How to get rid of a timeshare legally in 2025

Last updated 2025-07-24

What are the legal ways to get out of a timeshare?

Seven methods let you exit legally: rescission during your cooling-off period, developer deed-back programs, resale on the secondary market, donation to a licensed charity, transfer to another party, negotiated surrender with the resort, or default and foreclosure. Each has different costs, timelines, and eligibility rules. Rescission is the cleanest path if you just bought. Every state gives you a short window to cancel for a full refund. After that closes, your options narrow and almost all cost money or damage your credit. The method you pick depends on how long you've owned the timeshare, whether your resort offers a deed-back program, your credit tolerance, and how much you're willing to spend to get out. None of these paths is fast and free once rescission expires, despite what many exit companies promise.

How does rescission work and how long do I have?

Rescission is your statutory right to cancel a timeshare purchase within a short window, usually 3 to 15 days depending on your state and where you signed the contract ^[1]. You get a full refund of your down payment if you cancel correctly during this period. Florida gives you 10 calendar days ^[2]. Nevada gives 5 calendar days ^[3]. California gives 7 days ^[4]. Many states tie the clock to when you receive the public offering statement or contract, more than the signing date. Some states like Tennessee give you 10 days but only if the developer provides specific disclosures. You must send written notice of cancellation to the address listed in your contract, by certified mail with return receipt. Email usually doesn't count. The notice must arrive before the deadline, more than be postmarked. Keep copies of everything: your letter, the certified mail receipt, the signed return card. If you're inside your rescission window right now, this is your only clean path out. Stop reading and send that letter today. If you're past the deadline, rescission is closed forever for that contract. For state-by-state rescission details and sample cancellation letters, see our guide on how to get out of a timeshare.

What is a deed-back program and will my resort take my timeshare?

A deed-back (also called deedback, surrender, or take-back) program lets you return your timeshare to the resort or developer. You transfer the deed back to them and they release you from future maintenance fees. Most charge a transfer fee ranging from $500 to $4,000. Wyndham offers the Certified Exit program with a $1,500 administrative fee if your account is current and you meet eligibility rules ^[5]. Marriott Vacation Club has an Owner Exit Assistance Program; fees and eligibility aren't published but owners report $2,000 to $3,500. Hilton Grand Vacations runs a deed-back option for owners with accounts in good standing. Diamond Resorts and Bluegreen also have programs, though availability and terms change. Not every owner qualifies. Most programs require your maintenance fees and loan (if any) to be fully paid and current. Some won't accept deeds with outstanding special assessments. Some only take back deeds during specific enrollment windows or exclude certain resorts in the portfolio. Call your resort's owner services line and ask explicitly: "Do you have a deed-back or surrender program, what are the fees, and do I qualify?" Get the answer in writing. If they say no, ask if they know of any forthcoming program. Some resorts have quietly launched programs but don't advertise them widely. If your developer won't take it back, a deed-back is not an option. You'll have to look at resale, donation, or transfer.

Can I sell my timeshare, and what is it actually worth?

You can list your timeshare for resale, but the secondary market is brutal. Most weeks sell for $1 to $1,000, and many listings sit for years with no offers ^[6]. Timeshares have almost no resale value because supply vastly exceeds demand and maintenance fees keep rising. The resale price depends on the brand, location, week or points, and current maintenance fees. A Marriott or Disney week at a desirable resort during high season might fetch $3,000 to $8,000. A mid-tier brand off-season week in an oversupplied location often sells for $1 just to transfer the deed and get the fees off your back. List your timeshare yourself on RedWeek, eBay, Craigslist, or the Timeshare Users Group (TUG) forums. RedWeek charges a listing fee (around $60 per year). eBay and Craigslist are free but attract more scammers. A licensed real estate broker who specializes in timeshares can list it on the MLS, but they'll charge a commission (often 10-15%) only if it actually sells. Never pay an upfront fee to a resale company that cold-calls you with a "ready buyer." That's a classic scam. The Federal Trade Commission has sued dozens of these firms . A legitimate resale broker earns a commission at closing, not before. Pricing your unit at $1 and covering the buyer's closing costs (typically $300 to $800) is often the only way to move it. Yes, that means you pay to give it away. It's still cheaper than years of maintenance fees.

