How To Avoid Timeshare Resale Scams
Getting out of a timeshare might be tough. Before you pay a company to help you sell your timeshare, contact the timeshare developer or the resort’s management company and ask about your options. The American Resort Development Association (ARDA) has a tool to help you identify the company that you need to contact, along with other resources.
You’ll see or hear lots of ads from companies claiming to be experts at selling timeshares — they’re online, on the radio, and on social media. But sometimes these companies exaggerate or flat-out lie about what they offer you. They take your money and then do little to nothing to help you.
These are some of the things you’ll see in timeshare resale ads:
- “The market is ‘hot,’ so we’ll sell your unit fast.” (That’s a lie.)
- “Your timeshare will sell quickly,” or “it will sell in months.” (Unlikely.)
- “We have lots of buyers ready to purchase your timeshare.” (Doubtful.)
- “We guarantee you’ll get big returns on your resale.” (That’s a lie.)
Be careful — these could be ads from timeshare resale scammers who will take your money but won’t help you sell your timeshare. The truth is, the timeshare market is overcrowded, and it might be hard, if not impossible, to sell a timeshare. Anyone who guarantees a sale or big returns is a scammer.
To avoid timeshare resale scams, make sure to
- Check out the seller. Contact the state attorney general and local consumer protection agencies in the state where the reseller is located. Ask if they have any complaints on file. Also, search online for the name of the reseller, plus words like “complaint” or “scam.”
- Ask about fees. It’s better to do business with a reseller that takes fees after the timeshare is sold. If you have to pay a fee in advance, get refund policies in writing.
- Find out if the reseller’s agents are licensed to sell real estate where your timeshare is located. Deal only with licensed real estate agents and brokers. Check with the real estate licensing agency in the state where the timeshare is located. Also ask for references from satisfied clients.
- Ask how the reseller will advertise and promote the timeshare. Will you get progress reports? If so, how often? You want to make sure that the company will be active in selling the timeshare. If they’re only putting the property on a resale list, that may not be very helpful.
- Get everything in writing. Read the contract carefully to make sure it matches the verbal promises you’ve gotten. Make sure it includes the services the reseller will perform, plus any fees you’ll have to pay and when. If the deal isn’t what you expected or wanted, don’t sign the contract.
Don’t assume you’ll get back what you paid for your timeshare. Consider using a timeshare appraisal service to analyze the value of a timeshare you might want to buy or sell. Make sure the appraiser is licensed in the state where the timeshare is located. Check with the state where the timeshare is based to see if the appraiser’s license is current in that state.
Original content is located here: Timeshares, Vacation Clubs, and Related Scams | Consumer Advice