Last updated 2026-07-25
TL;DR
Before signing, get the full cost in writing (price, closing costs, and this year's maintenance fee with the special assessment history), read the public offering statement, confirm your state's rescission window in the contract itself, and never sign same-day under pressure. If you already signed, most states give you a short right to cancel, usually 3 to 10 days, and it must be done in writing per the contract's instructions.
What due diligence actually means before you sign a timeshare contract
Due diligence here means confirming, with documents in hand, three things: what you're actually buying (the real property interest or points, not the sales pitch), what it costs this year and what it's likely to cost in five years, and what your legal exit options are if you change your mind. Salespeople are trained to compress this into a 90-minute presentation with a same-day signing bonus. That compression is the risk. Nothing about a real estate or vacation-usage contract needs to be decided in an afternoon. The Federal Trade Commission's general guidance on major purchases applies directly here: get terms in writing, take time to review them away from the seller, and be skeptical of any deal that pressures you to act before you can think it through [1]. Timeshares are regulated at the state level, not federal, so the specific paperwork you're entitled to (a public offering statement, a disclosure document, an itemized fee schedule) depends on where the resort is registered, not where you live. If you're already past the sales table and looking at buyer's remorse, skip ahead to the rescission section below. If you're still deciding, treat every step here as non-negotiable before you sign anything, initial anything, or hand over a deposit.
How much do timeshares cost, really?
The average price for a one-week (or equivalent) timeshare interval was $23,940 in 2023, according to the American Resort Development Association's owner survey, with average annual maintenance fees at $1,205 [2]. Points-based products from major brands can run higher at purchase, often $20,000 to $40,000 for enough points for a week in a two-bedroom unit, though exact pricing varies by brand, season, and unit size and isn't uniformly published. That sticker price is the smallest number in the deal. The number that matters over time is the maintenance fee, because it's not capped in most contracts and it's not optional once you own. ARDA's own data shows average annual fees rose from roughly $1,000 in 2019 to $1,205 in 2023, an increase that outpaced general inflation over the same stretch [2]. On top of the annual fee, special assessments (one-time charges for roof replacement, hurricane damage, litigation costs) can add hundreds or thousands of dollars in a single year, and they are typically mandatory regardless of whether you use your week. Here's the honest math a salesperson won't run for you: a $20,000 purchase with a starting maintenance fee of $1,200 a year, growing at even 4% annually (a conservative assumption given recent history), costs roughly $35,000 more in fees alone over 20 years, on top of the purchase price and financing interest if you borrowed to buy. Run this math yourself before you sign, using the actual fee schedule the resort gives you, not a verbal estimate from the sales team.
What documents should I demand to see before signing?
Ask for these in writing and read them somewhere quiet, not at the sales table: 1. The public offering statement or disclosure document. Most states with active timeshare statutes require developers to give buyers a written disclosure before or at the point of sale, covering the type of interest sold, the total number of units and owners, and the resort's financial obligations. Florida, for example, requires this disclosure under its Vacation Plan and Timesharing Act [3]. 2. The full fee schedule, including the current maintenance fee, the special assessment history for the last 5 years, and any transfer or resale fees the resort itself may charge later. 3. The exact rescission clause, in the contract, stating how many days you have to cancel and the required method (usually written notice, sometimes certified mail, sometimes to a specific address that differs from the sales office). 4. The reservation and exchange system rules if you're buying a points product. Ask what happens to your points value if the resort changes its exchange affiliate or increases its point requirements for popular weeks. This has happened industry-wide as brands recalibrate point charts. 5. The master deed or declaration for the specific property, if you're buying a deeded week rather than a right-to-use or points interest. This tells you what you actually own: a fractional real property interest, a leasehold, or a contractual usage right with no real estate title at all. If the sales team can't produce any of these on request, or tells you they're not needed because "everything's in the contract," that's a reason to leave, not a reason to sign faster.
Are timeshares scams?