How do I donate my timeshare to charity?

Donating to a qualified charity is legal, but few charities actually accept timeshares anymore because the ongoing maintenance fees usually exceed any benefit. The IRS has also tightened rules, making the tax deduction less attractive. The charity must be a 501(c)(3) organization and must genuinely want the timeshare, more than act as a middleman for a transfer company. Timeshares for Charity and Donate for a Cause are two organizations that facilitate these donations, but they charge transfer and closing fees (often $1,000 to $2,500) and they screen heavily: they reject timeshares with high fees, pending assessments, or difficult-to-use points. You can only deduct the fair market value of the timeshare on your taxes, which for most units is close to zero . If you claim a deduction over $5,000, you'll need a qualified appraisal, which itself costs $300 to $600. The juice often isn't worth the squeeze. If a charity accepts your timeshare, you still pay transfer and closing costs, the charity takes over the deed and future fees, and you walk away. It's effectively the same financial outcome as selling for $1, but with more paperwork and a small potential tax benefit. Before paying any donation company, confirm the charity is real (check the IRS Tax Exempt Organization Search at irs.gov) and get written proof that they will accept your specific deed and take over fee obligations.

What is a timeshare transfer or third-party exit?

A transfer means you find someone (or a company) willing to take the deed and assume the maintenance fees. This is legal, but the resort must approve the transfer and you'll pay closing and transfer fees. Some people advertise on forums or social media that they'll accept timeshare transfers. They take on dozens or hundreds of timeshares, planning to default on the fees once they accumulate too many. This creates a temporary exit for you, but it's ethically questionable and the resort may come back to you if the transfer wasn't properly recorded or the new owner disappears. Timeshare exit companies often use this method behind the scenes: they transfer your deed to a shell LLC, then let that entity go into foreclosure. They charge you $3,000 to $7,000 upfront and often don't disclose this is the plan. You're paying thousands for something you could negotiate yourself or accept via simple default. If you pursue a third-party transfer, hire a real estate attorney in the timeshare's state to handle the deed transfer and confirm the resort has accepted the new owner and released you from liability. Costs typically run $800 to $1,500 in legal and closing fees. Do not pay an exit company $5,000 to do this same thing and call it proprietary.

Can I just stop paying and let the timeshare go into foreclosure?

Yes, you can stop paying maintenance fees and let the resort foreclose or reclaim the timeshare. This is legal but it damages your credit and you may face collections, a deficiency judgment, or a 1099-C taxable cancellation of debt. When you stop paying, the resort will send your account to collections. They'll call, send letters, and report the delinquency to credit bureaus. After several months of non-payment, the resort will start foreclosure (for deeded weeks) or simply reclaim the points and cancel your membership (for points-based or right-to-use contracts). Foreclosure works like a mortgage foreclosure: it stays on your credit report for seven years and drops your credit score by 100+ points initially. Some resorts pursue a deficiency judgment for unpaid fees, though many don't because the legal cost exceeds the fees owed. If they forgive the debt, you may receive a 1099-C and owe income tax on the canceled amount. We do not advise you to stop making payments if you are legally obligated to pay them. But if you've exhausted every other exit path, can't afford an exit company or attorney, and you're willing to accept the credit damage, default is a real-world outcome that many owners choose. It's not pretty, but it ends the fees. Before you default, document your attempts to exit through deed-back, resale, and transfer. If the resort or a future debt collector contacts you, that record shows you tried every reasonable path. Consult a consumer law attorney in your state if the resort threatens a lawsuit.

Are timeshare exit companies worth the cost?

