Contrary to popular press, most timeshare offers are legitimate; you just need to decide whether it is right for you. However, there are a number of different types of timeshare scams that you might fall foul to if you are not careful check the reputation of the company you are dealing with.
One of the most common types of scams are the companies who offer to sell your timeshare for a cost. You join their company, pay the fee and then never hear from them again. Some scammers even phone you and say that they have a buyer ready offering a great price and that you need to pay the fee upfront. Perhaps you were not even thinking about selling your timeshare until you were offered more than what you paid for it!
Buying a unit that has not yet been built, especially from a company that is not well established can be huge risk. In some cases, the property is never intended to be completed – hence the scam – so you have bought a timeshare that you will never get to use. If this happens in a foreign country, it can be almost impossible to get your money back.
Some scams involve enticing you to a timeshare presentation on the condition that you will receive a monetary rebate or a huge prize like a car, when in fact you get a toy car and paper money. While these scams are relatively harmless in comparison to other scams, some ask you to pay a fee to be able to enter the possibility of winning your prize.
You are a victim of timeshare scam if you were told these statements at a sales presentation:
“…our timeshare is a good financial investment.”
“…you can rent your timeshare weeks and make a profit.”
“…you can sell your timeshare anytime and make a profit.”
“…XYC company will buy your old timeshare for a considerable amount of money.”
“…our timeshare offers you exceptional benefits and discounts for airfare, car rental, cruises, hotels or tours.”
“…our timeshare offers tax advantages.”
“…our timeshare is a deeded or like a deeded property (perpetuity).”
“…please, sign this waiver rescinding your right to cancel your timeshare within the 5 day recsission period as we are activating your timeshare today.”
Timeshare industry is known for being very susceptible to scams. Year after year, thousands of people around the world feel they were scammed by a timeshare developer. The reason why fractional ownership is successful, it’s because shared properties have become a tremendously profitable way for resorts to sell real estate- mostly suites in important touristic destinations. On the other hand, despite the success, timeshares have gained a bad reputation.
A timeshare might sound as an appealing purchase for anyone, considering that timeshare presentations are full of promises and big expectations that leave most of their assistants blown away. Therefore, lots of families buy a timeshare with the anticipation to travel all over the world with it.
The timeshare industry keeps getting a bad reputation, and yet there are many people who still pay thousands of dollars for them. In fact, time shares are one of the top sellers in the hotel industry; however, that doesn’t make them a good purchase.