Getting Rid of a Timeshare You No Longer Want

From TimeSharing Today, August 2011. By Earl Glenwright

I am not an attorney and therefore this is not a statement of legal significance.

However, I've gone to the post-card crisis sessions, even paid several hundred dollars to a company in Texas many years ago, with no results of course. But I have found that there is no crisis and dissolution of your timeshare obligation is really quite easy. And you don't pay anyone anything.

I am 78 and we have several timeshare weeks that we do not use due to the present difficulties of exchanging. We do not use them ourselves because we now live in the same area, although we occasionally go and stay for a few nights just as a mini-break and a change in the daily routine.

We have two ski weeks and two remaining summer/fall weeks at the Sandstone Creek Club in Vail but they are not in the village. The Club does provide transportation. Sandstone Ceek Club is almost an athletic club: indoor racquetball court, tennis courts, volleyball court, and of course the large indoor-outdoor pool with hot tubs, sauna, and steam room. We rent them occasionally, especially the ski weeks. Our heirs do not want the maintenance fee responsibility. Do we really want to pay maintenance fees on the summer/fall weeks anymore? No.

You must start with the reality of the timesharing investment you made 20, 30, + years ago. It was not a redeemable asset like gold. It was an upfront investment for you to have lower expense vacations at really nice places. When you buy a new car and pay $25,000, what do you expect its value to be 15 years later? Probably nothing. But you had the use of it for those 15 years and you never complained, just enjoyed the convenience. Same for a timeshare.

The 15-year old car still has operating and maintenance expenses, just as your timeshare does. Don't want that anymore? Junk the car, terminate your timeshare.

So what are the options and consequences for other seniors who want to terminate their time share obligations?

This will usually result in your association foreclosing on your unit if it is a deeded property. If it is a fixed period lease, the Association will eventually cancel your lease. Of course you will lose any rights of use once the fees are unpaid, but that's what you want.

Your timeshare will go into your probate estate. Your estate does not have to pay the maintenance fees but it would be good to specify that in your instructions to your personal representative/executor. No heir has to accept anything either by your Will or probate.

Our Association will take back our timeshare if we pay six quarters of maintenance fees in advance of the settlement. Make your Association an offer. If your Association turns a deaf ear and won't make a deal and not take back your timeshare, just stop paying the fees.

That's a win for you and a loss for the Association. That should give them many wake-up calls.

We have used a simple, one-page Quit Claim Deed forms purchased at our local general, book, office supply, or stationary store. It just says who is deeding what to whom, signed and dated. File it with your county recorder, fee is usually $5. Very easy. Then give it to the recipient.

If it is a sale, receive the payment in exchange for the Deed. There are no settlement expenses. Give a copy to your Association so they terminate your ownership. It's that simple. Don't fret about title insurance. If yours is not valid, neither are any of the other owners. You are not deeding the Taj Mahal.

Do not believe what the post-cards and sessions say as to you and your heirs being obligated for eternity. It is not true!

Now of course your Association will not be happy that you are not paying the maintenance fees or assessments. An astute business savvy Association like ours takes the bird in the hand, being six quarters of fees, so they can market the timeshare during the next year and a half. That's a win-win solution and a peaceful resolution to your situation.

Termination of a timeshare is not the horrendous crisis that it is made out to be. If there is no one who wants to take your timeshare, talk to your Association. They understand the situation as those of us who purchased the timeshare 35 + years ago become senior seniors. It is the reality that they must face the inevitable and provide amiable solutions.

Do the math. If you continue paying the fees for 5 more years you will have paid from $4,000 to $6,000. Pay your Association $2,000 to take back your timeshare. You're ahead several thousand and have no further obligations.

There are two types of timeshares now. One group is the nice places like the Sandstone Creek Club, which is very well maintained as it it is owner operated and managed, but have little resale value. Just like the old car.

The other group is 5-star, high demand properties in upscale resorts, like St. James Place in Beaver Creek; these do have a resale value and there is an active resale market right on the property. Those are easily resold; the only decision is the price. Some sellers will actually make a nice profit. But profit is not your motive. Just take a below market price and end your obligations.

Again, the above is solely my understanding and is not legal advice, I hope that I have explained our options. You will get feed back as to "Oh No, you can't do that." We have. Check it out!