Having paid a large sum of money to buy your timeshare, then duly paid the annual maintenance fees there often comes a time when you simply want to exit your timeshare, this is where the problems start.
Without doubt the USA has more timeshare owners than anywhere else, Estimates from the American Resorts Development Association (ARDA) puts the figure at about 10,000,000 families that own at least one timeshare across the states.
“You can check out any time you like, but you can never leave”
Borrowing a lyric from the 1976 Eagles classic track, Hotel California, would seem to be extremely apt where timeshare is concerned. In the states everybody is selling, from a server in a restaurant right up to the President, selling is the order of the day, so it comes as no surprise that contacting a resort or developer to simply exit won’t generate a straightforward “certainly, we can help you with that” expect yet another sales pitch
It has to be said that some developers have realised that there comes a time when, for whatever reason, people wish to get out of their timeshare ownership. In this article we will take a look at two examples, Westgate Resorts Legacy Programme and Diamond Resorts Transitions.
Westgate Resorts
The Westgate Legacy Programme commences on the dedicated web page with the following:
“Being an owner at Westgate Resorts means being a part of our vacation family. We want to be a part of your vacation journey every step of the way and although our hope is that we could continue to provide you with a lifetime of unforgettable vacation experiences, we know that lifestyles and vacation needs change throughout the years. Therefore, we want to be there for you and walk you through your options.”
“Walk you through your options” surely a desire to exit brings with it one option, “I just want out!” No doubt upon contact with the legacy department you will be presented with a myriad of options, none of which revolve around simply walking away, we would venture that at minimum, there will be persuasive measures to get you to stay or at worst, an up sell involving greater cost.
“Our goal is to work directly with you to discuss your options, including: returning your ownership to the Developer, understanding the resale market, or transitioning your ownership to a family member, friend or acquaintance. We will expertly walk you through your options and be there for you every step of the way. We take into account each Owner’s individual circumstances and ownership in order to customise your options.”
Relating to the various options, we would bet a pound to a penny that Westgate will never accept a return of ownership, although they do state that they have first right of refusal. We have reported on numerous occasions that the resale market globally is pretty flat, so selling is likely to be extremely difficult even at $1. However, sometimes a buyer can be found. Below is an extract of a sellers experience with Westgate, incidentally, sale price agreed $99:
“We contacted a licensed broker to sell the timeshare for $99 and signed an agreement in May of 2019. A couple from New York agreed to the purchase in October of 2019. Paperwork was sent to Westgate November 2019. Westgate replied with a letter dated March 19, 2020, exercising their Right of First Refusal. On March 10, 2020, my grandparents had sent a letter to Westgate informing them that they had paid our broker $800. Westgate demanded $701, quoting Florida Statute 721.15 (#7). Westgate questioned the broker’s $800 commission!
What buyer wants to wait five months to close a real estate transaction? The actions of Westgate representatives seem harshly unfair, considering my grandparent’s age and medical circumstances. They were left with no alternative but to default.”
Maybe this is an isolated case, although we doubt it. The final point is to “transition” your ownership to a family relative, hardly a viable solution.
Frustrated with the lack of assistance from developers, when simply wishing to exit, forces owners to engage expert timeshare attorneys to get the job done. At this juncture we would say the USA, like Europe, has its fair share of rogue operators but there are some good guys out there. It comes as no surprise that Westgate try their hardest to put owners off of obtaining legal advice. In a blogposted in 2018, this is all too apparent. Said blog may be viewed here. Our question would be that if Westgate simply let owners exit, then there would be no need for third party intervention, would there?
Strangely, at the very bottom of the Legacy programme web page the following statement appears:
“This advertising material is being used for the purpose of soliciting sales of a vacation ownership plan.”
That sort of says it all!
Diamond
Being positive, at least Diamond have made efforts to address the problem of exiting, but much like Westgate obstacles appear very quickly. On the dedicated Transitions website it all begins in paragraph 2:
“For those who are eligible, Transitions™ by Diamond Resorts may offer members and owners an easy and respectful way to relinquish all or part of your vacation ownership, providing you with the opportunity to transition out of vacation ownership.”
