Many people think that the actual concept of timeshare is synonymous with scam. The reality is that although there are various intentional scams associated with timeshare, the majority of timeshare sale offers are in fact bona fide. Even so, when considering the purchase of a timeshare, you are well advise to buy with a reputable long standing company to avoid the scammers who are out to get your money.
Timeshare Scam – Resale
Most of the timeshare scams that you hear about are related to timeshare resales rather than the original sale of the product. Scammers will sometimes contact timeshare owners saying that they have a buyer for their unit, offering a great price that attracts owners who would otherwise not be interested in selling. In order to receive the details of the potential buyer, owners pay a fee and are left waiting indefinitely for the sale of the timeshare.
Another common timeshare scam that is easy to avoid is the pre-sale scam. This can occur when you opt to buy a timeshare on a property that has not been built yet, especially in a foreign country. Scammers sell a product that does not exist and will never be built and buyers are left waiting for a timeshare that never arrives. The easy way to avoid this kind of scam is to stay way from pre-sale offers unless being sold by a reputable company that is not likely to go out of business before the resort has been finished.
Too Good to Be True Gifts
Most genuine timeshare operators will offer some kind of gift or incentive for people to attend their presentations. When dealing with reputable companies, these prizes are attractive but not over the top and are delivered after you have taken part in the event. Many timeshare scams will offer amazing prizes like an excessive cash sum or a yacht and then refuse to give you the gift, or ask you to pay a fee to enter into a draw to win the prizes. The key here is to avoid schemes that offer you something that is too good to be true – it usually is.
Timeshare industry is known for being very susceptible to scams. Year after year, thousands of people around the world feel they were scammed by a timeshare developer. The reason why fractional ownership is successful, it’s because shared properties have become a tremendously profitable way for resorts to sell real estate- mostly suites in important touristic destinations. On the other hand, despite the success, timeshares have gained a bad reputation. The question is: are timeshares scams?