What are the most common timeshare scams targeting owners?

Common scams include upfront-fee resale companies, fake buyers, timeshare exit companies charging large fees, fraudulent transfer offers, rental scams, and companies promising guaranteed results before explaining exactly what they will do.

Is it a red flag if a company asks for upfront fees to sell my timeshare?

Yes. Large upfront fees are one of the biggest warning signs in the timeshare resale and exit industry. Owners should be cautious of any company that promises a buyer, guaranteed sale, or guaranteed exit in exchange for money paid in advance.

How can I tell if a timeshare buyer offer is fake?

Be suspicious of unsolicited offers, buyers willing to pay far above realistic resale value, requests for taxes or processing fees before closing, pressure to act quickly, and companies that will not provide verifiable details.

Do I need to pay a timeshare exit company to get out of my timeshare?

Not always. Many owners can explore resale, giveaway, rental, resort surrender, or owner-to-owner options before paying any exit company. TUG encourages owners to research free or low-cost options first.

Where can timeshare owners get free help avoiding scams?

Timeshare Users Group provides free owner-to-owner advice, forums, articles, and marketplace tools to help owners understand resale values, avoid scams, and make informed decisions.

Timeshare Scams Every Owner Should Know About

Unfortunately, timeshare owners are among the most frequently targeted consumers by scammers. Whether you're trying to sell, rent, give away, or simply get out of your timeshare, there are countless companies and individuals looking to profit from your situation through misleading promises and expensive upfront fees.

The scams themselves constantly evolve, but the goal is always the same—convince owners to pay money today in exchange for promises that often never materialize. From fake buyers and fraudulent resale companies to deceptive exit firms and rental scams, these schemes have cost owners millions of dollars over the years.

While consumer protection laws have improved, new scams continue to appear faster than regulators can eliminate them. The best defense has always been the same: learn how these scams work before you become the next victim.

As you read through the examples below, you'll likely recognize many of the tactics you've already experienced—or may encounter in the future. Our goal is simple: help you recognize the warning signs so you can keep your money where it belongs.

#1 Warning Sign: They Want a Large Upfront Fee

Nearly every major timeshare scam begins the same way—they ask the owner to pay a large upfront fee.

Whether someone claims they can sell, rent, transfer, cancel, dispose of, or "get you out of" your timeshare, the biggest red flag is when they ask you to pay hundreds or thousands of dollars before providing any meaningful service.

NEVER PAY A LARGE UPFRONT FEE TO SELL, RENT, TRANSFER OR EXIT YOUR TIMESHARE.

Scammers know that many owners are frustrated and simply want out of their timeshare and will tell you exactly what you want to hear! They use polished effective pitches, convincing websites, fake online reviews, and high-pressure tactics to persuade owners that paying an upfront fee is the only path forward.

That fee may be called a:

🚩 Common Names for Upfront Fees

✓ Marketing Fee
✓ Advertising Fee
✓ Listing Fee
✓ Title Search Fee
✓ Appraisal Fee
✓ Document Preparation Fee
✓ Transfer Fee
✓ Administrative Fee
✓ Closing Cost
✓ Cancellation Fee

The name doesn't matter. The goal is the same—collect your money before producing any results.

Be extremely cautious if you hear statements like:

🚩 Common Quotes from Scammers

❝ We already have a buyer waiting for your timeshare. ❞

❝ Your timeshare is worth much more than you think. ❞

❝ We guarantee we'll sell it. ❞

❝ We can sell or rent your bonus weeks. ❞

❝ Major corporations are looking to rent your week. ❞

❝ Just pay this one-time fee to get started. ❞

❝ We can guarantee we can cancel your timeshare. ❞

❝ You just need to pay taxes, title fees, or document fees before the sale can close. ❞

These pitches are designed to appeal to owners who have struggled to sell, rent, or exit their ownership. Unfortunately, many people pay the fee only to discover that the promised buyer never existed, the rental never materialized, or the company stopped communicating altogether.

Remember one simple rule:

If it sounds too good to be true, it probably is.

No legitimate company can guarantee they'll sell your timeshare for more than it's worth or promise a buyer before they've even marketed your ownership. Ask yourself this: If they're so confident they'll succeed, why aren't they willing to get paid after they deliver results?

Before paying any company, search for independent reviews, verify how they actually get paid, and ask experienced owners for advice. Thousands of owners have posted their experiences on the TUG discussion forums, helping others avoid the same costly mistakes.

One final warning: Legitimate timeshare companies never cold-call or randomly email owners claiming they can help you with your timeshare. If someone contacts you out of the blue with an amazing offer, treat it as a major red flag, because its the most common one out there! Ignoring it as resulted in countless millions throw away by owners.

Looking to sell your timeshare safely?

Our free step-by-step guide has helped thousands of owners successfully sell, give away, or transfer their timeshares without paying large upfront fees.

Read our Free Guide: How to Sell Your Timeshare Without Getting Scammed

Timeshare Exit & "Cancellation" Company Scams

Over the past decade or more, one of the fastest-growing segments of the timeshare industry has been the timeshare exit company. Many of these businesses promise they can "cancel," "terminate," or "legally eliminate" your timeshare ownership—for a substantial upfront fee.

Owners should understand that most if not all companies advertising timeshare exits are not law firms, and simply charging a large upfront fee does not increase the likelihood of a successful outcome. Before hiring anyone, verify exactly who will be handling your case, what services will actually be provided, and whether those services could be performed without paying thousands of dollars.