The timeshare product itself is legal and regulated at the state level; it's not inherently a scam. The scam risk clusters in two places: high-pressure sales tactics at the point of purchase, and fraudulent exit or resale companies that target existing owners afterward. On the sales side, state attorneys general have pursued deceptive marketing cases, and state consumer protection agencies regularly field complaints about high-pressure timeshare pitches and misrepresented resale or investment value. Wisconsin's Department of Agriculture, Trade and Consumer Protection, for example, publishes a specific consumer alert on timeshare resale and travel club offers warning owners to verify any company before paying a fee [4]. The Federal Trade Commission warns that timeshares are not a good investment and typically cannot be resold for anywhere near the purchase price, a fact salespeople routinely omit or contradict during the pitch [1]. On the exit side, the FTC has brought enforcement actions against companies that charged large upfront fees, sometimes $2,000 to $10,000 or more, promising to get owners out of contracts and then delivering nothing. In one such case, the FTC and the State of Missouri sued the operators of Resort Release, alleging the company collected upfront fees from timeshare owners while falsely promising to sell or otherwise get them out of their timeshares [5]. The FTC's guidance is direct: be wary of any company that demands payment upfront before doing any work, and verify a company's standing with your state attorney general and the Better Business Bureau before paying anything [1]. So: the timeshare isn't the scam, usually. The pressure to buy without documents, and the promise of a fast paid exit afterward, are where the actual fraud tends to live. See our guide on timeshare exit companies for how to vet a company before paying anyone a dollar to get you out.
How long do I have to cancel after signing (the rescission window)?
Nearly every state with timeshare-specific law gives buyers a short right to cancel after signing, with no penalty, if you act within the window and follow the contract's cancellation instructions exactly. The window is typically between 3 and 10 days depending on the state, but it is not uniform, and it starts on different triggers (signing date, receipt of the disclosure document, or both) depending on where the resort is located. Don't rely on a number you read online, including this one. Confirm your state's rescission window by reading the actual rescission clause printed in your contract; it's required to be there, and it will name the exact deadline and the method of notice the resort requires (often written notice, sometimes specifically by certified mail to a named address). For a state-by-state breakdown of these windows and citations to each state's statute, see how to get out of a timeshare and timeshare cancellation. If you are inside your window right now, don't wait to double-check details: send your cancellation notice today, by the method the contract specifies, and keep proof of delivery.
What red flags at the sales presentation mean I should walk away?
A few patterns show up again and again in state attorney general complaints and FTC guidance, and any one of them is reason enough to leave without signing: - "This price is only good today." Real contracts and real prices don't expire in an afternoon. A gift, discount, or bonus that vanishes if you don't sign now is a pressure tactic, not a genuine limited offer. - You're not allowed to take the contract to review alone, or the sales rep insists on staying in the room while you read it. - The pitch frames the purchase as an investment that will appreciate or that you can easily resell later. The FTC is direct on this point: timeshares are not investments, and resale value is typically a small fraction of the purchase price, if the unit sells at all [1]. - You're pushed to upgrade an existing timeshare into more points or a higher tier "to fix" problems with your current ownership. This is a known re-sales tactic aimed at existing owners, not new buyers, and it usually adds cost without solving the underlying maintenance fee problem. - The maintenance fee history isn't disclosed, or you're told fees "rarely go up." ARDA's own survey data shows the industry average has been rising for years [2]; ask for the specific property's 5-year fee history in writing. If you notice any of these mid-presentation, you can leave. You don't owe the sales team a signature for their time.
How do you value a timeshare before buying (or before deciding whether to keep one)?
Compare the total cost of ownership against the actual rental cost of equivalent vacations, not against the developer's stated "retail value." Add up the purchase price (or remaining loan balance if financed), the annual maintenance fee, and the average special assessment over the last several years. Divide by the number of nights or weeks you'll realistically use per year. Compare that per-night number to what a comparable hotel or rental in the same location and season actually costs. For resale, run a search on the secondary market before assuming any value. Many timeshares resell for $1 to a few hundred dollars, sometimes less than the closing costs to transfer the deed, because supply of used timeshares vastly exceeds buyer demand. This is a well-documented pattern, not an edge case; it is the reason the FTC specifically warns that timeshares should not be purchased as an investment [1]. If you're deciding whether to keep an inherited timeshare or one you already own, the same math applies going forward: what will you pay in fees over the likely holding period, versus what you'd pay to rent similar accommodations without owning anything. For owners weighing this now, our guide on how to get out of timeshare walks through deed-back programs, resale, and other exit paths in more detail.
How do you sell a timeshare if you decide you don't want it?
