In Shanghai, regulators are warning city residents about purchasing timeshares.

In the past weeks, the Shanghai Commission of Consumers' Rights and Interests Protection has received several complaints regarding timeshare purchases. Apparently, some timeshare firms are failing to meet their contractual obligations to the timeshare buyers.

For 2010, the regulator has already received 25 complaints about timeshare companies, marking a 70 percent increase compared to 2008.

Customers buy a period of time at a resort, which they can use or exchange for a vacation elsewhere. However, the selling methods have become deceiving.

Companies claim that they can give the buyer a better price. So, buyers sign the contract without actually reading it, putting them in serious financial risk.