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Cancellation Clauses in Timeshare Contracts
2 min readLast reviewed
The cancellation clause is where your contract tells you whether, when, and how you can cancel. This article explains what these clauses typically contain and how to read them alongside state law.
What a cancellation clause does
A cancellation clause sets out any right to cancel the purchase and the conditions attached to it. It usually works together with state rescission law, which may set a minimum cooling-off period regardless of what the contract says.
What these clauses usually contain
Most cancellation clauses address several points:
- The length of the cancellation or cooling-off period
- The required method of delivering notice
- The exact address or party to notify
- What happens to money already paid
- Any conditions or exceptions
How state law interacts
State law can override a contract clause that offers less protection. Because rescission rights vary by state, the clause and the statute must be read together to find the real deadline.
Reading the clause carefully
If the language is ambiguous or the stakes are high, a contract review or a qualified attorney can clarify how it applies. Do not rely on a salesperson's summary of what the clause means.
Sources & citations
- 1.FTC — Timeshares and Vacation Plans— Federal Trade Commission
- 2.CFPB — Consumer resources— Consumer Financial Protection Bureau
Written by
Consumer Education Desk
Timeshare Research & Reporting
Reviewed by
Compliance Reviewer
Consumer-Protection & Compliance Review
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