer's suggested retail price for each prize.
• Delivery of promised gifts. When the seller uses free offers or other promotions when soliciting, the seller must deliver any promised gifts or an acceptable substitute gift or cash in an amount equal to the retail value of the gift offered within 10 days of when promised. The seller also must make available to the public a list of names and addresses of all winners. If the seller fails to provide the buyer with a promised gift, the buyer can sue.
• Explanation of timeshare exchange plans. Exchange plans usually involve trading a vacation at one timeshare facility for a vacation in another location. Limitations, restrictions or priorities regarding exchange programs must be outlined for the buyer. For example, the timeshare operator must tell a buyer if a Lake of the Ozarks vacation can be exchanged for an Alaska vacation only during December.

Complaints from Consumers

Complaints range from disappointment with a prize and high-pressure sales tactics to outright deception and fraud. Typical complaints include:

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Timeshare cancellation is the process of exiting a timeshare purchase and receiving a full refund, without penalty. Though this is possible, there are some caveats. Most importantly, your cancellation must be executed within a certain period of time after purchase. If this is an exit route you’re inclined to take, it requires immediate attention and action.

How Does Timeshare Cancellation Work?

Following your initial purchase, you’ll enter a brief cancellation, or “cooling off” period. This window of time is legally mandated in most states. A formal notice of cancellation must be declared by you to the seller within that period in order to get your full deposit back.

The property was impressive, the amenities were stunning, and you feel as if you could stay forever. Then the payment hits your bank account, and the financial implications begin to sink in.

If you’ve missed the cancellation window, unfortunately your opportunity for a full refund, sans penalty and additional fees, will have likely closed. However, if you’re reading this after your state’s cancellation deadline, don’t panic – there are options beyond the cancellation period. More on this below.

Act Quickly

You’ve made up your mind; this purchase just isn’t for you. Now what? Before taking any other steps, start with a thorough examination of your sales contract. Though it may be buried within confusing terminology and fine print, the contract will contain information on how to cancel your timeshare purchase. Next, you’ll want to type up your official cancellation letter and get it in the mail – and fast. 

Known as rescission, the period for timeshare cancellation varies by state, but averages only 5-7 days. Not a lot of time when you’re in full vacation mode, or in the process of traveling home. That said, it’s critical that you know what your state’s rescission period is, and then act within that window to ensure a refund.

Write a Formal Timeshare Cancellation Letter

Still have time before your rescission period closes? Great! You’ll need to write a timeshare cancellation letter to the brand with which you purchased. Even if the contract states this can be done verbally, you’ll want to make sure to get all the details in writing.

When writing your cancellation letter, be sure to include, along with your name and contact info, the following:

1. The name of your timeshare company
2. The contract number
3. The name(s) on the timeshare contract 
4. The date of purchase
5. A statement of cancellation (Quick note: You don’t need to spend valuable time expressing your reasons for cancelling. All you need is a clear and concise statement of your desire to cancel)
6. The amount you paid, including a request that this amount be returned to you.

Make Sure Your Cancellation Letter is Received

When writing your cancellation letter, don’t forget dates and copies! Be sure to date your letter and keep proof of your mailing date. Keep multiple copies as well. We can’t stress how key it is to have written records of all your timeshare cancellation correspondence, and to follow the instructions of the brand from which you purchased to a t.

A few quick examples: if your contract requests cancellation via mail, make sure it’s postmarked within your rescission period and request a return receipt. If cancelling by fax, keep a copy of the receipt with the date indicated. It may feel like an overwhelming checklist, but these steps add a not-to-miss layer of protection for you.

What if the Timeshare Cancellation Window has Passed?

Fear not! You may still have options if you find yourself beyond the rescission deadline. First, contact your timeshare company. Some resort brands have launched deed-back programs, with internal teams that can help you explore other cancellation solutions. Some states also allow cancellations post-rescission, but you’ll need to work with an attorney.

You’ve made up your mind; this purchase just isn’t for you. Now what? Before taking any other steps, start with a thorough examination of your sales contract.

While deciding on what route to take, it’s important to keep a clear head – and do your research. Unfortunately, there’s no shortage of cancellation scams and shady third-party companies out there, many requesting thousands of dollars upfront while not delivering on their promises. The Better Business Bureau and the American Resort Development Association are great resources to help you find legitimate assistance.

There are also trustworthy resources out there if you’re past your cancellation window and choose to sell your timeshare. Timeshares Only is an ARDA and BBB-accredited resale marketplace that supports owners through the complete sale cycle, with solutions in place to offset maintenance fees in the process. 

You also have the option of renting with KOALA. Our platform connects your listing to travelers in search of stellar resorts at unbeatable prices, all while managing your annual costs.