SALT LAKE CITY — Summer may be winding down, but that doesn’t mean vacations stop for consumers, and if there's one thing you can find year-round, it’s a timeshare.
Timeshares are well-known as vacation property arrangements that allow people to share the cost of a property with others, and multiple unrelated parties can own a portion of the property.
Once someone decides to go in on a timeshare, there is an initial cost that needs to be paid. Typically, it’s purchased during a sales meeting, with some consumers finding them through resale on a secondary market.
Tips for prospective owners is to make sure the timeshare is on the up and up, and to know that both the developer and the salesperson must meet a number of registration requirements.
If it’s in Utah, a quick search of the Utah Division of Real Estate website will share plenty of information.
But what if it’s an out-of-state property?
“If they are in Utah and is being solicited for an out-of-state property, or potentially out of country property, they should check with that state or country to see if any regulations apply to timeshares in those areas and check with the authorities in those states that may be the equivalent of the Division of Real Estate,” said Leigh Veillette, director of the Utah Division of Real Estate.
Veillette added that if anyone at a sales presentation tries to get someone to sign on the spot or make a decision without doing more due diligence, that should be a point of suspicion.
“If a company is wanting upfront fees, if you’re going to purchase a timeshare, if you’re looking for someone to help you exit a timeshare, that is a red flag,” warned Veillette. “Because folks who are asking to pay upfront before they prove themselves or render the services they’ve agreed to render, that leaves you open to potentially being financially harmed because that person could just leave with that money without rendering any service.”
What about those who are part of timeshare and no longer want it? Scammers know this, so they may make unsolicited contact to a timeshare owner and, in many cases, guarantee to help them offload that interest.
“The first step for someone who owns a timeshare who is interested in potentially selling that timeshare or exiting that interest is to reach out to the actual company that they purchased the timeshare from,” explained Veillette. “You can find out if they have any programs in-house that might be able to assist you, and then you can also potentially get a copy of your contract and see what it says in your purchase contract about how you can exit that interest.”
For those who keep their timeshare, it’s key to know what happens once the owner is no longer around.
“Make sure that at the time of purchase, they understand what is going to happen to that interest,” said Veillette. “That timeshare upon their death, is it going to pass to family members? Is that going to potentially become a financial liability or burden on your family members?”
Any lingering questions about a timeshare should be asked of an attorney for personalized advice as a financial decision of this magnitude sometimes warrants legal advice.
Anyone who believes they've been scammed with a timeshare should report it to the Federal Trade Commission and file a complaint with the Division of Real Estate.
