Timeshare Resale Scam

Overview

Scammers target timeshare owners trying to sell, promising a quick sale at a big price if the owner first pays an upfront "registration" or closing fee — then the company disappears with the money.

How It Works

Timeshare owners who want to sell receive unsolicited calls or emails from people posing as resale agents who claim to have eager buyers lined up, often "big-name companies" wanting the timeshare for business travel or events, and who guarantee a fast sale at a hefty price. Before the "deal" can close, the company says the owner must pay several hundred to a couple thousand dollars via credit card for "registration," listing, advertising, or closing fees. Once the fee is paid, the promised sale never happens — the company's promises of ready buyers, fast sales, big profits and money-back guarantees turn out to be lies, and owners are left stuck with credit card debt from paying the fee.

Red Flags

• A caller or company claims the market for your timeshare is "hot" and they're "overwhelmed" with eager buyers
• You're told they already have a buyer ready to purchase, or they promise to sell your timeshare within a specific short timeframe
• You're asked to pay an upfront fee (reported as $500-$2,000) by credit card before any sale closes, sometimes labeled "registration" or closing costs
• They promise a money-back guarantee if the resale doesn't go through
• The company doesn't provide a contract, or provides one that doesn't accurately reflect the conversations you had

Real Examples

• FTC's 2014 consumer alert describes a company, Vacation Property Services, that claimed to represent big-name companies eager to buy timeshares for business travel and events and guaranteed owners hefty returns, then charged $500 to $2,000 in "registration" fees before disappearing

Where It Spreads

How to Protect Yourself

• Never pay any fee upfront to a timeshare reseller — it's better to do business with a reseller that takes fees only after the sale is complete
• Check out the reseller with the state attorney general and local consumer protection agency where the company is located, and search their name online with words like "complaint" or "scam"
• Confirm the reseller's agents are licensed to sell real estate in the state where your timeshare is located
• Be skeptical of guarantees of fast sales, ready buyers, or big guaranteed returns — these are classic signs of a scam

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