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"On the Central Pacific coast of Costa Rica you will find the Amapola Hotel in the midst of lush vegetation and exotic tropical fauna only 58 miles away from San José."
Sound inviting?
When Kathleen Engel was in Costa Rica a few years ago, this description -- taken from the hotel's Web site -- might have been the reason the North Port resident plunked down about $4,000 for a timeshare at the resort.
Engel -- along with others -- literally co-own and share a unit there. Each pays a portion of the sales price and the ongoing operating costs, including property taxes and common area maintenance fees. Engel actually used and enjoyed her timeshare property and hadn't thought about selling it.
Until she got an offer she couldn't refuse.
"I was contacted by a promotional executive with Resort Enterprises," she explained. "He told me how by listing my timeshare with his company, we could expect to get $22,000. He went on to say Resort Enterprises would advertise through numerous resources, including their Web site. He expected very quick and successful results."
Resort Enterprises just needed $500 to cover expenses, which would be refunded if the timeshare sold within 20 percent of the asking price.
Sounded too good to be true.
You know where this story's going. A year and a half later, Engel's out $500 and she's heard nothing from Resort Enterprises. Unfortunately, she's not the first.
The Better Business Bureau gives Resort Enterprises an "F" grade, citing the "number of complaints filed against the business that were not resolved."
I tried contacting the company but got no response to numerous voice messages and e-mails. Could be because the Florida Department of State Division of Corporations (www.sunbiz.org) reveals the Largo company filed for corporate dissolution in September.
"With few exceptions, you should not expect to receive the original purchase price of your timeshare," notes the American Resort Development Association on its Web site. "As with all use products, such as a car or boat, timeshares usually depreciate in value over time. This is because their value comes from use, not resale."
In fact, most industry experts explain that along with historically more sellers than buyers and no way to access comparable sales, resale prices can amount to maybe half of the original purchase price.
Besides warning consumers to "be wary of too-good-to-be-true claims when it comes to resales," the Florida Attorney General's office also cautions against paying any up-front fees. "In a typical real estate transaction, the fee is paid from the proceeds of the sale at the time of the sale," states its Web site.
The Division of Florida Condominiums, Timeshares and Mobile Homes -- part of the Florida Department of Business and Professional Regulation -- regulates timeshare sales. DPBR's Kitrina Dean explains if a timeshare is sold to or by a Florida resident or the property is in Florida, a broker must have a Florida real estate license.
Before going the broker route, Fiona Downing of Group RCI -- the world's largest timeshare exchange organization with almost 4 million members -- recommends first going back to the timeshare resort itself. "It's the most trusted source," she said. Many offer resale programs or provide owners with local resources, including something as simple as an on-site bulletin board.
Regardless, be realistic in the sales price. Get and review everything in writing. Ask questions and check references before working with anyone. Verify if any complaints are filed with the BBB and DPBR. And don't rush.
As a last resort, consult with a real estate attorney and consider releasing or quit-claiming all your interests in the property back to the developer.
For other selling tips, go to the ARDA's site at www.vacationbetter.org and click "Why timeshare?"
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