Timeshare Cancellation

Florida is the leading timeshare (a form of shared vacation property ownership) destination in America and are subject to several laws and regulations.

Florida's timeshare laws, primarily found in the Florida Vacation Plan and Timesharing Act (Chapter 721), provide extensive consumer protections for those seeking to cancel a purchase.

The Act is designed to protect consumers by ensuring full disclosure and regulating the conduct of developers and resale providers. It applies to timeshare plans with more than seven timeshare periods over at least three years.

Key Provisions

  • Cancellation Rights: Purchasers have a 10-day right of rescission. You may cancel a contract without penalty within 10 calendar days of signing or receiving all required documents.

    • You have the legal right to cancel a timeshare contract until midnight of the 10th calendar day following either the execution date of the contract or the day you receive all required disclosure documents, whichever is later.

      • No Reason Needed: You can cancel for any reason during this window with no penalty.

      • Must Be in Writing: Verbal cancellations are not legally binding; you must provide a written notice of cancellation.

      • Method of Delivery: Send the notice via certified mail with a return receipt requested to provide proof of the postmark date and delivery.

      • Required Information: Your letter should include your name, address, contract number, and a clear statement that you are exercising your right to cancel.

      • Refunds: Once a valid cancellation notice is received, the developer must refund all payments within 20 days (or 5 days after the purchaser's funds have cleared, whichever is later).

  • Public Offering Statement (POS): Developers must provide a detailed POS that includes disclosures about the timeshare plan, management, and financial obligations.

  • Escrow Requirements: Funds received from purchasers must be held in an independent escrow account until the cancellation period expires.

  • Resale Protections: Specific rules apply to resale service providers to prevent fraud, including required disclosures in resale purchase agreements.

  • Management and Assessments: The Act regulates how timeshare associations are managed and how common expenses are assessed against owners.

Canceling After the 10-Day Period

Once the 10-day window has closed, the contract is legally binding. However, you may still have options to exit:

  • Resort Buyback/Deed-Back Programs: Many major Florida developers have official exit programs for owners in good standing.

  • Negotiated Surrender: You can contact the resort's owner services department to request a "deed-in-lieu of foreclosure," especially if you are facing financial hardship or health issues.

  • Legal Recourse: If you were victims of fraud or misrepresentation during the sales process, a Florida timeshare attorney may be able to help challenge the contract.

  • Resale: You can list the property on the secondary market, though be aware that resale values for timeshares are often near zero.

Precautions and Scams

  • Upfront Fees: Avoid any "timeshare exit" or "transfer" company that demands a large upfront fee. These are often scams.

  • Stopping Payments: Simply walking away and stopping payments can lead to foreclosure and significantly damage your credit score for up to seven years.

  • Documentation: Keep copies of all signed documents, letters, and proof of mailing throughout the process.