Timeshare properties originated in the United Kingdom shortly after World War II. Traditionally, four families would purchase vacation cottages and divide usage time equally.
Their arrangement was based on trust - yet trust has never been a pressing concern for scammers who prey on timeshare owners across North America.
As timeshare owners age, and pricey upkeep fees outweigh the desire to travel, selling or renting seldom-used property can seem like a great proposition. It's easy to imagine droves of winter-weary travelers who are eager to beat the high costs of hotel stays and invest in timeshares.
If you find yourself in the position to sell or rent, receiving an invitation to attend an informational meeting or seminar that promises guaranteed buyers can feel like a stroke of luck. However, these offers that drop out of the blue should always be considered with caution.
Understanding your want to turn a profit, fraudulent businesses will besiege you with telemarketing calls and mailers requesting your presence at upscale hotels and restaurants.
A free meal might sound pretty tempting, but once sales representatives get you in a seat, they may begin by applying high-pressure tactics often hard to digest. Their goal usually centers on getting you to pay upfront for advertisement or access to a pipeline of so-called guaranteed buyers and renters.
The sales person will present himself or herself as a marketing consultant and will explain away the matter of upfront payment as the cost of appraisal, title search, commission and/or promotional materials. They aim to overwhelm you with jargon, hoping you will open your checkbook at the first meeting without assessing your options and doing your homework.
There are a few red flags to watch out for when you get an unsolicited call about your timeshare property. If you are asked to wire money nationally or even internationally, it is wise to walk away. Most above-board operations will have no problem putting contracts and refund policies in writing. If you find resistance here, there is a good chance the company might not offer refunds, even if services are not rendered. If you are quoted large returns on your investment, the deal could be too good to be true. Fraudulent companies often use multiple websites to camouflage their poor reputation and dissatisfied customers.
Better Business Bureau can be an easy to use resource should you consider hiring a company to market or sell your timeshare. You can go to midmobbb.org to get information, or simply do an internet search of the company and BBB to find a Business Profile for a company you are considering hiring.
As a timeshare owner, it is probably a good idea to take a do-it-yourself approach to renting and selling your property. On the other hand, you never know when the travel bug might bite again and call you back to your home away from home.
Sean Spence is the Mid-Missouri regional director for Better Business Bureau.