subject: Staying Clear of Timeshare Scams [print this page] Over the years, the timeshare business has developed a reputation for being one of the most scam-filled industries out there. Although most timeshare offers are legitimate, scams and shady deals flocked the market so much that people started generalizing and taking the business as a big fraud. Also not helping the industry's reputation are timeshare brokers and agents who use hard-sell tactics and other sales practices that aren't necessarily illegal but definitely unethical.
Sales Pitch Warning: Most sellers often persuade people to listen to their entire pitch by offering extravagant prizes to those who will be staying. Among these "prizes" are free vacations, cash rebates or new cars and appliances. It pays to read the fine print, because often the free gifts aren't what they seem, or you will actually have to pay some kind of hefty fee to qualify to win. There have been reported cases in which the free boat offered by the agent turned out to be a toy yacht. Another scenario includes timeshare owners being convinced by sellers to purchase another property with the promise that their old one will easily be resold, when in fact the broker has no intention of even attempting to resell the old unit.
Aggressive Sales Tactics: High-pressure sales pitches, also known as hard-sell tactics, employ hardnosed and confrontational methods, designed to bully you into signing that timeshare contract. Some even take a jab at the consumer's pride, by insinuating they might not be the right kind of person for the deal. The key to avoiding these tactics is to recognize the seller's intention in his tone and choice of words.
Avoiding making impulsive decisions is key to not falling into these kinds of traps. Never agree to purchase anything or sign any agreement on the spot. No matter how good the deal looks, it always pays to take a closer look at the fine print. Take the information home with you, read the contract (or have someone else more knowledgeable like a lawyer-friend do it for you), weigh the costs and then come up with a decision. If you've decided to continue with the deal, then contact the agent or the company he works for to discuss the contract. Make sure you get every detail in writing. Ask if you can take a trip to the property you're buying before making the purchase. It's never a good idea to buy a property that you have not personally seen. Glossy brochures don't count.
There also cases where timeshare units are already offered even before they are finished. In these credit-crunching times, such pre-sold developments might not be a good idea, should the company collapse or run into financial problems before the property is completed. As such, it's wiser to employ an escrow service to hold your money, until the development pushes through.
If a property is poorly maintained, it won't be much fun to visit each year, so make sure there are terms in the contract outlining exactly what maintenance services the resort will provide. If they cut corners on upkeep, you'll have legal rights if they've violated the terms stated in the contract.
