The American Resort Development Association (ARDA) is the timeshare industries trade association. ROC stands for Resort Owners Coalition.  ARDA is a major lobbying force that seeks to protect the timeshare industry from unnecessary laws, regulations, and taxes. The ARDA-ROC  was formed in 1989 to protect timeshare owners and timeshare owners have benefited from ARDA-ROC actions to limit timeshare owner taxes.

The coalition is funded by voluntary contributions. According to the ARDA-ROC website they have over 1 million members who contribute $3-$10 a year (over $3 million a year).  The FEC has recently questioned the disclosure and use of the fees collected by the ARDA-ROC. The FEC questioned contributions from the fees with regard to fees paid by corporations and/or private individuals who are not US citizens. In August 2010 the FEC fined the ARDA for a total of $900,000 (more information)

In response to the FEC’s audit, ARDA made the following, undated, post on itswebsite at http://arda.org:

There was recently some misleading information circulated about ARDA-ROC PAC, in reference to a random Federal Election Commission (FEC) Audit of 2003-2004 voluntary contributions. As a result of the audit, ARDA implemented the FEC’s request to put uniform language about PAC contributions on owner invoices or in an accompanying letter. The following is the uniform message approved by the FEC and communicated to the PAC contributing homeowners associations (HOAs):

“Individual contributions to Federal political action committees are strictly voluntary and not tax deductible for federal income tax purposes. Corporations may not contribute to Federal PACs. Only U.S. citizens and permanent green card holders are eligible to contribute. Contributions from Foreign Nationals are strictly prohibited.”

In addition to uniform standards, ARDA has also retained a prominent data company to further ensure that we are in compliance. This is particularly important, given the sheer volume of the $3.00 to $10.00 individual contributions received to support homeowner advocacy.

ARDA is proud of the grassroots participation by hundreds of thousands of timeshare owners and their HOAs that support ARDA-ROC PAC. It is through their efforts that we are able to continue to protect the integrity of their timeshare purchase. Through ARDA-ROC PAC, we will continue to monitor regulatory proposals and proactively respond, to ensure owners are not adversely affected by ill-advised efforts to assess owners for property taxes beyond fair market value of like-sized condominiums, as well as to fight transient occupancy taxes when localities try to misapply these hotel taxes to timeshare owners and exchangers. ARDA ROC and ARDA-ROC PAC are true timeshare advocates and rely on the voluntary pledges of nearly one million timeshare owners.

There are a number of sources for timeshare rentals. New resorts may offer units at a competitive rental rate to entice prospective owners. The competitive price may require attendance at a sales presentation. Resorts may rent their abandoned or foreclosed units. Exchange companies offer unused inventory. Owners who cannot use their weeks often rent their units.

Timeshare rentals can be found on sites such as redweek.com and craigslist.org. Finding a timeshare rental is the easy part, avoiding scams and understanding the process is the hard part. Requirements to pay the full fee up front should be met with skepticism. Some rental agreements may require a full payment up front, most do not. Always use an escrow service when possible.

Understand all of the fees involved.

• What is the fee per day?
• What percentage of the total fee is required for a deposit?
• Is there a damage deposit?
• A/C fees?
• Utility surcharge fees?
• Parking fees?
• Pet fees?
• Taxes?
• What is the total fee for the entire stay?

A written consent form should be provided to the renter. The consent form should name the renter and it should explicitly authorize the renter to use the unit for the agreed upon times.  The renter should be aware of check in/out times. The renter should also review resort policies.

There are some tips at increasing your satisfaction with your exchange. The first being; be realistic. You will not have an easy time exchanging a crummy week or location for a five star option during spring break. Secondly; deposit your weeks as early as possible and have your fees paid. Third; look into different resorts in the area you want and not just one resort. Four; search as early as possible; Fifth; call the exchange company often, they are less likely to call you if something comes up than for you to call them. The best tip is to be open to shoulder dates and off season dates. The real key to getting a location you want is flexibility!

One last solution people have been doing in lieu of exchange companies is private exchange. Posting on a community board what you have, when you have it and what you are looking to trade for can yield excellent results. Even better is the lower cost of paying fees to a company that may sometimes seem to not want to help you get what you want!

One of the more common scams is the appraisal fee scam. There may be different variations but they are all similiar to the following:

1. The seller is contacted by an “investment firm”. The firm is looking to add timeshare properties to their portfolio and they are willing to pay top dollar.
2. The seller is provided a list of companies that can provide an appraisal
3. The seller pays for an appraisal
4. The seller provides the appraisal to the “investment firm” but never receives a response

On the surface the scam appears to be legitimate. One could argue the appraisal came in too high and the firm was not interested in following through with the purchase.  So what is wrong with this picture? The “investment firm” is not interested in purchasing the timeshare, in fact the firm has probably never purchased a timeshare.  The goal of this scam is for the seller to purchase a $500 (or more) appraisal from a company that may or may not be qualified to perform an appraisal.

