Using The Resort For Timeshare Exit

High-Risk Timeshare Exit Strategy: Going Back To Your Resort

Using the resort as a timeshare exit strategy could be considered a “High-Risk timeshare exit strategy. Resorts make billions of dollars selling timeshare interests. They are experts at getting people into timeshares—not out of them. For this reason and more, it is dangerous to contact the resort for assistance in exiting your timeshare. Some resorts have disclosed in their SEC filings that they have no financial incentive to release you from your contract. In fact, it’s quite the opposite—many representatives are trained to use an owner seeking an exit to do what they do best, which is sell more timeshares. At Newton Group, we have many signed, legal declarations from clients recounting what happened when they went back to the resort for an exit. Here is just one example:

“We received a written communication from [our resort] that discouraged owners from hiring an attorney or any third party in an attempt to cancel timeshare contracts. The letter advised that [our resort] would be willing to work with us directly. . . After spending approximately five hours we reluctantly agreed to a membership purchase that provided us with 15,000 points for a total purchase price of $56,100. . . We felt that we were misled into making an additional purchase when that was not what we desired to do. We don’t feel that [our resort] was interested in listening to our concerns, and rather used our visit as an opportunity to upsell us.”
–Sworn Legal Declaration

This reality is further supported by our Timeshare Exit Study based on over 9,000 timeshare ownership experiences. Newton Group’s Exit Study found that over 65% of owners who tried exiting before hiring us, first tried going back to their resort and were either denied, ignored or worse, upsold for thousands of dollars.

Timeshare Resorts and The “License to Lie” Clause

Before deciding whether to go back to your resort to request an exit, there is a fundamental question to ask: “Can I really trust the resort representatives?” Look no further than the resorts themselves for the answer:

“Oral representations of Seller or Seller’s agents should not be relied upon by Purchaser as correctly stating the representations of Seller. For correct representations, Purchaser should rely entirely on this Agreement and the documents and instruments contained by reference.”

The language above is taken from a large US resort developer’s Purchase and Security Agreement. But this resort isn’t the only one. At Newton Group, we have learned that resort sales representatives hide behind what has become commonly known as a “license to lie” clause like the one quoted above. Of the over 9,000 owners surveyed in our Timeshare Exit Study, a whopping 97% felt deceived by their timeshare sales representative.

The inherent danger of contract language like the “license to lie” clause is that timeshare sales agreements are not short and easy to read. Many owners told us they were not given the opportunity to read their contracts fully or closely, either on their own or with their own legal counsel, before signing. Because of this, most owners had to rely on what the resort representatives told them. And why wouldn’t they? Isn’t that what the law requires—truthful sales pitches?

Yet, time and time again, timeshare owners are confused about what they actually purchased because they were misled by their sales representative and they failed to read and understand their contracts. And it’s not only what the sales representative tells you that matters, but also what they may not have told you (or intentionally omitted) about your timeshare when you purchased it.

You don’t have to use the resort for your timeshare exit

The Newton Group partners, together with experienced attorneys, co-founded a law firm to focus on timeshare legal issues. We work to free owners from unwanted timeshare contracts, while our partner law firm pursues legal claims based on our clients’ experiences. Our unique process combines experienced, specialized exit services with the protection of personal legal representation, under one service agreement and with an affordable flat fee. Never before have such services been so accessible and affordable for timeshare owners.