Timeshare exit scams typically promise to cancel your contract for a large upfront fee, then vanish once you’ve paid, leaving you without a resolution and often thousands of dollars poorer. If you’re searching for a safe, legitimate way to part ways with your timeshare, it helps to understand exactly how these scams operate so you can avoid them. Below, we break down the warning signs, share real examples, and outline safer paths forward, including resources from ARDA and legitimate resale options.
What Are Timeshare Exit Scams?
A timeshare exit scam generally promises or guarantees that your timeshare will be canceled, then fails to deliver. Scammers know that selling a timeshare can be an emotional decision, and they target owners who are desperate for a way out.
Here’s the reality: a timeshare is a deeded contract, and sometimes it carries a mortgage. Just as you can’t simply “cancel” a car loan, student loan, or house deed, you can’t cancel a timeshare outright. Any company that guarantees an instant cancellation should raise a red flag.
How Do Timeshare Exit Scams Work?
Most timeshare exit scams follow a similar pattern:
- Unsolicited calls: Scammers often claim they already have a buyer lined up and ready to purchase your timeshare immediately.
- Upfront fees: Many demand large payments before any work begins.
- Unnecessary legal involvement: Some “exit teams” push you to hire a lawyer, using this as justification for charging thousands of dollars.
In most cases, a lawyer isn’t needed to sell or exit a timeshare unless it was sold to you through illegal means, which is rare. Developers largely follow ethical, transparent sales practices, and many have joined the fight against fraud. ARDA has even built an entire program, Responsible Exit, to help protect owners from these scams.
Real Examples of Timeshare Exit Scams
Reviewing real cases can help you recognize red flags before they cost you money. A few notable examples include:
- Diamond Resorts secured a permanent injunction against the exit company, Castle Law Group PC.
- Orange Lake Resort’s lawsuit resulted in the disbarment of a timeshare attorney involved in exit fraud.
- Bluegreen Vacations has taken a public stance against fraudulent exit companies targeting its owners.
- The Better Business Bureau has published reviews warning consumers about so-called “exit teams.”
- Welk Resorts won a legal case against a timeshare exit team.
- Westgate Resorts secured a win against Mitchell Reed Sussman & Associates.
If someone calls you out of the blue offering to help sell or cancel your timeshare, be cautious. Reputable resale companies don’t cold call. You should only be contacted by a resale company if you reached out first. Unsolicited calls usually mean someone obtained a list of owners and crafted a pitch designed to scam you.
How Can You Stay Safe From Timeshare Exit Scams?
If you’re ever contacted by a suspected scammer, reach out to your developer and your state’s Attorney General’s office right away. Both can guide you on the appropriate next steps.
It’s also worth learning about ARDA and its ARDA-ROC Responsible Exit program, which was created specifically to help owners in need. A good rule of thumb: before working with any exit company, check whether it’s recognized by ARDA. Since ARDA is the trade association for the timeshare industry, its recognition is a strong signal of trustworthiness.
Safer Alternatives to Exiting a Timeshare
If you want to part ways with your timeshare without falling into a scam, the resale marketplace is a legitimate option. You can sell directly to another owner or, in some cases, back to the resort’s developer. Selling may feel intimidating at first, but our team can walk you through every step of the process. Want more peace of mind? Discover additional owner protections in ARDA’s Responsible Exit program.
Frequently Asked Questions About Timeshare Exit Scams
Sell Your Timeshare With Timeshares Only
If you’re ready to part ways with your timeshare the right way, our resale marketplace can help you create an advertisement and connect with real buyers, without the upfront fees or empty promises that come with exit scams. Start selling your timeshare today and let our team guide you through a transparent, straightforward process.
Rent Out Your Timeshare
If selling isn’t the right fit just yet, renting your timeshare is another way to put it to good use while you decide your next steps. Our marketplace makes it easy to list your week or points for rent, connecting you with travelers looking for exactly what you have to offer. Learn how to rent out your timeshare and start earning from it today.
