A Guide to Evading Timeshare Hoaxes

Because of its popularity in the pre-recession years, the timeshare industry has become a haven for scams and frauds seeking to cash in on the big money. With the onset of the depression, this perception wasn't helped as even legitimate companies resorted to unethical practices to meet their sales quotas. High-pressure tactics, false "free gifts" and unmet expectations are just some of the complaints in this field. To help you guard against the negative apples of the industry, heed the following tips:

False Promises: Most sales reps often lure people to presentations with free gifts, such as cash rebates, coupons or even free vacations. As with most "free lunches", these come with a catch. It pays to read the fine print, as most can only be claimed by signing up for the package. In the resale business, shrewd salespeople have adopted the tactic by promising to sell unwanted properties. The catch is that there is no specific period or guarantee when it will be sold, or they make no effort at all beyond posting online ads which the owner could have done himself.

Aggressive Sales Tactics: High-pressure sales pitches, also known as hard-sell tactics, employ hardnosed and confrontational methods, designed to bully you into signing that timeshare contract. Some even take a jab at the consumer's pride, by insinuating they might not be the right kind of person for the deal. The key to avoiding these tactics is to recognize the seller's intention in his tone and choice of words.

Whether he raises his voice or comes off as a brownnose, never agree to sign anything on the spot. Take the information home with you, read the contract at your own pace (or have someone else more knowledgeable do it for you), and come up with a decision only when you have read it top-to-bottom. Should you opt to make the purchase, have every detail be put in writing, and compare the contract with the initial offer. And before signing your name, make sure you have seen the actual property. Photographs in a glossy brochure don't count. Remember that most of these agents are hardcore sellers who don't care about other's welfare as long as meet their quota.

Occasionally, new timeshare units are sold before the property is even built. If the financing for the construction falls, the property might never be built. Use an escrow service to hold your money until you're sure everything is in order.

Finally, a poorly maintained property takes the fun out of vacations, so make sure the contract clearly states the maintenance and renovation duties borne by the company. That way, you can take legal action should management cut corners on upkeep.

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