Planning a vacation is fun and exciting and renting or buying a timeshare resale from an owner should be a great experience. But, some scam artists are out there to take advantage of those who are unaware of their tricks. If you plan to buy or rent a timeshare, beware of the “419 Overpayment Scam”. How it typically works is that the alleged renter or buyer sends you a cashier's check for more than the amount you agreed upon and in turn asks you to wire back the difference. Do not accept or cash a check that is not the agreed upon amount. There is no reason for them to send you more money than was discussed. A cashier’s check like this will most likely be counterfeit and your bank will hold you responsible for the entire amount.
Here are some tips from the US Postal Service to help you avoid financial transaction scams:
- Be skeptical if you are asked to wire money to overseas, or if someone wants you to cash money orders or checks for them.
- Never give out personal or financial information to anyone you don't know.
- Familiarize yourself with money order services offered by the post office.
- Never accept money orders, cashier’s checks or personal checks for more than the asking price.
- Never agree to wire funds to a buyer.
- Never wire funds to anyone unless you're sure the money order or check you’ve deposited has cleared your bank and the funds have been released.
An escrow service is the safest way to conduct financial transactions.
First American Title offers a special escrow process for renting and selling timeshares.
If you are a United States citizen and believe you have been a victim of this type of fraud, please contact your local
Secret Service field office. For those in other countries, the
419 Coalition Website has reporting instructions to how to file fraud claims.
If you are considering renting your timeshare, you’re not the only one. Below is a list of questions and steps to help you successfully post and rent your timeshare online.
- Check With Your Resort
Each resort has different policies and procedures. You’ll want to take the time to call your resort with the questions listed below to avoid any surprises down the road.
Questions for the Resort:
- Am I free to rent my timeshare to anyone, or are there restrictions I should be aware of?
- Are there any transfer fees if I rent my timeshare myself (i.e. commissions, guest certificate fees, transfer fees, etc.)?
- What is the process for transferring the use of my timeshare week into a guest's name?
- Does the resort send them a confirmation directly? Or, will it go to me and I send it to them? How much lead time do you require?
- What weekly rate does the resort itself charge renters for the week and unit size that I own? (this will help you with step #2)
- Post Your Timeshare Online
You’ll find many resources available online. Most require a nominal membership and posting fee. When creating your listing, you’ll want to include as much detail as possible about your timeshare unit and the surrounding location so your renter can paint a mental picture of your offering. The great thing about online posting is that you control the entire process. Members interested in your timeshare rental will e-mail you directly through your posting page to arrange the payment. You’ll just need to answer e-mails and proceed with finalizing the transaction, once you've found your renter.
- Finalizing the Rental
When utilizing an online service for timeshare rentals, the financial portion of the transaction typically takes place between the members themselves. You can conduct a privately managed transaction, or use a vacation escrow service for added security with your agreement and payment due. If you choose to conduct business privately, it is wise to have a signed agreement of the terms of payment, date of stay, resort location, etc… All details finalized in writing will protect you in the long run. Also, once you’ve completed the transaction, be sure to take your posting off the timeshare website.
Timeshare con artists are at it again. A news report this week told about how a woman who was looking to sell her timeshare found an online company who said they could do it and of course, asked her to pay up the money up front. Two months have passed and her $1,800 is gone with no timeshare sale.
It’s terrible to hear of stories like these where good, honest people are robbed of their hard earned money. The best way to keep from being a victim is to be armed with information.
Here are some tips and ideas on how to protect yourself and ensure a safe transaction in the rental or sale of a timeshare.
- Use an escrow account. There are many escrow companies available that that will hold funds until the delivery of the deed. First American Title Insurance Co. is a great resource.
- Do your research. Below is a list of questions and things to do:
Contact the resort to verify ownership status of the person you are buying/renting from:
- Is that person indeed the owner?
- Do they own the week/unit they have advertised?
- Are there any unpaid maintenance fees/assessments that would:
a. prevent a renter from checking in to the unit, or
b. transfer to the new owner
For Rentals:- Ask the owner for a list of references from past renters
- Complete and sign a rental agreement
- Never pay 100% of the rental price up-front (depending on how close the transaction is to the check-in date)
- Pay 50% of the rental price up-front, and the remaining 50% when you receive written confirmation FROM THE RESORT that the reservation has been placed in your name (it's also a good idea to phone the resort to ensure your reservation is secure)
- Never pay via wire transfer (Western Union, MoneyGram). For more details on payment methods and comparisons visit your favorite timeshare site.
Fraud is serious business. Don't make quick decisions when it comes to your hard earned money. Take the time to conduct your own research, ask questions, and go with your instincts. See the
largest timeshare marketplace online for more information on ways to protect yourself from timeshare scams and fraud.
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