Thinking About Buying a Timeshare? Read This Before You Sign

The presentation sounds great.

Beautiful resorts. Family vacations. Memories with your children and grandchildren. Maybe some free tickets, a nice meal, or another gift just for listening.

Then comes the offer… and you have to decide today.

That's when you should slow down. A timeshare can be a long-term financial commitment with annual fees that continue whether you use it or not. And getting out later may be much more difficult than getting in.

Before signing anything, make sure you understand what you're really buying.

Key Takeaways

• High-pressure, sign-today offers are a major warning sign. A good deal today should still be a good deal after you've had time to go home and think it over.
• The purchase price is only part of the cost. Annual maintenance fees, assessments, and other charges continue whether or not you use the timeshare.
• Check the resale market before you buy directly from a developer. Some timeshares resell for as little as $1 because owners just want out of the ongoing fees.
• A timeshare can outlive your interest in it, and in some cases, it can become part of your estate, so it's worth understanding your exit options and inheritance implications before you sign.
• If you already own a timeshare and want out, be cautious of exit companies that demand large upfront payments. Contact your timeshare company directly first.

Watch for High-Pressure Timeshare Sales Tactics

Timeshare presentations aren't put together by accident. The salespeople are professionals. They know how to make the purchase emotional. They may talk about spending more time with your family, creating memories, or taking the vacations you've always dreamed about. There's nothing wrong with wanting any of those things. But you don't need a timeshare to have them.

Be especially careful when you're told that a special price, bonus, or opportunity is only available if you sign that day.

The Federal Trade Commission specifically warns consumers about this type of pressure. If the company can offer you the deal today, it's reasonable to ask why it can't offer you a similar deal after you've had time to go home, read the contract, research the resale market, and discuss it with someone you trust.

A good financial decision should still make sense tomorrow.

The True Cost of Owning a Timeshare

The purchase price is only the beginning. Timeshares typically have annual maintenance fees, which can increase over time. Depending on the program, there may also be taxes, booking fees, exchange fees, assessments, financing costs, or charges associated with the use of different properties. And you may still owe annual fees even if you don't use the timeshare that year.

Before buying, calculate what the timeshare could actually cost you over 10, 20, or 30 years. Then ask yourself another question: “What if I simply put that same amount of money into a separate vacation savings account every month?” That money would still belong to you. You could go to Florida one year, Europe the next, take a cruise, rent a house, stay at a hotel, visit family, or skip traveling altogether and leave the money in savings. No points to manage. No availability restrictions. No annual maintenance bill for something you didn't use.

Check the Resale Market Before You Buy

Checking the resale market is one of the most sobering ways to see just how timeshares often work out for people. Before paying thousands of dollars for a timeshare directly from a developer, look online to see what similar ownership interests are selling for on the resale market.You may be surprised.

Some timeshares are offered for extremely small amounts, sometimes even $1, because the owner simply wants someone else to assume the ongoing financial obligation. That doesn't mean every timeshare is worthless. Some properties and programs have resale value.

But if something you're being asked to pay thousands of dollars for can be purchased from an existing owner for almost nothing, you should understand why before signing a contract. And remember: getting the timeshare cheaply doesn't eliminate the ongoing fees. A $1 timeshare can still come with thousands of dollars in future expenses.

Think About Yourself 20 Years From Now

Maybe the timeshare makes perfect sense for your family today. But will it still make sense in 10 years? How about 20? Your health may change. Your income may change. Your children may grow up. You may prefer different destinations. You may not travel as much. The resort may change.

The one thing that may not disappear is your financial obligation. That's why you need to understand exactly how long the agreement lasts and what your options are if someday you no longer want it. Don't assume you'll simply sell it. The FTC warns that selling a timeshare can be difficult and, in some cases, may be extremely difficult or impossible.

What Happens to the Timeshare When You Die?

This is something many buyers probably aren't thinking about during a vacation sales presentation, but they should. Depending on how the timeshare is owned and the laws that apply, it may become part of your estate after you die. Your heirs may have the ability to disclaim or refuse the property, but there can be specific legal requirements and deadlines for doing so.

That's why family members should be very careful before using the timeshare, redeeming points or other benefits, signing documents, paying fees, or otherwise taking any action involving an inherited timeshare. They should first find out whether those actions could affect their ability to decline the inheritance.

If you're considering buying a timeshare, ask what happens to the ownership when you die and get the answer in writing. If you already own one, make sure your family knows about it and understands that they should get legal advice before doing anything with it after your death.

Treat the Contract Like a Major Financial Commitment

Most people wouldn't buy a house without understanding the documents they were signing. You should be treating a timeshare the exact same way. Don't rely only on what the salesperson tells you. Get every important promise in writing.

Take the documents home if possible. Read them. Understand the maintenance fees, how those fees can increase, special assessments, booking rules, point restrictions, financing terms, resale restrictions, cancellation period, and what happens if you eventually want out. Consider having an independent attorney review the agreement, especially if you're making a substantial purchase or signing a long-term ownership contract.

If you're not allowed enough time to understand the agreement before signing it, that's a very good reason not to sign it. Anyone who pressures you is not looking out for your best interest. 

How to Get Out of a Timeshare (Safely)

Unfortunately, people who regret buying a timeshare can become targets again.

Timeshare exit companies may promise they can make your timeshare disappear, sometimes in exchange for thousands of dollars upfront. You should be extremely cautious.

In 2026, a federal court ordered an operator of a timeshare exit operation to pay $140 million following an FTC investigation into a scheme that the government alleged took more than $90 million from consumers, primarily older adults.

Before paying anyone to get you out of a timeshare, contact the timeshare company or resort directly. Ask whether they have a surrender, deed-back, or other exit program. Some companies have programs that may allow qualifying owners, particularly those whose timeshares are paid off, to return ownership.

You can research those options yourself before paying someone thousands of dollars to do it for you. Be particularly suspicious of anyone who guarantees they can cancel your timeshare, demands a large upfront payment, or tells you to stop paying your timeshare mortgage or maintenance fees. 

Those are warning signs identified by the Federal Trade Commission. As with other scams, any pressure is a red flag and should be seen as a warning to slow down.

Don't Let a Free Gift Cost You Thousands

Free tickets aren't free if they lead to a financial obligation you regret for the next 20 years. If you attend a timeshare presentation for the gift, decide before you walk through the door that you won't be buying anything that day. Listen if you want. Ask questions. Take the information home.

But do not sign.

If it's truly a good financial decision today, it should still be a good financial decision after you've had time to research it.

Bottom Line: The Best Vacation Plan May Be a Savings Account

At Family Credit Management, we've spent more than 30 years talking with consumers about financial decisions they wish they could go back and change. When it comes to vacations, sometimes the simplest approach is the best one. Instead of making a long-term commitment to a timeshare, consider putting the money you would have spent on the purchase, financing, and annual fees into a dedicated vacation savings account.

Then, when it's time for a vacation, the money is there. You can go where you want, when you want. You can stay where you want, and if life changes and you don’t travel that year, the money is still yours. 

A vacation should give you freedom. Your vacation plan should too.

Buying a Timeshare FAQs

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