How To Get Rid Of Timeshare In South Africa

What is a timeshare and how does it work?

Legally speaking, a timeshare is a way for a number of people to share ownership of a property, usually a vacation property such as a condominium unit within a resort area. Each buyer usually purchases a certain period of time in a particular unit. Timeshares typically divide the property into one- to two-week periods.

How To Get Rid Of Timeshare In South Africa

Use the Rescission Period

If you recently purchased a timeshare and are having second thoughts, take advantage of rescission laws, which allow buyers to cancel their timeshare ownership. These laws vary state to state, and you’ll want to review the laws in the state where your timeshare is located.

Call the Timeshare Developer

There are more than 1,500 timeshare resorts in the U.S., according to the ARDA, and each resort may have a different process and criteria for relinquishing ownership of or selling a timeshare. Experts say an owner’s first step toward forming an exit strategy is to contact the developer.

Developers may allow owners to relinquish the deed through a deed-back program or surrender program. In this case, of course, owners do not receive any proceeds from their exit from the timeshare. But these types of surrender programs have become more widely available in recent years and may be the safest and easiest way out of a timeshare.

Rent Your Timeshare Out

Renting out your timeshare may seem like a good opportunity to make money from the property, but it can come with a few challenges.

First, some resorts do not allow you to rent out your timeshare, so speaking with the resort or the developer should be your first step. Also consider the costs associated with renting out the property – such as potential damage to the property and time spent finding renters.

Sell Your Timeshare on the Resale Market (Expect to Take a Hit)

Timeshares don’t appreciate in value, so don’t expect to make a profit off of the sale of your timeshare.

Factors like your timeshare’s location and the amount left on your mortgage will affect the resale value of your timeshare. You may want to contact a real estate agent or research similar timeshare resale values online to get a better sense of what your timeshare’s listing price might be.

Gift Your Timeshare to a Friend, Family Member or Stranger

If your timeshare is completely paid off, one simple course of action may be to give your timeshare to a friend, family member or other individual. Keep in mind, however, that whomever receives your timeshare will be responsible for the annual maintenance fees on the property and will have the burden themselves of getting out of the timeshare down the road.

Avoid Timeshare Scams

Experts say there are a few obvious signs that indicate an exit company or strategy is a scam.

“The golden rule, if there’s one thing I could say to every timeshare owner, 100% of the scams all involve convincing you to pay a large upfront fee,” Rogers says.

Frequently Asked Questions(FAQs)

What is a timeshare example?

Time-sharing is a form of fractional ownership, where buyers purchase the right to occupy a unit of real estate over specified periods. For example, purchasing one week of a timeshare means the buyer owns 1/52 of the unit. Buying one month equates to one-twelfth ownership.

Can I give my timeshare back to the resort in South Africa?

If you can’t sell your timeshare on the open market, one option is to offer it back to the resort. As long as the unit is paid off and you are an owner in good standing, there’s a chance that the resort will take the unit back from you.

Can I cancel my timeshare on my own?

The only foolproof way to rid yourself of a timeshare is to legally cancel the contract. Whether you go with one of these or another company, just make sure their only method is to negotiate directly with your timeshare.

What happens if I stop paying my timeshare in South Africa?

If you stop paying on your timeshare loan, you face foreclosure. Foreclosure is the process whereby the lender files to take possession of the property and sell it at auction to recover the money you owe.

Can I donate my timeshare to charity in South Africa?

Yes, you may be able to receive tax benefits from donating a timeshare to charity. Once your timeshare donation is completed, you can submit a tax deduction on your yearly return. The IRS states that you may file to deduct the “Fair Market Value” of your timeshare donation, should your donation qualify.

Why is it so hard to get out of a timeshare?

Limited Alternative Options. Another reason why it’s so difficult to cancel your timeshare is that there are limited alternatives available. You might think about selling your timeshare if the burden becomes overwhelming. Unfortunately, there aren’t many people in the buyers’ market.

Can I donate my timeshare to charity?

Can I sell a timeshare that is not paid off?

They may have in-house programs to relieve you of your ownership or help you out with annual fees, even if you have a mortgage. Getting in touch with your lender can help you through the financial aspects of selling.

Can lawyers get out of a timeshare?

A timeshare cancellation attorney will help you understand the fine print of your contract and support you in cancelling your timeshare within the rescission window. A timeshare exit attorney will help you approach getting out of your timeshare after the rescission window has passed.

Can a timeshare put a lien on your house?

If a repayment plan isn’t negotiated, the timeshare company might go the route of taking you to court for breach of contract to get a judgment against you and place a lien against the property. Ultimately, they will foreclose on the property.

Is donate my timeshare legitimate?

Tax law prohibits a deduction for donating the use of a timeshare to charity, so the only deduction that can be claimed is the ownership of the timeshare. The only actual charitable deduction that can be claimed is the fair market value of the timeshare at the time of the gift, minus any depreciation deductions.

Can you just walk away from a timeshare?

You can’t just walk away from a timeshare. That’s because they often come with an obligation to pay maintenance fees for as long as you own them.

Do timeshare companies take legal action?

Yes. Resort developers can and do take financial and legal action against timeshare owners attempting to leave their interest. However, they may not pursue these strategies as aggressively as some consumers may think.

What happens to timeshare when owner dies?

When the owner dies, the timeshare becomes part of the estate. The inheritors of the timeshare become the new owners, and they are obligated to take over the timeshare fees. If you want to avoid this issue, name your heirs co-trustees of your timeshare.