The timeshare resale and rental industry is heavily riddled with fraudsters. Times are bad and far too many people are looking to give up their timeshares. It's almost impossible to unload them, except at a loss, and all kind of dishonest and outright fraudulent resale/rental agencies are cold-calling people and offering them very attractive deals. That almost always means scam, and I am pleased to see that your anti-fraud radar picked that up.
While it's good that they don't appear to want an up front fee from you, the fact that your lawyer sees some things wrong with the contract is yet another bad sign. And they may yet require you to put the 5% fee into an escrow fund. While not a bad thing by itself, for every phony timeshare reseller, there is a bogus escrow company working together to steal money. Nobody who wants to unload a timeshare can afford to be defrauded.
So the best thing you can do for yourself is to make sure that whoever you deal with has some kind of track record in the industry other than what they say about themselves. TransWestern Group's online history is bad. They have most certainly made the radar screen of the Better Business Bureau, who has a caution alert about them. Not only did the BBB give the company an F rating, but they have independently verified with the US Postal service that their address does not exist. Additionally, they have looked at the Montana Secretary of State's Website to see if they were lawfully registered, and the site says that the company is inactive. (See link
Further, they have information that TransWestern may be operatiing out of Mexico.
Don't touch this with a ten-foot pole. This is a business area which is loaded with scammers preying upon people who are desperate to get rid of a big drain on their finances at a tough economic time. The Federal Trade Commission has been warning consumers about the various scams in this area. They have a very helpful article where they help you ask the right questions and know when you're getting the right answers, when you are evaluating a company of this type. If you read this and familiarize yourself with what you have to know and do first before you contract with a timeshare reseller, you should come out of the deal okay. (see link for article
) You need to be 100% certain of who and what you are dealing with. Otherwise, it's safer and saner to pass it up.