Most are not. The timeshare exit industry is full of firms that charge $3,000 to $10,000 upfront, make promises they can't keep, and often use methods you can do yourself for a few hundred dollars. The Federal Trade Commission and state attorneys general have sued or sanctioned dozens of exit companies for deceptive practices . Common violations include: charging upfront fees before delivering any service, falsely claiming they can cancel any timeshare, making outcome promises they can't keep, and failing to disclose that their method is just deed transfer or assisted default. Legitimate exit attorneys exist, but they charge hourly ($200 to $400/hour) and will tell you honestly if you have a viable case (fraud, misrepresentation, contract violation). If your case is weak, they'll say so. If a company promises a successful exit and charges a flat $5,000 fee before starting work, that's a red flag. Some exit companies are actually buying time: they drag out the process for 18 to 36 months while you pay them in installments, then either transfer the deed to a shell entity or tell you the developer refused and offer a partial refund. By then you've paid thousands and you're back where you started. Before hiring any exit company, check their Better Business Bureau record, search their name plus "complaint" or "lawsuit," and ask for client references you can call. Ask exactly what method they will use and what happens if it fails. Get everything in writing. If they pressure you to sign today or offer a "limited time" price, walk away. For a breakdown of how exit companies operate and warning signs, see our guide on timeshare exit companies.

What does it cost to get rid of a timeshare?

Rescission (in window)	$0	1-2 weeks
Developer deed-back	$500-$4,000	1-4 months
DIY resale (listing fee)	$60-$200 + closing (~$500)	6-24 months
Broker resale (commission)	10-15% of sale price	6-24 months
Donation	$1,000-$2,500	2-4 months
Attorney-assisted transfer	$800-$1,500	2-3 months
Exit company (avoid)	$3,000-$10,000	12-36 months
Default/foreclosure	$0 upfront (credit damage)	6-12 months	Rescission is free if you're inside the window. After that, every path costs something. The cheapest post-rescission options are deed-back (if available) or DIY resale for $1 plus closing costs. Exit companies charge the most and deliver the least. Attorneys cost less and give you honest assessments. If you're going to spend $2,000 to $4,000, spend it on a deed-back fee or a real estate attorney, not an exit firm that will ghost you after six months. For one-time access to state-specific rescission letter templates, deed-back contact lists, resale platform reviews, and a decision tree, ExitHonest offers a $149 Timeshare Exit Kit at exithonest.com/exit-kit-builder. It's not legal advice and we don't contact your resort, but it organizes the DIY paths in one place.

Costs range from $0 (rescission) to $8,000+ (exit company or extended legal fight), depending on the method and your situation. | Method | Typical Cost | Timeline |

How long does it take to legally exit a timeshare?

Rescission takes one to two weeks: you send the letter, the developer processes it, and you get your refund. Every other method takes months or years. Developer deed-back programs usually close in one to four months once you're approved. You submit an application, they verify your account is current, you pay the fee, and they record the deed transfer. Resale can take six months to two years. Most listings sit with no offers. If you price it at $1 and cover closing, you might find a buyer in three to six months. If you hold out for a higher price, expect a year or more. Exit companies often quote 12 to 18 months, but many cases drag past 24 or 36 months with no resolution. They'll blame the developer, the pandemic, or "unprecedented delays." Default and foreclosure takes six to twelve months depending on your resort's process and state law. You stop paying, they send you to collections, and eventually they reclaim the deed or cancel your membership. If you need to exit quickly, your only real options are rescission (if eligible) or a developer deed-back program. Everything else is a long grind.

Can I get out of a timeshare I inherited?

Yes, but your options depend on the timeshare contract and your state's probate law. Many timeshare contracts let you disclaim an inheritance during probate, which means you refuse to accept the timeshare and it stays in the estate. Disclaimer must happen before you accept any benefits from the timeshare and usually within nine months of the owner's death . You file a written disclaimer with the probate court and send a copy to the timeshare resort. The timeshare then passes to the next beneficiary in line or back to the estate. If you already accepted the inheritance or the deadline passed, you own it. At that point, your exit options are the same as any owner: deed-back, resale, donation, transfer, or default. Some resorts will negotiate a surrender for inherited timeshares, especially if the estate or heir is facing financial hardship. Some states allow an heir to stop paying maintenance fees and let the resort reclaim the timeshare without a formal foreclosure if the deed was never transferred into the heir's name. Check with a probate or real estate attorney in the state where the timeshare is located. Do not ignore the timeshare. If you don't disclaim and don't pay fees, the resort will pursue the estate and potentially the heirs personally depending on state law. Deal with it during probate or immediately after.

