We’ve been seeing an increase in reports of timeshare resale scams impacting area residents. Timeshare resale scams often begin when a phony vacation property company reaches out to a timeshare owner claiming to have guaranteed buyers and promising hefty returns for their timeshare. The company stresses that they must move quickly and be willing to pay registration, closing costs and other fees in advance of the sale.
If you own or are selling a timeshare, be leary of companies that promise large returns and request upfront fees – two tell-tale signs that it’s likely a scam. If you own a timeshare and are approached with an offer to resell, be sure to question all of the details of the transaction and to fully research the company prior to signing agreements or sending money. The Federal Trade Commision (FTC) warns that you should be wary of timeshare resellers that:
- claim the market in your area is “hot” and that they’re “overwhelmed” with buyer requests
- say they have buyers ready to purchase your timeshare – or promise to sell your timeshare in a specific timeframe
- guarantee you’ll get big returns for your resale
- require you to pay upfront fees – even if there is the promise of a “money-back guarantee”
- don’t provide a contract – or provide a contract that doesn’t accurately reflect conversations you have had
If you believe you may be a victim of a timeshare scam, please contact your financial institution or your local law enforcement agency for assistance protecting your accounts and your identity. Visit the FTC links below for more information about buying and selling timeshares: