Last updated 2026-07-25
TL;DR
Timeshare exit scams usually ask for a big upfront fee, promise an outcome no company can actually deliver, and tell you to stop paying your resort or lender. The FTC and state attorneys general have sued companies for exactly this pattern. Legitimate exits (rescission, deed-back, resale, or working directly with your resort) don't require you to pay thousands before any work is done.
Are timeshares scams?
The timeshare product itself usually isn't a scam in the legal sense. It's a real contract, disclosed under state law, that lets you use a property (or points toward one) for a set period each year. The problem isn't fraud, it's that timeshares are expensive to own, nearly impossible to sell for real money, and get more expensive every year through maintenance fees and special assessments. Where the scam risk shows up is in the exit industry that grew up around buyer's remorse. The Federal Trade Commission has brought multiple enforcement actions against timeshare exit and resale companies for taking upfront money and delivering nothing. In a 2021 case, the FTC and the Missouri Attorney General sued Timeshare Exit Team and related entities, alleging the company took large upfront fees and, in some cases, told owners to stop paying maintenance fees and mortgage payments, which damaged their credit while the promised cancellations often never happened [1]. So the honest answer is: the original purchase is a bad deal more often than a scam, but the exit industry built to "solve" that bad deal is where actual fraud concentrates. Both problems are real. Treat them separately.
How much do timeshares cost, really?
Purchase prices and ongoing fees vary a lot by brand and unit size, but the American Resort Development Association (ARDA), the timeshare industry's own trade group, has reported average U.S. timeshare purchase prices in the low-to-mid $20,000s and average annual maintenance fees in the $1,000 to $1,200 range in its State of the Vacation Ownership Industry research. Exact figures shift year to year, so check ARDA's current published research for the latest number rather than relying on an older snapshot. That maintenance fee isn't fixed. It typically rises a few percent a year, and resorts can levy special assessments on top of it for roof repairs, storm damage, or renovations, sometimes running into the thousands per owner in a single year. Owners with older or larger units, or ownership in resorts with deferred maintenance, often see fees climb faster than general inflation. Resale value is the other half of the cost story. Timeshares are not investments. Most resale platforms and licensed real estate brokers who specialize in timeshare resale report sale prices far below original purchase price, frequently in the low hundreds to low thousands of dollars, and a meaningful share of listings never sell at all. If someone tells you your timeshare is worth close to what you paid, that's a sales pitch, not a valuation.
How do timeshare exit company scams actually work?
The pattern shows up again and again in FTC and state AG complaints, and it usually has the same three moves. First, a big upfront fee, often $2,000 to $10,000 or more, charged before any cancellation work happens. Legitimate legal or advisory work can charge fees, but a company promising an outcome no one can actually guarantee and demanding full payment up front, with no escrow protection, is a serious red flag. Second, a promise that can't be backed up. No company can guarantee a timeshare developer will release you, cancel a deed, or accept a deed-back. Confident claims about outcomes are marketing language, not enforceable promises, unless it's in a written contract with specific refund terms, and even then the company has to still exist when you try to collect. Third, and most dangerous: telling you to stop paying your maintenance fees or loan while the company "works on it." The FTC's case against Timeshare Exit Team specifically alleged the company told consumers to stop payments, which triggered defaults, credit damage, and in some instances foreclosure-adjacent collection activity, while the promised cancellation never happened [1]. Never stop paying amounts you legally owe on your timeshare loan or maintenance fees based on an exit company's advice. Missed payments can trigger late fees, collections, credit score damage, and even foreclosure on deeded weeks in some states, regardless of what any exit company promises.
What are the biggest red flags of a timeshare exit scam?
| Upfront fee before any work is verified | No incentive to finish the job once they're paid | |
|---|---|---|
| "Money-back guarantee" with vague terms | Refund clauses are often unenforceable or require near-impossible conditions | |
| Told to stop paying maintenance fees or loan | Creates default and credit damage regardless of exit outcome [1] | |
| Cold call or unsolicited offer to "buy" your timeshare | Classic resale scam setup, often paired with a fake "buyer" needing an upfront transfer fee | |
| Pressure to sign same-day | Rescission periods exist for a reason; scammers rush you past reflection time | |
| No physical address or unclear company ownership | Makes it hard to sue or find them later if something goes wrong | |
| Claims of a special relationship with your resort or a law firm 'network' | Often just a referral fee arrangement, not verified legal representation | Check any company against your state attorney general's consumer complaint database before paying anything, and search the company name plus "complaint" or "lawsuit" through the FTC's newsroom archive. |
A few signals show up in nearly every FTC and state AG action against exit companies. None of these alone proves fraud, but two or more together should stop you. | Red flag | Why it matters |
How do you get out of a timeshare safely?
There isn't one universal answer here, because it depends heavily on whether you're still inside your state's rescission window, whether you have a deed or a right-to-use contract, and whether the resort has a deed-back program. If you just signed, check your state's rescission window immediately. Every state timeshare law gives buyers a short cancellation period, often measured in days, but the exact length and required method (certified mail, specific delivery address) vary by state law. Confirm your state's rescission window with your state's statute or attorney general's office rather than relying on the sales rep's summary, since some reps understate it. Florida's timeshare act, for example, sets out a specific rescission notice procedure and deadline in its statutory text [2]. If you're past rescission, ask your resort directly about a deed-back or surrender program. Many major chains including some Marriott Vacation Club, Hilton Grand Vacations, and Diamond Resorts-affiliated properties have formal deed-back or "exit" programs for owners current on payments, sometimes for a modest processing fee, sometimes free. This route doesn't involve a third-party exit company at all, and it's usually the cheapest legitimate option if the resort offers it. If deed-back isn't available, look at resale, gifting to another party willing to take on the fees, or, for inherited timeshares, disclaiming the inheritance before you take title (a probate attorney can advise on this; timing matters). Selling for a real price is rare, but a licensed timeshare resale broker (check state real estate licensing) can at least list it honestly instead of charging you upfront for a sale that likely won't happen. For a structured walkthrough of these paths, see how to get out of a timeshare and timeshare cancellation.
How do I sell a timeshare, and will I actually get money for it?
Selling for anything close to what you paid is unlikely. ARDA's own resale data and coverage from outlets tracking the secondary timeshare market consistently show resale prices at a small fraction of retail purchase price, and a large share of timeshares listed for resale never close at all. If you want to try anyway, use a licensed real estate broker in the state where the resort sits (timeshare resale, like any real estate transaction, generally requires a license) and list at a realistic price, sometimes $1 to a few thousand dollars depending on brand, season, and unit size. Never pay an upfront "listing fee" of several hundred or thousand dollars to a company that cold-called you claiming a buyer is already lined up. That's one of the most common resale scams the FTC and state AGs warn about: a fake buyer, a fake escrow requirement, and a real fee taken from you. Some owners find it's actually cheaper to give the timeshare away, sometimes even paying a small transfer fee to someone willing to take over the maintenance obligation, than to keep paying rising fees on a property they no longer use. That's not a scam, that's just recognizing sunk cost.
How much does it cost to legitimately exit a timeshare?
Costs vary enormously depending on the path. A resort deed-back or surrender program can cost nothing to a few hundred dollars in processing fees. This is usually the cheapest legitimate route if your resort offers one and you're current on payments. Hiring a licensed attorney to review your contract and negotiate directly with the developer typically runs on an hourly basis, commonly in the low hundreds of dollars per hour depending on your state and the attorney's experience, with total cost depending on complexity. This is more expensive than a deed-back but gives you actual legal representation, not a marketing promise. Third-party exit companies charging flat fees have historically ranged from roughly $2,000 to $10,000+ per the patterns described in FTC litigation [1], often collected upfront regardless of outcome. Given the FTC's findings in the Timeshare Exit Team case and similar actions, paying a large flat fee upfront to a company with no escrow protection and no guarantee mechanism carries real financial risk on top of the underlying timeshare cost. A self-directed approach, using a written guide or template letters to handle rescission paperwork, deed-back requests, or documented resale listing yourself, costs far less than hiring an exit company; ExitHonest's $149 Exit Kit is built around that idea for owners who want structure without paying thousands upfront to a third party. It doesn't replace legal advice for complicated cases (liens, active foreclosure, disputed inheritance), and it doesn't contact your resort on your behalf. For those situations, talk to a licensed attorney in your state.