What if the developer or resort goes bankrupt?

If the developer or management company files bankruptcy, your timeshare ownership usually continues but the situation gets messy. The bankruptcy court may restructure the debt, sell the resort to a new operator, or liquidate the property. You still own your week or points, and you're still obligated to pay maintenance fees to whoever takes over management. In some bankruptcies, a homeowners association (HOA) or the owners collectively assume control and the fees go up sharply to cover the shortfall. If the resort is liquidated and sold, the new owner may honor existing timeshare contracts, try to buy you out, or start foreclosure proceedings on owners who stop paying. Your deed and contract govern what happens, and state law provides some protection, but there's no uniform rule. Bankruptcy is actually an opportunity for some owners: the chaos may let you negotiate a deed surrender or walk away more easily. Contact the bankruptcy trustee or the new management company and ask about a voluntary surrender program. They're often motivated to reduce the number of owners and simplify the situation. If you're facing a developer bankruptcy, consult a real estate attorney in the timeshare's state and monitor the bankruptcy docket (available free on PACER.gov) to see what the court orders.

Should I hire a lawyer to get out of my timeshare?

Hire a lawyer if you have a valid legal claim (fraud, misrepresentation, contract breach), if the developer refuses a deed-back and you want to negotiate, or if the resort is threatening a lawsuit. Don't hire a lawyer if you just want out and have no legal claim; you'll pay $2,000+ for them to tell you the contract is valid and your options are resale or surrender. A real estate attorney in the timeshare's state can review your purchase documents, identify any violations of state timeshare law, and negotiate directly with the resort. Hourly rates run $200 to $400. Expect to spend $1,000 to $3,000 for a review and negotiation effort. If they file a lawsuit, costs jump to $5,000 to $15,000 or more. Some attorneys offer flat-fee timeshare exit services, but these often work the same way as exit companies: they send a demand letter, threaten legal action, and hope the resort offers a settlement or deed-back to avoid hassle. This works occasionally, but not reliably. Before hiring, ask: "What legal basis do I have to cancel or rescind this contract?" If the answer is "none, but we can pressure them," you're paying for negotiating power you may not get. If the answer is "they violated disclosure law" or "the sales presentation included fraudulent statements," you have a case. For straightforward exits with no legal issues, a lawyer is overkill. Use a deed-back program or resale platform instead.

Frequently asked questions

How do you get out of a timeshare without damaging your credit?

Rescind during your state's cooling-off period, use a developer deed-back program, sell or donate the timeshare, or arrange a voluntary deed transfer with resort approval. All of these methods release you without a collections mark or foreclosure on your credit report. Default and foreclosure will damage your credit for seven years.

Are timeshares scams?

Timeshares are legal products, but the sales tactics often involve high-pressure presentations, misrepresentation of resale value, and inflated claims about rental income or exchange flexibility. The product itself isn't a scam, but the way it's sold frequently crosses ethical and legal lines. The secondary market collapse and rising fees make timeshares a poor financial decision for most buyers.

How much do timeshares cost to buy?

New timeshares from developers cost $20,000 to $50,000 on average, with luxury brands reaching $100,000 or more ^[10]. Financing adds interest at 12% to 18% APR. On the resale market, the same timeshares sell for $1 to $5,000 because supply far exceeds demand and buyers avoid the inflated developer pricing.

How much are annual maintenance fees?

Annual maintenance fees average $1,000 to $1,500 per year, but they vary widely by resort, location, and unit size ^[10]. Fees rise 3% to 5% per year. Special assessments for renovations or repairs can add $1,000 to $5,000 in a single year. Over a 20-year ownership, you'll pay $25,000 to $40,000 in fees even if you never use the timeshare.

Can I cancel a timeshare after the rescission period ends?

