Timeshare Scam - How to Protect Yourself

The Three Main Types of Timeshare Scams

1. The Purchase Scam (The High-Pressure Trap)

• How it works: You are lured to a resort with promises of "free gifts," "free dinners," or "free cruises" in exchange for a short presentation. Once inside, multiple salespeople use aggressive, multi-hour "emotional tag-teaming" tactics to lock you into a contract immediately.
• The Lies: They falsely claim the timeshare is a "financial investment" that will appreciate in value, omit hidden or rising annual maintenance fees, and hide the fact that the contract is virtually permanent.

2. The Resale Scam (The "Ready Buyer" Trick)

• How it works: Out of nowhere, a "broker" or "real estate agent" cold-calls, texts, or emails you, claiming they have an eager buyer lined up to buy your timeshare for an excellent price.
• The Lies: To close the deal, they demand you wire "upfront fees" to cover taxes, escrow fees, or international closing costs. Once you send the money, the broker vanishes, and the buyer turns out to be completely fake.

3. The Exit Scam (The Fake Contract Cancellation)

• How it works: Knowing you are desperate to get out from under your maintenance fees, predatory "timeshare exit companies" advertise guaranteed legal relief.
• The Lies: They demand high upfront legal retainer fees (often between $3,000 and $10,000). They often instruct you to stop paying your timeshare company. They then perform zero work, leaving you in default, with ruined credit, and out of pocket.
• The Recovery Pitch: If you fall for this, a second branch of the scam often contacts you pretending to be a government or law enforcement agency offering to recoup your lost cash for an additional fee.

Red Flags to Avoid

• Unsolicited Contact: Legitimate brokers do not cold-call you to buy a property you never listed for sale.
• Upfront Fees: Never, under any circumstances, pay an upfront fee to sell or cancel a timeshare. True real estate commissions are paid after a sale is complete.
• 100% "Guarantees": No third party can legally guarantee a resort will let you out of a contract.
• Instructions to Cease Dues: If an exit company tells you to stop paying your resort fees, walk away; it will heavily damage your credit score.

How to Legally and Safely Exit a Timeshare

If you want to get rid of your timeshare obligation safely, use these verified methods:

1. Contact the Resort Directly: This is the safest first step. Ask for their "deed-back" or "surrender" program. Major developers (like Disney, Marriott, and Wyndham) have official internal departments designed to take back units from owners in good standing.
2. Utilize Trusted Consumer Coalitions: Check out resources from the American Resort Development Association (ARDA) Consumer Protection Center or use their vetted, scam-free directories at ResponsibleExit.com.
3. Verify Listings on Legitimate Secondary Markets: If you choose to list your timeshare for resale or rent, use reputable, heavily vetted consumer-to-consumer marketplaces like RedWeek, where you control the listing.
4. Report Fraud Instantly: If you have been targeted or lost money to a scammer, immediately report it to the FTC Report Fraud Portal and your state's Attorney General's office.