Selling is legal and available, but expectations need to be realistic. List with a licensed timeshare resale broker or on a reputable resale marketplace, and price it based on comparable recent sales, not the original purchase price. Many resorts also run their own deed-back or surrender programs that let you return the deed directly to the resort, sometimes for a small fee, sometimes free, if the resort wants the inventory back and you're current on fees. Before listing anywhere, verify the company you're using doesn't require a large upfront fee to promise a sale. The FTC has specifically targeted resale companies that charged owners hundreds or thousands of dollars upfront for a sale that never happened, including the Resort Release case referenced above [5]. A legitimate broker typically earns a commission on a completed sale, not a fee before one. Check whether your resort has a documented deed-back or surrender program before paying anyone. Some brands (including several major hospitality-affiliated timeshare systems) have formal programs specifically for owners who are current on fees and want out; these cost far less than a resale broker or exit company in most cases. See our deed-back programs coverage for how these work resort by resort.
How do you get rid of a timeshare you already regret buying?
If you're still inside your rescission window, cancel in writing per the contract's instructions; this is the cleanest and cheapest exit, and it typically costs nothing beyond postage or a certified mail fee. If the window has closed, your realistic paths are: resale (usually for a small fraction of purchase price, if at all), a resort deed-back or surrender program if one exists, working directly with the resort on a hardship or exit conversation, or, in cases of documented fraud in the original sale, consulting a licensed attorney about your legal options. What you should not do: stop paying maintenance fees hoping the resort will let the contract lapse. Unpaid fees typically lead to collections activity and can damage your credit, and in most states the underlying obligation doesn't just disappear because you stop paying [6]. If cost is the driving issue, a documented deed-back or a negotiated exit is a more reliable path than nonpayment. What you also should not do: pay a large upfront fee to a company that contacts you unsolicited promising a fast, no-questions exit. Verify any exit company's complaint history with your state attorney general's consumer protection office and the Better Business Bureau before paying anything [1] [4]. If you want a structured way to organize your own outreach to the resort, the state regulator, and your own documentation, our $149 one-time Exit Kit Builder gives you the checklist and letter templates to do that work yourself, without paying a company thousands of dollars upfront for the same steps.
What should I know if I inherited a timeshare?
You generally have the right to disclaim (formally refuse) an inherited timeshare interest, which can prevent you from taking on the maintenance fee obligation, but the process and deadline depend on your state's probate law and must typically happen within a defined period after the death, before you've accepted any benefit of ownership. Once you accept the interest, including by using the unit or paying a fee on it, you generally can't disclaim it later. If you've already accepted an inherited timeshare and want out, the same paths apply as for any other owner: resale, resort deed-back program, or a negotiated exit. Contact a probate attorney in the state where the estate was administered if you're unsure whether you've already legally accepted the interest; this is a state-specific legal question with real deadlines, not a general rule of thumb we can give you here.
Quick due diligence checklist before you sign anything
| Get the disclosure document | Public offering statement or equivalent, in writing | Required in most states before or at sale; tells you the real ownership structure [3] | |
|---|---|---|---|
| Get the fee history | 5-year maintenance fee and special assessment record | Average fees rose from ~$1,000 to $1,205 a year between 2019 and 2023 [2] | |
| Read the rescission clause | Exact day count and required cancellation method, printed in the contract | Windows vary by state, typically 3-10 days; confirm yours in the document itself | |
| Check the master deed | Confirms deeded week vs. right-to-use vs. points contract | Determines what you actually own and can later sell or will | |
| Research resale value | Search resale marketplaces for comparable units | Most timeshares resell for a small fraction of purchase price, per FTC guidance [1] | |
| Verify any exit or resale company | Check state AG consumer protection page and BBB before paying | Avoids upfront-fee exit scams the FTC has repeatedly targeted [5] | |
| Sleep on it | Take the contract home; do not sign same-day | No legitimate deal requires a same-day signature | If any single row on this table can't be checked before you sign, that's your answer: don't sign yet. |
Print this, or screenshot it, and use it at the sales table: | Step | What to check | Why it matters |
Frequently asked questions
How do you get out of a timeshare after the rescission period ends?
After rescission, options narrow to resale (often for very little), a resort deed-back or surrender program if the resort offers one, direct negotiation with the resort, or legal consultation if the original sale involved fraud. Avoid companies demanding large upfront fees; verify any exit company with your state attorney general's office first.
