St. Paul, MN: The Minnesota Department of Commerce is warning timeshare owners about a sophisticated timeshare resale scam. Commerce is receiving an increased number of complaints from timeshare owners who are victims of these scams. Timeshares are contracts to use a property, such as an ocean resort condo, for a certain time each year. 

A timeshare owner may receive a phone call or email from someone who claims to be an eager buyer or an agent who claims to have a purchaser willing to buy the timeshare at a good price – sometimes more than the timeshare’s actual value. The scammer asks the timeshare owner to make an upfront payment, allegedly for closing costs, taxes, or other fees. The owner is instructed to wire funds, often to an offshore bank account, with a promise that the money will be safely held until the sale is finalized. 

Once the timeshare owner has provided money, the scammer will then often ask for more money for additional fees that have arisen. The scammer will continue asking for money until they stop receiving it. Because the money was likely transferred outside the U.S., the victim is rarely able to recover their money. 

“Minnesotans who own timeshares need to be aware that scammers are using sophisticated schemes to trick you into paying money,” said Commerce Assistant Commissioner of Enforcement Jacqueline Olson. “Avoid upfront payments, check with legitimate sources, and if the offer sounds too good to be true, it’s probably a scam.”  

Consumer Tips 

Commerce offers Minnesotans the following tips to avoid timeshare resale scams: 

• Don’t pay upfront fees. Legitimate fees should be paid as part of the closing or deducted from the sale price.  
• Be wary of an overeager buyer. Scammers identify timeshare owners through databases and real estate records. They will cold call or mail materials, offering purchase terms that are often too good to be true.  
• Do some homework. Check the would-be buyer or agent’s name, phone number, and address on the internet. If you have trouble finding information, or if what you find looks suspicious, the offer could be a scam. In this type of scam, the fraudsters take steps to appear legitimate. For example, they often set up a fake website using the name of title companies that are no longer in business. 
• Contact the timeshare resort where you own your timeshare. Check if they have any information on the reseller who contacted you. Often, a resort will have its own buy-back or resale program, or it can provide a list of reputable agents. 
• Do not provide personal information, bank account information, or credit card information over the phone to a reseller. Remember, these scammers may also be out to steal your personal information for identity theft. 

File a Complaint 

Commerce works to assist and protect consumers, and to ensure a strong, fair marketplace. Minnesota consumers and businesses can contact Commerce’s Enforcement Division about concerns or complaints:  

• File a complaint online  
• Email or call: consumer.protection@state.mn.us | 651-539-1600.   
• Search Commerce Actions and Regulatory Documents to view past enforcement actions. 

Additional Resources 

• Learn more about Subdivided Land and Timeshares
• Get the Facts Before Buying a Timeshare 

Connect with the Minnesota Commerce Department
Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.

Contact
Mo Schriner, Communications Director
Minnesota Department of Commerce
651-363-1227
mo.schriner@state.mn.us