If you’ve ever heard of timeshares, you’ve probably heard of timeshare scams. Are the stories all true? Not quite! While there are definitely people who try to exploit owners trying to sell their timeshare, the resale process doesn’t have to be risky. All you need to do is find the right people to work with. Simple, right? Well, it certainly can be! We’ll go over the signs of the most common timeshare resale scams so you know what to avoid. With these tips, you’ll have no problem navigating the resale market as safely as possible!
- About Timeshares
- How to Detect Scam Timeshare Companies
- 1. Unsolicited Phone Calls from Non-Legitimate Buyers
- 2. Fake Timeshare Real Estate Agents
- 3. Timeshare Contract Cancellation or Timeshare Exit Lawyers
- 4. Viking Ship Timeshares
- How to Avoid Timeshare Resale Scams
- What to Do if You’ve Been Scammed
- Staying Safe While Selling a Timeshare
- Avoid Timeshare Scams by Selling with Timeshares Only
About Timeshares
Before diving into timeshare scams, let’s set the foundation by defining what a timeshare is. Simply put, a timeshare is a resort or vacation property split into shared or fractional ownership. Typically, timeshares are divided into weekly increments or given a point value and associated with large resort developers like Disney, Marriott, and Hilton. Essentially, a timeshare is a shared vacation property and may or may not include an interest in real property.
So, now that we have the gist of what a timeshare is, let’s talk about the elephant in the room: Are timeshares a scam?
Are Timeshares a Scam?
The simple answer is no. Timeshares are not scams. They are legitimate vacation ownership properties that belong to real owners. For travelers who enjoy savings, flexibility, and annual vacations, timeshare ownership might just be for you!
Now, let’s delve into the intriguing world of timeshares and learn how to navigate them safely, avoiding any potential scams.
How to Detect Scam Timeshare Companies
If you are looking for a way to get out of your timeshare, protecting yourself from timeshare exit scams is essential. Timeshare exit companies make false promises to owners that they will guarantee exits for timeshare contracts. While it is possible to sell a timeshare or get out of one, many illegitimate companies claim they can help you. As a rule of thumb, you should remember these common timeshare resale scams before entrusting your ownership to anyone.
1. Unsolicited Phone Calls from Non-Legitimate Buyers
One of the most popular timeshare resales scams involves “out-of-the-blue” phone calls from a company claiming to have a legitimate buyer for your timeshare. This person might say they have a buyer waiting but need funds to close the sale first. In this case, the caller may ask for personal information and upfront payments to close the sale. Transfer fees, taxes, international transaction fees, or any other fictitious explanations are red flags.
A legitimate timeshare resale company will never reach out to you unsolicited. This is illegal, unless you gave them permission to contact you. Buyers will typically pay transfer fees and commissions, not owners selling their timeshares. Unless you negotiate these terms, you will usually not have to pay closing costs as a seller. You should especially not pay any closing costs before signing contracts. If someone asks you to pay an upfront fee or asks for personal information, they are most likely not a legitimate timeshare buyer. Additionally, false sales representatives may use high-pressure sales tactics to get a seller to use them.
2. Fake Timeshare Real Estate Agents
Over the years, timeshare resale scams have grown more tech-savvy, permitting easy manipulation through the internet and electronic devices. Some scammers will try to reach you through your cell, which may appear as “No caller ID.” A timeshare resale “representative” has contacted a few of our customers this way, claiming to be one of our employees. These con artists do their research and represent themselves as employees of established and credible timeshare resale companies. They call timeshare sellers and claim they have a buyer interested and require funds upfront to close.
You might be unable to avoid this timeshare resale scam, but you can proceed cautiously. Never pay upfront closing costs or “luxury taxes.” Generally, never give out personal information like your credit card, social security, or bank account when someone calls unsolicited. Do your research – make sure the company is legitimate and this person works there – then you call them! Moreover, most states require licensing for agents to sell real estate. So, if anyone contacts you unsolicited, claiming to be with Timeshares Only, we urge you to contact us directly at 1-800-610-2734.
