Timeshare Exit & Divestment Attorneys

Washington Debt Law is experienced in the types of negotiations, exit strategies, and outside-of-the-box thinking to get you out of your unwanted timeshare. Our options include more than just negotiation, we can also litigate title and consumer protection angles, provide bankruptcy solutions, or class action options. Don’t let your timeshare company bully you into thinking a timeshare exit is impossible. Call us to discuss your options.

TIMESHARE DIVESTMENT

Timeshare divestment can take many forms- settlement, litigation based upon fraudulent actions or unfair business practices by the seller, bankruptcy options, and default strategies. We are not a volume timeshare divestment firm where the sole strategy is to settle but rather we are a boutique litigation firm that looks at all of your legal and out of court options, to include settlement, and help you to understand the strategy that will be the most efficient and cost effective.

Common Issues that we Handle:

Collections Defense
Divestment
Foreclosure Defense & Strategy
Improper or False Disclosures & Advertisement
Maintenance Fee Increases
Timeshare Fraud & Scams
Transfer of Rights/Sale Issues

Options to Resolve:

Bankruptcy
- Typically our last resort option and usually only if significant other debt would be discharged and no possible class action or consumer protection violations
Class Action Litigation for Consumer Protection Violations
Consumer Protection Litigation under RCW 64.36, RCW 19.86, and WAC 308-127
Default & Foreclosure Strategy
Litigation (as Plaintiff or Defendant) & Counterclaims
Settlement

Timeshare Exit and Divestment Strategies

Some timeshares are deeded/mortgage-based, but are more often becoming points-based. Other timeshare ownerships can be a hybrid of the two, although rare. Here are a few common reasons that can lead consumers to want to exit their timeshare:

Misrepresentations/High Pressure Sales:

It is common for timeshare owners to be told at the time of purchase that their timeshare is an investment, and later find this not to be true. Those that have attempted to sell their timeshare in the open marketplace find that there is little to no market for timeshare purchases and sales.
Others are told that maintenance fees are fixed and will not rise (or will rise at a fixed rate), and later find fees doubled after just a few years. This also happens with owner’s association dues, as well (if applicable).
Many times, consumers are told that they can have access to a specific unit or use different locations that never seem to be available for the week(s) purchased.
Some consumers were simply pressured into a purchase without being told the actual costs and fees involved in timeshare ownership, and in some cases, not even given access to or possession of the underlying documents memorializing the sale.
Others are told that they can cancel the timeshare agreement at anytime, only to find that this is not true.

Changing Life Circumstances:

A job loss, medical expenses, and other unexpected financial issues may make the costs of timeshare ownership no longer a viable option, especially with the ever-rising costs and fees even where your ownership is of the deeded type and your mortgage is fully paid off.
For others, they can no longer use their timeshare due to unexpected scheduling conflicts. You may have increased work or childcare demands that make traveling impossible.
You may be getting older and find that medical issues make travel difficult or even impossible.
Perhaps the timeshare was bequeathed to you by a loved one, and you simply do not have the time and/or the money to use it.
Whatever the reason, many people find that changing life circumstances make owning a timeshare a waste of money.

Company Mergers and Takeovers:

There have been several major changes of corporate ownership of timeshare companies over the last decade or so.
Your timeshare ownership expectations may become confusing with new rules, regulations, and more ever-increasing fees and dues that may come with changes in corporate ownership. In some cases, your chain of title of timeshare ownership may become practically impossible to follow.
These changes in corporate ownership can create an environment where you no longer enjoy using your timeshare.

Here are a few ways that you can get rid of your timeshare:

Firstly, you can try to sell your timeshare. If you call your timeshare company, they will likely tell you that this is the only way to get rid of a timeshare, but this is not true. In addition, the market for timeshare sales is basically non-existent, and you will have to continue to pay all fees and dues until an actual sale is made. There are companies that will offer to sell your timeshare for you, but these are almost always scams, with consumers losing up to thousands of dollars paid for listing fees.

