How To Avoid Timeshare Scams
A timeshare, also known as vacation or fractional ownership, is a real estate program in which a residential property is divided among many owners who have purchased the right to use the property for a specific period of time.
Timeshares are one of the top sellers in the travel and hospitality industry. Thousands are available and millions of people “own” them. But that doesn’t mean timeshares are a good idea. An article on MarketWatch.com tells us that timeshares are generally marketed and sold to people who really can’t afford them.
The idea of timeshares originated in France over 50 years ago when a developer in the French Alps decided to sell shares in a property rather than trying to rent rooms.
That original timeshare model proved to be successful and it increased in popularity in Europe throughout the 1960s, when escalating property prices made it difficult for most people there to afford a vacation home.
Today, over 10 million timeshare owners worldwide have access to more than 6,000 resorts in 95 countries.
An estimated $10 billion in timeshares are sold every year, making them one of the top money producers in the global travel and hospitality industry.
Types of Timeshares
A timeshare involves a room or rooms at a resort destination. Instead of paying full price, each owner pays only a share of the property’s total cost and can only occupy it during an assigned number of shares purchased.
Most timeshare purchases are deeded or “fee simple”. This means that the purchaser is buying an actual share of ownership in the real property, and can resell, rent, give it away or bequeath it to their heirs, just as with any other type of real estate.
This kind of timeshare share may be for a specific week(s), a specified season(s), called floating system; or one where the usage week(s) changes from year-to-year on a fixed schedule or rotating timeshare system.
In contrast, all non-deeded timeshares, are known as right-to-use, or vacation-interval timeshares, they more closely resemble a lease. The buyer owns the-right-to-use the property for a specific period of time, and usually for a number of years, but doesn’t actually own it. At the end of the term, usage rights go back to the original property owner.
Two variations of the timeshare concept are vacation clubs and points-based programs. A vacation club is a company that owns multiple timeshare properties in different locations, which are rented to its vacation club members. Club memberships can also be bought, sold or passed to heirs.
Membership in a timeshare points program provides the buyer with a specified number of points that can be exchanged for timeshare usage at various properties owned or contracted by the operating companies, which are often hotel chains or well-known resorts.
Even though the unpleasant sales practices in the timeshare industry get lots of press most timeshare companies still rely on the high pressure and hard sell approach.
Potential buyers are always encouraged to stay for a very lengthy sales presentation with the promise of extravagant prizes like free vacations, cash rebates, etc., if they endure the entire sales spiel. However, the gifts aren’t always what they seem, and often come with some kind of fee or hook.
Moreover, timeshare salespeople are taught to wear down potential buyers and overcome their objections and reluctance to buy by offering attractive big price discounts but only, if the buyer signs a contract on the spot.
As with any other sales pitch, the key to avoiding a bad deal is to never make an impulsive decision and never sign anything simply to escape the high sales pressure.
Instead, interested parties should always take the information home, read the entire contract over very carefully and make sure all of the costs, including maintenance fees and assessments are fully explained.
Buyers should also understand the benefits of legally rescission periods, during which a contract can be unilaterally cancelled within several days of its signing.
Knowing that a sale is reversible and that all upfront monies are required to be returned, can protect a consumer from his or her own impulsive decision making. Rescission laws vary from state-to-state, so information needs to be obtained from each state.
If you already own a timeshare you also need to be very aware of timeshare scams in the timeshare resale market.
Finally, timeshare buyers are advised to be very wary of purchasing timeshares in foreign countries, as they will not be protected by U.S. laws in cases of fraud.
The Big Timeshare Myths
I can get a great deal on a timeshare and go for vacation every year and save lots of money!
I can always sell my timeshare if I don’t want it anymore and get my money back.
Timeshares are one of the biggest scams on the market today. Once you are stuck in one, you are stuck in a big, deep black hole. The first two words that should come to your head when you hear the word timeshare should be . . . run fast, so you can escape that annoying, high-pressure salesperson!
Questions To Ask Yourself
Ask yourself this, why would you pay thousands and thousands of dollars for a place that you might get the chance to visit for one week each year?
And a place that you have absolutely no equity in the timeshare.
And don’t forget, you have to pay extra ongoing high priced “maintenance fees.”
And reselling that timeshare is almost impossible.
And the timeshare is basically just a very big expensive, which many timeshare owners call an ongoing headache!
Are You A Timeshare Owner
If you already own a timeshare, the good news is, your timeshare contract can be canceled. Yes a cancel timeshare can be a reality.
We have valuable FREE information that will help you discover how to cancel timeshare contract. Yes, you can permanently cancel your timeshare payments, all maintenance fees and your entire timeshare contract.
If you own a timeshare and would like know how to cancel a timeshare, to learn more about a timeshare cancellation see our frequently asked questions or give us a call.
5036 Dr. Phillips Blvd. #221 Orlando, Florida 2819-3310 USA
For A Free Timeshare Cancellation Consultation,
Call 24/7: 1-855-600-9053