What should I do if I already paid an exit company that scammed me?
Move fast, and document everything. File a complaint with the FTC at reportfraud.ftc.gov, which feeds directly into the FTC's enforcement database and has been the basis for real cases, including the Timeshare Exit Team action [1]. File a complaint with your state attorney general's consumer protection division too; many of the largest actions against exit companies (including the Missouri case) started or were joined by state AGs [1]. If you paid by credit card, dispute the charge with your card issuer under the Fair Credit Billing Act; billing error disputes generally must be submitted in writing within 60 days of the first statement containing the error, so don't wait [3]. If the company is currently under a court order or receivership from a past FTC action, check the FTC's case page for that company; sometimes there's a claims process for consumers to recover part of what they paid [1]. Don't expect full recovery. FTC settlements and judgments against defunct exit companies rarely return 100 cents on the dollar, but partial recovery is still worth pursuing.
How do I check if a timeshare exit company is legitimate before I pay?
Do these five checks before signing anything or paying a deposit. Search the company name plus your state attorney general's office and the word "complaint." Most state AG consumer protection pages let you search closed and open complaints. Search the FTC's newsroom archive for past or pending actions against the company by name. Ask directly: is any fee held in a bonded, licensed third-party escrow account until the exit is completed, or do they take the full fee upfront? If it's upfront with no escrow, that's the single biggest FTC-flagged pattern. Ask who actually contacts your resort or lender: the company, or an outside attorney they subcontract to. Get that in writing, and check that any named attorney is actually licensed in the resort's state via that state's bar association website. And never let anyone tell you to stop paying your maintenance fees or loan while the exit process is pending. That instruction alone is one of the clearest scam markers regulators have identified [1]. For a broader comparison of exit company track records, see timeshare exit companies and the timeshare call list of companies with public complaint histories.
What's the difference between rescission, deed-back, resale, and an exit company?
These four paths get confused constantly, and mixing them up costs owners money and time. Rescission is a short legal cancellation window that exists right after you sign, created by state law specifically to let buyers back out of high-pressure sales presentations. It's free (aside from mailing costs) and it's the fastest, cleanest exit if you're still inside the window. See how to get out of timeshare for the mechanics. Deed-back (also called surrender or takeback) is a voluntary agreement between you and the resort developer, made after rescission has expired, where the resort takes the deed back, usually because they'd rather have it back than chase an unhappy owner for fees. Not all resorts offer this, and it's usually only available to owners current on payments. Resale is selling your ownership to another buyer, at market value, which for most timeshares is very low. It requires a willing buyer, which is the hard part, and should go through a licensed broker, not a cold-caller. An exit company is a third party you pay to pursue one of the above paths on your behalf, typically deed-back negotiation or, less often, a legal challenge to the contract's validity. It adds cost and, per FTC actions, meaningful risk if the company isn't legitimate. It does not create a new legal right you didn't already have. Compare the tradeoffs at timeshare cancellation and how do you get out of a timeshare.
Frequently asked questions
How do I get out of a timeshare without getting scammed?
Start with your state's rescission window if you just signed, then ask your resort about a deed-back program if you're past that window. Avoid any company demanding a large upfront fee with no escrow protection, and never stop making payments you owe based on an exit company's advice. Check the FTC and your state AG's complaint databases before paying anyone.
Are timeshares scams?
The purchase contract itself is legal and disclosed, so it's not fraud in most cases, just usually a bad financial deal with high fees and near-zero resale value. The real scam risk is in the exit industry: the FTC has sued companies like Timeshare Exit Team for taking upfront fees and failing to deliver cancellations.
How much does a timeshare cost?