How much do timeshares cost on average?
The average purchase price for a timeshare interval was $23,940 in 2023, with average annual maintenance fees of $1,205, according to ARDA's owner survey. Points-based products from major brands often cost more upfront. Fees typically rise annually and special assessments can add unplanned costs on top.
Are timeshares scams?
The product itself is legal and state-regulated, not inherently a scam. The real fraud risk is high-pressure sales tactics at purchase and upfront-fee exit or resale companies afterward. The FTC has brought enforcement actions, including against Resort Release, for charging owners upfront fees for exits never delivered.
How do you sell a timeshare?
List with a licensed timeshare resale broker or reputable marketplace, priced against actual comparable sales rather than the original purchase price, or ask your resort about a deed-back/surrender program. Never pay a large upfront fee to a company promising a fast sale; legitimate brokers typically earn commission on completion.
How long is the rescission window after signing a timeshare contract?
Most states give buyers between 3 and 10 days to cancel penalty-free, but the exact number and required cancellation method vary by state and are printed in your contract's rescission clause. Confirm your state's specific window in that document rather than relying on a general number.
What documents should I ask for before signing a timeshare contract?
Ask for the public offering statement or disclosure document, the current and historical maintenance fee schedule (including special assessments), the exact rescission clause, the master deed or declaration, and the reservation/exchange system rules if buying points. Read all of them away from the sales table before signing.
How do I get rid of a timeshare I inherited?
You may be able to formally disclaim an inherited timeshare under your state's probate law, typically within a set period after the death and before accepting any benefit of ownership. If you've already accepted it, the usual exit paths apply: resale, resort deed-back, or negotiated exit.
Can I stop paying maintenance fees to get out of a timeshare?
This isn't a safe strategy. Unpaid fees typically lead to collections activity and credit damage, and the contractual obligation generally doesn't disappear just because payments stop. If cost is the issue, pursue a documented deed-back, resale, or negotiated exit instead of nonpayment.
How much is a timeshare compared to renting the same vacation?
Add your purchase price (or loan balance), annual maintenance fee, and average special assessments, then divide by nights used per year. Compare that per-night cost to renting a comparable unit in the same location and season; many owners find renting is cheaper once fees are included.
What are the biggest red flags at a timeshare sales presentation?
Same-day-only pricing, pressure to sign before leaving the room, framing the purchase as an investment, upgrade pitches aimed at fixing an existing timeshare's problems, and vague or missing maintenance fee history. Any one of these is a legitimate reason to leave without signing.
Do timeshare exit companies really work?
Some legitimate companies and attorneys do help owners exit, but the industry also has a documented history of upfront-fee fraud, per FTC enforcement actions such as the case against Resort Release. Verify any company's standing with your state attorney general's consumer protection office and the Better Business Bureau before paying anything, and be wary of any promise that sounds too easy.
What's the difference between a deeded timeshare and a right-to-use or points timeshare?
A deeded timeshare gives you a fractional real property interest you can sell, will, or deed back, recorded like other real estate. A right-to-use or points timeshare is a contractual usage right with no real property title, which can affect resale, inheritance, and how you exit later.
Sources
- Federal Trade Commission, Consumer Information: Timeshares, Vacation Clubs, and Related Scams: FTC guidance that timeshares are generally not a good investment and are difficult to resell near purchase price, plus advice to be wary of upfront-fee pressure
- American Resort Development Association, State of the Vacation Timeshare Industry (2023 data cited via ARDA press materials): Average timeshare purchase price of $23,940 and average annual maintenance fee of $1,205 in 2023
- Florida Statutes Chapter 721, Vacation Plan and Timesharing Act, Section 721.07: Requirement for a public offering statement/disclosure document to timeshare purchasers in Florida
- Wisconsin Department of Agriculture, Trade and Consumer Protection, Consumer Alert: Timeshare Resales and Timeshare Travel Clubs: State consumer protection warnings about high-pressure timeshare sales tactics and misrepresented resale or investment value
- Federal Trade Commission, FTC v. Resort Release LLC et al. (Case No. 4:19-cv-00360, W.D. Mo.), press release: FTC enforcement action against a company charging upfront fees for timeshare exit services never delivered
- Consumer Financial Protection Bureau, Consumer Complaint Database: Unpaid timeshare fees can lead to collections activity affecting credit