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It’s a sad truth that in the timeshare world there are resale scams everywhere. The Colorado Division of Real Estate have come up with some tips to try and stay protected. Some of the tips that may help you avoid being scammed are as follows:

Money:

  • Never send any money up front to a re-seller, they may say that the fees are for transfers, taxes, title work etc, however with legitimate timeshare these fees will come out of the closing costs.
  • Pay attention to how you are being asked to pay. If it is by wire transfer money order or cashier cheque there is very little recourse if you are scammed. Always try to pay by credit/debit card which provides you with much more protection.
  • The scammers will more often than not offer you more money than your timeshare is worth.
  • Always be sceptical if the reseller gives you guarantees or promises that the timeshare reseller can get your timeshare sold (and often within a certain period of time), or money-back” guarantees with respect to those monies you are asked to pay upfront. It’s not true!

Business:

  • Make sure you check the timeshare re-seller, there are agencies and bureau’s that regulate these business in the states. Check them out, make sure they are licensed.
  • Contact the home timeshare resort where you own your timeshare to see if they have any information on the re-seller. A lot of the time, the developer has a legitimate buy-back or resale program.
  • Do not provide personal information, back account information, or credit card information over the phone to a re-seller.
  • Never deal with anyone that does not have an actual office, as many set up fake addresses and be suspicious if they ask you to send information and money to a PO Box.

Tactics:

  • Be wary if a re-seller calls you out of the blue.
  • Pay attention if the re-seller cannot meet you in person.
  • They may tell you to ‘do it now’ – watch out for this.
  • Oftentimes the re-seller tells you not to talk with your attorney, accountant or anyone else. You must ask yourself why!
  • If they tell you they already have a buyer, don’t be fooled!

The Division of Real Estate has received a number of calls regarding what seems to be timeshare scams targeting Colorado consumers, real estate brokers, and out-of-state consumers. In the current version of the scam, timeshare owners are cold-called, mailed or emailed solicitations from an unlicensed business entity saying that they are a full service property management company, real estate brokerage or title and escrow company that lists and sells timeshares.

Representatives of the company give false information to identify themselves to consumers. They use the names and license numbers of actual Colorado real estate brokers, without those brokers actually knowing! The company claims to be a Colorado company but cites a false address in the Denver area. When consumers respond to the solicitation, they are directed to forward various up-front transaction fees (sometimes in excess of $5000.00) to an out-of-state or out-of-country escrow company.

If a customer is contacted by a timeshare resale company, they should contact the division of real estate to confirm the authenticity of the company and its license. In 2013, the Colorado Legislature passed a Deceptive Trade Practices Act related to Timeshare Sales (SB13-182). This act provides that a timeshare re-seller must provide certain disclosures, not falsely advertise its services, and not collect any fees or costs from the seller until the timeshare has been transferred. This means that if anyone is worried, there will be someone who can help, whether it’s local law enforcement, the FBI or other agencies.

 

For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk