We found an interesting guest column piece about timeshares by Wayne Stenehjem, the Attorney General of North Dakota at www.consumeraffairs.com. If you don’t know, Mr. Stenehjem has been quite active in investigating the minority of timeshare companies for misleading sales claims and violations of certain solicitation & telemarketing laws in the state. So, he has some experience with timeshares and how they are sold.
In the article, Mr. Stenehjem describes what a timeshare is. He reiterates some common knowledge that timeshares should not be viewed as investments but as vacation destinations, and that the resale value of a timeshare “may not be as high as what you paid for the plan in the first place as there are so many options available today.”
He then describes how people typically use timeshares and vacation interval plans. The concept of maintenance fees is brought up an it’s pointed out that the “fees are likely to increase every year.”
The article concludes with a number of tips on how to avoid timeshare scams. Most are common sense recommendations, but are also forgotten easily when prospective buyers are swept up in the hoopla of buying a timeshare (paraphrased):
- Don’t buy a timeshare on the initial offer. Take time to review it.
- Read the contract. Have an attorney look at it.
- Research the timeshare industry & the seller. Know what you are buying.
- Inquire about your ability to cancel. Different states have different laws.
- Use an escrow account for the transaction.
- Be aware that laws may apply to you that are different than in your home state if you purchase out of your state.
- US laws may not apply if you purchase a timeshare outside of the country.
For more, go to http://www.consumeraffairs.com/news04/2010/04/timeshare_alert.html
