What to Look for in a Timeshare Contract

If you’ve attended a timeshare presentation and have decided to make a purchase, it is wise to take your time to read and understand all of the timeshare contract documents you will be signing. In fact, you have the right to do so. This contract-signing scenario will likely be taking place after several hours of sitting through a sales pitch – when you’re tired and vulnerable – but remember how much money is at stake here. Don’t rush through the process and make a hasty decision just to get it over with. Take your time, read the documents, and make a well-informed decision. Here’s what to look out for in the contract itself:

  • Public offering statement – Along with your purchase contract you will receive a legal document called a public offering statement, which is a very detailed history of the project that contains extremely important information such as owner rights and maintenance fees. Do yourself a favor and read this document! It will outline everything you need to know about what exactly you’re purchasing so you aren’t surprised later. timeshare contract
  • Rescission or “cooling off” period – Each state has a different rescission period (usually around 5-7 days) that allows you to cancel a timeshare contract and (sometimes) get a refund. Rescission is dependent on the state laws where the timeshare property is purchased, which is not necessarily your home state. Each set of documents accompanying a timeshare sale will include a form explaining how to rescind. It will probably be titled something like “Notice of Mutual Right of Cancellation of Time Share Purchase.” More information about timeshare rescission here.
  • Verify verbal promises – If the salesperson made certain promises during the presentation, ask that it be included in your contract before you sign on the dotted line. If they refuse to put their verbal promises in writing, take this as a sign about what kind of company they are. Unless you’ve signed the purchase contract, you can still walk away at any time.
  • Obtain copies – Do not walk away without copies of ALL contract documents. Some salespeople at the resort might offer to mail copies to you later so you don’t have to worry about carrying them along the rest of your vacation…don’t fall for this! Take the documents and review them once again when you get home. If you decide to change your mind, you might still be within the legal rescission period.
  • For a list of further detailed questions you might want to ask yourself before purchasing a timeshare, see this article. Many answers to these questions will be found in the public offering statement document.

No matter where your head is at with purchasing a timeshare, beware of the pressure you will likely experience during and after the presentation. If you are at all unsure about signing the paperwork or have questions about what it is you’re purchasing, don’t sign! You have the legal right to take time to think about a decision that requires such a considerable financial commitment. If you feel uncomfortable or see any red flags, listen to your instincts and just walk away.

Royal Holiday Timeshare Scam

We received the following user-submitted story about their experience with Royal Holiday:

“Let me tell you my experience, I was in Mexico enjoying my vacation time, when I was invited to attend a timeshare presentation, as I did not want to be rude I decided to go. Well, that was the worst mistake I may have made.

They kept me there for 8 hours, I was feeling like a I was wasting my vacation time, so I asked the sales man if I sign and then I regret, and I have de desire of cancel the contract if there is any problem? Of course he told me that there was no problem and he continued talking about how wonderful is his membership. Of course all was a lie. He never told me that there was a rescission period and I felt very confident and I signed the contract.

After 10 days of vacations I came back home and I started my research to cancel my contract. As soonroyal holiday  wrote Royal Holiday on google I saw all those bad reviews about fraud and my 5 days that I had to cancel the contract. My first reaction was “5 days?!!” Yes I only had 5 days to can cancel my contract and recover my money. I immediately contact Royal Holiday and I let them know my desire to cancel my contract and his respond was that there was not possible. I was so furious that I decided not to let them make fun of me and that I would be able to get the cancellation of my contract with or without his help.

I eventually was able to cancel my contract. Of course Royal Holiday made everything to avoid it, but I succeeded. Royal Holiday is a fraudulent company full of thieves, do not trust them and if you are in the same situation do not give up. I can take a lot of time but it is possible.”

RCI Experience: Harassing Phone Calls

We recently received the following submission from one of our users:

“My wife and I have a club membership at an all-inclusive resort in Mexico. When we first signed up for our membership we were also given access to RCI plus a single vacation week with them for a deep discount price, which we used in the first year of our membership.

RCI phone callsSince then we began to have unwanted problems with RCI such as badgering telephone calls, sometimes every few hours. Our Mexican resort changed its vacation club affiliation to Interval last year, and because we are club members we now get to use Interval as part of our membership.

Unfortunately, ever since last year RCI has become extremely aggressive in trying to contact us and trying to sell us vacations through them. We have repeatedly told their sales reps and their management to quit calling us, as our resort has gone to Interval, and RCI will refrain from calling for a week or two and then start with their harassing phone calls again.

Today they have now called here five times and it is only 5:45 PM here. What, we can’t tell them NO for an answer, or that our resort is no longer with RCI either? I have warned them several times already that we would call the police and report them for phone harassment if they kept calling us, and they have ignored my warning repeatedly too.

We haven’t been an RCI member since 2015 so how can we get them to quit harassing us?”