The report states, "I received an offer from" Sell a Timeshare Now,LLC " for my Wyndham points. The offer was in writing and signed by the "buyer" . They stated I must send 5% of the sale price payable to merchantable accounts of Sell a Timeshare Now,LLC within 24 hours of the accepted contract. The price was acceptable-however- I think the 5% should be sent to the title company. They said this is how timeshare points are sold. I am not comfortable with this arrangement! ( I am wondering if this is another scam.) They said the reason for this is that they are not a licensed real estate company and have to work with one that is licensed. They would not give me the name of the company they work with because they said they are afraid I may contact the company directly and work with them. This sounds like total nonsense! I certainly would be interested in your opinion and your legal advise. I would like to sell my points-however I don't want to be scammed. what would you recommend?..."
Consumers should simply hang up the phone when they receive a cold call promising to sell or rent their timeshare! These calls are just another form of a telemarketing scam!
Timeshare resales are simply another version of a real estate transaction, and they should follow the same process as a traditional real estate transaction.
1) The Seller lists the property with a licensed real estate broker (preferably one that is licensed in the state where the property is located or that maintains a cooperative relationship with a broker who is licensed there). If the reseller or broker contacts you via an unsolicited telemarketing call- it is ALWAYS a scam!
2) The Seller should NEVER pay any type of upfront fee, appraisal fee, advertising fee, admin fee, MLS fee, or marketing fee.. It many states it is illegal for a licensed real estate broker to charge any type of advance fee to sell a timeshare!
3) The resale broker pays all costs to advertise the property.
4) The resale broker delivers any and all offers received for the timeshare property.
5) Once an acceptable offer has been received, the resale broker will deliver a sale and purchase agreement, or a rental and short term lease agreement, which details the transaction. The contract should also specify the title company, attorney, or escrow agent that will be responsible for holding and protecting the buyer or renter's funds. The closing agent should be a well known company that is properly licensed to conduct real estate closings in the state where the property is located.
6) At closing, any seller expenses are simply deducted from the buyer's money. The Seller should NEVER SEND IN ANY MONEY unless they know in advance that they are upside down due to the broker's fee, a mortgage or lien, or if the broker's commission exceeds the property sale price.
7) At the close of escrow, the closing agent will disburse funds according to the executed contract.