What is the timeshare rescission period? The rescission period in the timeshare industry refers to the specific time that you are given after signing your contract in which it is still possible to cancel your timeshare membership. The timeshare rescission period is also known as the ‘cooling-off’ period. The rescission period gives you time to think about if you really want to purchase the timeshare membership after the initial excitement has worn off.
Timeshare Rescission Period for Consumer Protection
Once you have signed a legally binding timeshare contract there are a certain number of days’ grace for you to go over the conditions and terms outlined in your contract. The timeshare rescission period was put in place by most countries to protect consumers from impulse buying. During the timeshare rescission period you have the opportunity to change your mind without any penalties.
How the timeshare rescission period is good for both buyers and sellers
The introduction of a timeshare rescission period has proved successful for both timeshare consumers as well as the timeshare companies. It provides a greater sense of trust and people are more likely to make their purchase within the short time provided at the timeshare presentation to make their decision if they know there is a “get out clause” if they change their mind. It is also important that the timeshare rescission period has a limit. That way timeshare companies are protected from members trying to cancel their timeshare months later once the timeshare company has already processed the membership and paid commissions to sales staff who rely on that income.
How frequently do people cancel during the timeshare rescission period?
Even after the excitement and passion has passed only a minority of consumers actually change their mind about buying a timeshare. The timeshare rescission period is in place to protect these consumers as cancellation after this timeframe has passed is not legal.
How much time do you have to cancel your timeshare?
During the timeshare rescission period, consumers have a limited amount of time to change their minds and cancel their timeshare, just like any high street store has its returns policy. The timeframe for the timeshare rescission period will depend on your particular contract as well as the applicable laws in the country where the timeshare was purchased. Generally speaking, you should bear in mind that the timeshare rescission period is usually less than 10 business days and can be as short as just 5 days. Always check with your timeshare provider.
Rescission Period Rights
During the valid rescission period you have the right to cancel your timeshare membership contract when you follow the specifications provided by your timeshare company. Each company will have its own procedures, although you will most probably be expected to send written notification. If you have taken out a loan for the timeshare, then you also have to cancel the loan agreement during the timeshare rescission period. After the rescission period has passed, then you are only able to cancel the timeshare contract if there was a serious breach in the contract with the timeshare company; for example, if the timeshare resort was never completed.
If you are wondering what the timeshare rescission period is for your particular timeshare provider, be sure to contact the sales office as soon as possible.