So straight away we see “for those eligible” which means there are terms and conditions to be met before simply exiting. Further down the page we see:
“If you meet the Conditions to Apply below and you are interested in making a request to relinquish all or part of your vacation ownership, please contact our Transitions™ team”
We didn’t bold the word conditions, that is exactly how it appears. The full conditions may be viewed here:
Conditions to Apply
- You must have no existing loan balance or other lien encumbering the vacation ownership.
- You must be current on the payment of all maintenance fees up to the year for which you are relinquishing.
- You must have a clear and free title to the vacation ownership.
- All future reservations must be cancelled or travelled on prior to submitting a request. Does not apply to certain Fixed Week/Fixed Unit deeded week owners who have their reservation automatically booked in advance. Please call the Transitions team on 1.855.342.3689 for more information.
- Your vacation ownership must be in a Diamond Resorts Collection or managed property. Currently, members who own in the EU Collection do not qualify.
- You must have purchased your vacation ownership directly from Diamond Resorts or from a predecessor whose developer rights were acquired by Diamond Resorts. Members and owners who have inherited or been gifted a vacation ownership from family will qualify if their family members would have qualified.
- Participation with a timeshare exit or resale company or firm may negatively impact your ability to apply for Transitions.
- The enrolment and completion in the Transitions program will negate your ability to be added to the Embark Repurchase program list. In addition, if you are already on the repurchase list, your position will be forfeited upon completion of Transitions.
Two of the major reasons owners need to exit is; with life changes there may be unaffordable maintenance fees and expensive finance, in both cases, unpaid maintenance and outstanding finance owners are stuck. Also another sneaky clause is that those who purchased Diamond points on the open market are also stymied as the terms preclude entry to Transitions in this case.
Much like Wyndham, at the very bottom of the Transitions web page in very small print, the following appears:
THIS ADVERTISING MATERIAL IS BEING USED FOR THE PURPOSE OF SOLICITING TIMESHARE SALES.
Responsible Exit?
ARDA have created a specific website surrounding exiting and it’s called “Responsible Exit” It counts among members:
Each member above is an active link and takes you to their own comment on exit, we tried a few but because in an article of this length we couldn’t view them all, here are a couple with the relevant comment:
Hilton Grand Vacations
“As an owner with Hilton Grand Vacations, you have several options to make the most of your vacation ownership. We can help you make a resort reservation, provide tips on how to maximize your ClubPoints, and tap into each Club membership benefit and partner offering.
However, we understand that life circumstances change, and you may be exploring exiting your timeshare. And we’re here for you. Please contact us so we may provide you with the right guidance and resources based on your needs — from exploring financial options to help you retain your ownership to exiting your timeshare safely.”
From this we just pick on two phrases
“provide tips on how to maximize your ClubPoints, and tap into each Club membership benefit and partner offering”
“from exploring financial options to help you retain your ownership”
So this is all about keeping you as an owner. Not until the last four words is exit mentioned.
Marriott
“At Marriott Vacation Club, we understand that vacation ownership is a life-changing decision — and, sometimes, even long-time Owners need to sell their timeshare due to life circumstances.
When you work with the Marriott Vacation Club resale program to plan your timeshare exit, you’ll receive information and guidance from a company you trust. We’ll help you understand the process every step of the way.”
No I don’t want to join a resale programme, I just want to exit.
Club Wyndham
“If you feel that your Club Wyndham timeshare no longer meets your travel needs, make Wyndham your first and only call for guidance and solutions.”
I don’t want guidance and solutions I just want to exit.
We are sure if we checked the rest the members’ text and platitudes, we would find the same.
TCA Comment
Nice try developers! A much publicised and extremely important global campaign is the “No means No” movement. Why does the timeshare industry not understand “Exit means Exit”. As a timeshare owner do a little maths, add together what you initially paid to buy in, add the cost of any upgrades then add all the maintenance fees you have paid over the years, don’t you think that your timeshare developer should respect that you have been a loyal and very profitable customer and arrive at the conclusion that if you really wish to exit you should be allowed to do so with a simple phone call and a simple document to sign?
I don’t want to sell, I don’t want to upgrade, I don’t want to rent it, I don’t want it, I simply want out!
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