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Beware of Timeshare Resale Fraud

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Telemarketing companies that market their advertising services to timeshare owners interested in selling or renting their timeshare interests are attracting the attention of the Florida Attorney General. Many of these companies charge exorbitant fees and perform very few services, according to the Attorney General’s Office.  

Under Florida law, these companies are called “Resale Service Providers” and are required to provide a written disclosure of the fees and costs relating to advertising, listing, or sale of a timeshare interest, as well as other disclosures. Consumers also should request a contract in writing prior to providing any payment information.

In addition, consumers should be cautious of any business that may request an advance fee prior to performing any services. Furthermore, no government entity will require a consumer to pay money up front in order to assist that consumer in pursuing a fraud claim or prior to making attempts to secure a refund for a consumer. Also, consumers should be aware that the Florida Office of the Attorney General does not contract with any third party companies to assist in obtaining refunds or restitution for individuals. Should any company imply that they are working with the Florida Office of the Attorney General, consumers are encouraged to file a complaint.

Also be suspicious of any business that requests fees be paid by certified bank check, cashier’s check, money order, or wire transfer. These forms of payment leave little recourse for the consumer should there be any difficulty with the business providing their services as contracted.

Consumers who are considering conducting business with a timeshare reseller or recovery company should research the company.

Fort Lauderdale Condominium Litigation Attorney

This update on news affecting South Florida condominium owners is offered as a service of Fort Lauderdale condo attorney Marcy Resnik. Contact her to discuss legal questions you might have in regard to your condominium association or timeshare unit. You can reach Ms. Resnik online or call her at 954-321-0176.

Florida Condos Face Flood Insurance Rate Hikes

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The National Flood Insurance Program (NFIP) was extended through September of 2013 as part of recent legislation passed by Congress and signed into law by President Obama on June 29, 2012. South Florida condo associations are among many flood insurance policyholders who are likely to see higher premiums.

The federal flood program, which was set to expire at the end of July 2012, is $18 billion in debt. Several rate increases are authorized in the new law in an effort to restore solvency, including:

  • Annual allowable premiums may jump from 10 percent to 20 percent a year. Under the maximum allowable annual increase, flood insurance rates could conceivably double in as little as four years.
  • Owners of currently subsidized homes considered to be high risk, such as vacation homes or homes with repeated claims, may see required annual rate increases of 25 percent. South Florida coastal areas are particularly at risk.
  • Deductibles will be set at a minimum of $1,000 or $2,000, depending on the property.

Florida homeowners and condominium owners make up a disproportionate share of the NFIP program. More than a third of the flood insurance program’s 5.6 million policies are in Florida, according to the Sun-Sentinel, including about 930,000 policies in Broward, Palm Beach and Miami-Dade counties.

Statewide, 80 percent of Florida’s 15 million residents live or work near the coast, according to the Federal Emergency Management Association (FEMA). Many others live near the state’s rivers or other inland floodplains. That means most Florida residents face the dangers of flooding, according to state and federal officials.

Fort Lauderdale Condominium Litigation Attorney

This update on news affecting South Florida condominium owners is offered as a service of Fort Lauderdale condo attorney Marcy Resnik. Contact her to discuss legal questions you might have in regard to your condominium association. You can reach Ms. Resnik online or call her at 954-321-0176.