Penner & Associates - Mexico Law Firm and Business Consulting for Mexico

For professional assistance & information on legal & business matters regarding Mexico and Latin America, please contact:

ATTORNEYS AT LAW FOR MEXICO
Please contact us at our Mexico offices located at:
Apartado Postal No. 9
San Miguel de Allende, Guanajuato, Mexico
TEL. US.: (800) 856-5709
Local Phone (415) 152-3648

e-mail E-MAIL

 

BUSINESS CONSULTANTS FOR MEXICO
REAL ESTATE BROKERAGE ASSISTANCE FOR MEXICO
At our Phoenix or Mexico Offices
P.O. Box 42773
Phoenix, Arizona 85080
Tel: (623) 242-7442

e-mail E-MAIL

OUR MEXICO CITY OFFICES
Montecito no. 38 Piso 37 Oficina 37
Edificio World Trade Center
Colonia Napolis C.P. 03810
Mexico, Distrito Federal

Tel: (55)5351-0438

e-mail
E-MAIL

TIMESHARE ISSUES IN MEXICO

Also  see : Consumer Protection

Timeshare is recognized under the laws of Mexico as a valid means to acquire rights to use real estate. However, there are those in the timeshare business in Mexico that abuse their salesman's tactics. So be careful when buying. READ EVERYTHING AND GET IT ALL IN WRITING. - EACH PAGE SIGNED OR INITIALED BY THE SELLERS AND OF COURSE THE SIGNATURE PAGE SINGED BY THE SELLERS.. 

A few good reasons NOT to purchase timeshare in Mexico:

  1. You have been told it is a good financial investment.
  2. You have been told you can make a lot of money by renting it out (Rental income is presented as a "sure thing") 
  3. You have been told that if you get tired of it you can easily resell it and even make a profit on it (Promises to sell your existing timeshares at inflated values as a trade-in or down-payment for the new one.)
  4. You have been told that X company will buy your old timeshare from you for a considerable amount of money
    (perhaps more than you paid for it) and that amount will be deducted from the purchase price of a new timeshare or applied as the down payment).
  5. You have been promised something else as part of your package (discounted airfares, extra days of stay at the property or other properties). 
  6. You have been told that there are tax advantages.
  7. You have been told not to worry about the fine print or confusing words because that is just the way it is in Mexico!
  8. You have been told that you waived your 5 days right of recession as part of the deal. (you cannot waive them no matter what you do or say!)
  9. The above 8 reasons are many times just lies. If you are presented with any of those scenarios, get it in writing, make sure it is noted in the contract signed by you and the company representative and MAKE SURE YOU HAVE A COPY of it before you leave the property. If they are unwilling to do this, walk away.

Cancellation Period

There exists a five (5) business day period of cancellation (  business days do not include Saturday, Sunday or Holiday in Mexico), during which the contract does not become perfected, for sales that are described as "at domicile, mediate or indirect". This indicates those sales that are proposed or carried out, outside the local or establishment of the provider, including the rental of chattels and the rendering of services. This also applies to the selling of timeshare rights.

This 5 day right of cancellation is not waivable (the buyer cannot give it up) and even if the buyer is convinced to sign a document to give it up (waive the right) that waiver is not valid and the buyer still has the 5 day right. We were advised that the  5 days start the same day, right after signing the contract. Still it might start the day following. Further consultation on this is appropraite.

Federal Consumer Protection Law of Mexico

Artículo 56.- El contrato se perfeccionará a los cinco días hábiles contados a partir de la entrega del bien o de la firma del contrato, lo último que suceda. Durante ese lapso, el consumidor tendrá la facultad de revocar su consentimiento sin responsabilidad alguna. La revocación deberá hacerse mediante aviso o mediante entrega del bien en forma personal, por correo registrado, o por otro medio fehaciente. La revocación hecha conforme a este artículo deja sin efecto la operación. En este caso, los costos de flete y seguro correrán a cargo del consumidor. Tratándose de servicios, lo anterior no será aplicable si la fecha de prestación del servicio se encuentra a diez días hábiles o menos de la fecha de la orden de compra.

If you have found yourself a victim of what you believe to be timeshare fraud in Mexico please contact 
Vernon Penner
for legal assistance.