The "legal work" consists primarily of sending letters, emails, or demand notices to the resort requesting that your ownership be cancelled or surrendered (which are all promptly ignored by the resort). Before paying anyone to do this, remember that you can always contact your resort yourself to ask whether they offer a surrender, deed-back, or owner exit program.

📖 Thinking About Hiring a Timeshare Exit Company?

Before paying thousands of dollars to any company claiming they can "cancel," "terminate," or "get you out of" your timeshare, take a few minutes to learn how these businesses typically operate and the questions every owner should ask first.

Our free guide explains:

✓ How most timeshare exit companies actually work.

✓ The truth behind "timeshare cancellation" claims.

✓ Questions to ask before signing any contract.

✓ When hiring an attorney may—or may not—make sense.

✓ Free and lower-cost alternatives that every owner should investigate first.

Read the Free Guide →

Knowledge is your best protection against expensive mistakes.

Questions Every Owner Should Ask Before Hiring an Exit Company

❓ What specific legal services will you perform?

❓ Will my case actually be handled by a licensed attorney? If so, can you provide their name and state bar number?

❓ Have you successfully handled cases involving my resort? Can you provide examples or references?

❓ What happens if you are unsuccessful? Will I receive a refund?

❓ Can your fee be paid after the promised work has been completed?

❓ What written guarantees are you willing to provide? Are they clearly stated in the contract?

If a company guarantees they can get you out of your timeshare, it's reasonable to ask why they require thousands of dollars before delivering results. Ask questions, read the contract carefully, and don't let high-pressure sales tactics rush your decision.

Beware of "Recovery" Scams

Unfortunately, owners who have already lost money to one scam are often targeted a second time.

These "asset recovery" or "refund recovery" companies claim they can recover money you previously paid to another scammer—but only after you pay yet another upfront fee. In some cases, the same people who operated the original scam simply reopen under a different business name and target the same victims again.

If someone unexpectedly contacts you claiming they know you've been scammed and can recover your money for an advance payment, treat it as a major red flag.

The single best way to avoid nearly every major timeshare scam is simple:

Never pay a large upfront fee before understanding exactly what you're receiving in return.

The Free Dinner invitation "Presentation"

If you're invited to a "free" timeshare exit seminar, ask yourself:

❓ Who is sponsoring the event?

❓ Will anyone be selling products or services during the seminar?

❓ Will attendees be encouraged or pressured to sign contracts before leaving?

❓ Will my contact information be shared with or sold to third-party companies?

❓ How is the company making money from this "free" event?

❓ Am I receiving unbiased education, or is this simply a sales presentation?

A free dinner may sound appealing, but remember that someone is paying for that meal. Understanding how they expect to earn their money can tell you a lot about the true purpose of the event.

If you're looking for legitimate information about your options, you don't need to attend a sales seminar. TUG offers free owner-to-owner advice, discussion forums, and educational articles that explain resale, giveaway, deed-back, and surrender options without requiring you to purchase anything.

The Moral of the Story: If it appears too good to be true, it almost certainly is. Don't ever, ever sign a contract on the spot for anything timeshare related until you take some time to read it completely and do your research! Note this bit of advice would have also likely kept you from buying your Timeshare in the first place!

💡 TUG Tip: Research Before You Pay

Before paying any timeshare exit company, spend a few minutes researching whether your resort already offers an official surrender, deed-back, or owner transition program. Many major developers now provide legitimate exit options for qualifying owners—often at little or no cost.

If you're unsure what options are available for your ownership, ask experienced owners on the TUG Discussion Forums before signing a contract or paying anyone. A few minutes of research could save you thousands of dollars.

See Which Resorts Offer Official Deedback & Surrender Programs →

"Send Me The Difference" Scam

This ploy attempts to get you to accept a forged or counterfeit cashier’s check for more than the amount you agreed to rent or sell your timeshare They then request you to send the balance of the money to the thief via untraceable methods. As it may take a week or more for your bank to discover the fraud, the thief will be counting on your honesty to send the difference balance as soon as possible. Western Union is a favored service since there is no paper trail after the thief picks up his cash at the receiving Western Union office.

These schemes often involve international parties claiming to have someone in the US that will handle the transfer of money for them or something confusing regarding the exchange rate between countries or emails & messages that contain broken or confusing english, or scenarios where you are asked to pay using a money order, or pay a 3rd party, or any other "odd sounding" request are all signs that this individual is trying to scam you!

DO NOT ACCEPT A CHECK FOR MORE THAN THE ASKING PRICE UNDER ANY CIRCUMSTANCES!

The Bottom Line: Protect Yourself!

Timeshare scams continue to evolve, but the warning signs rarely change. Whether someone claims they can sell your timeshare, rent it, transfer it, cancel your ownership, or recover money you've already lost, the same basic principles apply.

🚩 Before You Sign or Pay, Ask Yourself:

✅ Are they asking me to pay a large upfront fee?

✅ Are they guaranteeing results that sound too good to be true?

✅ Did they contact me unexpectedly or out of the blue?

✅ Can I independently verify their reputation through unbiased sources?

✅ Have I researched all of my options before signing anything?

If you answered "yes" to any of those questions, slow down. Take a step back and get a second opinion before sending money or signing a contract.

For more than 30 years, Timeshare Users Group (TUG) has helped owners make informed decisions through free educational articles, one of the largest owner-to-owner discussion forums, and a marketplace that has facilitated tens of millions of dollars in owner-to-owner timeshare transactions—all without charging large upfront fees.

Need Help?

Before hiring any company, ask the experienced owners on the TUG Discussion Forums. Chances are someone has already dealt with that company, received the same sales pitch, or found a better solution.

Visit the Free TUG Discussion Forums →