TIMESHARE SCAMS

Timeshares, Vacation Clubs, and Related Scams

• What To Know Before You Commit

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• How To Handle Sales Presentations

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• Avoid Timeshare Resale Scams

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• Buying Undeveloped Property and Timeshares in a Foreign Country

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• Reported Timeshares Scams

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What To Know Before You Commit

Timeshares

When you enter into a timeshare agreement, you are essentially paying for the right to use a vacation property for a specific length of time and with a set frequency — for example, one week every year. Timeshare properties are typically located in resorts or condominiums in popular vacation destinations. Owners usually pay a large upfront fee to join, followed by regular maintenance fees and other charges to keep the ownership active.

But not all timeshares work the same way. For example:

• Some timeshare agreements give you the right to stay at a resort for one week every two years. The exact week may change each time.
• Deeded timeshares let you buy a specific unit for a specific week each year. Legally, these are considered real property that your heirs can inherit.
• Points-based timeshares let you use a set number of points at different properties. The points required will vary depending on the location, unit type, length of stay, and season.

Fraud warning: Sales staff often misrepresent timeshares as “financial investments.” In reality, timeshares almost never appreciate in value. Their true worth is only in the ability to use them for vacations — not in resale or profit.

Also note: the laws governing timeshares vary by state. It’s important to understand what consumer protections (such as cancellation rights) apply where the property is located.

Vacation Clubs

You may have seen ads — or received promotions by mail or email — for vacation clubs. Some are simply a variation of a timeshare: you pay an upfront fee to enroll, and then pay separately each time you use a resort. Others claim to provide discounts on travel, lodging, or vacation-related perks once you’re a member.

Fraud warning: Companies often use the term “vacation club” loosely, and in some cases deceptively. Always demand details in writing, and be wary of promises of luxury access or guaranteed savings that rarely materialize.

Before signing anything, take time to investigate what you are really committing to. At Advocate Solutions Group, we’ve seen many consumers fall into timeshare traps that could have been avoided with the right questions:

• Find out the true cost. Add up the purchase price, taxes, annual fees, travel expenses, exchange fees, and any other charges. Is this really how you want to spend your vacation budget every year?


• Ask about exchange programs. If you are told you can exchange your weeks or points, find out whether there are additional charges or restrictions. Some exchange networks carry steep fees.


• Understand the point system. If the timeshare or club uses a point-based system, ask how many points it takes to book the trips you want — and whether you’ll need to buy more points later.


• Anticipate rising fees. Maintenance fees usually increase annually, sometimes faster than inflation. Ask whether your plan has a fee cap. Remember: you’ll owe fees and taxes even if you don’t use your timeshare.


• Know your exit options. Timeshares are notoriously hard to sell. Ask if there is a legitimate exit or cancellation program, and how it works. For vacation clubs, understand the cancellation policy before you join.

How To Handle Sales Presentations

Sales presentations are designed to pressure you into making quick decisions. Promoters lure consumers with “free vacations” or prizes. Once you arrive, you’re shown glossy photos, staged tours, and a carefully crafted atmosphere that makes you feel like you’re already living the dream.

But behind the scenes, many presentations rely on high-pressure tactics, such as:

• Forcing you to wait for long periods to wear you down.
• Requiring you to meet with multiple salespeople.
• Pushing “today only” offers to create false urgency.
• Exhausting you until you’ll sign just to leave.

Tips for protecting yourself:

• Research the company and look for complaints before attending.
• Never act on impulse. Remember, you’re committing thousands of dollars, often for decades.
• Challenge “today only” deals — if the company sets the rates, the offer will still be there tomorrow.
• Ask about your legal right to cancel (known as a “cooling-off period” or “right of rescission”). If you cancel, send written notice by certified mail and request a return receipt.
• Take all paperwork with you and review it on your own time. Never rely only on verbal promises.

Avoid Timeshare Resale Scams

For many owners, the only way out of a timeshare is resale — and unfortunately, scammers exploit this desperation. Fraudulent resale companies advertise heavily online, on the radio, and on social media, often with big promises they never deliver on.

Common scam tactics include:

• “The market is hot, we can sell your unit easily.” (They can’t.)
• “Your timeshare will sell quickly, in months.” (Highly unlikely.)
• “We have buyers waiting right now.” (Almost never true.)
• “We guarantee big returns on resale.” (Impossible.)

The truth: The timeshare resale market is overcrowded, and resale value is often a fraction of what owners originally paid. No company can guarantee a sale.

To protect yourself from resale scams:

• Check the reseller’s complaint history with regulators and consumer agencies.
• Work only with licensed real estate agents in the state where your timeshare is located.
• Avoid large upfront fees — choose companies that collect payment only after the sale.
• Ask how they will actively advertise your timeshare and whether you’ll get progress reports.
• Get every promise in writing, and read contracts carefully.

Tip: Don’t expect to recover your purchase price. Many timeshares, especially those less than five years old or in less desirable areas, sell for much less than their original cost. If you’re unsure, consider hiring a licensed timeshare appraiser in the state where the property is located.

Buying Undeveloped Property and Timeshares in a Foreign Country

International timeshare and property scams are common. Fraudsters target buyers with glossy brochures, staged photos, and promises of luxury resorts that never get built.
If you are considering a purchase abroad:

• Choose a U.S.-based consultant who understands international property laws and financial risks.
• Use an escrow service for payments. Funds should not be released to the seller until you have verified the purchase and approved the terms.

Fraud warning: Many international timeshare buyers lose money to companies that disappear after collecting deposits. Always verify the legitimacy of the seller and property before committing.