Can I Cancel My TimeShare Contract in Mexico?
It is easy to be caught up in a sales pitch while you are dreaming of owning a place in Mexico. The sun, beach and of course all the free incentives the salesperson is offering is very alluring. They make it sound so simple to own a little piece of Mexico.
There are many legitimate vacation or timeshare companies, but you need to be aware of the less scrupulous timeshare companies in Mexico.
Take the time to investigate these promises, the cost of this investment and the how to get out of a timeshare contract.
Protect Your Investment
- Take time to understand the monthly expenses of a timeshare, maintenance fees which seem to increase each year, ask your salesperson if there is a cap on the fees and make sure it is documented in your contract.
- Speak to other timeshare owners on the development
- Compare this resort to others, amenities, maintenance fees and availability
- Do not allow the salesperson to pressure you into signing anything in haste
- Make sure any promises and free gifts are added in contract
- Do not sign Spanish documents
- Verify the contract has a Profeco (Federal Attorney’s Office of Consumers) registration number
- Investigate the timeshare company by calling the Consumer call center 1-800-468-8722.
Your Timeshare Contract Should Contain
- Obligations and benefits of this timeshare purchase
- Name and address of the representative
- Details of all costs associated with the deal, maintenance fees, taxes
- Location and name of the resort, exchange options, which locations are included
- Any verbal promises from the salesperson
If you are serious about signing a timeshare contract in Mexico, it is important that you take the time to consult a Mexican real estate attorney. Make sure you understand the financial obligations to this timeshare and which benefits are included in your contract.
Timeshare sales members want the deal closed in one day, but you need to step away to have an attorney review the contract before you sign. If the salesperson threatens that the offer will not be available at a later time, walk away.
Buyer’s Remorse
If you have entered into a contract and feel you have been a victim of timeshare fraud, you need a real estate law firm in Mexico to dispute the contract.
Mexican timeshares are generally beachfront condos and hotels, meaning when you buy a timeshare in Mexico you are purchasing a right to use the property, as opposed to an interest in the real estate.
These timeshares can not be foreclosed on, but by defaulting on payments you will be reported to the credit bureau; the timeshare company may take legal action or turn the balance over to a collection agency.
In Mexico, there is a five business day grace period to cancel a timeshare contract. If you are within the rescission period, hire a Mexican real estate attorney to send a certified letter to the resort requesting a cancellation of the contract.
The salesperson may have had you sign away the right to cancel; however this will not affect your right to rescind as this is an illegal practice.
People usually realize they may be a victim of timeshare fraud well after the grace period, at this point, it is necessary to file a complaint with Profeco, the consumer protection agency delegated to protect consumers against fraud by companies in Mexico.
Mexican timeshare operations are registered with Profeco, which means your contract will be on file at Profeco. If there are any discrepancies between your contract and the one recorded at Profeco the contract is null and void.
The dispute can be a long and complicated process, obstacles such as language and distance may hinder your dispute.
Your claim is best handled by real estate law firm in Mexico. An experienced attorney may also uncover a rescission provision in the sales contract. Once you have been released from the contract, the timeshare company must provide a full refund within 15 business days.