Everyone knows that in the US and most other countries, there are so-called consumer protection laws allowing a consumer to cancel or rescind the purchase of a timeshare and receive all of their money back. In the US, these rescission periods range from 3-10 days. How the Timeshare Industry keeps you from Rescinding
Let’s forget for a minute that most timeshare developers make the consumer follow quite strict and sometimes arcane procedures to actually rescind. Let’s further forget for a minute that at least one well-known developer goes even further and actually hides any and all mention of the rescission period in a ‘secret compartment’ in the myriad of paperwork given to purchasers.
Let’s focus on the absolute absurdity of the short period of time that consumers have to cancel.
To wit:
Purchasers are given either mounds of paperwork or worse yet, a CD/ROM with all the terms and conditions. 99% of the time, the purchase is made while the consumer is on vacation. The odds of a consumer reviewing these terms and conditions are incredibly small.
The Uniform Commercial Code ‘gives a buyer a right to inspect goods prior to accepting or paying for them, and a buyer is not required to pay for goods that he or she does not accept. More specifically, before making payment, the buyer has the right to inspect the goods “at any reasonable place and time and in any reasonable manner.”’ In the case of deeded-timeshare, how many purchasers actually inspect the physical unit they purchased? Worse yet, how does a consumer inspect a point-based timeshare?
Shouldn’t ‘inspecting the goods’ include determining if the timeshare operates as the salesperson said it did? You’d expect this from a watch, a TV, a computer or even a pair of jeans. Not so with timeshare.
The ‘use’ of a timeshare boils down to two options: using it at the home resort or trading/exchanging to another refuel, whether internal or external. Furthermore, the use of the timeshare requires an ‘account’ of some sort, generally Internet based, to be activated. Not surprisingly, the developer is UNDER NO TIME CONSTRAINTS TO OPEN OR ACTIVATE THIS ACCOUNT.
So, the consumer has absolutely no method of adequately inspecting anything. No way of seeing how many points it really takes to get that 2-bedroom condo in Hawaii, no way of seeing just how easy it is to get a studio in Daytona during Race Week. Not even a way of finding out how simple it is to come back to the home resort the following July. How the Timeshare Industry keeps you from Rescinding
Now of course I hear you asking, ‘how is this possible? This isn’t fair!’ The answer of course is that the timeshare laws were written approximately 40 years ago and that the terribly clever people in the industry categorized their nifty little product in such a way that the UCC didn’t pertain to it.
As a matter of fact, those clever people made sure that the laws covering their nifty timeshare product were specific to only timeshare.
And there you have it. A legal rescission period that on the surface, is consumer protection. In actuality, it’s a total farce. Except the only ones laughing at this face are those within the industry. Consumers are crying. How the Timeshare Industry keeps you from Rescinding
How the Timeshare Industry keeps you from Rescinding
How the Timeshare Industry keeps you from Rescinding How the Timeshare Industry keeps you from Rescinding How the Timeshare Industry keeps you from Rescinding How the Timeshare Industry keeps you from Rescinding How the Timeshare Industry keeps you from Rescinding How the Timeshare Industry keeps you from Rescinding
Lisa Ann Schreier is a leading timeshare expert who is helping Senior.com members make wise decisions about their timeshare investments. Here are some of the latest important questions submitted: Timeshare Expert Answers Owner Questions
1. Recently, Marriott and Starwood merged. Will this affect my timeshare ownership and usage?
These types of mergers are becoming more and more the norm. Individual ownership should not change all that much. The manner in which your timeshares are used, i.e. reservation systems, ability to use loyalty points across different platforms (hotel, timeshares, travel, etc.) and ability to trade/exchange MAY significantly change. More than ever you must pay attention to all communication that the resort issues and if possible, attend your annual HOA meeting(s). If you are unable to do so, request a full and detailed recap of the meeting.
2. I’ve been looking to sell my timeshare that I’ve owned for 20 years, but have been disheartened to find out that they are practically worthless. Why is this the case and how can I maximize my purchase?
In most cases, 50% or more of the price that you paid when you purchased your timeshare from the developer were attributed to sales and marketing costs. Factor in the glut of timeshare on the resale market and the increasing number of developers that are placing usage restrictions on secondary market purchases and it can look pretty glum for many owners. If you’ve used your timeshare for 20 years and enjoyed great vacations and can sell it for even a small fraction of what you paid for it, you’re coming out ahead…remember that this is NOT an investment. If you just can’t bring yourself to sell your timeshare for $1,000, consider renting it out. This way you can make some money while still holding on to your timeshare. If you are set on getting out of your timeshare, here are some tips:
Use a licensed timeshare broker who will not charge an upfront fee
In some cases, the “value’ of the timeshare is so low, that a broker will not accept the listing. In that case, look into the Alternative Dispute Resolution Service which will be rolled out in January 2017 from the National Timeshare Owners Association.
3. When multiple siblings inherit a timeshare what are the pitfalls of managing fees, ownership sharing, scheduling etc. What can be put in the estate planning to make it better?
Inheriting a timeshare can be difficult for everyone involved, particularly if there are multiple siblings. Some siblings may not want the timeshare; so if possible, find out who does and who does not. The parent or grandparent leaving the timeshare must first clearly understand the details of the timeshare; i.e. weeks, points, reservations, fees, etc. The easiest way to “split” a timeshare is to stipulate that each heir gets the use and the responsibility of the timeshare on alternate years.
4. What do you see is the future of timeshare ownership? Point systems? Ownership weeks?
The majority of timeshares being sold today are point based products. But, that doesn’t mean that the week-based system is in any danger of being phased out. Many of the point-based systems have absolutely no real estate interest, which begs the question “do I really own anything?” Smart developers will begin to offer term-products, so that owners are not saddled with an ‘in-perpetuity’ product. However, this is no longer timeshare in my opinion. More than ever, it is imperative to understand what you own or what you are thinking of purchasing. A 5 year vacation club is vastly different than a deeded timeshare. Both have pros and cons.
Talking Timeshare With The Timeshare Crusader, Lisa Ann Schreier
Lisa has complied her most asked questions about timeshare for Senior.com readers: Answering Vital Timeshare Questions What is timeshare?
In the most basic terms, timeshare is buying and owning your vacation accommodations, as opposed to renting a hotel room, resort room or vacation home. The difference between timeshare and whole ownership of a vacation or second home is that you only purchase and own the amount of time that you plan on using each year. Answering Vital Timeshare Questions How do I buy a timeshare?
Timeshares can be purchased on the primary market, i.e. from the developer, or on the secondary market from an existing owner. Developer sales are generally onsite at the resort, while secondary market sales can occur online between consumers, via a licensed broker, or in some cases through the developer. Can I sell my timeshare?
In most cases, the legal answer is “yes.” Although the value of the timeshare maybe far less than what you originally paid (see below) and some timeshares sell easier and faster than others. Timeshares can be sold if you no longer want/use it. Why is the resale value of my timeshare so much less than what I paid for it?
Timeshares purchased on the primary market, e.g. from the developer, include the cost of building plus the cost to sell plus the profit margin, just as with any other product. Combine that with the fact that there are millions of timeshare units for sale on the secondary market and the fact that many developers are restricting the rights and benefits to secondary market purchasers, the value of most timeshare is considerably lower than most owners realize. It is simply supply vs. demand vs. benefit. Is timeshare a real estate investment?
The short answer is NO. Even if a timeshare is backed by physical real estates (and many timeshares are not), a timeshare should not be thought of as a real estate investment as a house, condo or other types of general real estate may be. A timeshare can be thought of as an investment in your future vacations. You pay upfront now so that you can have vacations later. What is the difference between timeshare weeks and timeshare points?
Timeshare weeks are the standard and are the simplest to understand and use. Owners have the right to use 8 days 7 nights, consecutively per year, at a home resort or at an affiliated resort. Point systems vary from developer to developer and from exchange company to exchange company, but all operate under the same premise; owners use their points as the currency to make accommodations and other reservations. Can I donate my timeshare to a charity?
No charity will accept a timeshare due to the ongoing annual fees involved. If you receive a call from anyone saying otherwise, promptly hang up and report it to the National Timeshare Owners Association Helpline at 1-844-ASK-NTOA. What happens if I stop paying my annual maintenance fees?
As mentioned above, timeshare ownership carries with it benefits and responsibilities. One of those responsibilities is to pay your share of the annual maintenance fees levied by the resort. Failure to pay these fees may result in losing your ownership rights and in many cases lead to a foreclosure, which can have a significant negative affect on your credit and your ability to purchase a major item or even obtain employment in the future. Is a timeshare the same as a vacation or travel club?
No. While vacation and travel clubs differ, they are both are distinct from timeshare in that a vacation or travel club involve a membership vs. ownership rights. If you are considering a purchase of a timeshare, vacation club or travel club and are unsure of the differences, do not proceed until you are clear on the differences. I just received a call saying that someone wants to buy my timeshare…what should I do?
Hang up and report the call to the NTOA Help Line at 1-844-ASK-NTOA. The NTOA has not found a single instance of a legitimate company that cold calls consumers with ready buyers. If you wish to sell or rent your timeshare, the NTOA has vetted a list of organizations listed on our resource page.
Got A Timeshare Question? Ask Lisa Ann Schreier, The Timeshare Crusader.
Each month, we’ll choose three or four questions from our readers to be answered her in the newsletter. You can submit a question by e-mailing her directly at lisa@timeshareinsights.com. Answering Your Timeshare Questions Hi. I’ve owned a timeshare for 10 or 11 years now and have recently begun getting inundated with calls about selling my timeshare. I enjoy my timeshare and don’t want to sell. How can I avoid these calls?
So glad to hear that you enjoy your timeshare! The best way to avoid these annoying and often-times misleading phone calls is to register your phone number with the National Do Not Call Registry. Here’s the link to register: https://www.donotcall.gov/ If you continue to receive calls once you’ve registered, you can file a complaint on that same site. I strongly advise timeshare owners to avoid doing business with any entity that initiates contact, including phone calls. This is my first year of owning a timeshare and I recently received a notice of my timeshares annual meeting. I can’t attend this meeting, who should I appoint as my proxy assuming I should do this?
Welcome to the timeshare world! You have a world of great vacation experiences ahead of you. Understandably, you might not be able to attend your resort’s annual meeting. If you are thinking of assigning your proxy to someone in your stead, be certain that they have your best interests at heart and, should any votes be required, they are voting the same way you would had you been in attendance. I recommend staying up to date on any and all issues facing the owners and management company throughout the year. My timeshare resort just informed us that they were switching from weeks to points. What does that mean to me? What if I am satisfied with the current system…do I have to switch?
Great question…you’ll be happy to know that the simple answer to this is “NO.” You do not have to switch from weeks to points if you are satisfied with what you own and it’s working well for you. I recommend listing to what the resort is telling you about any new system and taking time to ask questions and make an informed decision. Don’t do anything in haste.
A QUICK GUIDE TO SPOTTING THE BAD GUYS IN TIMESHARELAND
There are a lot of players in the timeshare market—developers, marketing companies, exchange companies, title companies, resale brokers, resale listing services, rental listing services, magazines, forums, owners’ groups, law firms, consultants and self-appointed experts. How to Spot Timeshare Scams
While the vast majority of these players are legitimate, there are an ever-increasing number of “bad guys” that are in business for the sole reason of taking your money.
How do you know who to trust? Lisa Ann Schreier, a/k/a “The Timeshare Crusader” who has been educating people about timeshare since 2004, has compiled this list that, if taken into consideration will prevent you from being scammed 95% of the time..
THEY INITIATE CONTACT How to Spot Timeshare Scams
No legitimate timeshare resale or rental platform will initiate contact whether by phone, fax, text message or direct mail. Any instance should be treated as suspect.
THEY MAKE PROMISES
There are no absolutes in timeshare. If someone promises they can sell your timeshare, or they have a renter or buyer for your timeshare, do not proceed with any transaction. This holds true for purchasing a timeshare from anyone, including developers.
THEY PREY UPON YOUR EMOTIONS
Any timeshare transaction; buying, selling, renting or exchanging should be thought of as a strict financial transaction. If anyone attempts to use guilt or fear to persuade you to make a decision…STOP and do not proceed until you can look at things from a rational standpoint.
THEY PRESSURE YOU TO DO SOMETHING IMMEDIATELY
Again, any timeshare transaction is a financial one and just as you would not purchase a car, or a house on the spur of the moment, do not be fooled into thinking anything has to be done on the spot. If the opportunity is there today, it will be there tomorrow.
THEY USE MEANINGLESS LOGOS ON THEIR WEBSITE AND/OR COLLATERAL
Many scammers use logos that mean nothing in order to trick you. Examples of this include “Verified by ____”, “Member of Chamber of Commerce” and the like.
10 Reasons To Work With An Independent Timeshare Consultant Benefits of Independent Timeshare Consultants
You’ve “Googled” timeshare and come up with 15 million responses. Need a little help editing those responses? Benefits of Independent Timeshare Consultants
How do you know which of the thousands of timeshares on the resale market is the best fit for your needs?
How many timeshare sales pitches have you gone on? Do you know the “timeshare movie” by heart?
Hmmm, the timeshare salesperson started by saying that the price was $40,000…by the time the manager came over, the price dropped down to $10,000. Did you find that confusing?
Did you really believe the last timeshare salesperson you dealt with…the 22 year old who said that he owned a 3-bedroom in Hawaii?
What does “all red, all the time” really mean? Benefits of Independent Timeshare Consultants
You get the price of just about everything else online, why won’t the developer give you the price of the timeshare online? Benefits of Independent Timeshare Consultants
You’re confused with all the media coverage about timeshare being a lousy investment. Isn’t spending money on hotel bills a lousy investment?
Why would you buy anything after listening to a biased salesperson for 2 hours? Do you buy anything else that way?
How many more “cheap” timeshares do you want to buy before you realize “cheap” isn’t necessarily good?
Lisa Ann Schreier, The Timeshare Crusader, is the founder of Timeshare Insights (www.timeshareinsights.com) a timeshare consultancy service. She is the author of both “Surviving A Timeshare Presentation…Confessions From The Sales Table” and “Timeshare Vacations For Dummies.” Lisa is a frequent contributor to major media, a blogger and a sought after speaker. Benefits of Independent Timeshare Consultants
The Vermonter, a luxurious Winter glide from Washington DC to St Albans, Vermont.
Your journey begins from the snow dusted Penn station, Manhattan. You cruise Northwards past the whitened landscape and by the time you reach Hartford, Connecticut the snow has softened out the rough edges in a carpet several inches thick. The carriages begin to feel the effects of the cold as the snow builds up between them and rows of pretty icicles adorn the exposed surfaces. The line follows the valley of the Connecticut river and offers fine views of the Green Mountains on the Eastern side. The train passes frozen lakes dotted with the huts of ice fishermen trying their luck. The cosy cafe bar is full of the excited chatter of skiers on their way to the mountain runs at Ascutney, Bear Creek and Stowe. As night falls the landscape is bathed in pale moonlight and the train passes close by Naulakha, the onetime home of Rudyard Kipling and the place where he penned the stories of Mowgli and his Jungle Book adventures.
The excursion ends at St Albans. Here there is a range of accommodation available but very popular are the modestly priced Bed and Breakfast places that abound within a short taxi ride of the station. Should you wish to continue the journey there is a bus connection on to Montreal. The Adirondack, a leisurely ride North from New York and across the border to French influenced Montreal.
The Adirondack runs all through the year and there is plenty to see in every season. However, this trip was in the chilly early Spring so there was no use for the open cars that are popular in the warmer months. The journey begins in the functional but businesslike surroundings of Penn Station. The weather of late has been warmer and the snow that has blanketed the countryside recently has begun to thaw. However, this should take nothing away from the spectacular views you are expecting as the train winds it’s unhurried way North. The train hoots to signal it’s departure and you wind your way out through Yonkers and into open country. The scenery becomes more rugged as you approach Storm King Mountain crossing land that was hotly contested during the Revolutionary War. Franklin D Roosevelt had his house in these parts and the West Point Military Academy is not far away. At Hudson the views of the Catskill Mountains slide by.
The line skirts the edge of Lake Champlain, it’s shores dotted with log cabins, pine woodlands and despite it being Spring, still frozen beaches. The cold obviously keeping ‘Champy’ the legendary lake monster out of sight today! The station at Rouse’s Point marks the border into French Canada and you can begin to look forward to elegant patisseries, fine cheeses and chocolate in Montreal. Fortunately, if you have booked your accommodation at the Queen Elizabeth Hotel above the Gare Centralle and so will not even have to venture out into the cold at the end of your journey. The Downeaster, a short but magical journey along the New England coast between Boston and Portland.
Leaving Boston’s North Station behind the train runs at a leisurely pace through picturesque woodlands passing small towns and villages of white clapboard houses. Short stops at Exeter, Durham and Dover show the New England architecture at it’s best. The station at Wells Beach is just a short hop from the Bush family’s favourite vacation spot of Kennebunkport. You get your first glimpse of the sea at Old Orchard Beach shortly before pulling into your final destination of Portland. Once there take the time to explore the older parts of town walking across cobbled streets and sampling the delightful seafood restaurants down by the harbour. Trips by boat out to Calender Islands are available although you can leave these delights for another time.
The timeshare related fraudsters hell bent on separating you from your hard earned money do not take a break and seem to come up with ever more clever ways of taking advantage of you. Beware Timeshare Tax Deduction Scams
With tax season here, I’ve heard from an increasing number of consumers who have been promised a tax deduction of upwards of $25,000 if they “donate” their unwanted timeshare…for a hefty fee of up to $5,000 of course.
Legitimately donating a timeshare is almost impossible and trying it usually results in an IRS audit and fines.
Here are some tips and things to remember before doing business with anyone claiming to “help” you donate your timeshare:
If you donate anything else such as a car, clothing or money, there is no “fee” to do so. Why then, would there be a fee to donate your timeshare?
The timeshare owners I’ve heard from were contacted by a third party, NOT the purported charity. The Red Cross, Disabled Veterans of America, Goodwill, the United Way, etc. do not work with third parties.
All of the companies initiated contact. No legitimate company will ever initiate contact. This goes for resale, rental, listing, transferring, “getting out of” and donations.
A charity will not accept a donation if it comes with an ongoing liability and annual maintenance fees are an ongoing liability
Your timeshare does NOT have a $25,000 value, or a $15,000 value, or in most cases, even a $7,000 value. Timeshare is not an investment and the value of it does not increase over the years. Here is a definition of Fair Market Value that should clear things up: Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
If the legitimate charity receives anything (doubtful in most cases), it will be a nominal amount of no more than a few hundred dollars which comes directly from the fee the company is charging you, NOT from the value of your timeshare, which as stated above, the charity does not want and cannot take
If you own a timeshare that you no longer need or want, here are some tips:
Call the resort and inquire if they will buy it back from you.
If you decide to sell or rent it, only work with those organizations that you contact first and those that do not require an upfront fee or give you any promises about selling or renting
Bottom line is do not do anything before checking with an unbiased source of information. That source of information is NOT the one trying to convince you of anything.
Fall is a great time to travel – the weather is cooler and there’s still a lot going on. If you don’t have the time or budget for a long vacation, you can still hop in the car and take a day trip. There are plenty of places to go and things to see within driving distance – you just have to look for them.
You can check your local newspaper and find local guide books for information. And there’s plenty of online help, too. LEAF-PEEPING:
New England may be the most famous area for its autumn leaves but there are places in the Midwest, Southeast, mid-Atlantic and even Utah and California that put on a good show as well. Prime leaf peeping season ranges from early September in the North, to as late as November in areas of the South. To find the best time to go, check:
The Foliage Network collects data from foliage spotters twice a week from September through November. See reports at www.foliagenetwork.com
For other ways to see great foliage, look into local options for family-friendly rock climbing tours, bike paths, gondola rides, hot air balloons, or foliage trains. FALL FESTIVALS:
From small town harvest festivals to big city music fests, there’s something to celebrate all season. Find one near you at www.festivalnet.com or www.festivals.com. You’ll find gems such as:
Earshot Jazz Festival, Seattle, Wash. Oct 16 – Nov 8
Great Mississippi River Balloon Race, Natchez, Miss. Oct. 16 – 18
Pirate Days of The Colony, The Colony, TX Oct. 17 and 18.
Maine Brewer’s Festival, Portland, ME., Nov. 6 and 7
Bluegrass Festival and Fiddle Championship Wickenburg, Ariz., Nov. 13 – Nov. 15.
FAMILY FUN:
At www.ADaysOuting.com, you can search for family-friendly attractions in your area. For example, a family looking for an October daytrip within 90 miles of Cleveland, Ohio could find recommendations for:
Taking a ferry ride to Put-in-Bay on South Bass Island
Visiting the Akron Zoo
Renting a canoe to paddle the Mohican River at Mohican State Park
WINERY TOURS:
Locate all wineries in your state at www.AllAmericanWineries.com. At www.WinesandTimes.com, there’s an interactive map that lets you see just where the wineries are and helps you plan a tour. (Did you know there are 39 vineyards and wineries in New Mexico and 67 in Illinois?) BE SPONTANEOUS:
Not sure where you want to go or just feel like taking a spur of the moment road trip? Use the Tank of Gas feature at www.TripAdvisor.com. Enter your city name and how much gas you want to use – quarter tank, half tank, full tank – and a list of day trip ideas will pop up.