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SCAMS BULLETIN Host Jay White is an inactive attorney in San Mateo County, California.

June 21, 2021

TIMESHARE RIPOFF 

Courtesy US Federal Trade Commission

What is a Timeshare?

A timeshare is an arrangement whereby several joint owners have the right to use a property as a vacation home under a time-sharing agreement. If you are considering having a timeshare this vacation season, read on.

Maybe you received a flyer in the mail with pictures of sunny beaches and beautiful resort suites. Sounds great, right? But before you sign a timeshare contract, make sure you understand what you’re getting into — and how to get out of it.

Not all timeshares work the same way. Some use points to determine where you can stay and for how long. Others get you one week a year at a resort, but it’s not always the same week or the same unit. The cost also varies … a lot. Typically, timeshares require you to pay initial fees and yearly maintenance fees that may increase every year.

A timeshare document is complex and will give you a membership right to use certain property. Unless certain arrangements are expressly included, it will not provide a deed title ownership to the property.

 Aggressive promoters might offer you a gift or delicious meal as enticement to attend a timeshare presentation. If you decide to attend, the sales staff will likely make a lot of promises and pitches designed to get you to sign right then and there without giving you time to think about it or do any of your own research. You will not have read the “fine print”.

 Before you sign that timeshare agreement, ask yourself a few questions:

Do I understand my rights under terms of the document?

If the timeshare is only for a specific property, is this where I want to vacation every year?

Can I afford this timeshare, even if the maintenance fees go up?

Do I have the time to deal with issues that may arise if I can’t book the unit I want during the time I want to travel?

If I no longer can afford or want the timeshare, how can I sell it?

MORE INFORMATION

Read Timeshares, Vacation Clubs, and Related Scams for more tips.

Blog Topics: Homes & Mortgages, Renting & Timeshares

ANECDOTAL COMMENTS

*Timeshares are the biggest rip off in the world. Avoid them at all costs. They lie to you and pressure you to buy knowing once they got you on the hook, they got you. You will be paying for life. Fees Increase yearly. It’s hard to get the place you want when you want it. Be warned!!!

*I got talked into this in 2012. Could never find a resort when I wanted to go on vacation. These are all lies and you never own a resort. Just pay high fees and maintenance fees go up every year. I am with a company to get me out of this mess! They should be made to pay me back all the money I lost in their lies!

*We’ve had a timeshare for over 20 years. They work great for a vacation week but they are not investments. Our sales person was honest and told us that but she said it guarantees you a nice vacation for a week. Now the sales people are getting too aggressive to make a sale and they turn people off. Too bad.

*Thank you for this very important warning! I almost bought a timeshare in Mexico and am so glad I didn’t! The area is riddled with crime now and unsafe.

*Great bullet point about “how can I sell it?”, but I didn’t see any information in the article about that. So, how can I sell my timeshare? There are so many scammers out there, where is a safe place to go?

*My ex-wife and I had a time share and it was a disaster. The cost rise sharply every year and you pay a fee to change locations or date. A timeshare is almost a Ponzi Scheme, they need to keep feeding the bottom to supply the top. Stay away!!!!!!!!

*They may tell you not to worry about reselling the timeshare as there is so much demand for it. However, think ahead 10 yrs or so and realize the property may have changed who manages it and it may be impossible to get out of it. Third parties make a business off getting people out of timeshares, and you usually have to pay them to take it so that you can be rid of the fees. Life happens.

You can report scams, fraud and bad business practices at the FTC website: www.ReportFraud.ftc.gov.

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