The Real Answer Timeshare Owners Need to Know
If you’ve ever asked, “Why can’t I sell my timeshare?” you’re not alone. It’s one of the most common questions from timeshare owners. Unfortunately, it’s also one of the most misunderstood topics, often answered with half-truths or incorrect assumptions. Let’s uncover the real reason behind this frustrating issue.
It’s Not About Market Saturation
You’ve likely heard that timeshares are hard to sell because the market is flooded with inventory—some listed for as little as a dollar or even for free. While this is true, it’s merely a symptom of the problem, not the root cause. The real reason timeshares don’t sell lies in their very nature.
The Hard Truth About Timeshares
Timeshares were never designed to be sold as financial investments or assets. Despite what some sales representatives may have implied during your purchase, the true value of a timeshare lies solely in its use as a vacation destination—not as a financial asset.
Don’t just take our word for it; here’s what the Federal Trade Commission (FTC) says:
“The sales staff may tell you that a timeshare is a solid financial asset, but the value of a timeshare is in its use as a vacation destination, not as an investment. Plus, your timeshare may include hefty ongoing and recurring fees for maintenance and other items.”
Source: Federal Trade Commission
The Legally Binding Reality
Many timeshare owners tell us they feel misled or even lied to. However, once you sign the contract, any verbal promises made by sales representatives become irrelevant. The written terms in your agreement take precedence, and those terms are often clear: timeshares are for personal use, not for resale or investment.
The following is some language taken directly from one U.S. timeshare resort’s public offering statement. Many resorts use similar language in their owner manuals, master agreements, or public offering statements.
“The purchase of a Unit Week should be based on its value as a vacation experience or for spending leisure time, and not considered for purposes of acquiring an appreciating investment or with an expectation that the Unit Week may be resold.”
This document continues to emphasize:
“Unit Weeks are offered for sale for personal use and enjoyment only and should not be purchased by any prospective purchaser for resale or as an investment opportunity… Generally, there is no established market for the resale of Units and Unit Weeks or for the rental of Units.”
“…Owners attempting to resell or rent their Unit or Unit Week would have to compete, at a substantial disadvantage, with the Developer in the sale or rental of its unsold Units or Unit Weeks. Generally, there is no established market for the resale of Units and Unit Weeks or for the rental of Units and Unit Weeks in the Condominium.”
…this language was taken from a public offering statement that is 249 pages in length. I would be curious to know the percentage of people who have read this far into their documents.
Navigating the Timeshare Exit Maze With Newton Group
The moment you signed your timeshare contract, it became a legally binding document. One that demands careful consideration, especially when seeking to exit or terminate your timeshare ownership. In the potentially complex process of timeshare cancellation, the collaboration of both experts and attorneys is important.
The Distinction Between Experts and Attorneys
There are experts AND there are attorneys—both are essential components of a successful timeshare exit. However, it’s crucial to understand the distinctions. Never allow a non-attorney (even if they are an “expert”) to represent you in a legal matter, particularly concerning your timeshare. Equally important is ensuring that any attorney working on your behalf unequivocally represents you and your best interests.
Many timeshare exit companies employ non-attorney staff to handle negotiations with resorts or to advise their clients to stop paying their timeshare mortgage or fees, raising questions about the effectiveness and legality of such practices. Engaging in settlement negotiations, discussing non-payment, or terminating a legal contract is best handled by a qualified attorney hired to personally represent you and protect your interests.
Deceptive Practices in the Timeshare Exit Industry
In a recent lawsuit involving a large timeshare exit company – a federal judge found that when the exit company markets its services as “legal” timeshare cancellations — combined with the nature of the exit companies sales representatives’ conversations with clients – misleads consumers into believing “legal services” are being provided, when in fact, the exit company is not a law firm, and its representatives are not lawyers…
The Federal Judge gave an example – that when the exit company’s non-layers “purport to interpret the owners’ timeshare contracts and explain the legal ramifications of timeshare agreements and when they claim to be able to ‘legally’ terminate or cancel timeshare agreements” – that “these are all matters that, on their face, require the exercise of professional legal judgment.”
The Judge found that the exit company engaged in the unauthorized practice of law, and the manner in which it did constitutes a deceptive practice – insofar as it tends to lead consumers—(timeshare owners)—to believe that the exit companies system for canceling timeshares is based on some legitimate legal grounds.
Misleading Representation – Who Does The Attorney Work for?
While some exit companies may have attorneys on staff or outsource legal work to third-party law firms, it is important to exercise caution—these attorneys typically represent the exit company that employs them, not you (the timeshare owner). They are legally bound to prioritize the company’s interests, which may not necessarily align with yours because that is who their client is – that is who they owe their legal duty to represent their best interests. To safeguard your timeshare exit, it’s highly recommended to secure a letter of representation from an attorney explicitly stating that they legally represent you.
The Consumer’s Guide to Timeshare Exit says if you hear any of these “red flag statements” consider alternative sources for help :
Red Flag Statements From Timeshare Exit Company Sales People:
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- “We have legal experts” – legal experts are not always attorneys.
- “We have attorneys on staff that you can talk to”
- “You don’t need an attorney to represent you – we have experts that will negotiate with your resort”
- “Our attorneys will be working on your file”
- “We will assign an attorney to your case”
- “You don’t need an attorney to represent you”
Questions to Ask Before Hiring Anyone To Help Exit Your Timeshare:
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- Will I have a lawyer that represents me personally?
- Can you show me in the agreement where it clearly states that I will have individual legal representation as a part of your services?
- Will I receive a Letter Of Representation from my lawyer that clearly states they legally represent me?
- Who will be doing my contract review/ analysis of my timeshare contact? An expert? An attorney that represents you (the exit company) or an attorney who represents me?
Learn How Newton Group Help Timeshare Owners in Ways Others Cannot
Newton Group is the ONLY timeshare exit company to have common ownership in a law firm. Because the owners of Newton Group ALSO own the nation’s leading timeshare consumer rights law firm, we can provide benefits and savings directly to our clients that no other exit company or law firm can compete with.
Each Newton Group client benefits from their own separate and independent legal engagement with our law firm—where the attorneys work directly for YOU, the timeshare owner. Our lawyers have a legal and ethical duty to act in YOUR best interests—not the exit company’s best interest or anyone else’s—only the client they represent, which in this case would be YOU (the timeshare owner).
We have combined Newton Group’s unmatched timeshare exit experience, knowledge, and key industry relationships with the nation’s leading timeshare consumer rights law firm—all under common ownership. Making Newton Group unique in our ability to help timeshare owners.
To learn more about how Newton Group can help you – click the link below to schedule a FREE no obligation consultation today. With one of our experts.