Timeshare resales scams are rearing their ugly heads yet again, both in Europe and the USA. Ruthless operators are preying on timeshare owners’ desperation to get rid of burdensome ownerships, and throwing in the added incentive of some sweet, sweet cash too. Sound too good to be true?
Unfortunately, the reality is that anybody calling you out of the blue and promising you a chunk of cash as well as a free release from your timeshare obligation is unlikely to be telling you the truth.
The Timeshare Consumer Association (TCA) are currently experiencing a spike in complaints regarding so called ‘timeshare re-sellers.’
“The timeshare industry is growing and sadly that growth brings with it opportunistic sharks, with ever more inventive ways to take advantage of customers who already feel they lost money through their timeshare ownership,” says Daniel Keating of the TCA.
“A typical timeshare re-selling scam starts with a ‘broker’ soliciting a timeshare owner, claiming to have a buyer lined up, usually with an over generous price for the ‘highly sought after’ ownership.
“This is music to the member’s ears. ‘I can relinquish my ownership and make money too? Where do I sign?’
“Once hooked, the timeshare owner is asked for an upfront fee. This is when the alarm bells should start ringing for the potential victim. The timeshare resale business is like the property business, in that the fee is normally paid as a commission on completion of sale, rather than in advance.”
“This fee is explained as taxes, transaction fees, a deposit… anything the scammers think will sound credible.
“Once the fee is paid, the ‘broker’ vanishes, never to be heard from again. They have the customer’s money and there is no buyer waiting in the wings.”
In the US the scammers often operate under the stolen name of a legitimate but retired US real estate broker whose license is no longer active.
Inactive licensees typically keep their contact information private on the Division of Real Estate’s website. Thus, when consumers research a scammers’ licensing information, they sometimes find a legitimate license listing but have no opportunity to contact the licensee. (Warning – US consumers who come across an inactive licensee on the Division of Real Estate’s website should not do business with that person, and should instead reach out to the Division to report the situation.)
“If you are contacted by anyone offering to resell your timeshare for a high price, we recommend a healthy dose of scepticism and self-preservation,” continues Daniel.
“If anyone approaches you claiming that your area is hot, people are waiting to buy, or ‘we can sell it in a month,’ you should be aware that these promises invariably turn out not to be true.”
Jayne Niven, respected industry expert in the area of timeshare ownership and members’ rights, points out that: “Most timeshare memberships do not actually have a resale value, and very often it costs money to relinquish the ownership. If approached by a broker about reselling your timeshare for a suspiciously high price, you should proceed with extreme caution if at all. However if you do feel like you want to dig deeper, it’s advisable to bear the following in mind:
- Reach out to independent watchdogs like the Timeshare Consumer Association and check whether the company that approached you has previously been reported as a scam. They will warn you if the offer looks suspicious even if it is not a previously known operator.
- US owners: Only deal with licensed agents. Never do business with a broker whose license is inactive.
- Only deal with a business which has a physical address. A PO box is a huge red flag. .
- Ask for everything—refund policies, sales agreements, etc.—in writing before paying a penny.
- Finally, be very wary of brokers who consistently find excuses not to meet in person or speak via video call.
Please contact the Timeshare Consumer Association to report any suspected fraud, to ask for advice, or to share your experience.
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For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk