Owners who want to get rid of a timeshare are a ready-made target for fraudsters. The United States Federal Trade Commission (FTC) warns that some companies advertising help to sell or cancel a timeshare exaggerate or lie about what they offer, take payment up front and then do little or nothing. This guide covers the FTC’s advice on timeshare resale and exit scams. It applies to timeshares and vacation clubs in the United States, where timeshare law is set by the state in which the property is located, and it is general information rather than legal advice.
Why owners look for a way out
The FTC explains that timeshare owners usually pay an initial fee plus regular maintenance fees and other recurring charges. Those maintenance fees typically increase at rates that equal or exceed inflation, and they must be paid even if the timeshare is not used. The FTC says selling one might be difficult, and that difficulty is what scammers exploit.
Resale scams: the promises to distrust
The FTC says the timeshare market is overcrowded and it might be hard, if not impossible, to sell a timeshare. It lists claims that appear in resale adverts, with its own verdict on each:
- “The market is hot, so we’ll sell your unit fast.” The FTC calls this a lie.
- “Your timeshare will sell quickly” or “it will sell in months.” The FTC calls this unlikely.
- “We have lots of buyers ready to purchase.” The FTC calls this doubtful.
- “We guarantee you’ll get big returns on your resale.” The FTC calls this a lie.
Its conclusion is that anyone who guarantees a sale or big returns is a scammer. In a September 2025 consumer alert, the FTC described a common version of the trick: the caller says there are interested buyers, but the owner must pay a few thousand dollars up front for taxes or closing costs, which are supposedly refunded later. There is no buyer, and payment is lost. Some people who paid for help received mainly excuses for delays and, when they asked for a refund, were persuaded to keep paying. The alert calls these tales lies.
Exit scams: cancelling a contract
Scammers may use public records to find owners’ contact details, and other companies place adverts that “guarantee” results while asking for advance payment for listing, advertising or legal services. The FTC says some simply contact the timeshare company on the owner’s behalf, which the owner could do for free. It lists these warning signs:
- unsolicited calls or messages offering help to get out of a timeshare;
- “guarantees” or “promises” to cancel the contract;
- demands for large up-front fees before anything is done;
- instructions to stop paying the mortgage or fees.
In a November 2022 alert about a case it announced, the FTC said a company known as Consumer Protection Law, among other names, had targeted older adults with mailers inviting them to in-person presentations, where pressure tactics were used to sign people up. According to the FTC, customers paid fees from $5,000 to $80,000, but the company rarely delivered. The alert gave the FTC’s allegations, not a court’s findings.
Checks to make before paying anyone
The FTC’s advice for resale companies includes:
- Start with the timeshare company. Contact the developer or resort management company first to ask about options. Some have exit programs that let owners leave for a modest fee. The FTC notes that the American Resort Development Association (ARDA) has a tool for identifying which company to contact.
- Check the seller. Ask the state attorney general and local consumer protection agencies in the state where the reseller is located whether complaints are on file, and search online for the company’s name plus words such as “complaint” or “scam”.
- Ask about fees. It is better to deal with a reseller that takes its fee after the timeshare is sold. If a fee must be paid in advance, the refund policy should be in writing.
- Check licences. Deal only with licensed real estate agents and brokers, checking with the real estate licensing agency in the state where the timeshare is located, and ask for references.
- Get everything in writing. The contract should match verbal promises, including services and the fees and when they are due. If the deal is not what was expected, the FTC says not to sign.
Cooling-off periods and sales presentations
For anyone still considering buying, the FTC says promoters sometimes wear people down with long waits or say an offer is good only today. It suggests asking why the deal is available only today, and asking about any right of rescission or cooling-off period, which state law or the contract may set. A cancellation should be sent to the seller by certified mail with a return receipt requested.
If money has been paid
The FTC says to report timeshare resale scams to ReportFraud.ftc.gov, to the state attorney general in the state where the timeshare is located, and to the Better Business Bureau. The site’s guide to what to do if you paid a scammer in the United States sets out FTC steps by payment method.
Frequently asked questions
Can a company guarantee to sell or cancel a timeshare?
The FTC says anyone who guarantees a sale is a scammer, and that “guarantees” to cancel a contract are a warning sign of exit scams.
The bottom line
According to the FTC, a timeshare is difficult to sell or leave, so any company that guarantees a quick sale, a buyer, or cancellation, or that demands large fees first, should be treated as a probable scam. Contact the timeshare company, check the seller with the state authorities, keep every promise in writing and report suspected scams to the FTC.
Sources
- Federal Trade Commission, “Timeshares, Vacation Clubs, and Related Scams”
- Federal Trade Commission, “Thinking about selling your timeshare? Key steps to avoid scams” (September 2025)
- Federal Trade Commission, “Want to get rid of your timeshare? Read this before you hire someone to help” (November 2022)