Timeshare Cancellation vs. Resale: Which Option Is Better?

Want to exit your timeshare? You have two main options: cancellation or resale. Here’s a quick breakdown:

• Cancellation: Ends your contract and stops future fees. Typically requires hiring a licensed attorney, costs $4,000–$6,000 upfront, and can take months to complete. Best for those facing financial strain or legal issues with their contract.
• Resale: Sell your timeshare on the secondary market. Costs $300–$1,500 for listing and transfer fees, but resale prices are often less than 10% of the original purchase price. Best for those who can afford ongoing fees while waiting for a buyer.

Quick Comparison

Aspect	Cancellation	Resale
Upfront Costs	$4,000–$6,000 (attorney fees)	$300–$1,500 (transfer fees)
Ongoing Fees	Pay until cancellation is final	Pay until sale is finalized
Timeline	Months	Depends on market conditions
Financial Impact	Stops all future costs	Up to 90% loss on purchase price
Legal Protection	Strong with attorney support	Limited
Credit Risk	None with attorney help	No credit risk

Key Takeaway: Choose cancellation if you need immediate financial relief or legal protection. Opt for resale if you can manage fees while waiting for a buyer. Consult a licensed attorney to ensure the best outcome.

Timeshare Exit Methods: Cancellation vs. Resale

Cancellation ends your contract and eliminates fees, while resale transfers ownership – and ongoing costs – to someone else.

How Timeshare Cancellation Works

Cancellation involves legally terminating your timeshare contract. A licensed timeshare attorney typically reviews the agreement, identifies legal grounds for termination, and negotiates or litigates on your behalf. If you act within the rescission period (usually three to fifteen days, depending on your state), you may qualify for a full refund. Outside this window, the process can take months of legal work to finalize.

How Timeshare Resale Works

Resale means selling your timeshare to someone willing to take over ownership and its related fees. However, with secondary markets crowded, sellers often recover less than 10% of their original purchase price. Successfully reselling requires thorough market research, creating a compelling listing, reaching out to potential buyers, negotiating terms, and completing the title transfer.

Next: Step-by-step guides to canceling or selling your timeshare.

Required Steps for Each Option

Here’s a clear breakdown of what to do for canceling or reselling your timeshare.

Steps to Cancel a Timeshare

Start by gathering all your purchase-related documents, such as the original contract, maintenance fee statements, and any correspondence from the resort. Check if you’re eligible for cancellation under your state’s consumer-protection laws. If the rescission period has passed, you’ll need valid reasons like sales misrepresentation or a breach of contract by the resort.

To handle the process effectively, hire a licensed attorney. They’ll review your contract, draft a legal position letter, protect your credit, manage communication with the resort, and represent you in court if necessary.

Keep in mind, this process can take months. During this time, continue making payments to avoid credit issues. Unlike cancellation, resale involves transferring ownership, but you’ll still be responsible for fees until the transfer is finalized.

Steps to Sell a Timeshare

If you’re looking to sell, follow these steps to transfer ownership:

• List your timeshare for sale and negotiate terms with potential buyers.
• Complete and submit the necessary transfer paperwork required by the resort.
• Be prepared for the financial reality: resale values are typically less than 10% of the original purchase price. Until the resort approves the transfer, you’ll still be responsible for any associated fees.

Money and Legal Requirements

Let’s break down the financial and legal aspects of cancellation versus resale.

Future Payment Requirements

If you choose cancellation, you’ll need to keep paying annual maintenance fees (around $1,035 per year)[1] until the process is completed. On the other hand, resale requires covering all maintenance fees and loan payments until the transfer is finalized.

Legal Requirements and Expert Assistance

Cancellation and resale both involve legal steps. Specialized attorneys can assist with contract reviews, drafting rescission letters, handling negotiations, managing title transfers, qualifying buyers, and overseeing closings as needed.

Cost Comparison Table

Cost Factor	Cancellation	Resale
Initial Service Fees	$4,000 – $6,000 (attorney fees)[2]	$300 – $500 (title-transfer fees)[3]
Additional Expenses	$500 – 10% of loan balance (early termination fees)[2]	$500 – $1,500 (resort transfer fees)[3]
Ongoing Costs	Maintenance fees until exit (avg. $1,035/year)[1]	Maintenance fees until transfer (avg. $1,035/year)[1]
Potential Losses	Eliminates future obligations	Up to 90% loss on original purchase price[4]

Cancellation typically involves higher upfront costs but removes any future financial obligations. Resale, however, often results in steep financial losses due to low resale values and the added burden of ongoing fees during the process.

