Last updated 2026-07-26
TL;DR
Some timeshare exit companies do honest work; a large share collect upfront fees and deliver little or nothing. The FTC and multiple state attorneys general have sued exit companies for deceptive practices. Check licensing, ask for escrow-based payment, never pay large upfront fees, and confirm your state's rescission window before hiring anyone.
Are timeshare exit companies legitimate, or are they all scams?
Neither extreme is honest. The industry has real, working exit paths (developer deed-back programs, licensed attorneys who file cancellation claims, resale, and rescission if you're still inside the window). It also has a well-documented upfront-fee scam problem that the Federal Trade Commission and multiple state attorneys general have pursued for years. The FTC's enforcement action against Timeshare Exit Team and related entities alleged the companies "charged consumers thousands of dollars in up-front fees for a service that often failed to deliver the promised relief," collecting over $124 million from timeshare owners nationwide before the case settled [1]. That's not a fringe operator. That was one of the largest players in the space. So the honest answer is: legitimacy is company-specific, not industry-wide. You have to vet each one. A company that asks for a large payment before doing any work, refuses to name the attorney handling your file, or promises a cancellation outcome before reviewing your contract is behaving like the companies the FTC has already sued. A company that uses an escrow arrangement, gives you a named contract and licensed attorney of record, and is upfront about timelines and no-guarantee language is behaving more like a legitimate service provider. For a full walkthrough of legitimate versus predatory patterns, see our guide to timeshare exit companies.
Are timeshares scams?
The timeshare product itself is legal in every state. It's not a scam in the sense of being illegal, but the sales process has a long history of high-pressure tactics, and the resale market is brutal enough that many owners feel scammed after the fact. Timeshares are sold at steep markups and resold for pennies on the dollar. The American Resort Development Association (ARDA), the industry's own trade group, has reported the average U.S. timeshare purchase price at $23,940 in its State of the Vacation Ownership Industry data [2]. Resale listings for the same intervals routinely go for $1 to a few hundred dollars, and many owners can't give them away because the buyer would inherit the maintenance fee obligation. That gap between purchase price and resale value is the real problem, more than any single sales tactic. It's why so many owners look for an exit years later instead of a buyer. What is closer to an outright scam is the exit industry that grew up around buyer's remorse: companies that charge $3,000 to $10,000 upfront and disappear or drag out a "cancellation" that never happens. The Consumer Financial Protection Bureau's public complaint database includes thousands of complaints tagged to timeshare products, many describing this exact pattern [3].
How much is a timeshare, and how much do timeshares cost?
| Average purchase price (new, from developer) | $23,940 [2] | |
|---|---|---|
| Average annual maintenance fee | $1,120 [2] | |
| Typical resale price (secondary market) | $0 to $3,000, often near-zero for older weeks | |
| Special assessment (storm/renovation) | $500 to $5,000+, one-time | |
| Exit company upfront fee (varies) | $2,000 to $10,000, if charged upfront (a red flag, see below) | If you're deciding whether to fight the fees or exit entirely, our maintenance fees coverage and the timeshare cancellation guide walk through both paths. |
Purchase prices vary widely by brand and unit size, but ARDA's industry data puts the average U.S. timeshare purchase at $23,940, with average annual maintenance fees around $1,120 [2]. Fixed weeks at legacy resorts can run cheaper; branded points-based systems (Marriott Vacation Club, Hilton Grand Vacations, Wyndham) often cost more upfront and carry higher annual fees. Maintenance fees are the ongoing cost that catches people off guard. They're not fixed. Resorts can raise them annually for inflation, capital repairs, or special assessments after storm damage or major renovations. A owner who bought in 2015 at $800 a year in fees can easily be paying $1,300 to $1,500 a year now, and special assessments after a hurricane or roof replacement can add $1,000 to $5,000 in a single bill. Here's a rough cost picture based on ARDA's industry averages and typical resale listings: | Cost category | Typical range |
How do you get out of a timeshare?
