How do you recognize timeshare scams?


Quick Answer

Consumers seeking to purchase or resell timeshare property should suspect scams when the seller or reseller uses overly aggressive hard-sell tactics, insists on a quick decision, demands money up front, tries to sell units that are not yet built or does not have the appropriate paperwork to back up claims. Other scam indications are complaints against the broker at the local Better Business Bureau or the state attorney general's office.

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Full Answer

Scammers often lure consumers by giving a free stay at the property being offered or a prize for attending a presentation. Consumers are then pressured into a quick purchase by the imposition of a time limit on the contract signing or an attack on the potential client's self-image by questioning their business acumen. When reselling a piece of timeshare property, owners are often solicited by companies that claim to have a buyer standing by but insist on an upfront payment to cover fees.

Consumers purchasing or reselling timeshare properties should never allow themselves to be pressured into quick decisions. They should always study the paperwork with a lawyer before closing a deal. Reputable brokers receive their fees from the closing costs after the sale is finalized. Consumers should work only with companies that are licensed real estate brokers and have no complaints lodged against them.

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