That timeshare presentation promised luxury vacations and great investment returns—but the reality is endless fees and impossible booking restrictions. If you were misled into buying a timeshare, you may have legal options. Fraud, misrepresentation, and consumer protection law violations can give you grounds to rescind your contract or sue for damages.
Quick Answer
Yes, you can potentially sue a timeshare company for fraud if they made false statements that induced you to buy. You may be able to rescind (cancel) the contract and get your money back, or recover damages for misrepresentation. Act quickly—rescission periods are short (often just days), and statutes of limitations for fraud typically range from 3-5 years. Be wary of “timeshare exit” companies that charge large upfront fees.
Grounds for Suing a Timeshare Company
Fraud and Misrepresentation
Common misrepresentations during timeshare sales include:
- Investment value: “Your timeshare will appreciate in value”
- Rental income: “You can easily rent it out when you don’t use it”
- Easy resale: “You can sell it anytime for what you paid”
- Booking availability: “You’ll get any dates you want”
- Exchange options: “Trade for any destination worldwide”
- Fee increases: “Maintenance fees will stay low”
- Upgrade promises: “Buy now and we’ll upgrade you later”
Consumer Protection Violations
- High-pressure sales tactics
- Not providing required disclosures
- Interfering with your right to cancel
- Not honoring the rescission period
- Deceptive advertising
Breach of Contract
- Amenities promised but not provided
- Booking system doesn’t work as described
- Services promised but never delivered
The Rescission (Cooling-Off) Period
Most states give you a short window to cancel without penalty:
| State | Rescission Period |
|---|---|
| Florida | 10 days |
| California | 7 days |
| Nevada | 5 days |
| Hawaii | 7 days |
| South Carolina | 5 days |
| Texas | 6 days |
How to Exercise Rescission
- Send written cancellation notice
- Use certified mail with return receipt
- Mail before the deadline expires (not just postmarked)
- Keep copies of everything
Missed the Deadline?
If you’re past the rescission period, you may still have claims based on fraud, which has longer statutes of limitations.
Legal Defenses Against Timeshare Companies
Fraud
If you can prove:
- False statements were made
- The company knew they were false
- You relied on those statements
- You were damaged as a result
Unfair Contract Terms
Courts may void contracts with unreasonable provisions like:
- No exit options ever
- Unlimited fee increases
- Perpetual obligations
Consumer Law Violations
Missing disclosures or violating state timeshare laws can void contracts.
Breach by the Company
If the company doesn’t honor its promises, you may be released from your obligations.
Unconscionability
Contracts so one-sided that they “shock the conscience” may be unenforceable.
Real Case Examples
Westgate vs. The Overtons (Tennessee)
A couple sued Westgate to rescind their contract based on fraud during the sales presentation. The court:
- Found Westgate violated state timeshare law
- Found fraud and misrepresentation
- Ordered contract rescission
- Required Westgate to refund the purchase price
- Awarded $600,000 in punitive damages
Statute of Limitations
Time limits for filing lawsuits:
- Fraud claims: Typically 3-5 years from discovery
- Contract claims: Often 4-6 years
- Consumer protection claims: Varies by state
The clock often starts when you discovered or should have discovered the fraud—not when you signed.
What You Can Recover
Contract Rescission
- Cancellation of the timeshare contract
- Refund of all payments made
- Release from future obligations
Damages
- Actual damages: Money paid, fees, travel expenses
- Punitive damages: In cases of egregious fraud
- Attorney fees: If allowed by statute
Warning: Beware of Exit Scams
Many “timeshare exit companies” are scams themselves:
Red Flags
- Large upfront fees ($3,000-$10,000+)
- Guaranteed results promises
- Claims of special relationships with developers
- Pressure to sign quickly
- No clear explanation of what they’ll actually do
The Reality
The FTC and state attorneys general have sued numerous exit companies for fraud, including a $90 million case. Many take money and do nothing, or advise you to stop paying—damaging your credit without resolving the ownership.
Better Options
- Consult a real estate or consumer protection attorney
- Contact your state attorney general
- Work directly with the timeshare company’s resale department
- Explore legitimate deed-back programs
Steps to Take
- Gather documentation: Contract, marketing materials, notes from presentation
- Identify misrepresentations: What were you told that turned out to be false?
- Calculate damages: Total payments made, fees, other costs
- Check rescission period: If you’re still within it, cancel immediately
- Consult an attorney: Find one experienced in timeshare litigation
- Consider complaints: File with state attorney general and consumer protection agencies
- Don’t stop payments: Without legal advice—this can hurt your credit
Frequently Asked Questions
The salesperson made verbal promises not in the contract. Can I sue?
Possibly. While written contracts often contain “integration clauses” stating the written document is the entire agreement, fraud claims can sometimes override these. Fraudulent verbal inducements may still be actionable. Documentation helps—did you take notes? Were there witnesses?
Can I just stop paying?
Risky without legal guidance. Stopping payments can:
- Damage your credit
- Lead to collection actions
- Not actually get you out of the contract
Some attorneys advise this as part of a legal strategy, but don’t do it without professional advice.
I want to sell my timeshare. Is that possible?
Timeshares have very low resale value—many sell for $1 or even negative amounts (buyer takes ownership of future fees). Be skeptical of companies promising to sell for you for upfront fees.
What if the company offers a “deed back” program?
Some developers allow owners to return their timeshares. This may be your simplest exit, though:
- You may get nothing back
- There may be fees
- Not all companies offer this
Is a class action lawsuit an option?
Class actions exist against some timeshare companies. Joining can provide recovery without individual litigation costs, but individual settlements may be small.
When to Contact a Lawyer
Consider consulting a timeshare attorney if:
- You were misled during the sales presentation
- The timeshare doesn’t work as promised
- You’re being charged fees not disclosed at sale
- You’re within the rescission period and want to cancel
- You want to explore legal options for exit
- You’ve been contacted by an “exit company” and want advice
Look for attorneys experienced in timeshare litigation—not “exit companies.” Many offer free consultations to evaluate your case.