ARDA's industry research has put average purchase prices in the low-to-mid $20,000s and average annual maintenance fees in the $1,000 to $1,200 range in recent years, though both vary widely by brand, unit size, and location. Special assessments for repairs or renovations can add thousands more in a single year on top of the regular fee.
How do you get out of a timeshare?
Four main paths exist: rescission (a short cancellation window right after signing, set by state law), deed-back or surrender directly with your resort, resale through a licensed broker, or hiring a licensed attorney to negotiate or challenge the contract. Third-party exit companies pursue these same paths for a fee, and carry real scam risk if unvetted.
How do I sell a timeshare?
List it with a licensed real estate broker in the resort's state at a realistic price, which is often a small fraction of what you paid; many timeshares resell for a few hundred to a few thousand dollars, and some don't sell at all. Never pay an upfront fee to a cold-caller claiming they already have a buyer lined up.
How do I get rid of a timeshare I no longer want or use?
If you're current on payments, ask the resort about a deed-back or surrender program first, since it's usually free or low-cost and avoids third-party risk entirely. If that's not offered, consider giving it away to someone willing to take on the fees, or consult a licensed attorney for complex cases like liens or inherited ownership.
What's a common timeshare exit scam to watch for?
A company charges a large upfront fee, promises an outcome it can't actually guarantee, and tells you to stop paying your maintenance fees or loan while they 'work on it.' The FTC's case against Timeshare Exit Team alleged exactly this pattern, which led to consumer credit damage even when cancellations never happened.
Can I get my money back if a timeshare exit company scammed me?
File a complaint at reportfraud.ftc.gov and with your state attorney general's consumer protection office; both feed into potential enforcement and sometimes consumer restitution programs. If you paid by credit card, dispute the charge with your issuer; the Fair Credit Billing Act generally requires written disputes within 60 days of the statement showing the error.
Is it legal for an exit company to tell me to stop paying maintenance fees?
No regulator endorses this advice, and the FTC specifically flagged it as harmful in its case against Timeshare Exit Team, since it led to defaults and credit damage for consumers. Stopping payments you legally owe can trigger late fees, collections, and in some states foreclosure on deeded weeks, regardless of any exit company's promises.
What is a timeshare rescission period and how long do I have?
It's a short window set by state law, right after you sign, letting you cancel without penalty, usually requiring written notice sent a specific way (often certified mail) to a specified address. The exact number of days varies by state, so confirm your specific state's rule with its statute or attorney general's office rather than relying on the sales rep's summary.
Do timeshare companies have deed-back or surrender programs?
Yes, many major chains offer some form of deed-back, takeback, or surrender program for owners current on their payments, sometimes free, sometimes for a modest processing fee. Availability and terms vary by brand and even by specific resort, so contact your resort's owner services department directly to ask what's offered.
How much do timeshare exit companies typically charge?
Historical patterns described in FTC litigation show flat fees commonly in the $2,000 to $10,000+ range, usually charged upfront before any cancellation work is completed or verified. Legitimate attorney-led negotiation is typically billed hourly instead, and resort-run deed-back programs often cost nothing or a small processing fee.
Sources
- Federal Trade Commission, FTC v. Timeshare Exit Team case materials: FTC and Missouri AG allegations that the company took upfront fees, often failed to cancel timeshares, and told consumers to stop paying maintenance fees and mortgages
- Federal Trade Commission, Consumer Advice: Timeshares: FTC general consumer guidance warning about resale and exit company scams
- Fair Credit Billing Act provisions, 15 U.S.C. 1666: Consumer right to dispute credit card charges within a limited window
- Consumer Financial Protection Bureau: Explanation of what a timeshare is and financial obligations involved, relevant to timeshare costs and consumer protection
- U.S. Department of Justice: Owners of a timeshare exit company were criminally sentenced for defrauding consumers, illustrating how exit scams operate and their consequences
- Better Business Bureau: BBB guidance on how to check the legitimacy of a timeshare exit company before paying
- National Association of Attorneys General: State attorneys general have issued warnings about timeshare exit company scams and recommended safe exit methods