There are basically four legitimate paths, in order of what to try first: rescission (if you're still in the window), the developer's own deed-back or surrender program, resale or giveaway, and hiring a licensed professional (attorney or documented transfer service) if the first three don't apply. Rescission is the fastest and cleanest exit, but it only works for a short window right after you sign. Every state sets its own rescission period by statute, and they range from as short as 3 days to as long as 15 days depending on the state and sometimes the type of property. Confirm your state's rescission window before assuming you've missed it; the deadline is calculated from the date you signed or received required disclosures, not the date you decide you want out. Our rescission-by-state guide breaks this down. If you're past rescission, check whether your resort has a deed-back or "exit" program. Many major chains (Marriott, Hilton Grand Vacations, Wyndham, Diamond Resorts legacy programs) now let owners in good standing surrender a deed for free or a small transfer fee, especially if maintenance fees are current. This is often the cheapest legitimate exit and it costs you nothing but paperwork and patience. Resale rarely recovers your purchase price, but it can work for desirable weeks at high-demand resorts in strong locations. List through a licensed timeshare resale broker or ARDA-affiliated marketplace, price it near $0 to $1 for legacy weeks, and expect the transaction to take months. Only after ruling those out should you consider a paid exit service. At that point, vet the company hard using the checklist below.
How to sell a timeshare, and does it actually work?
You can sell a timeshare, but expect a low price and a slow process. The resale market is flooded because so many owners want out and developers rarely buy back at resale prices. Realistic steps: get a maintenance-fee and deed history document from your resort's HOA, list with a licensed resale broker (check state licensing; several states require timeshare resale brokers to hold real estate licenses), price honestly (often $0 to a few hundred dollars for a week that isn't at a premier resort), and be prepared to pay closing costs and possibly the buyer's first year of fees to make the deal happen. Watch for resale scams that mirror exit scams: a caller says they have a "buyer already lined up" and just needs an upfront "closing fee" or "transfer tax" paid to them directly. The FTC's own consumer guidance warns that scammers posing as resellers ask for money upfront with no real buyer behind the offer, and states plainly that "no one can guarantee they'll sell your timeshare" [4]. Never wire money to a reseller who contacted you unsolicited claiming they have a buyer waiting. If resale isn't realistic for your unit, a deed-back to the resort or a documented surrender is usually the more reliable route to actually being rid of it.
How to get rid of a timeshare when the resort won't take it back?
If your resort has no deed-back program and resale isn't realistic, your remaining options are a licensed attorney who specializes in timeshare contract review, a documented transfer to a nonprofit or family member (rare, and you should confirm the recipient understands ongoing fee obligations), or a paid exit company that uses escrow and named legal representation. Before paying anyone, get your actual contract and check three things: whether you're in a right-to-use or deeded ownership structure (this changes what "getting out" even means legally), whether there are any liens or unpaid fees on the account, and whether the HOA has any hardship or financial-distress exit policy. Some resorts, especially smaller independent ones, will negotiate a surrender if you're behind on fees and the alternative is foreclosure, because foreclosure costs them money too. Don't stop paying your maintenance fees as a strategy to force an exit. Unpaid fees can lead to collections, credit damage, and in deeded-ownership states, foreclosure on the timeshare interest, which can also hit your credit report depending on how the resort reports it. Keep paying what you owe while you pursue a legitimate exit path. A reference checklist can help you organize documents and next steps regardless of which path you take; our Timeshare Exit Kit is a $149 one-time set of document templates and a state-specific rescission and complaint-filing checklist, built for owners doing this themselves rather than paying a company thousands upfront.
How to spot a timeshare exit scam before you pay anyone
The FTC and state attorneys general have identified a consistent pattern in exit scam complaints. Watch for these together, more than one in isolation: Large upfront fees, paid before any work is done or any cancellation is confirmed. The FTC's case against Timeshare Exit Team specifically cited large upfront fees combined with a failure to deliver relief [1]. Legitimate escrow-based services hold your payment until the exit is actually completed, not before. Promises that a cancellation is certain, or "we've never failed" language. No legitimate attorney or company can promise a contract cancellation before reviewing your specific deed, contract, and state law. That kind of talk is a sales tactic, not a legal fact, and the FTC's own consumer guidance says directly that no one can guarantee a timeshare sale or exit outcome [4]. High-pressure, time-limited offers ("this rate is only good today"). Real legal and contractual review takes time. Pressure to sign today is a sales script, not a legal necessity. Requests to stop paying your maintenance fees or mortgage as part of the "exit strategy." Some companies tell owners to stop paying so the resort will be "forced" to negotiate. This can trigger foreclosure, collections, and credit damage, and it's a tactic reflected in complaint patterns filed with the CFPB [3]. Never do this on a company's advice. No named attorney, no state bar number, no physical business address you can verify. If the company can't tell you which licensed attorney in which state is handling your specific file, that's a serious gap. Unsolicited contact claiming they already have a buyer or that your timeshare qualifies for a "class action refund." This is a common resale and refund-scam variant the FTC has warned about directly [4]. For a running list of complaint patterns and how to check a specific company before signing anything, see exit scam awareness and our timeshare call list resource.
