Advanced Realty AL

Consumers should beware of unsolicited calls, emails, or mailings from anyone claiming they have a buyer for your timeshare or vacation property and asking for fees in advance. Many timeshare resale schemes begin with a salesperson contacting you with an offer to broker a sales transaction for your timeshare. Often times they require a fee to be paid to them, many times through wire transfer, to cover past “maintenance fees”, "legal and processing" fees, "closing costs”, or another fee before the sale can go through. Many individuals who have paid these fees never hear from the companies again. Some fraudsters have even posed as legitimate businesses in order to perpetrate the fraud and after they have collected their fees, they disappear.

Business Consumer Alliance urges timeshare and vacation property owners to use caution, especially if you receive unsolicited contact offering to sale your timeshare. In California, only licensed real estate brokers (or salespersons employed and supervised by the brokers) may list and sell "timeshares for resale". In addition, advance fees for resale services may only be collected by the broker (or supervised sales person) if they have a written “Advance Fee Agreement” that has been reviewed by the Bureau of Real Estate Commissioner, a “No-Objection Letter” is issued by the department to the broker, and the advance fees are properly handled and placed in a trust fund belonging to timeshare owners. A violation of the rules on advance fees constitutes grounds for disciplinary action against a real estate licensee, as well as grounds for criminal proceedings.

BCA offers the following advice to timeshare owners:

·         Before you agree to let a third party market, advertise, or sell your vacation property/timeshare check out the business. Make sure the company is in good standing. You may find information on the company on Google, social media, or related searches via the internet. In addition to searching the company name, also search key personnel and principals since many scammers conduct business under various DBA’s and business names. Also, check with the timeshare to determine if there are any restrictions, limits, or fees that could affect your ability to resell or transfer ownership.

·         Do not give in to pressure to act immediately or promises that your timeshare can be sold rapidly. Many companies claim that they have buyers ready to purchase your timeshare or property to get you to agree to a contract. Unfortunately, often times these promises are not fulfilled.  

·         Do not agree to anything over the phone. Request a copy of the reseller’s written contract and request a written statement of all fees and costs associated with the sale. Do not sign any contract or agreement that you do not understand, or if you do not agree to the terms contained in the contract. Negotiate any portion of the contract that you do not agree with.

·         Beware of company’s asking you to pay upfront fees for services. Also it is wise not to pay any fees in cash, money order, or wire transfer, as these forms of payment provide little if any recourse in the event that you are dealing with a fraudulent business. Credit card transactions can be disputed with your credit card issuer if there is fraud involved or in the case that services are not rendered. You may ask that any payments made be placed in a independent escrow account of your choice to ensure that your money is secure while services are being completed.

·         Ask the reseller if they are licensed to sell real estate in the area where your timeshare is located and verify that they are licensed.

·         Verify that the business has an actual physical location, not just a PO Box or mail facility.

·         Obtain in writing details on how the reseller will advertise and promote your timeshare. Ask if and how frequently you will receive progress reports on the sale. Also confirm how long they will market your property.

·         Obtain references of previous clients who have successfully used the company’s services. Contact these individuals to hear their experience with the business. Also, obtain information on purported buyers

·         Check with your timeshare resort or administrator to determine if there are any restrictions, limitations, or costs involved that will affect your ability to resell or transfer ownership of the timeshare.

·         Shop around and compare prices and services so you can make the best decision

Before signing a contract with a reseller, review the terms and conditions and make sure you agree with them. If the deal isn’t what you expected or wanted, don’t sign the contract. Negotiate changes or find another reseller. The contract should include the services the reseller will perform; the fees, commissions, and other costs you must pay and when; whether you can rent or sell the timeshare on your own at the same time the reseller is trying to sell your unit; the length or term of the contract to sell your timeshare; and who is responsible for documenting and closing the sale.

You should also gather your documents and information about the timeshare. You’ll need:

·         the name, address, and phone number of the resort

·         the deed and the contract or membership agreement

·         the financing agreement, if you’re still paying for the property

·         information to identify your interest or membership

·         the exchange company affiliation

·         the amount and due date of your maintenance fee

·         the amount of real estate taxes, if billed separately

If you want an idea of the value of a timeshare that you’re selling, consider using a timeshare appraisal service. The appraiser should be licensed in the state where the service is located. Check with the state to see if the license is current.

Remember fraud can happen to anyone even if all of the above precautions are taken. Research, research, and research some more. If it sounds too good to be true, it probably is. If you have been a victim of a timeshare resell scam or have a problem with a timeshare reseller you may file a complaint or write a review about your experience on our BCA website, or with your local government protection agency.