Legal vs. Illegal Sales Tactics Used by Timeshare Resorts

by Legal S. Real Estate Attorneys in CA and NV

Deciding to buy a timeshare while on vacation under intense sales pressure is quite different from buying it on your own, on your timeline, from the comfort of your home or office.

If you have made your purchase due to misleading promises and statements from the sales reps, the timeshare resort can be held accountable as these tactics are considered coercive, fraudulent and not to mention illegal, according to timeshare legal experts.

timeshare exit attorney

Timeshare Attorneys say Beware of the Hard Pitch

High pressure tactics are very common with most timeshare companies and consumers find themselves forced into signing the timeshare contract, commit to purchase, then get back home and scratch their heads, thinking “what did I get myself into?”.

One timeshare owner reported to his trusted timeshare attorney, “My wife and I were subjected to a brutal sales presentation which was very heavy handed. We were pressured for hours to sign a contract I knew was wrong for us. They kept serving us champagne and I felt like they preyed upon us. I did say no repeatedly to the bitter sales rep but he turned a deaf ear repeatedly. We finally caved and signed the timeshare contract. We’re still regretting it. This shouldn’t happen to anyone.”

The claim of Vacation Utopia

While the sales presentation makes the timeshare seem fantastic, there is no reason to think that a timeshare is an investment opportunity. Timeshare owners do not actually own the condo and receive no equity in the transaction. Once a sales rep explains how much of steal of a deal the timeshare membership is and how much it will go up in value, a smart move is getting up and walking out of the room.

Most states currently regulate timeshare practices, specifically labeling it an asset. Timeshare intervals are not supposed to be sold as an investment property. But shark-like and cunning techniques used by the resort are employed to get around the law. Verbal promises are the fastest way they can get consumers to sign the contract and lock people into long term mortgage payments and maintenance fees.

A timeshare owner told his timeshare lawyer, "We made the decision to cancel our contract for many valid reasons. Upon our initial investment into the timeshare we felt that it was an opportunity that we could afford, but because of health problems our financial situation has changed and it no longer a smart investment. Unable to use time and points on desired dates, but had a hard time doing so. The increasing maintenance fees were huge. I was told it was an "investment opportunity". I was never told this was a lifetime contract with the resort. The sales rep claimed we could sell or rent our timeshare whoever we wanted. And of course they promised we could sell back or they would buy it back.

I am an active duty Army member, and during my time off I attended a timeshare presentation at a major timeshare resort in California. They claimed the timeshare purchase was an investment, and the "property value" would rise after years of ownership, like a home. In addition, I could use an exchange club to make money on renting out the timeshare. However, the exchange fine print states they will suspend account if they find out you are using it for financial gain.

There are fees, which were not explained during sales or closing. Finally, I emphatically asked during sale and at closing, if there was an exit option to get out of it. The misleading resort staffer told me they would buy back my timeshare, called it "first right of refusal". When I called, they stated I needed to pay off the mortgage before they would consider buying back timeshare. "

Continual Harassment by the Resort

Even timeshare owners already under the timeshare contract are hounded for “upgrade options” at owner meetings. The misrepresentations from timeshare sales reps continuously flow from their mouths, such as “going over the numbers” of their membership, that increases in “today’s point rates” have degraded the timeshare owner benefits. Unfortunately, the stated value they assign to the points programs doesn’t match reality, since timeshares rarely hold any value on the timeshare resale market.

Add this tactic used by timeshare representatives as another fraudulent method used to portray their theory that there is equity to be invested in the timeshare, a coercive attempt to offer “today only upgrade specials” that would increase the worth of the membership. Meanwhile, the timeshare owner has no idea that timeshares exactly like theirs is selling for just one dollar on Ebay and Craigslist.

A well-known timeshare owner related his experience to his timeshare attorney, "I became a victim of the fraudulent timeshare practices of the resort developer sales staff and then for many years since about 2005. The High-pressured tactics to force us to buy more timeshare membership, lies, intimidation, harassment and misrepresentation from the timeshare sales representative. During the period of time back in December 2012 we were told that we needed to attend an "owners breakfast" and "update meeting" to last only for 90 minutes.

This ended up being a 8 hour or more meeting, and they told many exaggerated claims. One of their high pressured tactics that caused us to split our timeshare in Las Vegas into part of it in Florida. The sales rep said it was to help us to lower our maintenance fees. Then in March, 2016, we went to Orlando for short stay when my mother passed away in Miami. I told the person at the front desk that I was not interested in attending any owners update meeting.

They started calling us on the phone in our room telling us that it will take only 30 minutes of our time to talk with them and they would not charge me for my parking for the 7 day stay at the timeshare. At that meeting, the sales person asked us how come our timeshare was split when before we had it all in Vegas, and he told us that was the reason why we were having trouble in making reservations at other resort locations.

He proceeded to tell us that we need our timeshare to be consolidated back at the Vegas resort in order to get our maximum value out of our timeshare plan. So they persuaded us to change it back to all at the Vegas property, and also to get a pre-paid rewards credit card, which they claim will help us pay down all of our maintenance fees at the end of the year. This too was a lie. I think I need legal help to get us out of our timeshare contract, which is very stressful on our financial situation, being we are both on a fixed income.

Litigation or the threat thereof is the best way out

This is where well-known, knowledgeable timeshare attorneys can be of help, as they can legally compel the timeshare resort companies to cancel your timeshare contract for good and get out of the ongoing timeshare headache.

One of the surest ways a timeshare owner can use to escape the timeshare madness is the ability to pursue a lawsuit against the resort. Offered only by a timeshare attorney, and not by private or non-law firm companies, this legal weapon provides a significant amount of leverage and is often the only way the big timeshare resort companies will respond in the timeshare owners’ favor.

While class action lawsuits against the timeshare resorts don’t always succeed, thousands upon thousands of timeshare consumers have exited the timeshare contracts with protection from a proven timeshare attorney. Even the threat of litigation is a powerful one, and continues to serve notice on the timeshare resort developers that their owners of the timeshare memberships are serious about cancelling their contracts. And that’s a good thing.