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Scam or Not?

Discussion in 'Buying, Selling & Renting Timeshares' started by kirby3, Jan 12, 2019.

  1. kirby3

    kirby3 TUG Member

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    I am looking to buy a week (newbie). Someone got a hold of me and seems to have exactly what we want. We have had some email back and forth and have agreed on price. Now he is telling me he wants a deposit on the purchase and after he gets that he will go to the closing company (who he has named) and arrange transfer, etc. Would he be doing this because he does not really know if he is dealing with a scam and wants to make sure it isn't ? Has anyone had to deal with this before? Or is this a scam?
     
  2. RX8

    RX8 TUG Member

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    Who is paying for closing? Doesn’t the buyer get to choose the closing company and wouldn’t the closing company be the one holding the deposit?

    Is the seller a TUG member?
     
    TUGBrian likes this.
  3. tombanjo

    tombanjo TUG Member

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    how did they get your contact info ? Are they a company or individual ? Any internet history on their name ? Also - tell them you want to name the closing company and escrow service.

    The process is pretty standard, so asking for a deposit is normal. What kind of total value are you looking at ? And of course, the biggest question is - is the deal so good it's unbelievable ? Unbelievable deals tend to be too good to be true for a reason.
     
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  4. vacationtime1

    vacationtime1 TUG Member

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    What closing company? Is it legitimate and independent? If you have a written contract for the purchase and put money into a true escrow -- one not controlled by the seller -- you will be fine (apart from wisdom of the transaction itself).
     
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  5. kirby3

    kirby3 TUG Member

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    No he chose the closing company and he is supposed to paying for it. He said he will contact Timeshare Closing Services after I send the deposit to his address. He is not a TUG member if I searched it correctly. I told him I thought all money was to go through the closing company and he said no send him the deposit and the rest will go through closing. He sent his address which I googled and it is under his name. But just something about sending this money and I don't even know if he even has this place or if there is leans on it. He tells me he is 95 years old and has to get rid of it, etc. ??? I want to believe him but....
     
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  6. Panina

    Panina TUG Review Crew: Elite TUG Member

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    Do not send any money directly to the seller. You have no way to know if he is legit. Tell him you have no problem paying upfront but only to the closing company. If you proceed do not follow the email or phone numbers of the closing company he provides. Look up the closing companies info on you own and contact them to make sure someone isn’t posing as them.
     
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  7. kirby3

    kirby3 TUG Member

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    Ok I will do that. Very disappointing! I have a feeling it is a scam... he wanted my our name and address to put on the deed too.....The procedure would be for next time I find one I want would be to- 1) agree on price with seller 2)The buyer always arranges the transfer/closing company even if they are paying for it 3) That closing company will instruct the buyer and seller on what they are to do and they will make sure there is no money owing on it, it is legitimate and what they say it is, and will instruct the seller to obtain the estoppel from the resort, etc 4) Sit back and wait for it to be transferred. Anything else?
     
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  8. tschwa2

    tschwa2 Tug Review Crew: Rookie TUG Member

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    I wouldn't say the buyer always arranges the transfer/closing company. A lot of times I have come across buyers who have no clue. If its a giveaway and I am paying for the transfer as the owner or even paying half, I am strongly suggesting LT. They are one of the least expensive and very competent. If the buyer seems to know what he is doing, chooses another reputable company and want to pay or at least pay the difference I would be open to that.

    In terms of 3 usually the closing company gets the estoppel from the resort not the owner although in some cases the owner can request one. I would still feel better if it was sent to me from the closing company and not from the previous owner.

    Are you talking token amounts of money like a $25 or $50 deposit just to show you are really interested or something significant?
    Go with your gut
     
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  9. RX8

    RX8 TUG Member

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    Hard to say if this is truly a scam at this point. However, you said that he was the one who contacted you first and that would be a red flag. How did this guy get your information?

    This guy is essentially asking for an upfront fee with the promise that he will pay for and handle the closing. Wouldn’t be too surprising if his scam was to steal the deposit and disappear.
     
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  10. kirby3

    kirby3 TUG Member

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    They want $200 deposit which I know isn't that much but then they want our info, etc. Thank you all! I am going to take all your advice. If it doesn't work out I will keep looking.
     
  11. kirby3

    kirby3 TUG Member

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    He contacted me through the marketplace on TUG.
     
  12. RX8

    RX8 TUG Member

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    Well if this turns out to a legit deal I would be impressed that this 95 year old guy, not even a TUG member, is able to search and find buyers for his timeshare on the World Wide Web in addition to having also lined up the closing. How many 95 year olds are there free dealing on the internet?
     
    kirby3, VacationForever and Iggyearl like this.
  13. bogey21

    bogey21 TUG Member

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    Number One, this is good advice. Number Two, I would walk away from this transaction. I have always been leery of those making unusual requests...

    George
     
  14. bluehende

    bluehende TUG Review Crew: Veteran TUG Member

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    Check out the closing company. If it is legit then tell him you will send the deposit to the closing company. If he balks at that run. The only reason I would see he wants the money is if that is what it costs to open up with the closing company. Unfortunately even in a sale with a closing company involved there has to be some semblance of trust, The two of you could get the sales contract signed and maybe your seller would feel better as he could sue if you back out.
     
  15. kirby3

    kirby3 TUG Member

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    There was a reply and he has no problem with me sending the deposit to the closing company. Now he says to send the whole amount to a Lawyer's office and he has supplied with me with the name and number. I am planning on giving them a call to get some info. We have not signed any sales contract. Would they not have to send me that first? I mean before any money has been exchanged?
     
  16. Panina

    Panina TUG Review Crew: Elite TUG Member

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    Only in a ebay sale, from a known reputable seller, have I paid upfront. With private sales i have left from 0-$500 for a deposit with the rest paid right before closing.

    Being he supplied the lawyer, you need to independently verify this lawyer is legit. Calling the number he gave you is not enough. Personally I would tell him you want to hire and pay for your own closing company and use them as escrow.

    What are you Buying? What are you paying? Are there others out there to buy? Is this deal worth taking a chance to lose your money? Your gut is usually right.
     
  17. tombanjo

    tombanjo TUG Member

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    Looks like the law offices of Dewey, Cheatham & Howe are doing escrow for timeshares now.
     
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  18. AJCts411

    AJCts411 TUG Member

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    Howe dew we cheatem'? those guys?
     
  19. BJRSanDiego

    BJRSanDiego TUG Member

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    Too often, if someone calls you out of the blue, and then asks for money, it is a scam.

    If he got your name through some legitimate source or contact, then maybe it is not a scam. But if you cannot figure out how he got your name, I would pass on it.
     
  20. DrQ

    DrQ TUG Member

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    If it is a good week, could you offer to split the closing cost with a trusted closing company. If he refuses, it's a scam.
     
  21. kirby3

    kirby3 TUG Member

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    Just letting everyone know that it was a legit deal. Everything is coming along nicely. Thank you for the advice as it helped me a lot! I talked to and sent the money to his closing company and they are looking after it. Plus peace of mind counts for a lot too. The ROFR was not exercised and we are very happy about our purchase. The seller is happy and so are we!!! Re-sale is the way to go!
     
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