UPFRONT FEE RESALE COMPANIES ILLEGAL IN FLORIDA ????

According to the latest AARP Bulletin publication in the Ask Our Experts advice section, upfront fee reale companies are illegal in the state of Florida. If this is so, then why hasn't the law intervened and shut down the hundreds of timeshare upfront fee resale companies in that state?

Quote from AARP...."Or if you want to try to sell the property (timeshare), use only a timeshare broker who takes a commission after the property (timeshare) is sold. Some outfits want an upfront fee before listing the property, but that would be a big mistake (AND ILLEGAL IN FLORIDA) ........"

jayjay wrote:

According to the latest AARP Bulletin publication in the Ask Our Experts advice section, upfront fee reale companies are illegal in the state of Florida. If this is so, then why hasn't the law intervened and shut down the hundreds of timeshare upfront fee resale companies in that state?

Quote from AARP...."Or if you want to try to sell the property (timeshare), use only a timeshare broker who takes a commission after the property (timeshare) is sold. Some outfits want an upfront fee before listing the property, but that would be a big mistake (AND ILLEGAL IN FLORIDA) ........"

As much as I absolutely despise these upfront fee parasites (and that's exactly what they are), as long as they call their upfront fees "marketing and advertising costs" (and not commission) there is (unfortunately) nothing illegal about their existence or their operations, no matter what AARP has to say on the matter. What is illegal is selling real estate on commission without possessing a real estate license. The upfront fee parasites circumvent this requirement quite deftly, by never usuing or referring to the word "commission". Do I like this? No, I do not. Is it true and accurate? Yes, it is.

From Florida Statutes Section 721.20 Quote: (6) It is unlawful for any real estate broker, broker associate, or sales associate to collect ANY advance fee for the listing of any TIMESHARE ESTATE or timeshare license.

(7) It is unlawful for any broker, salesperson, or broker-salesperson to collect ANY advance fee for the listing of a personal property TIMESHARE INTEREST.

I would thnk an upfront fee resale company and their salespeople would be considered sales associates and/or salespeople. What else could they be called?

jayjay thoughtfully quotes: >> From Florida Statutes Section 721.20 Quote: (6) It is unlawful for any real estate broker, broker associate, or sales associate to collect ANY advance fee for the listing of any TIMESHARE ESTATE or timeshare license.

(7) It is unlawful for any broker, salesperson, or broker-salesperson to collect ANY advance fee for the listing of a personal property TIMESHARE INTEREST.

I would thnk an upfront fee resale company and their salespeople would be considered sales associates and/or salespeople. What else could they be called? << ======================================

I believe that you are overlooking a key, critical point. The statutory cites above apply clearly (but ONLY) to LICENSED real estate professionals. The upfront fee parasites are NOT licensed real estate personnel, they do NOT profess to be (if they have any brains at all), and they are accordingly NOT subject to matters pertaining to state licensed real estate professionals.

Don't shoot the messenger --- I despise these upfront fee parasites as much (or more) than anyone on this planet, but the fact remains that they are simply not subject to the real estate licensee applicable statutes which you have cited. I don't like it either, but that's just how it is in the absence of statutory restrictions which would actually apply to the upfront fee parasites.

You have appropriately asked, "what else could they be called?" There is, unfortunately, a one word answer:

........ADVERTISERS.

That's all the upfront fee parasites are. ADVERTISERS. Accordingly, they "charge advertising fees", and they can and do lawfully do so (for now, anyhow), just like any magazine or newspaper does (or RedWeek, TUG, MyResortNetwork and many others for that matter). The upfront fee parasite "advertising" might (and very often does) consist of nothing more than than the creation and maintenance of an obscure web site to post basic, lame ads on a site which no one outside the company may ever see or take seriously. Nonethless, the parasites have then successfully fulfilled their (one and only) obligation --- to "advertise" the week, just as someone paid them (voluntarily and of their own free will) to do. Of course, the parasites could not care less if the week EVER actually gets sold, or for what price, since they won't get any more money anyhow (....no commission; they aren't real estate brokers, agents or salespeople in the first place...). The parasites have already collected their ADVERTISING FEE, so they're happy (and they are DONE......).

Is this lousy? Yes. Should these upfront fee parasites be put out of business, everywhere and forever? Yes. Are the statutes currently on the books enough to drive them out of business today? NO --- not unless the parasites "slip up" (as Timeshare Collectors / We Collect Timeshares is alleged to have done in a recently publicized Washington State court case) by "crossing the line" and engaging in activities for which a real estate license is specifically required by state law. It's no different in Florida, or anywhere else.....

Edited mutiple times shortly after posting, to correct numerous typing errors, with no change in actual content.