Legitimate Companies That Buy Timeshares

There are a few legitimate companies that buy timeshares. While most real estate agents choose not to deal with these resorts, some reputable companies focus on canceling timeshare agreements. Often known as timeshare cancellation services, these organizations sometimes differ from those that originally offered and sold you your timeshare. These businesses often demand up-front costs, but a legitimate timeshare cancellation company will provide an escrow payout. These companies are more concerned with finding easy, legal methods to end your timeshare arrangement than selling your timeshare, and they are aware of and protect your legal rights as a customer.

Timeshare purchases have always been considered dangerous investments that are susceptible to high-pressure sales methods and scams. It also pays to exercise caution when someone promises to assist you in selling your vacation property or holiday home. 

The conventional timeshare reselling fraud operates as follows: You get a call from a purported broker who claims to have a potential buyer lined up and ready to negotiate after seeing your internet “for sale” advertisement. If the buyer confirms their interest, the caller may even provide the buyer’s name and phone number to convince you to settle any number of selling expenditures, such as taxes, maintenance fees, closing costs, escrow and title services, or an advance fee for the resale firm, the fraudster sends over signed purchase paperwork that seems real, then demand that you supply a credit card number or make a wire transfer. You can receive partial or whole cost reimbursement when the purchase is completed. But the contract never closes; the fraudster keeps the fees, which might cost hundreds of dollars. It may already be too late to file a complaint about the credit card transaction by the time you discover you’ve been taken advantage of. And the timeshare is still a liability for you. 

The Department of Justice claims that the Mexican telemarketing rings the FBI seized in October 2019 made false promises to help sell timeshares to individuals throughout North and South America, netting them more than $10 million in fees. So far, two fraudulent individuals have entered guilty pleas and are now imprisoned for 18 months. Take these measures if you own a timeshare to protect yourself from being taken advantage of.

The Five Phases of a Timeshare Resale Scam

There are a lot of eager timeshare owners, and even sometimes anxious, to get out of their timeshares. Some people are, in fact, so eager to get rid of their timeshares that they will accept any offer to resell the property, even if it means they will lose hundreds or even thousands of dollars to scammers who are selling timeshares on the secondary market. Fraudsters exploit optimistic timeshare owners by promising them money and a speedy sale. Although some timeshare resale companies are regulated and respectable, fraudsters are neither of these things. 

In addition, the Federal Trade Commission (FTC) has also created a very useful infographic that breaks out the procedures behind a typical sort of fraudulent timeshare resale scheme. Let’s look at the many phases of this common scam and the preventative measures you must take as a matter of precaution and due vigilance. The first step in the five phases of a Resale Scam is when…

1. A Timeshare Resale Company contacts you to offer assistance:

This random reselling company offers to help you “get rid of” your timeshare; it seems like the ideal match, but Most likely not.
Any timeshare resale company that contacts you first with a resale enticement should be avoided, especially if the company claims that the demand for your vacation property is very “trendy” or that they have buyers lined up and eager to make a purchase. Before proceeding with the timeshare reseller, look online for customer complaints. More significantly, check with the Attorney General and local consumer protection organizations in the state where the reseller is based to learn more.

2. A Timeshare Resale Company contacts you to offer assistance:

The resale scamming company follows up with payment in advance, often via a wire transfer or credit card. These payments are often demanded closing charges, registration costs, taxes, or timeshare maintenance. Scammers often ask for this transfer before signing any documents or contracts.
Don’t send money to the timeshare resale company without investigating it, even if they provide a money-back guarantee. Before investigating the reseller and requesting all information in writing, only commit to something over the phone or online. Ensure you have a contract outlining the services the timeshare reseller will provide, the costs, commissions, and other charges you must pay, and when before engaging in any transaction. We like to recommend contacting companies that provide escrow to ensure transparent transactions. Having an attorney analyze the resale proposal and assurances is also essential.

3. A Timeshare Resale Company contacts you to offer assistance:

Some fraudulent resale schemes have resulted in the theft of thousands of dollars from timeshare owners. On the secondary market, timeshares sell for a little more than their initial purchase price. Many timeshare owners list their property on eBay for as low as a few dollars, and to be even more competitive, they will also offer to pay any closing charges or transfer fees associated with the sale.

4. A Timeshare Resale Company contacts you to offer assistance:

Suppose you have reached this point and paid the hefty fees the reseller demanded. You now have to play a waiting game while the scammer vanishes without leaving you a single message by email, phone, or letter. At this point, it is evident that a timeshare property buyer never truly existed. You won’t be able to get your money back since you likely never signed a cancelreturn policy in the first place. To make things even worse, likely, this timeshare scam has yet to be ended.

5. A Timeshare Resale Company contacts you to offer assistance:

The affected business owner may then be contacted by a second fraudulent company, which may promise to assist in the recovery of the money lost in the first scam in exchange for yet another charge. The same happens with the previous scam: no money is retrieved, and phone calls and emails go unanswered.

Never Purchase an Oral Commitment

Know that you shouldn’t have to pay upfront for assistance if you’re considering selling your timeshare. And be very cautious of any business that requests this of you, particularly if it promises a sale or has a money-back guarantee. 

Following the Federal Trade Commission (FTC), “Never pay for a promise.” The FTC has prosecuted certain businesses for defrauding timeshare owners and shut down several businesses that ran resale schemes during the last few years. Therefore, be wary of offers that seem too good to be true and conduct research before hiring a professional to sell your timeshare.

Report the incident to the BBB and submit a police complaint if you believe you have fallen victim to a resale scam. It would help if you spoke with a lawyer to evaluate your best alternatives since you could have additional legal options.

How to Avoid Falling Victim to Fraudulent Resale Companiess

i. Ask the resort whether it offers a resale program rather than depending on a stranger to negotiate a transaction by making a cold call. Consumer Reports advises determining whether the resort has any constraints on selling timeshares, such as fees or other restrictions.

ii. To find out whether a resale company has a history of complaints, check with the Better Business Bureau and the consumer protection authority in your state.

iii. Always read the small print. Make sure a sales agreement adheres to all of the reseller’s promises by thoroughly reading it. Consult a lawyer if possible; only sign if the conditions are what you expected.

iv. Be reasonable in your expectations for resale profits, and be careful of any seller that promises a huge profit.

v. Never accept any terms over the phone. Before making a decision, research the reselling company.

vi. Refrain from assuming you’ll get your money back, particularly if you’ve only had the timeshare for a short while if it’s not in a renowned resort.

vii. Never pay fees in advance. The Federal Trade Commission (FTC) advises doing business with resellers that only take payment once the transaction is completed.

Summary

Suppose a buyer believes they have been the victim of a scam involving a resold timeshare. In that case, they should seek the assistance of an attorney to either rectify the problem or collect compensation for the lost money. The issue could be resolved via the legal system or negotiations leading to a compromise. Most importantly, Timeshare owners should avoid any timeshare cancellation with no escrow payment option to avoid falling victim to resale scams, as it is easier to retrieve your funds if the company fails to carry out its services. Suppose you are looking for a timeshare cancellation company. In that case, you can go through our list of reliable timeshare exit companies, give us a call at 619-354-2362, fill out the contact form on the right side of the page, or start a live chat with us if you want to learn more about any timeshare exit.