The Most Common Scams in the Timeshare Resale Market

Common timeshare resale scams include unsolicited calls from fake buyers demanding upfront fees, fraudulent “viking ship” companies that promise to take over ownership, and deceptive exit lawyers charging thousands for unnecessary services. You’ll need to watch for red flags like pressure tactics, wire transfer requests, and offers above market value. Legitimate resale companies won’t contact you unexpectedly or require advance payments. Understanding these schemes and verification steps will help protect your investment.

Understanding the Legitimate Timeshare Resale Market

While many timeshare owners fear they’re stuck with their properties forever, a legitimate and active resale market exists to help them sell their unwanted units. Reputable timeshare resale companies like Fidelity Real Estate demonstrate the viability of this market, with over 90% of Disney Vacation Club listings selling within 90 days.

You’ll find that legitimate timeshare resale businesses operate under strict real estate regulations and don’t charge upfront fees. These companies provide essential services that connect motivated sellers with interested buyers, creating a transparent marketplace for timeshare transactions. When you work with licensed resale professionals, you’re participating in a regulated industry that protects both buyers and sellers. The success rates of established companies prove that with the right approach and proper channels, you can successfully navigate the timeshare resale market.

Red Flags of Out-of-the-Blue Buyer Schemes

Frequently, timeshare owners receive unexpected phone calls from scammers claiming to have enthusiastic buyers ready to purchase their properties. These fraudulent operators use scare tactics and pressure to convince you they have a legitimate deal, often promising sales prices well above your original purchase price.

Be extremely wary if you’re contacted without prior permission about selling your timeshare. Legitimate companies don’t make unsolicited calls with ready buyers. The biggest red flag in these scams is the demand for upfront fees, supposedly to cover closing costs or broker commissions. Once you pay these fees, the supposed buyer vanishes.

Remember that timeshares typically depreciate in value, so offers considerably above market price are almost certainly fraudulent. Never provide payment or personal information to unsolicited callers claiming to have timeshare buyers.

The Viking Ship Company Deception

Since scammers have become increasingly sophisticated in their tactics, you’ll need to watch out for “Viking Ship” companies – deceptive shell corporations created solely to take over timeshare ownership through fraudulent transfers. These companies target vulnerable timeshare owners by claiming they can help sell timeshare properties or facilitate transfers.

When promoting their Timeshare Resale services, these fraudulent operators use high-pressure tactics and false statistics to convince you that your timeshare is a financial burden. They’ll promise to take over ownership but often leave maintenance fees unpaid. The companies are typically structured as LLCs, making it nearly impossible to track down the responsible parties when things go wrong. If you’re looking to sell timeshare properties, be wary of unsolicited offers and companies that contact you first about transfers.

Fake Real Estate Agent Tactics

In today’s digital age, fake real estate agents have mastered the art of impersonating legitimate timeshare resale professionals. These scammers create deceptive email addresses that closely mimic authentic companies, reaching out to you with claims of having ready buyers for your property.

When these fraudulent resale representatives contact you, they’ll employ high-pressure sales tactics, insisting that a buyer is waiting and the deal must close immediately. They’ll demand an up-front fee, often disguised as closing costs or commissions, but they’ll disappear once you’ve sent the money. To protect yourself, always verify the agent’s license with your state’s real estate regulatory agency before proceeding. Don’t trust unsolicited calls or emails, and never provide personal or financial information without thoroughly investigating the company’s legitimacy first.

Timeshare Exit Lawyer Fraud Methods

Timeshare exit lawyers represent another layer of deception in the resale scam landscape. These attorneys promise to cancel your timeshare contract for thousands in fees, often with money-back guarantees they don’t honor. They’ll mislead you by claiming there’s no resale market for your property while pressuring you to use their “exit” services.

Don’t fall for timeshare exit companies that advise you to stop paying maintenance fees. This dangerous advice can lead to collections, foreclosure, and financial burdens for other owners. These timeshare scams typically operate through LLCs, making it difficult to track down the perpetrators when they fail to deliver. Watch out for their scare tactics and false statistics designed to convince you that your timeshare is worthless and must be transferred immediately.

Upfront Fee and Wire Transfer Scams

While legitimate timeshare resales rarely involve upfront payments, scammers frequently demand wire transfers or prepaid cards before a supposed sale can proceed. They’ll claim they’ve found an enthusiastic buyer willing to pay an impressive price for your timeshare, but you’ll need to pay upfront fees for closing costs or commissions first.

Don’t be fooled when they pressure you to act quickly or promise unrealistic returns on your investment. Timeshares typically depreciate in value, so any offer substantially above your purchase price should raise red flags. If someone asks you to wire transfer money before completing a sale, it’s almost certainly a scam. Remember, legitimate resale companies won’t require upfront fees. Once you’ve sent money via wire transfer to these scammers, you’re unlikely to ever see your money again or complete a sale.

Steps to Verify Legitimate Resale Companies

Protecting yourself from resale scams starts with knowing how to identify legitimate timeshare resale companies. Before engaging with any resale company, check their credentials through the Better Business Bureau and verify how long they’ve been in business. Research their physical address and confirm it’s not just a P.O. box or virtual office.

Contact your timeshare resort directly to ask if they’ve worked with the resale company before. Request written documentation of all fees, commissions, and services. A legitimate resale company won’t pressure you for immediate payment or require wire transfers. They’ll provide clear contracts that outline their services and refund policies.

If you encounter suspicious behavior, don’t hesitate to file a complaint with the Better Business Bureau and your state’s attorney general’s office.

Reporting Timeshare Fraud and Legal Resources

If you’ve fallen victim to a timeshare resale scam, you should immediately report the fraud to multiple authorities. File a complaint with the Federal Trade Commission (FTC) through their online portal or by phone. Contact your state’s attorney general’s office, as they often have dedicated consumer protection divisions that investigate timeshare fraud.

If you paid by credit card, call your card issuer immediately to dispute the charges and request a chargeback. Document all communications, save emails, contracts, and receipts related to the scam. Consider joining class-action lawsuits if they exist against the fraudulent company. You’ll also want to consult with an attorney who specializes in timeshare law – many offer free initial consultations and can advise you on potential legal remedies or participation in ongoing litigation.

Protect Yourself from Timeshare Resale Scams

Staying vigilant against timeshare resale scams is critical to protecting your investment and financial security. Like a shark circling its prey, fraudsters constantly evolve their tactics to exploit unsuspecting owners. You’ll safeguard yourself by verifying credentials, avoiding upfront fees, and working only with licensed professionals. If you’ve been victimized, don’t hesitate to report the fraud to authorities and seek legal assistance immediately.