Question: Time shares have been big business in Hawaii for decades and were a major part of resort development during the last real estate market boom. With the economic slump in recent years, has there been a problem of scams extracting upfront fees — as much as several thousand dollars — from people who want to sell their time shares but end up receiving no such service?
Answer: Fortunately, Hawaii’s people have not been victimized by so-called "scams" as much as others have been on the mainland.
Q: What are some legitimate places a time-share owner can go for assistance selling?
A: The American Resort Development Association Resort Owners Coalition represents time-share owners and provides information regarding resale guidelines and resale tips. The website can be accessed at ardaroc.org/resales, and interested persons can contact the ARDA-ROC resale information hot line at 855-416-6187.
Q: Do time-share resale agents or brokers need to be licensed in Hawaii like real estate agents?
A: Unless otherwise exempted, time-share resale agents or brokers must be licensed pursuant to Hawaii Revised Statutes Chapter 467 (applying to) real estate brokers and salespersons.
Q: How can a consumer verify whether a purported resale agent is licensed?
A: The Department of Commerce and Consumer Affairs’ Professional and Vocational Licensing Division provides an online service where parties can search for a licensee by name to confirm licensing information.
Q: Are there other resources a consumer can check to help ensure that an agent or company is not part of a scam?
A: The Real Estate Branch and the Regulated Industries Complaints Office of the DCCA provide online services where parties can review a licensee’s prior complaint history, if any.
Q: What about industry protections?
A: The trade organization for the time-share industry in this country, the American Resort Development Association, or ARDA, has taken steps to proactively address illegal business activity happening on the mainland and requires that all of its member companies adhere to a strict code of ethics seeking to curtail such activities.
Q: How big is Hawaii’s time-share market, and how does that compare with other markets?
A: According to the 2011 Visitor Plant Inventory Study issued by the Hawaii Tourism Authority, time-share units represented 13.1 percent of the total visitor units in the state of Hawaii. Hawaii has approximately 10,000 time-share units compared to approximately 170,000 time-share units nationwide (almost 6 percent of the nation’s inventory).
Q: What is a broad range for how much a time share can cost in Hawaii?
A: A time share can be purchased for as little as a few thousand dollars to tens of thousands of dollars.
Q: How much did Hawaii time-share sales rise during the last real estate market or resort development boom?
A: Time-share sales have remained fairly stable, and likely range between $500 million and $1 billion annually in the aggregate.
Q: How is the industry faring?
A: The time-share industry in Hawaii has been Hawaii’s "Energizer bunny" in the sense that it keeps chugging along, generating jobs, tax revenue and an avenue for sharing aloha around the world to hundreds of thousands of visitors. This is an industry that should be encouraged, promoted and sustained, as it represents a vehicle by which Hawaii can sustain economic viability, even through tough times.
