Our Question and Answer section often receives questions regarding companies that have contacted a timeshare owner with a “guaranteed exit” program. There are a number of scams that make “guaranteed exit” offers, however we were surprised to find legitimate companies offering a “guaranteed exit”, and even more surprised to find mixed reviews of these companies. Why is it some customers of these timeshare transfer companies are satisfied with the results, while others are not? To find out we researched how these companies operate.
How a Timeshare Transfer Company Works
It should be noted that there are timeshare transfer companies and there are legal entities that prey on desperate timeshare sellers. This article is focused on companies that offer to transfer ownership of your timeshare for a fee.
A timeshare transfer company will sell you the idea of signing over your timeshare for a small fee. The idea of simply signing over your timeshare is very desirable for owners who have struggled to exit their timeshare. It seems that most timeshare owners going through this process have the expectation that they are no longer owners of the timeshare after signing on the dotted line.
There are very few instances when a company will take ownership of a timeshare. There are a number of donation assistance companies that will gladly transfer ownership of a Marriott, Hilton, Starwood, or Hyatt timeshare; They accept these timeshares due to a high demand, and they are very easy to sell. Odds are you are thinking about working with a timeshare transfer company due to difficulty selling your timeshare not at a high demand resort.
So what service does the Timeshare Transfer Company provide? In most instances their service is simply to assist selling your timeshare, and the contract provides the company power of attorney to do so. The tactics used to sell your timeshare may vary with each company, but in most instances there is no unique process that the timeshare owner couldn’t have attempted themselves. The company will simply attempt to deed-back the timeshare or sell it on Ebay for $1. Some of you may be asking how a company could profit from assisting with a deed-back or selling the property for $1. The timeshare transfer companies profit by charging a processing fee, a fee that is rarely less than $1,000 and in some instances may be as high as $4,000.
These companies are not breaking any laws that we are aware of, nor are they the perpetrators of a scam. The term transfer is misleading, as the company does not assume ownership of the timeshare when you sign the contract. As always, read the contract and don’t sign unless you have a full comprehension of the terms you are signing.
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