Exit Scams: How to Spot and Avoid Them
Owners who want out of a vacation ownership are frequently targeted by fraudulent or ineffective exit companies. These scams are among the most reported forms of consumer fraud in the vacation ownership sector. Recognising the warning signs protects you from compounding a bad situation with further financial loss.
Upfront fee scams
The most common exit scam charges a large upfront fee — often US$3,000 to US$10,000 or more — with a promise to exit your ownership. Payment is made, and no meaningful action is taken. The company may string you along for months before disappearing. Legitimate exit processes do not require large upfront fees before work is done.
The 'Mexican offer' scam
In this variant, a 'buyer' or 'agent' contacts you claiming to have a buyer ready to purchase your ownership for a significant sum. To proceed, you are asked to pay a tax, release fee, or transfer cost. Once paid, the buyer vanishes. No unsolicited offer of above-market value for a vacation ownership is legitimate.
Fake law firms and escrow
Some scams use official-sounding law firm names or escrow company names to add credibility. They may create fake websites and letterheads. Before sending money to any legal or escrow company, independently verify their registration and find their contact details through your own search — not through the documents you were sent.
How to exit safely
Contact your club directly and ask what formal surrender or deed-back options exist. If you want professional help, use a lawyer you find independently who is registered in the jurisdiction where you signed your contract and who charges by the hour rather than a large upfront engagement fee.