February 2, 2015
Las Vegas, NV - Nevada Attorney General Adam Paul Laxalt urges Nevadans to be wary of timeshare resale fraud. “As consumers begin to make vacation plans, timeshares become an increasingly attractive investment opportunity,” said Laxalt.
When the time comes to sell, owners of timeshares can be vulnerable to a number of deceptive and illegal scams. Laxalt continued, “Before investing in a timeshare, Nevadans should take precautionary steps to understand common scam tactics used in the selling of timeshares and vacation homes.”
Timeshare resale scams usually include a cold call in which the owner is contacted by an interested buyer or real estate agent offering to buy the timeshare. The proposed “buyer” is usually an alleged corporation who would like to use the timeshare for clients and/or meetings. The money offered for the timeshare will be approximately as much as the owner originally paid for the timeshare.
Oftentimes, individuals working for these companies will invite owners to a free dinner in their area, assuring them that they will take the timeshare off their hands, if the owner pays thousands of dollars in upfront fees for appraisals, documentation fees, taxes, titles and other costs. They tell the owner the fees will be reimbursed at closing.
Should the owner agree to sell his or her timeshare, the sale will never close and the owner will never hear from the caller again, unless the caller asks for more money. Consumers should be skeptical of any caller who purports to be a timeshare reseller. Legitimate brokers do not cold call owners nor ask for upfront fees. Consumers should also be mindful of websites offering timeshares for $1 or free of charge, as there may be exorbitant hidden maintenance costs and fees. Timeshare resale fraud is trending in Nevada, and seniors and others who need to sell their timeshares are especially vulnerable to resale scams.
The Attorney General’s office believes there may be many consumers hurt by timeshare resale scams. If you feel you have been a victim of timeshare resale fraud, file a complaint with our office. Complaint forms are available on our website at ag.nv.gov or by clicking here. Please attach a copy of any contracts or materials received from the company.