These scams can be very successful. In some instances the scammers have  made millions. These scams can be followed by following one simple rule: never pay up-front fees to sell your timeshare.  These scams are tricky because the up-front fee is an appraisal, a procedure that is commonly associated with a sale. The warning sign here is the pressure to use specific appraisal companies.

Can a resort in another country sue you in America?

Can a collections company in the US collect on a debt ?

If you quit paying maintenance fees your week will go into foreclosure affecting your credit negatively. Try to use it, trade it or sell it for $1 and offer to pay the closing fees, that’s about the best you can do to rid yourself or your albatross. Try perusing the different timeshare ad sites to see what a comparable week has sold for. When you sign on the dotted line of any contract the terms must be met or there will be consequences.

Any body can sue you. They merely have to file against you in your home country. They can also just hire a collection agency in your home country, that can come after you. This is probably what they will do in fact.

Timeshares can be difficult to sell without a loss. In the current economy it is not uncommon to sell your timeshare for 70% off of the original purchase price.  A timeshare purchased just five years ago for $10,000 may only sell for $3,000 today.  Coming to terms with such a drastic loss is difficult for some owners who purchased a timeshare with the belief that it was also an investment. The reason for the loss is simple supply and demand. New resorts drive up the demand through investments in marketing and sales. Marketing ends when the developer has sold the last unit and demand dwindles when the resort is not actively marketed. The loss is less drastic at resorts with active resale programs. Resorts with resale programs and staff keep the demand for the resort up. Prices can be driven down by resorts with abandoned units or highly motivated owners under financial pressure.

Determining a price is easy, the process of selling may be the most difficult. Never pay an upfront fee to sell your timeshare. I am sure you thoroughly regret purchasing your timeshare by now, it is understandable. It is unfortunate, but there are plenty of companies and individuals who prey on timeshare owners who want an easy way out; Fortunately they are easy to spot when they ask for an upfront fee to sell your timeshare with the promise of a quick and easy sale.

There are two golden rules to selling a timeshare: Don’t be afraid to take a loss, and never pay an upfront fee to sell your timeshare.

Need help determining how much your timeshare is worth? Ask a timeshare question. No registration required and it will take less than a minute.

The annual maintenance fee is established by the timeshare management company, either the developer or the HOA. New properties still managed by the developer tend to have lower fees. Most developers want to keep the fees low in order to keep costs down for the initial buyers.

You should expect to pay at least $815/year in maintenance fees.  You could pay more than the $815 average depending on the property, and depending on what is defined in your contract. Review your timeshare contract thoroughly to understand your financial obligations.

Be prepared to pay special assessment fees, in additional to your annual maintenance fees. Special assessment fees can be levied at any time due to unforeseen events. A common example of an unforeseen event is hurricane damage that exceeds the payout of the insurance company.

If you understand your costs, and budget properly, you should not have any problem paying the fees. Owners that cannot pay the fees should investigate the option of either donating the timeshare or the option of a quick claim deed to the property management. If a quick claim deed offer is not accepted, and donating does not pan out, then you can sell your property for one dollar and have the new owner assume the maintenance fees.

Never pay an upfront fee
There are many less-than-reputable individuals and companies who will contact you with guarantees of selling your timeshare for an upfront fee. Don’t do it. The “broker” has no motivation to sell your timeshare after they have collected the up-front fee, and you will probably never receive a return on the fee due to a lack of sale.   The only exception to this rule is paying a fee to list your timeshare with a reputable company like Ebay or Craigslist.

Most timeshares sell on the resale market for up to 50% of the initial price
Be prepared to take a loss when you sell your timeshare. Making money on the “investment” of a timeshare is the exception to the rule. The value in a timeshare is the vacation, not a monetary return. Research what other comparable weeks and locations are selling for to get a feel for the market. The price you ask may be higher than what is available on the market, or it may be lower if you are looking for a quick sale.

You will need to cover the difference
If you have a timeshare loan then you will need to be prepared to write a check for the difference of the sale price and what you owe.  Don’t have enough cash on hand to cover difference? Rent the timeshare until you have paid down the loan.

Caveat Venditor – Seller Beware
The timeshare resale market attracts scammers on a global level. Walk away if you sense a scam. Always give yourself 24 hours to think before exchanging any money or signing any contract.

Finding an online company to sell your timeshare is the first step. The most important rule when dealing with any company that wants to “help” sell your timeshare is to never pay an up front fee. Paying upfront fees are the most common mistake eager sellers can make.

Make sure to list as much information as possible when selling your timeshare.

• Week(s)
• Maintenance fees
• Recent repairs
• Amenities or any other attributes that can make your listing stand out

Caveat Venditor, Seller Beware.

Timeshare listings are attractive to scammers looking to make some quick money. Be cautious, but polite. Again; It may be difficult, but it is not impossible. Keep a positive attitude and persevere. Where there is a will there is a way!