WE ARE PREMIER TIMESHARE RESALE, LLC WITH RE/MAX MOUNTAIN PROPERTIES LOCATED IN
COMMON TIMESHARE SCAMS
Timeshare Scams will not work if Sellers do not send the Scam Artist any money. Beware of whom you are dealing with. How can you tell if it is a Scam Artist? If he asks you for money up front or ahead of the closing it is generally a scam. All fees can be taken out of a closing if your timeshare is truly sold. If you are advertising your unit yourself on a reputable advertising website you should not pay more than $50.00 for an ad.
Here are a few links to current scams.
http://www.legalnewsline.com/news/224424-n.d.-ag-takes-on-timeshare-company
http://www.atg.state.vt.us/news/timeshare-repurchaser-settles-with-attorney-general.php
A CALL WE RECEIVED MARCH 5, 2010: A certain company gave us an inflated value for our property. They told us they did not charge upfront fees.
They had someone contact us and act as the buyer. The “Buyer” discussed both
buyer and seller putting up “security deposits” so that if one backed out
the other would get to keep it as liquidated damages. This company was going
to close the transaction and act as escrow. Obviously if this was a real transaction
they would use a real escrow company and the seller would not put any money
upfront. He would get paid at closing. BEWARE.
Here are some of the more common scams to look out for:
• ADVERTISING SCHEME
This is the most common scam in the timeshare world today. Upfront fee companies soliciting with postcards, telemarketing, sending emails to Sellers of timeshares that they can sell their timeshare for prices comparable to or for more than what the resort is selling for. This is the first lie. These Companies have almost convinced the public and the Government that they are legitimate. It isn’t the upfront fee that is the scam. It is the lie they tell you to get the upfront fee.
They will tell you this is the only fee you will pay. This is another lie. If it is an advertising company that is actually selling timeshare they are probably working with a Broker that will sell your timeshare and charge you a commission. So what the advertising company becomes is a middle man that is lying to you about not having to pay another fee. Some of these companies actually own the Brokerage that will be selling the timeshare and charging you a commission. Unfortunately the Owners of these companies know how to go around the laws that are set in place to control advertising companies. There is a lot of work to be done in this area by the Government. There are many stories that go with this scam. They will tell you they have open houses at the resorts. They will tell you they have sold your type of unit for large dollar amounts. They have Buyers waiting for weeks like yours. They say they deal with Real Estate Brokers that will also assist in selling your weeks. What they are selling is overpriced advertising that very seldom ever sells timeshare. They have sold you a bill of goods.
The telemarketer that calls you to sell you an advertising scam is sitting in a boiler room type environment. They are soliciting other owners to sell or rent their unit. They are not Brokers or agents. By law they cannot show your timeshare to anyone, charge a commission on the sale or advise you of a recommended asking price. Providing you with an estimate of value or a recommended asking price is an act of being a licensed real estate agent/broker in most States and therefore may be fraudulent without a current and valid license. Tell that to your credit card company to get a refund of the advance fee. All they are able to do is put your advertisement online and wait for an interested party to find it. You can do that yourself and save hundreds of dollars.
• YOUR TIMESHARE IS SOLD.
They call and tell you they have sold your timeshare. All they need to do now is the title search. You will have to federal express a check to them for the title search. It is $700.00. The fed ex fee can be deducted from your closing fees. You should not have to send any money prior to the closing. The $700.00 will be paid by the Buyer at the closing. The Buyer doesn’t want to pay the fee ahead of time in case there is a title problem. The Scam Artist receives the check and then sends you a legal looking contract. They may send the contract ahead of time to make it look legitimate. The Scam Artist will then disappear, disconnect the 800 number you are using, or call you to tell you the Buyer backed out but they will use this title search for the next sale on your timeshare.
• BUYING TIMESHARE FOR A NATIONAL COMPANY.
The Scam Artist states that they are purchasing timeshare weeks for the executives of a large nationally known company. This nationally known company is looking for timeshare units to buy to rent out and use with their employees. In order to be guaranteed a spot for the national company to purchase your timeshare you must reserve a spot so that they will not purchase someone else’s unit. You must wonder how they could have placed your unit on the market for sale if you never gave them an approval. In all cases the Owners are offered a large amount of money for their units. This Scam moved from State to State.
