Does the phrase “timeshare” ring a bell, but you don’t know what a timeshare is? Or maybe you have a vague idea of what a timeshare is but want some more in-depth info on how a timeshare works. We’ll show you everything you need to know. So, what is a timeshare and how does it work?
Are you no longer using your timeshare? Have the maintenance fees started to pile up, or has a lifestyle change made it more difficult to hold onto? For whatever reason it may be, there are many people just like you wondering how to sell a time share.
According to the American Resort Development Association (ARDA), more than 80% of timeshare owners express satisfaction with their vacation ownership. So it may come as a surprise that there is a thriving secondary market of people selling their timeshares. Although vacation ownership is meant to be a lifelong product, sometimes it just doesn’t make sense to keep holding onto. The good news is, the timeshare resale industry has so many options for timeshare relief. Learn your different options to selling responsibly.
If you’re a timeshare owner in 2019, you have to learn to avoid all the timeshare scams out there. Sometimes it can be difficult to detect who is trustworthy and who isn’t. A name you’ve heard on television or radio might approach you and you’ll think they must have good intentions if they’re advertising with celebrities or heavily in the public eye. Unfortunately, these people aren’t following a strict code of ethics, nor are they following important laws that protect timeshare owners and sellers. Keep reading to find out what the common timeshare resale scams are that you need to look out for.
1. Non-Legitimate Timeshare Buyers
One of the most popular timeshare resale scams out there is “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.
While you are still spinning from excitement, they might ask for personal information. They also commonly ask for up-front payments in order for the sale to close. Transfer fees, taxes, international transaction fees or any other fictitious explanations are a red flag. You might even be so excited about the idea of never paying another annual maintenance fee that you don’t see the red flags here.
First of all, a legitimate timeshare resale agency will never reach out to you unsolicited. Unless you have given permission for them to contact you, this is illegal. Additionally, the buyer typically pays for transfer fees and commissions, not the owners selling their timeshares. When you sell your timeshare, you will usually receive 100% of the proceeds.
Sometimes there are exceptions
If someone asks you for high up-front fees or personal information, they are probably not a legitimate timeshare buyer. Make sure you recognize how to avoid this timeshare scam.
2. Fake Timeshare Resale Agents
Today’s timeshare resale scams are more tech-savvy, being able to manipulate the phone number that shows up on 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 make claims that they have a buyer interested and require funds upfront to close. We have even had reports of an email address ending in @timesharesonly3.com.
You might not be able to avoid this timeshare scam, but you can proceed with caution. Never pay up-front closing costs or “luxury taxes”. As a general rule of thumb, 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 actually works there – then you call them! 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
These companies are popping up everywhere lately. Backed by celebrities who have most likely never owned a timeshare, these scam artists make promises to “get you out,” “cancel your mortgage” or “exit your timeshare” with a 100% money-back guarantee.
You most likely had a “right of rescission” period when you first purchased your timeshare, usually around 10 days. Unless you cancelled your timeshare contract during that period, the purchase is valid even if you change your mind.
These exit companies play on the emotions of regret, financial hardships and changes in circumstances of unsuspecting owners. Timeshare exit lawyers will say that there is no resale market 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. Unless you receive a satisfaction letter and hear directly from your resort or HOA that your debt is fulfilled, you should never stop paying on your timeshare. The last thing you want is the accumulation of late fees, collections, hits to your credit or worse, foreclosure.
Exit companies paint pictures of a dismal resale market and scare timeshare owners into not trusting legitimate companies. 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
Not to be confused with the cool looking vessels used to transport goods during the Viking Age, we’re talking about viking ship timeshare shell companies. Formed without any assets in them, their sole purposes are to intimidate and defraud.
A viking ship is a timeshare industry term for shell companies formed solely to transfer ownership to. 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 that 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 (or pay a fee for their “services”). Most of timeshare resale 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 assume they actually did take the timeshare out of your name (you remember what happens when you assume?) Let’s say they do transfer the deed into their company name. When the maintenance fees come due, they have no intention of doing anything about them. The companies are usually an LLC so no real person can be sued. Even if you can track down a responsible party to prosecute, they are long gone. This type of fraud is responsible for upwards of $8 million in unpaid maintenance fees in the industry, spilling over on to other owners and raising expenses for everyone. Viking ships are critical timeshare scams to avoid.
Looking to Learn More About Selling Your Timeshare? Subscribe to our blog for tips, how-tos and everything you need to know to responsibly sell your vacation ownership.
Buying a lifetime of vacations at a dream-like resort or with a luxury travel club is an exciting experience! You may already have a brand in mind, like Marriott Vacation Club or Club Wyndham. You might just have a list of must-see destinations, such as Hawaii or the Bahamas. Either way, it started with “I want to buy a timeshare.” Before whipping out your wallet, make sure you know what to expect: like timeshare maintenance fees or the closing service costs at the table.
Even in a growing industry such as vacation ownership, many people make difficult decisions to sell their cherished timeshares. Whether it is because of a change in financial circumstances or because vacation preferences have changed, sometimes even happy owners need a change of pace. Vacation owners looking to exit or cancel their timeshare contracts are then faced with confusing options. If you’re on the verge of making the decision to sell your property, you might be wondering: what is the best way to get out of my timeshare?
Recently, we covered the basics of timeshares and the timeshare resale market. Now we’ll dive more into how to sell your ownership, what happens when you get an offer and how to rent out your timeshare while you wait for a buyer.
Are timeshares bad?
Most people have a preconceived notion when it comes to timeshares. Some wonder if a timeshare is really worth it to buy. Whether it’s from personal experience or something a friend-of-a-friend said about their vacation ownership, it seems like everyone has an opinion. We highlight the top four myths pertaining to timeshares that the industry just can’t seem to shake. With more information out there than ever before, we can all be more informed about the way timeshares work.
These days it’s easy to see the draw of vacation ownership. With hectic work lives and increasing cost of vacations, more travelers are seeing timeshares as a viable alternative to the traditional vacation. For those looking into vacation ownership, timeshare resales are a great option to save money while still getting most of the same benefits. We’ve broken down everything you need to know before you decide to buy or sell a timeshare.