Now that the costs and legal steps are laid out, it’s time to evaluate the pros and cons of each approach.

[1] Average annual maintenance fees: $1,035
[2] Attorney fees for cancellation and potential early termination penalties
[3] Typical transfer fees charged by resorts or title companies
[4] Most timeshare resales return less than 10% of the original purchase price

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Advantages and Disadvantages

Cancellation: Pros and Cons

Canceling a timeshare means you no longer have to worry about future financial obligations. When handled by a licensed attorney, it can also protect you from any claims made by the resort. However, this option often comes with high upfront attorney fees. On top of that, you might still need to pay maintenance fees during the months-long process, and if not managed properly, it could lead to credit issues.

Resale: Pros and Cons

Reselling a timeshare typically involves lower upfront costs for transfer and listing fees, and you might recover part of your investment. But finding the right buyer can take a lot of time. Plus, you’re still responsible for maintenance fees and any outstanding loans or mortgages until the sale is complete.

Aspect	Cancellation	Resale
Financial Impact	Ends future costs	Possible partial investment recovery
Timeline	Several months	Depends on market conditions
Ongoing Obligations	Fees until cancellation is complete	All fees until sale is finalized
Legal Protection	Strong with attorney support	Limited legal backing
Credit Impact	Protected with proper legal help	No credit risk

"Most ‘companies’ touting themselves as timeshare exit or cancellation specialists are NOT actual law firms… without the ability to sue or countersue the timeshare developer through a timeshare lawyer you have NO legal protection or leverage."

• Aaronson Law Firm

Consider these factors carefully to determine which approach aligns with your priorities.

How to Choose Your Exit Strategy

Key Decision Points

Take a close look at your financial situation, contract terms, and credit standing. If you need to stop fees immediately, cancellation might be the way to go. If you can manage the fees while waiting for a buyer, resale could be a better fit. Cancellation helps protect your credit, while resale means you’re responsible for fees until the transfer is complete.

Here’s a quick breakdown to help you decide:

Factor	Opt for Cancellation If…	Go with Resale If…
Financial Status	Payments or fees are no longer manageable	You can handle maintenance fees while selling
Contract Clauses	You’re within a rescission period or have a strong legal argument	Your contract permits resale or transfer without restrictions
Legal Concerns	You faced high-pressure sales tactics or misrepresentation	No legal issues or concerns with your contract
Timeline	You need financial relief right away	You can wait for better market conditions

Identify any key issues – like unexpected fees, difficulty booking, or market conditions – and align them with the right strategy.

Also, think about whether you want future generations to inherit these obligations.

"Unlike timeshare exit companies, we are actual attorneys. That means that we have a fiduciary and legal obligation to put our client’s interests first." – Aaronson Law Firm

It’s a smart move to consult an attorney who can review your contract and guide you toward the best exit plan.

Once you’ve chosen your strategy, continue with the steps outlined in the next section.

Next Steps

Once you’ve decided between cancellation and resale, it’s time to move forward with your plan. Use the "Required Steps" section as a guide to gather the necessary materials:

• Collect your original contract, sales materials, account statements, and any related documents.

"In our free initial consultation, we will discuss with you the details of your situation so that we can make sure that we have a full understanding. Our timeshare attorney will ask you some questions that will allow us to formulate the best course of action." – Aaronson Law Firm

A timeshare attorney can examine your contract, identify potential cancellation options, safeguard your credit, issue position letters, and guide you through the exit process.

With your documents ready, schedule a free consultation to kick off your exit strategy. During this session, share the details of your situation, including any challenges you’ve faced with the timeshare and what outcome you’re aiming for. This discussion will help shape the most effective approach for your case.

"Unlike timeshare exit companies, we are actual attorneys. That means that we have a fiduciary and legal obligation to put our client’s interests first." – Aaronson Law Firm

Legal expertise ensures your rights and interests are prioritized throughout the process, whether you’re pursuing cancellation or resale.

FAQs

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• 5 Legal Methods to Cancel Your Timeshare Contract