Timeshare Scams: Resale and Exit Fraud, Warning Signs and What to Do

Timeshare scams mostly target owners who want to get rid of a timeshare. A caller claims there’s a buyer waiting, or a company promises to cancel your contract, and then asks you to pay fees, taxes or “closing costs” upfront. After you pay, the buyer disappears or the exit never happens. If someone asks for money before a sale closes, stop, don’t pay, contact your resort or developer directly, and report it to the FTC at ReportFraud.ftc.gov and your state attorney general.

Wanting out of a timeshare is common, and there’s nothing foolish about looking for help. Scammers know owners are often frustrated by rising maintenance fees, and they design their pitch around that frustration. This guide covers how the scams work, how to tell a real offer from a fake one, and what to do if you’ve already paid.

How timeshare scams usually work

Most timeshare fraud relies on a simple fact: owners are hard to reach with good news about their timeshare, so a surprise call offering a quick sale or a clean exit feels like a lucky break. The scammer’s goal is to get money from you before anything actually happens.

The pitch is often convincing. Callers may know your resort, your unit, your contract dates or how much you owe, because ownership details can be found in public property records or leaked lists. Paperwork can look official, with seals, case numbers and the names of real law firms or agencies.

Common types of timeshare scams

Timeshare resale scams

You get a call, email or letter saying a buyer wants your timeshare, often for more than you expected. To complete the sale, you just need to pay an upfront fee for an appraisal, a title search, transfer taxes, a “closing cost” or an escrow deposit. Once you pay, more fees appear, or contact stops. There was never a buyer.

A variation targets owners who have already listed their timeshare for sale. The “reseller” charges a large listing or advertising fee and promises a quick sale that never comes.

Timeshare exit scams

Exit companies advertise that they can legally cancel your contract. Some charge large upfront fees and then do little or nothing. Some tell you to stop paying your maintenance fees or loan while they “negotiate,” which can lead to late fees, collections and damage to your credit, leaving you worse off than before. Not every exit company is a scam, but the upfront-fee model combined with big promises is a well-known warning sign.

Fake lawyers, courts and government officials

Some scammers pose as attorneys, judges, notaries, bank officers or officials from a government agency. They may say a court has ruled in your favor, that a settlement or refund is waiting, or that you owe a tax or fee to a foreign government before your sale can close. US authorities have warned about schemes, including some run from outside the country, in which callers impersonate US government agencies and real law firms to take money from timeshare owners.

No real US agency calls to collect fees to release a timeshare sale or settlement, and real lawyers don’t cold-call strangers demanding payment by wire.

Recovery offers after a timeshare loss

If you’ve already lost money to a timeshare scam, you may be contacted again by someone offering to recover it for a fee, or claiming to be investigating the first company. This is usually a second scam. Our guide to recovery scams explains how they work.

Warning signs of a timeshare scam

• They contacted you. A buyer or exit firm reaching out unprompted, especially with a buyer “ready to close,” is the most common starting point.
• Upfront fees. Any request to pay before the sale closes or before the contract is actually cancelled.
• Unusual payment methods. Wire transfers, especially overseas, crypto, gift cards or payment apps.
• A price that seems too good. Many timeshares resell for far less than their original price, so a surprise offer for more than you paid deserves suspicion.
• Pressure and secrecy. A deadline to pay today, or advice not to contact your resort because “they’ll block the sale.”
• Advice to stop paying. Being told to stop paying your loan or maintenance fees.
• Official-sounding names you can’t verify. A law firm, agency or court you can’t independently confirm, or a real one whose contact details don’t match the ones on its official website.

What to do right now if you think it’s a scam

1. Don’t pay anything more. Not the “last” fee, not the tax, not the release charge.
2. Stop contact. Hang up and don’t call back numbers they gave you.
3. Call your resort or developer directly. Use the number from your contract or statement. Ask whether a sale or exit is in progress and whether it offers its own resale or exit program. Some developers do.
4. Keep paying your obligations until you have confirmed, in writing from your resort or your own lawyer, that the contract has ended.
5. Call your bank or card issuer if you paid, using the number on your card, and report the payment as fraud.
6. Protect your identity. If you sent a copy of your ID, Social Security number or bank details, follow the steps in our guide to what to do if your identity is stolen.
7. Keep everything. Letters, emails, contracts, call logs, payment receipts and the names they used.

