When it comes to timeshare contracts, it’s important to understand the difference between rescission and cancellation. While these terms may sound similar, they have different meanings and implications for timeshare owners. In this blog post, we’ll explore the difference between rescission and cancellation and what they mean for your timeshare ownership.
Rescission
Rescission refers to the right of a timeshare owner to cancel their contract within a certain period of time after signing it. This period of time is known as the rescission period and varies by state and country. In the United States, for example, the rescission period is typically between 3 and 10 days.
During the rescission period, the timeshare owner can cancel their contract without penalty or obligation. This means they can back out of the contract and receive a full refund of any payments they have made.
It’s important to note that the right of rescission is not automatic and must be exercised by the timeshare owner within the specified period of time. Failure to do so may result in the forfeiture of the right to rescind the contract.
Cancellation
Cancellation, on the other hand, refers to the termination of a timeshare contract after the rescission period has passed. Unlike rescission, cancellation may involve penalties or fees and is often more difficult to achieve.
Cancellation may be initiated by the timeshare owner or by the timeshare company for a variety of reasons. For example, the timeshare company may cancel the contract if the owner fails to make payments or violates the terms of the contract.
If a timeshare owner wishes to cancel their contract, they may need to seek legal assistance or work with a timeshare exit company like RFA Corporation. We specialize in helping timeshare owners get out of their contracts and offer services such as timeshare contract cancellation and timeshare mortgage debt relief.
Key Differences
The key difference between rescission and cancellation is the timing of the termination of the contract. Rescission occurs during the rescission period and allows the owner to cancel the contract without penalty. Cancellation occurs after the rescission period has passed and may involve penalties or fees.
Another difference is the ease of termination. Rescission is often easier to achieve as it is a legal right of the timeshare owner, while cancellation may require legal assistance or the services of a timeshare exit company like RFA Corp.
Finally, rescission is a temporary right that expires after the rescission period has passed. Once the rescission period has expired, the timeshare owner must rely on other means of termination, such as cancellation.
The Difference is In The Details
Understanding the difference between rescission and cancellation is important for any timeshare owner. While rescission provides a temporary right to cancel the contract without penalty, cancellation may involve penalties or fees and is often more difficult to achieve. If you are considering canceling your timeshare contract, it’s important to seek legal assistance or work with a timeshare exit company like RFA Corporation to ensure the best possible outcome.
