Information and Alerts

Alert

BBB has been informed by a (MN) state agency that Pearson and Associates is a fraudulent timeshare reseller. We have reached out to this entity requesting a suite number for the address they claim in downtown Minneapolis.

BBB warns the public that over the last few years, many companies claiming to be located in the Midwest and purporting to offer timeshare reselling services have proved to be fraudulent foreign entities with no local presence. People who are hoping to sell timeshare properties should be leery of entities contacting them saying they have a buyer for their timeshare, or those claiming they will pay over market value to rent or buy a timeshare. People should also be aware that 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.

* Always be Wary of Upfront Fees - Consider opting for a company that offers to collect 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 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 upfront 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. Keep in mind, though, timeshare scammers are professionals. BBB is aware of situations where attorneys reviewed paperwork submitted by bogus timeshare entities and felt the offers in question were legitimate - when they were not.

*Watch out for third-party companies. Fraudulent timeshare reselling entities often associate with alleged third-party title or escrow services. Be sure to research those companies as well. If you can't find any information on them, that might be a sign there's a problem.