When trying to release yourself from a Timeshare using an “Exit Company” there are many things you need to take into consideration but one of the most important things is choosing an Exit company with indemnification.
Usually when doing a legal exit, it will either end in an ‘amicable agreement’ with the resort or an ‘discretionary benefits scheme’
An amicable agreement is where the resort and exit company will come to an agreement whereby the resort will usually offer the client to release themselves from their ownership for an agreed cost. The agreement will also usually include a clause where the client will not be able to seek compensation which means you will be signing away all rights to try and redeem any money you have paid for the Timeshare or any mis-selling claims.
Definition of “Indemnify” – To indemnify another party is to compensate that party for loss or damage that has already occurred, or to guarantee through a contractual agreement to repay another party for loss or damage that occurs in the future.
This means that the exit company will take full responsibility for anything that may or may not come back to you in the future, such as if the resort continues to chase you for any future maintenance fees or costs that they will be fully responsible to resolve the issue with the resort directly and you are not liable to any other costs to either the Timeshare resort or the Exit company. It also means that in the event that the resort decides to take any legal action against you for the unpaid maintenance fees that the Exit company will be liable to represent you and cover any costs that may occur.
Your Exit company should offer you a legal discretionary benefits scheme for a period of 6 years as after this time it is then classed as “statute of limitation” which means they are unable to chase you or take any action against you after the 6 years.
Statutes of limitations definition – laws passed by legislative bodies in common law systems to set the maximum time after an event within which legal proceedings may be initiated. When the period of time specified in a statute of limitations passes, a claim might no longer be filed, or, if filed, may be liable to be struck out if the defence to that claim is, or includes, that it is statute barred as having been filed after the limitations period.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk