How to Avoid Timeshare Scams

Timeshare scams often promise luxurious free vacations.

A timeshare is a vacation property that lets several different owners purchase a "share" of a property and split the time they use it; typically a timeshare owner is allowed to use the timeshare for two or three weeks each year. While timeshares are ideal options for some travelers, the process of purchasing a timeshare property can be stressful and not every timeshare company is legitimate. Scams can be avoided by conducting careful research before agreeing to buy a timeshare.

Things You'll Need

• Computer

Instructions

1. Check with the Better Business Bureau and search online for the name of the timeshare company along with the word "scam" to make sure there aren't complaints about the company. Typically typing "timeshare scam" into a search browser will uncover people sharing their stories about the property, good or bad.

2. Don't believe everything a timeshare presentation promises, and make sure to get everything in writing and read the fine print regarding incentives. Many scams start by promising people a prize and that they will have to attend a timeshare presentation in order to collect it. Later the attendees will learn that they need to pay for delivery, or some other aspect of the "prize," and once you pay them, the prize never arrives or you wind up paying much more than retail price.

3. Sleep on any decision; never allow a high-pressure timeshare presentation to sway you into signing something on the spot. Any reputable company will allow you to take the time to think about the purchase and sign on for a timeshare at your leisure. If you are pressured into signing something immediately, do not conduct business with the company.

4. Give your contract to a lawyer to review if you ultimately decide to buy a timeshare. Ask him to explain to you exactly what you are signing. The Internet site ScamBusters.org recommends not signing the contract if anything the timeshare company has promised in a presentation is not in writing.

5. Ask the timeshare company for current references of people who can tell you more about their experience. If a company refuses to provide references, walk away.

Tips & Warnings

• If you are looking for a timeshare and are worried about scams, research properties with already established vacation brands and hotel chains instead of an unknown company.

References

• Scam Busters: Is It the Real Deal or a Time Share Scam
• USA Today; Timeshares: Freebies or Scams?; Ed Perkins; May 28, 2008

Resources

• Better Business Bureau: Check out a Business or Charity