The Miami Herald Warns Against Timeshare Resale Scams

The state of Florida, filled to the brim with resorts, is home to one-third of all the timeshares in the United States. With the current state of the economy, thousands of troubled shared vacation property owners are anxious to resell their properties, which is why more and more timeshare resale companies are now entering the field.

The Miami Herald is advising property sellers to be wary of companies that claim to already have timeshare buyers waiting for the property.

These bogus resale companies usually contact timeshare owners and inform them that they have a buyer lined up. However, the owner will only have access to the buyer upon payment of a processing fee.

The article quotes the creator and operator of a legitimate timeshare listing website, who says counterfeit companies convince desperate sellers to give out their credit card number or send a check, to pay for the processing fee.

Companies usually promise that in case the property cannot be sold within a few months, they will refund the fee. But once the said fee is paid, the resale company vanishes, and the owner realizes there was never any real prospective buyer. The owner is then still left with the vacation property and has also been duped out of hundreds or thousands of dollars.

Worse, the article says, there are also companies offering to help sellers who have been previously scammed, only to scam the seller a second time. When a bogus resale company closes, it usually resurfaces under a different name, but with the same customer list.

The Florida Attorney General, the newspaper says, has investigated the practices of about 17 resale companies, and has sued three and reached settlements with seven more. The settlements have reportedly reached $1.6 million in customer refunds.

The Herald also said the attorneys general in Arkansas, Massachusetts, North Carolina, and Oklahoma have issued their own warnings regarding timeshare resales.

To ensure you don’t fall for these scams, never pay a substantial processing fee in advance when dealing with a timeshare resale company. Pay only after the resale has been completed.