Demystifying the Legal Process
Consumers attempting to unload their no-longer wanted timeshare interest have a choice in selecting the right third party to assist with terminating their timeshare contract. What they do not generally have is the information they need to make an informed choice!
Lawyers will advise that seeking relief from a no longer wanted timeshare purchase contract involves skills best suited for a timeshare lawyer to handle since the timeshare purchase contract is a legal contract. Clearly, it is in the resort’s economic best interest to continue that contract as long as possible, because of the ongoing cash flow they expect to continue to receive for annual maintenance fees minimum, even if the purchase price aspect of the contract has been completed.
Indeed, timeshare purchase contracts are intentionally written with no termination clause, because that is what is in the developer’s economic best interest! Therefore, when a termination of a legally binding contract is the objective, and particularly when there are legal issues involved, hiring a timeshare lawyer, someone who is professionally educated and trained specifically to handle this sort of legal matter is the logical choice!
Exploring Timeshare Exit Companies: A Deeper Look
For timeshare owners seeking to exit their timeshare purchase contracts, hiring a non-legal third party, known as a timeshare “exit company,” is an alternative option. These companies often advertise their services to the public with bold claims, stating that they can “guarantee” the termination of legally binding timeshare contracts. However, the specifics of their methods are frequently not disclosed. Many consumers, lured by the promise of a money-back guarantee, may not delve into the details of the process. It’s essential to approach these companies with caution and consider consulting a timeshare lawyer to fully understand the potential risks and legal implications.
Timeshare Lawyers Can Not Provide Money Back Guarantees
Let’s share an important detail: Timeshare lawyers can not ethically provide unqualified guarantees. While “Get out of timeshare” promises may seem reassuring, they hold value only if offered by reputable, licensed companies with proven track records.
Unfortunately, anxious consumers eager to cancel their timeshares often overlook this crucial detail. However, many timeshare exit companies have a poor track record and, in some cases, are outright scams. This reality makes their practices potentially unethical and highly problematic.
Service contract guarantees with these companies may allow for years to perform their services, with no guarantee claims permitted until this period has expired. This raises significant concerns about whether the exit company will still be in existence when the time comes to make a claim.
Given the history of dubious operations and deceptive practices in the secondary timeshare market, relying on these companies can be risky. Consumers should exercise caution and thoroughly investigate the legitimacy and track record of any timeshare exit company before entering into a contract. The potential for unethical behavior and problematic outcomes underscores the importance of seeking reliable and transparent solutions for timeshare exit.
Another important distinction between an ‘exit company’ and a law firm is that lawyers are licensed professionals required to meet professional standards in providing legal services to their clients, while no such requirements for licensing or educational requirements exist for exit companies.
How Timeshare Exit Companies Navigate Unregulated Terrain
In fact, there is absolutely no educational, or licensing requirements promulgated by any state or federal jurisdiction in order to own and/or operate a timeshare exit company. Arguably then, closing an exit company and quickly reopening another under a different assumed name would not be a terribly difficult maneuver to accomplish. Nothing mentioned above should be interpreted to suggest that ‘exit companies’ cannot or have not successfully assisted timeshare owners with terminating timeshare interests. They have undoubtedly enjoyed some success.
Presumably, some of that success is related to fulfilling the timeshare developers own requirement to recover inventory for resale. However, one should inquire to what extent that specific exit company has been successful with the particular developer, and perhaps attempt to gain an understanding of how the “exit company” achieves its success, given that the timeshare interest owner’s initial request for termination from his own developer was denied, i.e. why would the developer say yes to an exit company after turning down its own owner?
Timeshare Lawyer Services
As timeshare lawyers, our process is not dependent on the resort developer’s need for specific inventory recovery, but instead begins with a focus on consumers laws and the written content of the actual purchase contract binding the client. Does it, and the other related paperwork provided by the developer, fulfill the developer’s requirement to provide all statutorily required disclosure materials to the consumer? What about claims of material omission, if applicable?
A critical part of our review involves assessing whether the ‘real value’ of the purchased timeshare interest was transparently disclosed to the purchaser. These considerations, along with many other individualized factors, become leverage points for our lawyers to compel the developer to negotiate.
Furthermore, if a client, after consulting with their own attorney about potential credit implications, decides that continuing payments to the resort during negotiations is counterproductive, our law firm can effectively shield them from third-party debt collectors. This strategy often encourages the developer to engage in termination negotiations, providing the client with both practical and psychological relief.
Disclosure: This article is for information purposes only and is not intended as legal advice.
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Led by Timeshare Lawyers J. Andrew Meyer and Michael D. Finn with over 75 years of combined legal experience. The Finn Law Group is a consumer protection firm that specializes in Timeshare Law. Contact us for a free consultation, if you feel you need an attorney to assist you with a timeshare related matter. Learning more on timeshare? Follow us on Twitter X.