About

Important information

• Additional Info:

  Based on a consumer report we've received and previous instances where online entities purporting to offer timeshare reselling services proved to be entirely fraudulent, BBB has concerns about the legitimacy of this entity.
  
  Over the last few years, many companies claiming to be located in the Midwest and purporting to offer timeshare reselling or title services have proved to be fraudulent foreign entities.
  
  Fraudulent timeshare reselling entities often associate with alleged third-party title or escrow services. Be sure to research these companies as well by visiting www.bbb.org and other online resources. If you can't find any information on them or if the company just 'popped up on radar,' that may be a sign there's a problem.
  
  People who are hoping to sell timeshare properties should be aware that any requests to pay money upfront are usually the sign of a fraudulent operation. BBB offers these tips to those seeking to sell their timeshares:
  
  * Be realistic. In regard to timeshares, it's generally a buyer's - not a seller's - market. Unscrupulous timeshare resellers may contact you claiming that your property is in demand and they can sell it immediately; unfortunately, these promises often prove to be false.
  
  * Be Wary of Upfront Fees - Consider opting for a company that offers to sell for a fee only after the timeshare is sold. Many complaints to BBB regarding timeshare resellers involve situations where people were told they needed to wire "advance appraisal fees," escrow funds or that they just had to pay closing costs or fees to the Mexican government and their timeshare would be sold. Never wire money to people you don't know.
  
  * Use a Business You can Trust - Make sure the timeshare reseller you use is a BBB Accredited Business or at the very least has a good rating with BBB. You can research businesses for free at bbb.org.
  
  * Confirm Licensing Requirements - Some timeshare resellers will use fake addresses or PO boxes in order to mislead timeshare owners. Confirm where the company is located and in what states it does business. Ask if the company's salespeople are licensed to sell real estate where your timeshare is located. If so, verify this with the state licensing board.
  
  * Get the Facts on the Figures - Find out if the business charges a commission. Do they handle the entire closing and provide escrow services? Do they charge an up-front listing or advertising fee? What does it cover and is it refundable?
  
  * Don't Fall for the Hard Sell or an Offer that Sounds Too Good to Be True - Don't agree to anything over the phone but instead ask the salesperson to send you written materials; take the time to think it over and don't be pressured. You may want to have an attorney review any purchase agreement, but be aware that BBB has talked to consumers who showed paperwork they received to their attorneys, who felt they looked legitimate. However, the consumers in those cases lost the money they sent away in advance to the entities they were dealing with.
• Additional Info:

  On August 12, 2016, a consumer informed BBB that the entity formerly operating as Realty Direct REO, LLC, was now doing business as MB Realty, Inc. On the home page of their website, there's a message that reads 'Formely known as Realty Direct REO.' Misspellings like that (Formely) and grammatical errors often indicate a website and the entity behind it are not legitimate. BBB advises extreme caution when dealing with this entity, whether it's operating as MB Realty or Realty Direct REO. The consumer who contacted us on August 12 and said they were dealing with MB Realty reported that they were seeking an upfront payment, which is a common red flag when it comes to timeshare reselling scams.
  

  When this entity was operating as Realty Direct REO, LLC, it appeared as though they were registerd properly with the Minnesota Secretary of State's Office. However, though Realty Direct REO, LLC’s filing with the Minnesota Secretary of State's (SOS) Office was and is current, BBB has concerns this is a situation where an unknown entity has assumed the name of a previously operating but now defunct Minnesota business.
  
  Realty Direct REO, LLC was originally registered with the MN Secretary of State's Office in 2012. In 2015, according to the MN SOS website, the company was terminated administratively. Then in April of 2016, the MN SOS filing for the company was reinstated.
  
  BBB has noted other situations involving alleged timeshare resale and escrow firms, where expired MN SOS registrations have been assumed, giving consumers the impression these companies have established track records, when in fact the timeshare operations in question have no relationship with the original - legitimate - Minnesota businesses they're purporting to be.