Why the Oregon DOJ Considers Timeshares a High-Risk Investment
On its “Timeshares” page, the Oregon DOJ notes that purchasing a vacation timeshare is a major investment and should be treated like buying a home. The agency highlights that unlike a hotel stay, timeshares bring numerous additional costs—mortgage payments (if financed), travel, variable maintenance fees, taxes, broker commissions and finance charges.
Moreover, the OR-DOJ caution: if the property lies outside the United States, you may lack the same consumer protections provided under U.S. law.
Key Warning Signs Identified by the Oregon DOJ
Additional Costs You Might Miss
- “Maintenance fees” that vary each year.
- Special assessments and property tax hikes.
- Travel and usage restrictions not clearly disclosed.
The DOJ warns that many owners receive unsolicited offers from resellers claiming instant buyers—yet you’re asked to pay thousands up-front for marketing or escrow. These are often scams.
The page provides examples, noting that a one-week timeshare once sold new at $20,000 may now fetch as little as $3,000 due to resale market conditions.
Red Flags to Watch
- Cold calls or mails offering help to sell your timeshare.
- Reseller claims of guaranteed profit or immediate sale.
- Requests for payment before finding a buyer.
- Claims that U.S.-style consumer protections apply for foreign resorts—even when they don’t. Oregon Department of Justice
How You Can Protect Yourself
Do Your Homework
- Inspect the property and its condition before committing.
- Read all documents before signing; have an attorney explain anything unclear.
- Confirm your right of rescission (cooling-off period) is clearly stated.
Be Skeptical of Resale Pitches
- Check the reseller’s reputation: look for licensing, BBB ratings and complaints.
- Avoid paying fee-only resellers who promise “quick sales” but ask for large up-front fees.
- Realize you may not be able to recover the purchase price. As the OR-DOJ says: “Don’t assume you can get your money back.
If Something Feels Off — Stop
Report suspicious solicitations to your state attorney general and consumer protection agency.
Hang up on unsolicited sales calls.
Do not wire money for “marketing” or “escrow” fees before you see a buyer.