• GUARANTEED SALE SCAM
Watch out for companies that guarantee a sale. In an attempt to get your money upfront some companies will guarantee to sell your timeshare. No company can guarantee your timeshare will sell. They can guarantee that they will advertise it until sold. They will tell you that you will get your money back at closing if anyone else sells it before they do.
• GUARANTEE AN OFFER
Be cautious of companies who guarantee to bring you an offer on your timeshare. What typically happens in these cases is that the same company who is guaranteeing to bring an offer, will themselves make you the offer for a ridiculous price; say $100. This keeps their guarantee of an offer “legitimate,” but obviously isn't what you had in mind. If they are going to bring you an offer they don’t need an upfront fee to bring the offer.
• THE BUYER WAITING SCAM
You receive a call that someone has a buyer waiting to purchase your property. Of course you'll be required to pay a fee in order for them to forward this buyer to you. Once you pay the fee, the buyer either suddenly gets cold feet, or you never hear another word from the person or their company again. Sometimes they will tell you they are working with an out of town Buyer and have to have an answer now and will ask you for a fee for various reasons. All of the reasons are bogus.
• APPRAISALS
The only time you should pay a fee for an appraisal for a timeshare is NEVER. At this time it is almost impossible to appraise a timeshare that is sold on the resale market. There is not enough data complied to produce a bona fide appraisal. If you need an appraisal for a divorce or the IRS you should make sure you are using a licensed appraiser who is risking his license to give you an appraisal.
• PAYS FOR ALL CLOSING COSTS.
This is supposed to pay for all closing costs when the unit closes. Closing costs are paid at time of closing not before. Any excuse given for this is a lie.
• SMALL COMMISSION WHEN SOLD.
All the commission should be paid when sold. Why do they need any of it ahead of time?
• PAYS FOR TITLE CHARGES.
Wrong. Title companies do not collect their fees prior to closing. You will get your money back at closing. Wrong. There will never be a closing.
• VACATION CLUB.
They ask you to meet them at a hotel so that you will never have to pay for a maintenance fee again. All of a sudden you belong to a Vacation Club and you have parted with several thousand dollars to join a vacation club. Your timeshare is then given to a person to sell on eBay for whatever it will bring. The person selling the timeshare gets the profit from the sale so they don’t care how much it sells for. The person selling you the Vacation Club gets your money. The value of timeshares has decreased due to the large amount of these timeshares showing up on eBay and other sites so every one gets scammed with this one.
• DONATE YOUR TIMESHARE.
If it is a donation you should not have to pay anything. Especially for an “appraisal” to prove the value. Check to make sure the company you are donating to isn’t just advertising the timeshare on eBay and getting the profits as in the example of the Vacation Club. Before donating, determine how and when the deed is recorded and the resort is notified of your donation so you are off the hook with the resort for future fees! Then follow up on this to be sure it is done.
• WE BUY YOUR TIMESHARE.
But you must pay closing cost, appraisal etc. If you have to pay anything to sell your timeshare don’t do it.
• For Mexican Timeshare Scams go to:
http://www.mexicantimesharefraud.com/
• For United Kingdom :
http://www.timesharetalk.co.uk/forum/ttportal.asp
http://www.timeshare.org.uk/scams.html
• For United States:
http://thetimesharebeat.com/alerts.htm
Our Scams are updated as often as a new one is uncovered by our staff. We are posting this for informational purposes only and make no reference either written or implied as to the perpetrator of these scams. The way to stay informed and protected is to research before you give someone money. Deal with Licensed Real Estate Agents. Work with someone that is licensed so that you will have someone to complain to if you have a problem. Just remember that if you have paid a scammer they will make more money selling your name to another scammer. Their rule is if you have paid once you will pay again.
If you want to check out a company you are going to list with become a buyer first. Call the company you are going to sell your timeshare with and ask for information about a listing they have advertised. Pretend to be an interested buyer and see how they will sell your timeshare. Also email them and see if you get a timely response as a buyer. This is the company you are putting in charge of a big investment. It pays to know what they are REALLY going to do and say.
