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Many people have bought timeshares and have
enjoyed using them.
However, timeshare
touts operate in some holiday resorts. The DTI
has received many distressing letters from people
whom touts have pressured into buying timeshares
they do not want and cannot afford.
Timeshare means buying
the right to spend a set period in a holiday
property each year for three years or longer.
Most timeshare resorts are linked to an exchange
organisation that offers to arrange exchanges
with owners in other resorts, normally for a
fee.
If someone tries
to sell you a timeshare… Think:
• Do you want to
take this sort of holiday every year?
• Is it good value
for money? Remember that when you buy a timeshare,
you will still have to pay the costs of flights
to and from, food etc.
• Timeshare is not
an investment. Generally, the resale value of
a timeshare is far less than the price you have
paid for it when new. If the seller offers you
a "money back guarantee", check the
small print carefully.
• Shop around. Don't
take the first timeshare someone tries to sell
you. Consider different resorts in different
areas, look in newspapers and magazines, contact
resale agencies and compare prices.
• Find out if the
seller is a member of The Organisation for Timeshare
in Europe (OTE) a trade association which represents
many British timeshare developers and marketing
companies and has a code of practice.
• Know your legal
rights under the Timeshare Act 1992 as amended
by the Timeshare Regulations 1997.
Before you commit
yourself…
• Take your time
and think. Read the contract carefully and,
if you have any doubt, take independent advice
about your legal rights.
• Don't be rushed.
Timeshare sales staff may put you under pressure
to sign immediately on the promise of a discount.
Don't sign anything until you have read it carefully
and talked it over with people you trust.
• Never sign anything
to get away from the sales team. It will cost
you more trouble to get out of a contract.
Beware of Timeshare
presentations…
Some companies sell timeshare
by getting people to go to sales presentations.
They may offer gifts or free holidays to persuade
you to attend. They may suggest you have won
a competition and say you have to go somewhere
to get the prize. Only after you have arrived
do you find out that they are trying to sell
you a timeshare.
• If you know the
sales team are selling timeshare and you do
not want one, you could unnecessarily give yourself
a hard time if you go to the presentation just
to get the free gift. Once the sales team get
hold of you, they will not give up easily. They
are more experienced in persuading people to
buy timeshare than you are in resisting a hard
sell and they may keep you for hours.
• If you find you
have been tricked into going to a timeshare
presentation, and you are not interested in
buying, walk out. Ignore any claims that you
are missing the chance to win something valuable.
• If offered a lift
to a presentation, you may find it difficult
to get back to your hotel when you wish to leave.
It is safest to refuse.
• If you attend
a presentation, do not take credit cards, a
cheque book, or much money with you. Never use
your credit card as identification. A tout could
put you under heavy pressure to use it to pay
a deposit. Never let a salesperson take you
to your hotel to get money or credit cards.
• Ask for a brochure
- under the Timeshare Directive, you have a
right to certain basic information, whether
or not you buy.
• Pay nothing at
the presentation, even if you agree to buy.
A reputable company will not ask you to do so
since the Timeshare Directive forbids it.
• Be careful about
accepting drinks which could affect your judgment.
• No matter how
unpleasant the sales team make it for you to
leave a sales presentation, it can't be as bad
as signing a contract you don't want and can't
afford.
• Remember that
gifts that appear to be valuable (e.g. free
holidays) may well have hidden extra charges
or conditions.
• Insist on full
details in writing of what is being offered.
A responsible developer will have no difficulty
in providing a brochure giving full details
of the resort and the apartment or house concerned.
• Consider whether
you can afford it. Remember, you are unlikely
to get your money back if you sell, so do not
consider giving security in payment, such as
re-mortgaging your home.
• Satisfy yourself
on maintenance charges. Low initial maintenance
charges may be a sales inducement, subsidised
by the developer. These may increase in the
future. Check what is planned, what the charges
include, and who will decide the increases.
Will you have a say in how the resort is managed?
• If you want to
exchange, check that you understand the rules
of the exchange and are happy with them. Also
check that the exchange organisation has access
to resorts you want to use. Remember that most
resort prices are in three seasonal bands (high,
medium and low). The band you buy in may affect
your ability to exchange: you cannot expect
to buy in the low band and then exchange into
the high band.
• Get everything
in writing.
The "Buy-Sell
Con" - Timeshare Resales
Do you own a timeshare
week? Have your circumstances or lifestyle changed?
Are you thinking of selling? Have you ever wondered
how much your week is now worth?
If you already have a
timeshare, a timeshare seller may try to convince
you to buy a better one on the promise that
he or she will sell your existing timeshare
to pay for it. Under the "buy-sell con"
this sale never materialises and you will be
left with the expenses of both. Remember that
the second-hand value of most timeshares is
far less than the price when new.
It works like this - owners
are cold called by these 'resellers' claiming
to have buyers willing to purchase their Timeshare,
often for more than the original price paid.
This is often followed up with a fax of a sample
contract with the name of the potential buyer
on it. Once the owner pays the up front fee,
sales rarely take place. Where there is a sale,
the price paid barely covers the fee.
Be extremely cautious
if you are cold called from overseas by resale
companies who claim to have buyers willing to
pay prices that sound too good to be true, for
an up front fee! Think carefully before parting
with any money. As a result of these calls some
owners have paid anything up to £850 in
up front fees to sell their Timeshare only to
get nothing but broken promises in return.
Where at all possible
seek independent advice and undertake your own
research to determine the current market value
of your 'week' before entering into any contract.
Remember that it can often be difficult to sell
a timeshare and that it may not always be possible
to obtain the price you think it is worth.
Become a satisfied timeshare
owner by all means, but don't become a timeshare
victim!
The DTI's Consumer and
Competition Policy Directorate have published
The
Timeshare Guide and a Fact
Sheet on Timeshares
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