How to check if a timeshare exit company is legitimate
Before you pay anyone, run this five-step check. It takes maybe 30 minutes and it's the single best hour you can spend. 1. Search the company name plus "complaint" and "attorney general" together. State AGs have pursued timeshare exit companies directly, and Missouri's Attorney General has sued specific exit companies over deceptive upfront-fee practices; if a company shows up as a defendant in a state AG action, that's disqualifying. 2. Check the Better Business Bureau profile, but don't stop there; look at the actual complaint text, more than the letter grade. A pattern of "paid upfront, no results, can't get a refund" complaints matters more than an A+ rating, since BBB accreditation can be purchased. 3. Ask directly: "Is any part of my payment held in escrow until the exit is completed?" A legitimate answer names a specific escrow or trust arrangement. A vague answer ("we handle it internally") is a warning sign. 4. Ask for the name and state bar number of the attorney who will handle your file, if the company claims attorney involvement. Then verify that attorney is licensed and in good standing on your state bar's website. 5. Get the total cost and refund policy in writing before you sign anything, and read the cancellation clause carefully. Some states also give buyers a short cancellation window on certain in-person sales contracts under state law, separate from any timeshare-specific rescission statute, so check what your state actually provides rather than assuming a federal rule covers it.
What does the FTC and state AGs actually say about timeshare exit companies?
The FTC has been explicit that upfront-fee exit schemes are a recognized problem, not a rare exception. In its complaint against Reed Hein & Associates, doing business as Timeshare Exit Team, the FTC alleged the company had deceived thousands of timeshare owners, and the resulting settlement required a $124 million monetary judgment (largely suspended due to inability to pay, a common outcome in these cases) along with a permanent ban on the individual defendants from timeshare exit services [1]. The FTC's consumer guidance on timeshare resales and exits states plainly: "No one can guarantee they'll sell your timeshare or get you out of your timeshare contract" [4]. That single sentence from the FTC is worth remembering more than almost anything else in this article. State attorneys general have brought their own actions too. Check your own state attorney general's consumer protection page before signing with any company; many publish a running list of complaints or active investigations by name.
What happens if you inherit a timeshare?
Inherited timeshares are one of the most common reasons people search for an exit, and the options are basically the same as for any owner, plus one extra wrinkle: you may be able to disclaim the inheritance before you ever take title. If you're named in a will or as a joint owner and the estate is still in probate, an attorney can often file a formal disclaimer of interest, which under most state probate codes means you're treated as if you never inherited it, and the interest passes to the next heir or reverts to the estate. This has to happen within a specific timeframe set by state law and before you've accepted any benefit from the property, so talk to a probate attorney fast if you don't want it. If you've already taken title, you're an owner like anyone else: you can pursue a deed-back program, resale, or (if the resort allows it) a hardship surrender. You are not automatically obligated to keep paying fees forever just because you inherited rather than bought, but you generally do have to formally exit rather than just ignoring the bills, since ignoring them can lead to collections against the estate or against you personally in some states.
When should you hire an attorney instead of an exit company?
If your situation involves fraud in the original sale (falsified income on the loan application, misrepresented resale value, a salesperson who lied about the ability to rent the week profitably), a licensed consumer protection or real estate attorney in your state is usually the better call than a general exit company. Attorneys are bound by state bar ethics rules and licensing boards you can actually complain to, which a marketing-focused exit company is not. An attorney is also the right move if you're facing an active foreclosure, a lawsuit from the resort or HOA, or a collections action tied to your timeshare. A general exit company cannot represent you in litigation; only a licensed attorney can. For straightforward cases (no fraud, no litigation, just buyer's remorse or unaffordable fees), a deed-back program, careful resale, or a self-directed rescission or documentation process is often cheaper and just as effective as a $5,000 exit company retainer. That's the gap our $149 Timeshare Exit Kit is built to fill: state-specific rescission letter templates, deed-back request templates, and a documentation checklist, without a company charging thousands to do paperwork you can do yourself.
Frequently asked questions
How to get out of a timeshare fastest?
Rescission is the fastest legal exit, but only works inside your state's rescission window, which can be as short as a few days from signing. Confirm your specific state's deadline immediately; missing it means you'll need a deed-back program, resale, or attorney review instead, all of which take weeks to months.
