The Timeshare Resale Scam: How It Works

You’ve taken the right steps in making your vacation dreams a reality however, in the Timeshare world, there are many unscrupulous resale companies that employ deceptive strategies to scam unsuspecting Owners out of their hard-earned money. Keep reading so you can identify the warning signs and be prepared to avoid the pitfalls.

  1. Timeshare scammers pretend to be legitimate companies. Timeshare resale scammers sometimes pretend to be representatives of licensed real estate companies. The pretext may be to misrepresent themselves by using the name of a Broker who is no longer active or otherwise assume the identity of another entity. If ever you are contacted, be sure to do your research to confirm legitimacy.

  2. The scam caller tells you they have a buyer ready. Scammers will claim that they already have motivated buyers ready to purchase based on the condition that the transaction is completed with urgency. To accomplish the quick sale, the scammer will then charge the would-be seller expensive, up-front listing fees that do little to actually sell the property down the line.

  3. The resale scammer requests an upfront fee. Legitimate Timeshare real estate companies do not need to request an upfront fee. In fact, this practice is illegal in some States! Scammers may claim that upfront fees are needed to cover taxes or make other payments involved in the Timeshare sale process. There have even been documented cases in which scammers have misrepresented a required fee to be an official government mandate that if paid, could lead to legal challenges for the seller. These 'fees' of course, are purely a scam to con you out of your money. Always be skeptical of a company asking for an upfront fee, especially if they request a wire transfer.

  4. Scammers promise a dream selling price. There’s no better way to get someone to agree to a timeshare resale than the promise of a great price! If approached, be skeptical of an offer that is higher than the value you think, especially if you don’t have respective documentation to confirm. As with other forms of real estate ownership, market values and demand tend to set the standard for the asking price when it comes to selling a Timeshare property. Even the best, most professional selling agents in the industry agree that this is the case! Anything that claims to be otherwise, is simply misrepresentation.

  5. They claim that a government wants to purchase your timeshare. Some scammers will claim to be a prospective buyer acting on behalf of official entities such as the Mexican government Governments do not typically establish supply chains for property acquisitions with individuals, and will most likely operate in a different manner. Bottom line, this is just an official-sounding spin on an old con-job tactic.

  6. The resale scam agent insists that you must “act now.” Just remember - you own a valuable Timeshare. Given the required investment, real buyers will assess the value and wait to ensure that they are making a wise purchase. Undue pressure to act immediately in order to make your timeshare unit available for resale is typically just that - undue pressure! Don't get taken for a ride and before you decide, take a step back, research to gather the facts, consider the options being presented and make an informed decision before you commit.

If you think that you have been contacted by a scammer and need assistance, please contact us at 800-351-0461, Monday through Friday from 9 a.m. to 5 p.m. Eastern Time.