How to check a timeshare resale or exit company

1. Check real estate licenses. If someone says they’re a broker or agent, confirm the license with the real estate licensing authority in the state where the timeshare is located.
2. Check lawyers yourself. Look the lawyer up with the state bar, then call the firm on a number from the bar listing or the firm’s official website, and ask whether that person is handling your file.
3. Look up complaints. Search the company name with “complaint” or “scam,” and check your state attorney general’s consumer protection office and the BBB.
4. Get everything in writing. Including what you’ll pay, when, what happens if the sale doesn’t go through, and the refund terms.
5. Prefer fees at closing. Payment after the sale closes, from the proceeds, is safer than paying before anything happens.

Where to report a timeshare scam

• The FTC at ReportFraud.ftc.gov.
• Your state attorney general, and the attorney general in the state where the timeshare is located, if that’s different.
• The FBI’s IC3 at ic3.gov if the scam happened online or by email, or involved wires overseas.
• The US Postal Inspection Service if letters or fake documents came through the mail.
• The resort or developer, so it can warn other owners.
• The real law firm or agency being impersonated, through its official website.

Our guide on how to report a scammer lists more routes, including outside the US.

Can you get money back from a timeshare scam?

How you paid	What you can try
Credit card	Ask your card issuer about a dispute or chargeback. Card payments usually have the strongest protections.
Wire transfer	Call your bank immediately and ask for a recall. Once collected, especially overseas, wires are usually impossible to reverse.
Check	Ask your bank whether it can stop payment if the check hasn’t cleared.
Crypto or gift cards	Usually irreversible. Report to the exchange or card issuer anyway, and keep receipts.

If a legitimate exit company failed to deliver what it promised, you may have contract or consumer protection rights. A consumer or real estate lawyer you find through your state bar can tell you what applies.

A worked example

This is an illustrative scenario, not a real case. Frank and Linda have owned a week at a beach resort for years and would like to sell. Frank gets a call from a woman who says she represents a buyer offering more than they paid. She emails a purchase agreement and asks them to wire a “transfer tax” to an escrow account before closing.

1. Linda looks up the escrow company herself. Its website lists a different phone number, and when she calls, nobody there has heard of the sale.
2. They call their resort on the number from their contract. The resort confirms no transfer request exists and mentions its own resale program.
3. They don’t pay, stop answering the caller and save the emails and agreement.
4. They report the attempt to the FTC and their state attorney general.
5. A month later, a “law office” calls to say it’s investigating the fake buyer and can win them compensation for a retainer. They hang up.

Safer ways to get out of a timeshare

There’s no guaranteed exit, and options depend on your contract. These are the routes owners typically explore, without paying strangers upfront:

• Your developer or resort. Some offer deed-back, surrender or resale programs, especially for owners who are up to date on payments.
• Your contract’s rescission period. If you only just bought, many contracts and state laws give a short window to cancel. Check your paperwork now.
• A licensed resale broker. One who charges on sale rather than upfront, and whose license you’ve checked.
• A lawyer you choose. If you think the sale involved misrepresentation, a real estate or consumer lawyer found through your state bar can review your contract.

Common mistakes to avoid

• Trusting caller ID or letterhead. Both are easy to fake.
• Stopping payments on an exit company’s advice before your contract has actually ended.
• Paying a fee to “release” a sale or settlement. Real closings don’t work that way.
• Keeping it quiet. Talking it through with family or your resort can stop a scam early.

If your name or business is being used by timeshare scammers, for example if you’re a real estate professional or lawyer whose details were copied, see our guide on online impersonation. And if scam complaints are now showing up in search results about you, our personal reputation management team can help assess what can be done.

Frequently asked questions

How do timeshare resale scams work?

Someone contacts you claiming to have a buyer, then asks you to pay fees, taxes or closing costs before the sale. Once you pay, more fees appear or the contact stops. There was never a buyer.

Are all timeshare exit companies scams?

Not all, but many charge large upfront fees and deliver little. Be wary of any company that promises a guaranteed exit, charges before doing any work, or tells you to stop paying your loan or maintenance fees.

A lawyer called me about my timeshare. Is it real?

Look the lawyer up with the state bar and call the firm on a number from the bar listing or its official website. Real lawyers don’t cold-call to demand fees by wire, and government agencies don’t collect money to release a timeshare sale.

Where do I report a timeshare scam?

Report it to the FTC at ReportFraud.ftc.gov and your state attorney general, and to IC3 at ic3.gov if it happened online. Tell your resort or developer too, and your bank if you paid.