Timeshares are a way for consumers to buy a piece of a vacation property that they share with other owners, theoretically at a lower cost than owning their own property. While there are legitimate companies that can help you buy or sell a timeshare, scammers abound.
What kinds of timeshare scams should I watch out for?
Timeshare scams exist on both ends of the transaction.
Companies trying to sell timeshares will often lure consumers into a sales pitch with promises of free vacations and other “gifts,” which are often difficult to redeem and not as valuable as promised. Once consumers are in the sales pitch, scammers will often oversell the value and accessibility of a timeshare and minimize the difficulty of reselling a timeshare.
Scammers may also use fake properties or other fraudulent schemes under the guise of selling real timeshares.
Another common timeshare scam is a resale scam. A scammer will promise to help you sell your timeshare, often exaggerating the speed and price they can sell it for. After collecting a fee or other up-front costs, they disappear with your money and leave you still looking to unload your timeshare. Timeshare resale scams prey on people who may be desperate to sell their stake in a timeshare property.
How do timeshare scams work? How do I spot one?
Timeshare scams usually work by convincing you to hire the scammer to resell your timeshare, typically making big promises about their skills and experience selling timeshares or saying whatever they can to gain your trust.
Once they have you sold on their skills, they will provide you with a phony buyer’s info and a phony price point but ask you to pay an up-front fee. There are numerous ways they will stretch out the sale process, potentially asking for additional money to pay for made-up “costs” or items they never mentioned at the outset. After time goes by and excuses pile up, they cut off contact, take your money, and you’re still stuck with your timeshare.
Being asked to pay for services using gift cards, cryptocurrency, wire transfers, or money orders
Being asked to pay for appraisals or other services
Promises of windfalls or profits from timeshare sales, which usually occur at a loss
If your timeshare is in another country, educate yourself about the required fees and taxes in that country so you can spot someone trying to take advantage of you.
Do I have any other rights under the law?
Under Colorado law, timeshare resellers or transfer companies are required to provide you with a detailed transfer agreement with their name, telephone number and physical address (no PO boxes), a description of the method or documentation the reseller will use, and the date by which the sale is estimated to be complete.
Resellers are also prohibited under the law from collecting any money from you until the timeshare resale or transfer company provides you with a copy of the recordable deed, or other evidence in writing, clearly demonstrating that the resale timeshare has been transferred according to your agreement.
Of course, criminals won’t follow the law. Always do your homework.
How do I get my money back?
If you’ve sent money to a scammer, contact the company you used to process that payment immediately. Reporting fraud to your bank, credit card company, the company you bought a gift card from, a cryptocurrency exchange, or any other payment processing company can help reverse it.
