Thinking about exiting your timeshare? Timeshare ownership can create incredible vacation memories. However, when it’s time to move on, many timeshare owners find themselves navigating a confusing and often risky exit landscape. Unfortunately, the rise of the timeshare exit industry has brought an increase in timeshare exit scams, with fraudulent companies targeting owners through high-pressure sales tactics, unsolicited calls, and promises that sound too good to be true – and usually are. Knowing how to spot these scams – and what safe exit options actually look like – can protect your money, your credit, and your peace of mind.
What Are Timeshare Exit Scams (and How Do You Avoid Them)?
Timeshare exit scams are fraudulent schemes targeting owners who want out of their timeshare contract. They take different forms, from shady companies demanding hefty upfront fees and promising fast, guaranteed results to contract cancellation atourneys claiming they can litigate your release. These scams charge anywhere from a few thousand dollars up to tens of thousands, often without delivering on what they advertised.
To avoid timeshare exit scams, it’s critical to:
- Work only with legitimate companies that provide a written agreement
- Be wary of any company that demands large upfront fees
- Be skeptical of guaranteed results or timelines
- Research online reviews and public records
- Contact your timeshare developer directly before hiring a third party
ARDA is the official regulating body of the timeshare industry and only recognizes resale and exit companies that adhere to the guidelines put in place by ARDA’s Coalition for Responsible Exit. The fastest way to tell if a timeshare company is trustworthy is to check its standing with ARDA.
Common Types of Timeshare Exit Scams
Timeshare is a fast-changing industry. As it evolves, so do timeshare exit scams. It’s always a good idea to stay abreast of the latest trends in exit scamming. However, a few common types of exit scams have persisted through the years, and they probably aren’t going anywhere soon.
1. Upfront Fee Timeshare Exit Scams
One of the oldest and most common scams involves a timeshare exit company that charges large upfront fees, often amounting to thousands of dollars, to “cancel” your contract or get rid of your maintenance fees.
In reality, many of these companies:
- Do little to no actual work
- Send generic dispute letters that are not legally binding
- Change their name and contact info after collecting your money
2. “Stop Paying” Schemes
Some exit scams will advise you to stop paying your maintenance fees as part of the exit process. This is a major red flag.
Stopping payment of your maintenance fees can result in:
- Your account going to collections
- Your developer placing a lien on your property
- Long-term damage to your credit score and credit report
3. Fake Legal Services and Lawsuit Scams
One of the fastest-growing timeshare exit scams involves fraudulent law firms claiming to practice “timeshare law.” Such groups often claim they can litigate against your timeshare developer to force them to cancel your contract.
While some extreme timeshare contract cases do require legitimate legal professionals, a scam operation of this sort typically:
- Charges upfront retainer fees and even additional legal fees after the fact
- Doesn’t file an actual lawsuit
- Drags out the litigation process with little progress
This is one of the most dangerous types of timeshare scams, often appearing legitimate and costing owners tens of thousands of dollars.
4. Timeshare Resale Scams Disguised as Exit Solutions
Another widespread timeshare scam these days is the fraudulent resale company. These scam artists claim to have the perfect buyer already lined up for your timeshare. All you have to do is send them money to cover the closing costs.
Warning signs include:
- Claims of a guaranteed buyer
- Requests for payment before the sale is completed
- No legitimate online reviews
In the world of timeshare resales, there are no guarantees. A legitimate resale company will usually disclose this upfront, and they will certainly never claim otherwise.
5. Cold Calls
Scammers often gather owner information from public records and reach out via unsolicited calls. These callers manufacture trustworthiness by personalizing the call with your resort and ownership details.
Legitimate companies rarely initiate contact this way. Unsolicited calls are a major red flag, especially when paired with pressure tactics or too-good-to-be-true claims.
Red Flags to Watch For
While there are many types of timeshare exit scams out there, they often share many of the same red flags. Let’s review what to watch out for when choosing a timeshare exit solution:
- Requests for large upfront payments before services are rendered
- Guarantees of success, a fast exit, or a specific dollar amount
- Advice to stop paying your maintenance fees
- Manufactured urgency and other high-pressure sales tactics
- Unsolicited phone calls
- Lack of a written agreement
- Overly positive reviews
- Claims that they have already found a buyer for your timeshare
Any one of these red flags can indicate a timeshare exit scam. However, multiple red flags should always be a clear sign to walk away.
Green Flags of a Trustworthy Company
The good news is that there are legitimate companies out there that can help you find solutions to your unwanted timeshare. You can usually tell one of the good guys by characteristics like:
- Written agreements clearly outlining services and fees
- No large upfront fees without well-defined deliverables
- Realistic timelines – remember, there are no guarantees in resale
- Strong online reviews from real clients
- Transparency about risks, costs, and possible outcomes
- Encouragement to reach out to your timeshare developer first
- Accreditation by ARDA
Looking for a company that checks all these boxes?
Timeshare Broker Associates: A Safe, Legitimate Way to Exit Your Timeshare
If you’re looking for a safe, reliable way to walk away from your timeshare, Timeshare Broker Associates can help. Backed by ARDA, and with a record of success dating back to 2013, we are a name you can trust. Our licensed agents can assist you every step of the way through your resale journey, from pricing to marketing to closing services and more. Best of all, as a real estate brokerage specializing in timeshare resale, our agents work on a commission basis – meaning we don’t get paid unless your timeshare sells. Ready to get started? Click the link below to learn more about our services. Or, contact us by phone or email to speak with one of our friendly licensed agents. We’re always happy to help!