A second option is timeshare donation. You can “give” your timeshare away, for example, to a family member, and assuming you know someone who is interested in taking over your timeshare interest. You won’t have to pay dues and fees anymore, but you will incur certain costs to transfer your timeshare. Your timeshare company will also likely require extra fees to do so.

A third and less well-known option is to do a timeshare cancellation by working directly with your timeshare company. This is often called a timeshare exit or divestment. The timeshare company will likely tell you this is impossible. There are some companies that may be willing to work with you if you are current on all fees and dues (and the mortgage is fully paid off if the ownership type is by deed). Unfortunately, this is often not the case, and you will need experienced attorneys to advocate on your behalf.

Required Disclosures per RCW 64.36 (see below) or via WAC 308-127-110 (click link)

Any person who offers or sells a timeshare shall provide the prospective purchaser a written disclosure document before the prospective purchaser signs an agreement for the purchase of a timeshare. The timeshare salesperson shall date and sign the disclosure document. The disclosure document shall include:

(1) The official name and address of the promoter, its parent or affiliates, and the names and addresses of the director and officers of each;

(2) The location of the timeshare property;

(3) A general description of the timeshare property and the timeshare units;

(4) A list of all units offered by the promoter in the same project including:

(a) The types, prices, and number of units;

(b) Identification and location of units;

(d) The maximum number of units that may become part of the timeshare property; and

(e) A statement of the maximum number of timeshares that may be created or a statement that there is no maximum.

(5) A description of any financing offered by the promoter;

(6) A statement of ownership of all properties included in the timeshare offering including any liens or encumbrances affecting the property;

(7) Copies of any agreements or leases to be signed by timeshare purchasers at closing and a copy of the timeshare instrument;

(8) The identity of the managing entity and the manner, if any, whereby the promoter may change the managing entity;

(9) A description of the selling costs both per unit and for the total project at the time the sale is made;

(10) A statement disclosing when and where the promoter or its affiliate has previously sold timeshares;

(11) A description of the nature and purpose of all charges, dues, maintenance fees, and other expenses that may be assessed, including:

(a) The current amounts assessed;

(b) The method and formula for changes; and

(12) Any services which the promoter provides or expenses the promoter pays which the promoter expects may become a timeshare expense at any subsequent time;

(13) A statement in bold face type on the cover page of the disclosure document and the cover page of the timeshare purchase agreement that within seven days after receipt of a disclosure document or the signing of the timeshare purchase agreement, whichever is later, a purchaser may cancel any agreement for the purchase of a timeshare from a promoter or a timeshare salesperson and that the cancellation must be in writing and be either hand delivered or mailed to the promoter or the promoter’s agent;

(14) Any restraints on transfer of a timeshare or portion thereof;

(15) A description of the insurance coverage provided for the benefit of timeshare owners;

(16) A full and accurate disclosure of whether the timeshare owners are to be permitted or required to become members of or participate in any program for the exchange of property rights among themselves or with the timeshare owners of other timeshare units, or both, and a complete description of the program; and

(17) Any additional information the director finds necessary to fully inform prospective timeshare purchasers, including but not limited to information required by RCW 64.36.030.

Resources

Washington State Attorney General Time Share Page & Complaint Link

WA Department of Licensing Forms & Complaint Link

Link to RCW 64.36 generally

RCW 64.36.020- Registration of Time Shares

RCW 64.36.050- Duration of Registration (1 year, recurring)

RCW 64.36.070- Registration of Sales Agent

RCW 64.36.120- Good Faith Requirement

RCW 64.36.140- Disclosure Document Requirements

RCW 64.36.150 Disclosure Documents to Buyer, 7 Day Cool Off Rule

RCW 64.36.170 Violation are a Per Se Violation of RCW 19.86

RCW 64.36.210 Prohibited Acts

RCW 64.36.240 Liability of Sellers

RCW 64.36.320 Promotional Material and Gifts

Link to WAC 308-127 generally