So you want to cancel a deal?

For too often (probably twice a month), I get a call from some poor guy that signed a contract to buy something and has now changed his mind and wants out of the deal.  Most of the time, the guy has paid some deposit and wants that back too.  They assume that there is a "cooling off period", during which time they can change their minds.

Most of those calls arise from a person going to a sales presentation for a timeshare resort.  The resort gives you a free weekend, provided that you attend a "one hour seminar".  The presentations are slick.  After a three hour sales pitch, the guests are feeling like this is the way to do the annual vacation.  They hear things like being able to trade your week for a week at some exotic location that is run by the same company.  And hey, if you decide it's not for you, you can sell your timeshare.

Give your head a shake.

If it were so easy to sell your timeshare when it's time to sell, that would mean that there are a bunch of willing buyers. If there were willing buyers, they would not have to put on slick sales pitches and give free weekends to try to sell them!

I've only ever met two clients that had a good experience with timeshares.  I've easily met over a hundred that wished they'd never heard the word.  I met one client whose contract stipulated that, when they wanted to sell, the only authorised real estate agent was the resort itself, which charged a 55% commission on the sale!  There was also a steep commission (and the occasional "upgrade fee") for whenever you wanted to trade your week for another location.

The Ontario Consumer Protection Act is the only Act that I know of that provides a "cooling off" period.  Unfortunately, it only applies in certain circumstances.  You have to have signed the contract somewhere other than the company's place of business. 

These resort companies used to book a hotel in your area and try to get you to come to an evening sales pitch.  The problem was that too many people cancelled the contracts.  So now, they invite you to a free weekend at the resort.  A lot more people accept that invitation. Then, they flog you with a sales pitch on their own turf.  (Remember, YOU came to THEM, so there is no protection from the Act.)

Once you decide that you want out, you call the resort, which informs you that they can't let you out of the deal.  (Sure they CAN, but they won't.)  They sure won't give you back your deposit (which is likely equivalent to the cost of the "free" weekend that you just pent there.)  They don't care how angry you get with them, because you are not going to be a customer in any event.

Before you commit yourself to thousands of dollar a year, take the contract home and look it over.  The only cooling off period that you get is the one you give yourself BEFORE you sign.