How to get out of timeshare without paying a company thousands of dollars?
Check your resort's deed-back or surrender program first; many major chains offer free or low-cost deed-backs for owners current on fees. If that's unavailable, try resale through a licensed broker or self-file the paperwork using state-specific templates rather than hiring a full-service exit company upfront.
How do you get out of a timeshare if you're past the rescission window?
Past rescission, your main options are a developer deed-back program, resale through a licensed broker, or hiring a licensed attorney if fraud or foreclosure is involved. Never stop paying fees as a strategy; it can trigger foreclosure and credit damage instead of forcing a faster exit.
Are timeshares scams?
The product is legal, but steep upfront prices (averaging $23,940 per ARDA's industry data) versus near-zero resale value make many owners feel scammed after purchase. The bigger documented scam risk is the exit industry itself, where the FTC has sued companies for collecting upfront fees without delivering results.
How much is a timeshare, on average?
ARDA's State of the Vacation Ownership Industry data puts the average U.S. timeshare purchase price at $23,940, with average annual maintenance fees around $1,120. Prices vary widely by brand, unit size, and whether it's a fixed week or points-based system.
How much do timeshares cost in maintenance fees each year?
Average annual maintenance fees run around $1,120 according to ARDA's industry data, but fees rise most years and special assessments after storms or renovations can add $500 to $5,000 in a single bill. Fees are not fixed for the life of ownership.
How to sell a timeshare for a fair price?
List through a licensed resale broker and price realistically; most legacy weeks resell for $0 to a few hundred dollars, not anywhere near the original purchase price. Never pay an unsolicited caller who claims they already have a buyer lined up and needs an upfront fee first.
How to sell timeshare fast without getting scammed?
Use a licensed, verifiable resale broker, confirm any fees are paid at closing rather than upfront, and check your state's real estate licensing board if the broker claims a license. Avoid anyone who cold-calls claiming a guaranteed buyer; the FTC warns no one can guarantee a timeshare sale.
How to get rid of a timeshare that has no resale value?
Try the resort's own deed-back or hardship surrender program first, since many chains accept unwanted weeks back for free if fees are current. If that's not offered, a documented transfer or a licensed attorney's help may be needed; keep paying fees until the exit is actually finalized.
Are timeshare exit companies legitimate or all scams?
Legitimacy varies by company; it's not an industry-wide yes or no. The FTC has sued major exit companies for deceptive upfront-fee practices, but escrow-based services with named, licensed attorneys and no guarantee language exist too. Vet each company individually before paying anything.
Does federal law give me a right to cancel a timeshare purchase after signing?
There's no single federal timeshare rescission law; cancellation rights for timeshares come from each state's own statute, and windows range from about 3 to 15 days depending on the state. A separate federal rule, the FTC's Cooling-Off Rule (16 CFR Part 429), covers certain in-person sales over $25 away from the seller's normal place of business, but your state's timeshare-specific statute is what actually governs your contract.
What happens if I stop paying maintenance fees to force an exit?
Don't do this. Unpaid fees can lead to collections, credit damage, and in deeded-ownership states, foreclosure on your timeshare interest. Complaint data filed with the CFPB includes owners describing exit companies that advised this tactic; keep paying what you owe while pursuing a legitimate deed-back, resale, or legal exit.
Can I get out of an inherited timeshare I never wanted?
If the estate is still in probate, an attorney can often file a formal disclaimer of interest within a state-specific deadline, treating you as if you never inherited it. If you've already taken title, you have the same options as any owner: deed-back, resale, or a documented surrender.
Sources
- Federal Trade Commission, FTC v. Reed Hein & Associates (Timeshare Exit Team) case documents: FTC alleged Timeshare Exit Team charged upfront fees and failed to deliver promised relief; settlement included $124 million judgment and permanent ban
- American Resort Development Association, State of the Vacation Ownership Industry data, as cited in ARDA International Foundation research materials: Average U.S. timeshare purchase price and average annual maintenance fee figures
- Federal Trade Commission, Consumer Advice: Timeshares, Vacation Clubs, and Related Scams: FTC guidance that no one can guarantee a timeshare sale or rental, and warning about resale/refund scam patterns
- Cornell Law School Legal Information Institute, 16 CFR Part 429 (Cooling-Off Rule text): Federal 3-business-day cancellation right for certain door-to-door and off-premises sales over $25
- Consumer Financial Protection Bureau, Consumer Complaint Database: Thousands of consumer complaints logged against timeshare exit and resale companies