UPDATES ON SELLING YOUR UNIT
Q. I own a timeshare week at a resort located in Florida, and I am interested in selling my week. Does Florida law apply to the manner in which I sell it?
A. Yes. Florida law generally requires that sellers use a resale purchase agreement that complies with the requirements of section 721.065, F.S. That section requires that resale agreements contain certain disclosures to the buyer concerning the current amount of annual assessments, property taxes, delinquent assessments, and late charges (if any), the first year in which the purchaser may use the timeshare, as well as a 10-day contract cancellation period. Failure to include the required language in the resale contract automatically makes the contract voidable at the option of the purchaser for a period of one year after the date of closing.
Q. I have been contacted by several companies that promise they can sell my timeshare week for me, if I pay them a fee in advance. Some companies call their advance fee an "appraisal fee," others say it’s an "advertising fee." Are these fees legal?
A. Florida law, under section 721.20(6), F.S., prohibits a real estate broker or salesperson from collecting any advance fee for listing a Florida timeshare week for resale. However, there are many different kinds of companies in existence that claim they can sell your timeshare for you, if you pay them in advance. Some resale companies may provide "legitimate" resale services, while many do not. The advance fee may be called an "appraisal fee," an "advertising fee," an "Internet fee," or an "exchange fee," among other terms. The fees charged by these companies range anywhere from several hundred to several thousand dollars. Payment is often collected by credit card. Consumers need to be aware that once they pay an up-front fee, even if the fee turns out to be a violation of Florida’s advance fee law, there is no guarantee that the money can ever be recovered if your timeshare is not sold.
Q. I have been contacted by several timeshare resale companies that offer to sell my timeshare week for me if I pay them a fee. How do these companies get my name and address?
A. Unfortunately, the timeshare resale market can be lucrative for fraudulent telemarketers and other scam artists. Although Florida law is generally designed to prevent timeshare owners’ names, addresses, and telephone numbers from being disclosed to third parties, there are unscrupulous resellers who make money by compiling and selling lists of timeshare owners to telemarketers and others.
Q. How about finding or selling timeshare interests on Internet auction sites?
A. Timeshare owners interested in selling their timeshare interest may also find it useful to browse some of the well-known Internet auction sites. Many Internet auctions now offer timeshare interests among the other consumer items they sell. Relevant links can generally be found by going to an auction site and plugging in search phrases such as "timeshare" or "vacation ownership".
Q. Does the division offer any assistance or advice to people who want to sell their timeshare week?
A. As a state regulatory agency, unfortunately the division cannot recommend or refer consumers to specific timeshare resale companies or services. However, you may want to keep the following suggestions in mind:
1. Be Aware: There are many companies in existence today promising they can sell your timeshare week if you pay them an up-front, or "advance," fee. While some companies may provide legitimate services, others do not. The division receives hundreds of calls and complaints each year from timeshare owners that paid an up-front resale fee (oftentimes to several different resale companies), only to find that their timeshare week was never sold, and their money was never refunded.
2. Be Realistic: Keep in mind that the resale market for timeshare weeks is not a well-established market. Your ability to resell your timeshare week depends on many variables, such as the location and desirability of your resort, the time of year of your week, the asking price, the availability of other weeks for sale at your home resort, and just plain luck. Also, keep in mind that you may be competing with major advertising efforts by timeshare developers, as well as similar efforts by many other timeshare owners and timeshare resale companies also trying to sell weeks on the resale market. You should not necessarily expect to be able to sell your timeshare week for more than you paid for it, or even to recover your initial purchase price.
3. Be Flexible, Patient and Creative: Keep in mind that timeshare owners are often successful selling their week through their own efforts, such as advertising it for sale at their home resort. Other owners or visitors may want to acquire your week – there may be a central bulletin board or an owner newsletter where you can list it for sale. Also, talk to your neighbors at your home resort, one of them may be interested in acquiring an additional week (or may know someone who does). The division has even heard from one person who was able to sell her week at a yard sale!
4. Be Cautious: If you are considering paying anyone any type of up-front fee (no matter what the fee is called) on the promise that they can sell your timeshare for you (or on the promise that they will purchase it from you once they have it "appraised"), exercise caution. Investigate the company first – talk to other customers, if possible, or see if the company can provide references. The division also maintains a database of information concerning companies that it has investigated or received complaints about. You may want to contact us before you pay an up-front fee to see if we have any information that will help you make an informed decision about doing business with a particular resale company. Check with the Better Business Bureau nearest you and in the community where the resale company is located to see if they have received calls or complaints about the company.
5. Be an Informed Consumer: Exercise basic principles of good judgment if you are considering paying any money to anyone to sell (or purchase) your timeshare:
· Don’t fall for slick presentations or "smooth talkers."
· Be wary of "cold calls" and telemarketing calls from strangers.
· Beware of anyone that tries to create a sense of urgency to try to get you to pay an advance fee; such as, "The price is only good today," or "We have a buyer ready and waiting who is interested in your timeshare week."
· Don’t allow yourself to be pressured into a hasty decision. Request to be provided with copies of all contracts, advertising, brochures, etc., in writing, in advance. Review everything carefully and investigate the company’s complaint history with the Bureau of Compliance and other consumer agencies, such as the Better Business Bureau, or the Federal Trade Commission.
· Be cautious when asked to pay in advance for any resale service or product, such as an "appraisal" or "advertising" fee, no matter how "legitimate" the person may appear or sound.
· Ask questions: "If my timeshare doesn’t sell, can I get a refund of the up-front fee? If so, how much is refundable, when, how long will it take, etc.?" Find out the specifics and get things in writing first. Don’t rely on verbal promises from a telemarketer or salesperson.
Remember that reselling a timeshare can be a difficult prospect. If an offer or promise sounds too good to be true, it probably is!