Argon Holdings

Business Consumer Alliance urges consumers to use caution when they are contacted with unsolicited offers to buy their timeshare or vacation property. Generally, timeshare resale schemes begin with consumers being contacted by salespersons claiming to have a buyer for their timeshare or stating there is a huge market for their property. They then demand fees such as maintenance fees, title transfer fees, or closing costs be paid before the sale can be completed, usually by wire transfer, cash, or cashier’s check. To circumvent the no upfront fee rules most states have established for these types of real estate sales, they often claim an “escrow” company will hold the funds until the transaction is completed. In many cases, after the money is sent, both the sales agent and the escrow company can’t be contacted. The owner realizes too late that there is no buyer and they can’t get their money back.

Some warning signs that the offer may be a scheme:

·         Upfront payments or advance fees requested before any services have been provided and requests to pay fees in cash, by wire transfer, money order, or cashier’s check.  These forms of payment offer you little recourse if they are paid to a fraudster.

·         They have no physical address only a PO Box or mail drop location or the address provided is does not belong to the company. Also, be cautious if the sales person refuses to meet with you in person, doesn’t provide a business phone number, or the information provided cannot be verified.

·         High pressure tactic to sell now or sign a contract before you have time to review the terms and understand what you are getting into.

·         Exaggerated claims or unrealistic offers. If it sounds too good to be true, it probably is.

·         Claims that the market is “hot” or that they have buyers ready to buy your timeshare.

·         Promises or guarantees to refund upfront payments if the timeshare is not sold. These guarantees are often empty promises.

·         Requests that you provide personal financial information, including a bank account and/or credit card number, over the phone or over the Internet.

·         Statements that you can simply “walk away” from your timeshare by transferring it to a third party.

·         Advice that you should not talk with someone else regarding the offer.

When looking for or doing business with an escrow company check with your local and state regulatory agencies for any licensing or registration requirements. In California, escrow companies are either “licensed” or “controlled” escrow companies.  A "licensed" escrow company, which is also known as an “independent” escrow company, is licensed by the Department of Business Oversight.  A "controlled" escrow, which may be known as a “non-independent” escrow, could be owned and operated by an attorney, a real estate broker, a title insurance company, among others.  The licensing and regulation of controlled escrows depends on the jurisdiction of the licensing and regulatory authority; therefore, the licensing requirements, laws, and regulations that they are subject to vary widely.