SCAMS IN THE TIMESHARE INDUSTRY

Sadly, the time share industry is full of scams that target owners wishing to sell or rent property.

Be it known that all Century 21 real estate brokers dealing in timeshare property will lose their Century 21 status when their franchise comes up for renewal. Cendant (Century 21) is not renewing any Century 21 timeshare franchises. If you are spending money to sell your property through one of these offices, think carefully. They will not be there in the future.

One common scam is known as "open houses." The federal government has shut down several companies in the past for using this scam. Here’s how it works: Resorts spend thousands of dollars marketing its property to prospective buyers. The resort will not allow another company to come on its property and conduct an open house. The only "open house" that a buyer will see is the one that is provided by the resort. If a company says that it can conduct an open house for you, ask more questions. Most likely the company will have a small sign in front that states "open house". What good is it for a potential buyer to tour a place of business and not the resort? Another question to pose is how will the company get people to show this "open house" to? It is unrealistic and unlawful. Beware of this scam.

Another desperate measure being used to obtain clients is the worthless guarantee. Be aware of this! Many companies will tell you that your property is worth more than it is and will guarantee to sell it in a very limited time. Use your common sense and realize that these companies must have a crystal ball to tell the future. It is easy to determine the resale value of your resort, but no one can guarantee when it is going to sell. The guarantee is only as good as the company backing it. We believe that you know what to do.

The American Resort Development Association developed guidelines for this industry. The reason: the industry had complaints.

ARDA has developed guidelines on resale activities. These guidelines should be followed by ARDA members. The following key points on resale issues are provided for your information.

Appraisals
ARDA member guidelines provide that a firm engaging in time share resale activities shall not require an appraisal of the time share interest as a condition of accepting the listing. (Interpreting Guidelines Section IX)

Some resorts in the past had been known for unethical selling practices. The good news is most of them have cleaned up those practices.

The resale industry is a relatively new industry and scams exist here also. TimeShares-Quick-Sale has been an industry leader for many years. With ethical practices we have forced others to clean up their act in order to compete. Many have not followed. Unfortunately even a few well-known real estate companies that are great for selling homes, with names you know and trust, use unethical practices such as using appraisals, also referred to as a Comparative Market Analysis (CMA)to get you to advertise your time share with them. Those firms are trying to imply that there are no "up-front fees" involved, but you can not appraise a time share. It is not real estate.

Brokers, purported resellers of time shares, are requesting appraisals of CMA's prior to the listing of time shares. Some brokers are licensed and appear to use the appraisal or CMA to induce you to be more realistic in pricing or may use the referral fee from the appraiser as an implicit listing fee. In many instances, you can expect to pay for an appraisal or CMA and end up without an offer for the sale of your time share.