3. Timeshare Contract Cancellation or Timeshare Exit Lawyers
This is another popular one! Timeshare exit programs promise to “get you out,” “cancel your mortgage,” or “exit your timeshare” with a 100% money-back guarantee. But how safe are these programs, really? When you first purchased your timeshare, you most likely had a “right of rescission” period, usually around ten days. Unless you cancel your timeshare contract during that period, the purchase is valid even if you change your mind. You wouldn’t be able to cancel a mortgage, right? Timeshare contracts are the same. Exit companies play on the emotions of regret or financial hardships for vulnerable owners. Timeshare exit lawyers will say that no one will buy their timeshare if they put it up for sale, and offer their “services” for thousands of dollars.
During this “exit” process, owners are told they can stop paying their timeshare mortgage and maintenance fees. But unless you receive a satisfaction letter and hear directly from your resort developer or HOA that your debt is fulfilled, you should never stop paying on your timeshare. If you stop paying these fees without official confirmation, you’ll have to deal with the accumulation of late fees, collections, hits to your credit, or worse, foreclosure. So, it’s vital to double-check with your developer to get the green flag to avoid timeshare resale scams.
Exit companies paint pictures of a dismal resale market and scare timeshare owners into not trusting legitimate companies. However, you must know your options. There is no reason you should be shelling out thousands of dollars when there are reputable companies to market your timeshare for sale or rent and even put cash back in your pocket while waiting for your timeshare to sell.
4. Viking Ship Timeshares
![Timeshare Resale Scams: [4] To Avoid](https://www.timesharesonly.com/wp-content/uploads/2024/05/shutterstock_1395298547-1-1024x683.jpg)
A Viking ship is a timeshare industry term for shell companies formed solely to transfer ownership. These “relief companies” usually start by putting ads on the radio claiming to make offers for a timeshare. They use scare tactics and false statistics to show owners their timeshares are a burden. Then, they’ll swoop in and save the day, telling you they are there to help, and all you have to do is sign your timeshare over and pay them a fee. Most timeshare scams take your money and never transfer the timeshare out of your name, resulting in collections and additional expenses to clean up those maintenance dues you stopped paying.
Let’s say they transfer the deed to their company name. When the maintenance fees come due, they have no intention of doing anything about them. The companies are usually LLCs, so no natural person can be sued. They are long gone, even if you can track down a responsible party to prosecute. This fraud is responsible for over $8 million in unpaid maintenance fees in the industry, spilling over onto other owners and raising expenses for everyone. Thus, Viking ships are critical timeshare scams to avoid.
How to Avoid Timeshare Resale Scams
If you are trying to sell your timeshare or get out of paying annual maintenance fees, the best thing to do to avoid timeshare scams is to contact your resort or developer. Many resort brands, like Wyndham, have programs like Wyndham Cares that are designed to assist timeshare owners. Most of today’s best vacation clubs and resorts are Members of ARDA, the American Resort Development Association. The American Resort Development Association has a tool to help you identify the company you need to contact. Along with other resources, Members must follow a strict Code of Ethics, which protects timeshare owners. Many are also a part of the Coalition for Responsible Exit, which advocates protecting owners from unscrupulous companies. To learn more, head to ResponsibleExit.com.
What to Do if You’ve Been Scammed
If you think you’ve been the victim of a timeshare scam, you can file a complaint with the Federal Trade Commission (FTC) and your local and state consumer protection agencies, such as the Better Business Bureau. The Better Business Bureau might be able to provide recovery assistance and help victims with fraud-related issues.
Staying Safe While Selling a Timeshare
One of the best ways to move on from your ownership without being scammed is by selling your timeshare with a reputable reseller. But how do you know who to trust? As we mentioned earlier, ARDA is a great resource for deciding who to sell your timeshare with, but you can also check to see if they have a significant amount of experience in the industry. After all, why wouldn’t you want to work with experts?
Avoid Timeshare Scams by Selling with Timeshares Only
Speaking of experts, you’ve come to the right place to find them! Timeshares Only develops cutting-edge marketing technology in order to serve the needs of the timeshare resale community. That, of course, includes you! In fact, our team adheres to a strict code of ethics, celebrating success by making the customer the center of our operations.
We are also recognized as a featured reseller for the Coalition for Responsible Exit. Plus, we have over 20 years of experience in the industry. So, we have the experience and credentials needed to help guide you through resale process. If you’ve decided to move on from your timeshare, then call us now at 1-800-610-2734 or email us at [email protected] to get started.
