For many people, timeshares are a great way to invest money or enjoy the luxuries of a second home without dishing out the cash or having as much responsibility. There are timeshares all over the world, from exotic beach houses to cozy cabins. Naturally, the possibility of getting in on a timeshare is alluring. But is it wise? Some people get roped into timeshare scams without even realizing it at first. Here are five warning signs to look out for if you are thinking about a timeshare.
Without a contract, you have no legal proof of the terms of your agreement. Never transfer money to get a timeshare without signing an official document and making sure you have a copy. Paying cash could heighten this risk. Always make sure you have read through the terms of your contract and that you do not have any concerns about the wording. It’s best to run the contract by a trusted lawyer.
Some timeshare scammers want to set you up to be approved for a new credit card in order to complete the process. If you are required to do this to get your timeshare set up, run the other direction. This is a sure sign of a scam and no reputable company would ask you to do this.
Some companies may tell you they will transfer the ownership of your current timeshare to another company or private party. They may even offer to buy it from you. This is a common timeshare scam, because the company says this to get you in on a new timeshare and then goes against their word. The only time this is a possibility is if you’re upgrading within the same company you bought the last timeshare from.
If the company is offering to buy or sell your timeshare, they should not be asking you for a flat fee. The fee should be dependent upon the amount the timeshare is bought or sold for. Beware of this common scam.
Always be thorough in your research about the timeshare you’re looking into. Some companies may rave about the value of the timeshare without offering any proof. A timeshare should have comparable listings to show how much they’ve sold for. This is the best way to evaluate the value of a property.