About Andreas Rossler Expertise I'm able to answer general questions on timeshares and specifically in regard to purchasing, renting or exchanging timeshares on the secondary or resale market and through the Internet. I have expert knowledge in sales, mechanics (how and why timeshares work), and timeshare exchanges.
I am also well versed in timeshare financing and may be able to guide you to better financing or refinancing options for your timeshare purchase.
If you ask questions of a legal nature, or those requiring tax advice - I may not be able to answer fully.
Experience I have 10 years of industry experience in sales, management and processing. I'm currently CEO of Timeshare Village, a resource for timeshare owners and industry professionals.
Organizations Mensa - Life Member
Publications I have been interviewed by Channel 7 News in the Bay Area of California regarding my opinions on Worldmark, the Club timeshares as developed by Trendwest-Wyndham Resorts.
Education/Credentials MBA - Master's in Business Administration
BS - Mathematics
BA - Economics
California Real Estate Broker
Time-Shares - Can't sell, can't donate, only owe maintenance fees. Can we not pay?
Expert: Andreas Rossler - 10/24/2007
Question QUESTION: We own two timeshare weeks that we can't sell and can't donate because the maintenance fees are so high- the resort has maintenance fees and special assessment fees to the tune of $1143 a year for a two bedroom and $900 for the one bedroom. We own these free and clear but these fees are killing us. We have our own business that has recently suffered a set back and we've had to charge the maintenance fees for the last two years. We desperately want to get rid of these. If we just don't pay the maintenance fees, what legal action can they take? I've read other posts of a similar nature, but just read one that compares the non-payment of maintenance fees to the non-payment of gym membership fees.
I might also mention that our resort was previously mismanaged and there was a question of embezzelment with the previous managers, with a couple years back taxes not paid by them. That is part of the reason for the special assessment that we see no end to.
I would love to hear any help you may have. I've been trying to get rid of this albatross for more than a year.
Jennifer
ANSWER: You've thrown in an additional complication of possible fraud by managing members. I would contact a lawyer - my guess, although not qualified to give legal advice, is that you might be able to simply give these timeshares back to the developer and be free of them without repercussion. You should not have to be responsible for the criminal acts or negligence of others.
Normally, I would say just don't pay - let them try to collect and take the timeshare back - however, this would affect your credit. A good lawyer might find a reason for a class action on behalf of the owners.
If I were a lawyer, I could give better advice - however, this is outside my expertise. I am answering the question because it might open the possibility for others in similar situations to take action that would free them of bad management.
---------- FOLLOW-UP ----------
QUESTION: Thanks for responding. I wanted to clarify something that may make a difference- the former managing company who didn't pay the taxes, etc, is no longer managing the property. There was a lawsuit and was settled for a fee. However, our 'special assessment' was to pay off the back taxes (which have now been paid). The maintenance fees are still high, with no apparent explanation for them. Do you think we should still consult a lawyer? thank you, again.
Answer I actually thought you would respond as you did - I'm sure they covered themselves really well with some sort of settlement that let them off free and clear, leaving the owners holding the bag - very standard timeshare industry practice.
It couldn't hurt to check with a lawyer. Many give free consultations - so at least give it a shot. I mean, what is the alternative? As you said, you couldn't donate it or sell it - the only option is not to pay, with the resulting collection hassles and potentially adverse effects on your credit report.
In addition, I'm going to provide a list of places to complain and let others know what happened to you. I understand you don't need more hassles regarding this situation - but if you feel like, explore some of these options. Really, the primary reason I write this column is to perhaps help others avoid the same pitfalls. I don't gain much. By complaining you could possibly help someone else avoid this same mistake.
Good Luck.
1. The Attorney General. You should file a complaint with the Attorney General where the company is headquartered, the state where you purchased, and your home state. Here is a good site where you can link to Attorney General complaint forms online: http://www.fair-debt-collection.com/attorneys.html
2. See if the company is listed with the Better Business Bureau; file a complaint with the BBB. Here is their online complaint form: http://www.bbb.org/complaint.asp
3. A good site is the Rip-off Report. Be careful when writing up a report on that site – state the truth and nothing but the truth. This site is caught by search engines, so be sure to use the company name. Here is their site: http://ripoffreport.com/
4. Complaints.com is similar to Rip-off Report. Here is their website: http://www.complaints.com/ (#3 and #4 have a simple purpose, to get the company’s name to show up on search engines. This is the worst possible publicity and can cause the loss of an untold amount of business).
5. The FTC (Federal Trade Commission). They are very much interested in hearing about shady timeshare developers or rip-offs. The reason being that most timeshares solicit individuals via the telephone. Here is their online complaint form: https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
6. For reference purposes, you may want to check out the National Association for Members - http://www.natlassoc.org/ - lots of good stuff.
7. If a lawyer or other professional (CPA) was involved in the transfer or escrow process, you may be able to file a complaint with the state bar or other professional organization they belong to – depending on the nature of your situation.
8. Report the company to the state agency that regulates real estate. It is best to do a Yahoo search like this: “Florida Department of Real Estate”. You could however start here and drill down to the right website: http://www.usa.gov/Agencies/State_and_Territories.shtml
9. If your situation involved a credit card purchase and you’re not getting your refund, definitely call the credit card company and find out their policy on filing a complaint.
10. File complaints with State, County and City Consumer Protection Offices. Here you’ll find a list of all of them: http://consumeraction.gov/state.shtml
11. File a complaint with the National Consumer’s League Fraud Center. Here’s the web site: http://www.fraud.org/
12. File a Complaint with the National Association of Consumer Advocates. Here is their website: http://www.naca.net/
13. Small Claims Court. What’s good about small claims is that it is easy and can cause huge head aches for the company.
