📋 California Timeshare Cancellation Rights

California's Vacation Ownership and Time-Share Act (Business and Professions Code Sections 11000+) regulates timeshare sales and provides important consumer protections. Many timeshare purchases are obtained through high-pressure sales tactics and misrepresentations, which provide grounds for rescission beyond the standard cooling-off period.

When to Use This Guide

🚫 High-Pressure Sales

You were subjected to hours of high-pressure tactics, not allowed to leave, or pressured to sign immediately

💰 Misrepresented Value

Told timeshare was an "investment," would appreciate, or could be easily rented/resold

📝 False Promises

Promised availability, upgrade programs, exchange benefits, or other features not delivered

🏗 Hidden Costs

Maintenance fees, special assessments, or other costs not properly disclosed

👍 Grounds for Timeshare Cancellation

  • 7-day rescission - Cancel within 7 calendar days of signing for full refund
  • Fraud/Misrepresentation - Cancel anytime if seller made false statements
  • Failure to provide disclosures - Missing required disclosures extends rescission rights
  • Elder abuse - Enhanced protections for seniors pressured into purchases
  • Contract violations - Breach by developer allows cancellation

Common Timeshare Misrepresentations

📈 "Investment" Claims

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Timeshares are virtually never good investments and typically cannot be resold for anywhere near purchase price. Statements that your timeshare will appreciate or is a sound investment are almost always false and constitute fraud.

🏠 Rental Income Promises

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Promises that you can easily rent out your week for profit are typically false. Most timeshare contracts prohibit or restrict rentals, and even when allowed, rental income rarely covers maintenance fees.

📅 Availability Guarantees

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Statements that you can book any week you want or easily exchange for other locations are often false. In reality, prime weeks book up quickly, and exchange programs often don't work as promised.

💰 Maintenance Fee Misrepresentations

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Failure to disclose the true cost of maintenance fees, that they increase annually (often 5-10% per year), and that special assessments can be levied constitutes material omission.

⚠ Beware of Timeshare Exit Scams

Many companies claiming to help you exit your timeshare are scams that charge large upfront fees and do nothing. Be extremely cautious of any company that guarantees cancellation, demands upfront payment, or tells you to stop paying your timeshare.

✅ Evidence Checklist

Gather these documents to support your cancellation claim.

📄 Purchase Documents

  • ✓Purchase contract and all addenda
  • ✓Public offering statement
  • ✓Financing documents and promissory note
  • ✓Cancellation rights notice

📝 Sales Presentation Materials

  • ✓Brochures and marketing materials
  • ✓Notes from sales presentation
  • ✓Names of sales representatives
  • ✓Recorded calls (if any)

💰 Payment Records

  • ✓Down payment receipts
  • ✓Monthly payment statements
  • ✓Maintenance fee invoices
  • ✓Special assessment notices

📩 Communications

  • ✓Prior cancellation requests
  • ✓Complaints to developer
  • ✓Evidence of failed booking attempts
  • ✓Exchange program denials

💰 Calculate Your Damages

Successful timeshare cancellation claims can recover significant amounts.

CategoryDescription
Purchase PriceFull refund of all amounts paid toward purchase
Maintenance FeesAll annual maintenance fees paid
Special AssessmentsAny special assessments levied
Interest/Finance ChargesInterest paid if financed through developer
Exchange FeesRCI, II, or other exchange program fees
Attorney FeesRecoverable in fraud and UCL cases

📊 Sample Damages Calculation

Example: 5-year-old timeshare with fraud claims

Down payment$5,000
Loan payments (5 years)$18,000
Interest paid on financing$4,500
Maintenance fees (5 years x $1,200)$6,000
Special assessments$2,500
Exchange program fees$750
TOTAL POTENTIAL RECOVERY$36,750

📝 Sample Language

Copy and customize these paragraphs for your demand letter.

Opening Paragraph
I am writing to formally demand rescission of my timeshare purchase at [RESORT NAME] and a full refund of all amounts paid. This purchase was induced by fraud and material misrepresentations made by your sales representatives, in violation of California Business and Professions Code Section 11000 et seq. and Civil Code Section 1572.
Fraud/Misrepresentation Claim
During the sales presentation on [DATE], your sales representative [NAME IF KNOWN] made the following false and misleading statements: [LIST SPECIFIC MISREPRESENTATIONS, e.g., "that the timeshare was a sound investment that would appreciate in value," "that we could easily rent out our week for $2,000+," "that we could book any week we wanted at any resort"]. These statements were false when made and were made to induce my purchase. I relied on these statements to my detriment.
Rescission Period Violation
You failed to provide me with complete and accurate disclosures as required by Business and Professions Code Section 11022 at the time of sale. Specifically, you did not disclose [DESCRIBE MISSING DISCLOSURES]. Because the required disclosures were not provided, my 7-day rescission period under Section 11024 has not yet begun to run, and I hereby exercise my right to rescind this contract.
Demand for Relief
I demand: (1) immediate cancellation of my timeshare contract and any related financing; (2) refund of all amounts paid, totaling $[AMOUNT]; (3) release of any deed or ownership interest; and (4) removal of any derogatory credit reporting related to this account. If this matter is not resolved within 30 days, I will pursue all available legal remedies including claims for fraud, violations of the UCL, and punitive damages.

🚀 Next Steps

Timeshare cancellation can be complex. Consider these options.

If Developer Does Not Respond

  1. File Complaint with CA DRE - Department of Real Estate at dre.ca.gov regulates timeshares
  2. File Complaint with AG - Attorney General consumer protection at oag.ca.gov
  3. Consult Timeshare Attorney - Many work on contingency for fraud cases
  4. Credit Card Chargeback - If purchased on credit card, dispute the charge

⚠ Do Not Stop Payments Without Legal Advice

Stopping payments on a timeshare loan can result in foreclosure, credit damage, and collection actions. Consult an attorney before making any changes to your payment status.

Need Legal Help?

Timeshare cases often involve complex fraud claims. Many attorneys handle these on contingency. Get a consultation to evaluate your options.

Book Consultation - $125

California Resources

  • CA Department of Real Estate: dre.ca.gov - File complaints against timeshare developers
  • CA Attorney General: oag.ca.gov/consumers - Consumer protection complaints
  • FTC: ftc.gov/timeshares - Federal information on timeshare rights
  • ARDA: arda.org - Industry association with mediation program