Beware of Timeshare Resale Scams
Provided by HG.org
From fraudulent claims of what the property is and where to scams of various individuals selling no actual building, it is important for buyers to know what is sold and to check out the building before the purchase. This may prevent any timeshare resale scams, and the victims may band together to seek legal remedies.
Timeshare scams are everywhere with many persuasive salespersons seeking to sell interests that donít exist or for properties that cannot book time for those with ownership. These scam artists seek to attract buyers from all ages, but particular targets may come in older ages that may become confused quickly with doubletalk and misleading information. Sometimes, these scams occur through a company that wants to sell interests in timeshares without any option for actual use by the owners. Because they must book the time in advance, the business may postpone these times and then eventually cancel any possible booking so that no time living in the building may occur.
What is a Timeshare?
When a property with amenities has selling interests for time around the year, the building becomes a timeshare. The owners of these interests share the time they may reside in the property with a few days to a few weeks. Other owners have similar property rights and book times in the building for time away from home, for vacation or other adventures. Sometimes these locations have other benefits such as a beach nearby or activity centers. Many families or couples have timeshare interests and book in week blocks for parties, vacation getaways and for rest and relaxation.
The Scams Explained
When a person purchases a timeshare, there are often conditions attached to these deals. Some of the deeds of ownership for the interests have specific terms attached that may require a special type of sale if the owner may sell the interest at all. Some deeds only last so many years and then revert to a company or are part of a distribution to the rest of the remaining owners. Some have stipulations that only permit the resale to other owners of small interests. When these conditions exist, the resale is not possible. Then, any new buyers become part of the scam.
Some particularly devious and deceptive scam artists may not have any property to sell at all. They may swoop in and organize a meeting of numerous individuals for timeshare reselling. Others have the actual property but have no benefits. The information supplied is misleading or redirects questions. The seller could have a smooth tongue and mislead or misdirect the potential buyers by talking around the topic. Confusing the buyers is important for some reselling opportunities to ensure the interests purchased sell fast. If the time is running out, the current owner may want to push all the amenities and benefits without explaining that only a year or a few months remain for the deed of ownership.
Avoiding the Scam
To ensure that the timeshare exists or that the property is what the agent advertises, the potential buyer needs to ask a variety of questions. It is also essential to receive answers to every question. If the agent attempts to talk around or confuse the buyer with unnecessary details or answers to inquiries the possible purchaser did not ask, it could involve a scam. Other problems may exist if the property is not viewable before the timeshare purchase. A survey or assessment of the building and surrounding land is usually crucial before any real estate property is bought. Even if the buyer will only reside in the building for a few weeks a year, any purchase should have full disclosure.
Oftentimes, it is critical to pay attention to the mannerisms of the agent or seller. If he or she is attempting to resell a timeshare, it may involve a short window of the current deed of ownership. The buyer needs to know all the important details before the resell completes. The person selling the interests may sweat, move his or her limbs uncontrollably, have little or no information about the property or mislead any possible buyers. Any attempts to sway someone without all the data about the timeshare could show that the situation is a scam.
Timeshare Scam Legal Support
When a buyer has become involved in a scam with a resold timeshare, he or she needs legal support to either remedy the situation or to receive compensation for the lost income. Litigation or a negotiated settlement may resolve the matter.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.