Not automatically. Once rescission expires, you need the developer's agreement (through a deed-back program or negotiated surrender), a buyer or transferee willing to take it, or a valid legal claim like fraud or contract breach. There's no statutory right to cancel after the rescission window closes.

What happens if I just stop paying maintenance fees?

The resort reports the delinquency to credit bureaus, sends your account to collections, and eventually forecloses on the timeshare (for deeded weeks) or cancels your membership (for points or right-to-use). Your credit score drops, you may face collections calls and letters, and the resort may pursue a deficiency judgment or issue a 1099-C for canceled debt. This is a last resort with real consequences.

How do I know if a timeshare exit company is legitimate?

A legitimate firm won't charge large upfront fees before delivering results, won't promise a specific outcome, will clearly explain their method, and will have a verifiable track record with references. Check the Better Business Bureau, your state attorney general's consumer protection division, and search for lawsuits or FTC actions. If they cold-called you, pressure you, or ask for payment in gift cards or wire transfer, they're a scam.

Can I rent out my timeshare to cover maintenance fees?

Rarely. Rental income for most timeshares is $300 to $800 per week, while annual maintenance fees are $1,000 to $1,500. You'd need to rent it multiple weeks per year to break even, and demand is low. Airbnb and VRBO have flooded the short-term rental market with cheaper, more flexible options. Many timeshare contracts also restrict or prohibit rentals.

What is a timeshare deed-back program?

A deed-back program (also called take-back, surrender, or exit program) lets you voluntarily return your timeshare to the resort or developer in exchange for release from future maintenance fees. Most charge a transfer fee of $500 to $4,000. You must typically have your account current with no outstanding loan balance. Not all resorts offer these programs.

Can I sell my timeshare myself without a broker?

Yes. List it on RedWeek, eBay, Craigslist, or the TUG (Timeshare Users Group) forums. Set the price at $1 or low four figures, offer to cover the buyer's closing costs, and be patient. Expect three to twelve months to find a buyer. Use a licensed closing company or real estate attorney to handle the deed transfer and make sure the resort approves the new owner.

Do I owe taxes if I donate my timeshare?

You can only deduct the fair market value, which for most timeshares is near zero. If you claim a deduction over $5,000, you need a qualified appraisal. The donation itself doesn't create taxable income, but the loss of the asset usually provides little to no tax benefit because of the low resale value.

How do I cancel a timeshare during rescission?

Send written notice of cancellation to the address specified in your contract, by certified mail with return receipt requested, before your state's rescission deadline (typically 3 to 15 days). Include your name, contract number, purchase date, and a clear statement that you are canceling. Keep copies of everything. The developer must refund your down payment in full.

Can a timeshare exit company guarantee they'll cancel my contract?

No. Any company that promises a specific outcome is violating FTC rules. They cannot control the developer's decisions or the legal system. Promises of this kind are a hallmark of a scam. Legitimate attorneys and exit services will explain your options and likelihood of success, but they will never claim certainty.

What is the best way to get rid of a timeshare legally?

If you're inside rescission, cancel immediately. If not, try a developer deed-back program first. If that's not available, list the timeshare for resale at $1 and cover closing costs. If those fail, consult a real estate attorney about a negotiated surrender or voluntary transfer. Default is the last-resort option if you accept the credit damage and can't afford any other path.

Sources

1. Florida Statutes, Title XXXII Chapter 721.06: Florida provides a 10-day rescission period for timeshare purchases
2. Nevada Revised Statutes, Chapter 119A.410: Nevada allows 5 calendar days for timeshare rescission
3. California Business and Professions Code, Section 11212: California grants a 7-day right to cancel timeshare contracts
4. Wyndham Destinations, Certified Exit by Wyndham: Wyndham offers deed-back through Certified Exit with a $1,500 fee for eligible owners
5. Internal Revenue Service, Publication 526 (Charitable Contributions): Charitable deductions must reflect fair market value; timeshares typically have minimal FMV
6. Internal Revenue Service, Publication 4895 (Tax Treatment of Property Acquired From a Decedent): Disclaimers of inherited property must occur within 9 months of death to be effective for tax purposes