Timeshare Information

• Before and after you purchase a timeshare you must be your own advocate. New buyers need to do their homework. It is never wise to jump into any purchase that requires a sizeable investment before you do the research. Find out all the information you need to calculate the cost of a timeshare. Add up such costs as mortgage payments and all expenses like annual maintenance fees (does the plan have a fee cap?) and taxes, broker fees, finance charges, closing fees and even travel costs. Compare these costs to the cost of renting similar accommodations in the same location for the same length of time and in the same time period. Include amenities too. If the timeshare still looks good after the comparison, then go on to the next step.

• Check with the local consumer protection agency in the company’s home state to see if there are any complaints against the company. Check out the property, quality of the resort and availability of units. Talk to current owners about their experiences—does the owner keep up the maintenance of the property? Make sure you understand all the paperwork involved, find out about cancellation policy and other issues of concern. Set up an escrow account for undeveloped properties and a written commitment from the seller as to when the facilities will be finished. That way, you protect yourself should the developer default.

• Once you take the plunge and become an owner you need to continue to advocate for yourself by keeping informed of the latest timeshare legislation, getting actively involved in timeshare advocacy groups, and if you really want your voice heard, become a member of your timeshare’s Board of Directors.

The American Resort Development Association (ARDA) applauds the Florida Attorney General’s Office for its recent injunction against yet another fraudulent timeshare resale operation, stated Howard Nusbaum, ARDA president and CEO in a recent press release. This is regarding a move by the Florida Attorney General’s Office to seek an emergency injunction against a West Palm Beach timeshare resale operation for fraudulent practices.

ARDA has released consumer advisories to help consumers and timeshare owners navigate through the secondary market, which includes timeshare resellers, internet advertisers and other resale companies, to ensure a safe and positive selling experience.

The advisories were developed to help dispel the growing misinformation and confusion in the secondary marketplace by providing specific tips on reviewing timeshare resale companies, their practices, costs and services in the marketplace.

"Although there are many reputable companies that provide resale services, the largely unregulated secondary market also includes some that use unscrupulous tactics to take advantage of owners who may wish to sell their timeshares," explained Nusbaum. Most recently, the Florida Attorney General’s Office took action against Creative Vacation Solutions, a timeshare resale operation in West Palm Beach, for charging nearly $2,500 in marketing fees from hundreds of customers but did little or nothing in return.

"We applaud the efforts made by Florida Attorney General Bill McCollum to investigate dishonest resale companies whose actions taint the industry’s reputable resale companies. ARDA continues to work with its members to ensure transparency on both the buying and selling process," Nusbaum stated.

"We encourage consumers searching for timeshares or a timeshare company to conduct thorough research by visiting bbb.org where you can make informed decisions on ethical companies based on their Better Business Bureau rating," said Niki Horace, BBB's vice president of marketing and public relations. For example, "RedWeek.com has earned an A+ rating, the Better Business Bureau's highest rating."