Ask Stacy: How Can I Get Out of My Time Share Without Being Robbed?

By on

Last week’s Ask Stacy column was based on the most common reader questions I received in 2013. Just missing that list were questions about getting out of time shares. I won’t bother to count the number of questions I’ve gotten about this over the years, but it’s been a lot.

Here’s the latest:

How do you go about getting rid of a time share to make sure you aren’t robbed and/or to unload it the legal way?

Thank you. This is a great concern to those who have been foolish like me and wasted money. — Pam

Let’s start with a video we produced about time shares last year. Check it out, then read on for more.

Getting in? Easy. Getting out? Not so much

The simple fact is that recovering even a fraction of your money is nearly impossible in many cases. The reasons for this include a very inactive secondary market, high monthly maintenance fees, and a supply that eclipses demand.

But when you boil it down, it’s hard to recoup your money from a time share simply because they’re sold for a lot more than they’re worth. Like new cars, the vast majority of time shares lose a huge part of their value the instant you buy them.

How NOT to sell a time share

The most important thing to know about selling a time share: Never pay a big upfront fee. Last year, the Federal Trade Commission announced 191 actions to “stop fraudulent operations hawking time-share property resale services.” What fraudulent resale services commonly do is say they already have a buyer for your unit. All you have to do is pay an upfront fee ranging from several hundred to several thousand dollars. Don’t bite. Odds are, that buyer doesn’t exist.

According to the Timeshare Users Group, here are some sites where you can sell or buy time shares without a big upfront fee:

You should approach a sale with low expectations. Many time shares don’t have much of an active aftermarket, which means there aren’t a lot of buyers. If you borrowed most of the money to buy your time share, you might have to pay off part or all of your loan to get out of it. While you might start your sale by talking to the developer you bought from, don’t be surprised if they tell you they won’t help you.

For additional information, read this story about selling time shares from the Timeshare Users Group. It has a lot of great information, including how to market your time share, what to do if you owe more on your time share than it’s worth, and how to transfer the title when you find a buyer. Another place for information on selling time shares is eBay’s guide to time-share sales.

How NOT to buy a time share

I’ve done several stories on time shares over the years and, as a result, I’m no fan.

Time shares are a product that’s too often foisted on the gullible with high-pressure sales tactics. And when it’s time to sell, there’s often no way to do it, especially when there’s a loan involved.

Like a new car, time shares depreciate radically the moment they’re purchased. But at least a car dealer will buy back the car at some price. Buy a time share at retail from a developer and odds are good you’ll be left twisting in the wind.

I’ll stop short of saying you should never buy a new time share because the world is a big place, people’s appetites vary widely, and there are always exceptions to every rule. But if I ever buy a time share, I’ll make sure I never intend to sell it and I won’t expect much if I do. I certainly won’t finance it, and I will definitely buy it used from a website like those above for pennies on the dollar rather than paying top dollar to a developer.

What to do if you’ve been ripped off

If you feel you’ve purchased a time share based on false promises or misleading sales tactics, do something about it.

If I could prove I’d been hoodwinked by a time-share developer, or anyone else, I’d start by talking to a lawyer. Initial consultations are typically free. If the lawyer thought I had a good case, I’d go to the company that ripped me off, lay out my case and allow them to refund my money. I’d also mention that if they refuse, I’ll be complaining to the agencies above and seeing them in court.

Got a money-related question you’d like answered?

You can ask a question simply by hitting “reply” to our email newsletter. If you’re not subscribed, fix that right now by clicking here. The questions I’m likeliest to answer are those that will interest other readers. In other words, don’t ask for super-specific advice that applies only to you. And if I don’t get to your question, promise not to hate me. I do my best, but I get a lot more questions than I have time to answer. Got any words of wisdom you can offer for this week’s question? Share your knowledge and experiences on our Facebook page.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,330 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.

  • AnIndependentwithabrain

    Our family purchased a time share from Fiesta Americana in Cabos San Lucas and we love it. The resort is excellent. The people are extremely nice. And we always enjoy our vacation. Also, we use our time share every year. In years past, we’ve gone to the Shenandoah Valley and New Hampshire without having any problems. We are looking to go to Disney this year with our points. I guess it all depends on if you’re actually going to use it. We do, and couldn’t be any happier.

  • Nancy

    My brother had purchased a points-based timeshare but never ever used it. When he died five years ago, my other brother and I “inherited” it. Neither of us had any desire to be encumbered by a timeshare. I looked into selling it but, as the article points, there was no market for it. I did enough research to know not to pay a fee for selling. Here’s what we did, under advice of my attorney. I am not recommending this course of action for others but it worked for us. First we notified the timeshare company of my brother’s death and informed them about how and when to make a claim against his estate. The timeshare company did not make a claim during the time period set by law. Then when probate closed, my attorney identified the timeshare as an “asset with no value” which we abandoned. Over the years, I have occasionally received phone calls from agents who claim to have buyers for my timeshare points. I just say I have no timeshare and hang up.

    • Tug Timeshare

      the attorney who handled your brothers estate should have handled this situation better, no matter what some companies say, you cannot be forced to “inherit” a timeshare if you do not want it.

  • IN THE KNOW

    Me and my wife had a timeshare that I did buy second hand paid only a 1000.00 dollars for a 2 bedroom annual red week in Cocoa Beach Fla. We used it several times but the maintence fees tripled within a short time. Was not able to sell the time share, but we were able to donate it and we were able to take a 5000.00 dollar deduction from our tax’s. This is something that the writer of this article should have mentioned also in the articel it did not address the concerns of the questions.

    • Tug Timeshare

      Per any legitimate CPA, taking a huge deduction on an item that you had to pay someone to dispose of (ie worthless), will most certainly come back to haunt you in an audit.

  • http://talkcarinsurance.com/ Joe Moore

    Thanks for the links. I have been stuck with one and I won’t even get half the price.

    • Tug Timeshare

      arent liketly to even get 10% of the original purchase price (if you bought it retail)…much less 50% unfortunately. never been a worse time to try to sell a timeshare.

  • Tug Timeshare

    Thank you Stacy for writing a great article and mentioning TUG! NEVER PAY UPFRONT FEES to sell or rent your timeshare!

    • http://www.moneytalksnews.com/ Stacy Johnson

      You’re welcome, TUG! Hats off to you guys for providing honest timeshare information and a place to buy and sell. As you probably know, I’ve referred many readers to it over the years.

      • Tug Timeshare

        It is always refreshing to see a mainstream media outlet giving folks some solid information about Timeshares that will actually help them! Cannot thank you enough for that! going to put this article in this weeks TUG newsletter!

  • Victoria Ford

    Timeshare fraud has been around since the timeshare idea was created, but they increase during poor economy. When times are difficult, timeshare owners are stuck with properties they can´t travel to or even afford. Desperate to recoup some money to pay for bills, they can easily become victims to scams artists pretending to be their timeshare salvation who will take upfront fees -as much as five number figures in some cases- but fail to fulfill their promise..

  • Dzk

    I would give my away for free if anyone would take it. We need info on how to just walk away from these things.

  • CharlesD

    I purchased a used time-share about 8 years ago at the Limetree in Sarasota, FL. I first rented a week and then visited the sales manager / realtor on the premises. It was about the lowest-pressure deal I ever encountered. Needless to say we love the place. I have also attended those lovely high-pressure sessions at other locations. At least they provided a substantial ‘reward’ for putting up with them.