posted 11-24-2003 10:17               

I signed the documents in Mexico on Nov 15th. Is there anything I can do to get out of this purchase? Can I escape with having only paid the 25% that I put down on my credit card? The way I read the purchase agreement, I would owe them at least 50% of the purchase price before they would let me out.

They told me verbally that there was a cooling off period, but then once I'd signed everything they told me that there wasn't?

I'm not sure if this is under California or Mexico law since the
corporation is Californian but the sale was in Mexico.

If I cannot get out of the purchase, I need advice as to how I can go about selling my timeshare.

I would appreciate any help anyone can offer.

posted 11-24-2003 10:26               

Somewhere in your contract, it should say the amount of time you have to be able to cancel the purchase (recind).... I think some states allow for 3 days, others 7...

I'm sure others will be able to help you more....

Best of luck,
Jennifer

posted 11-24-2003 10:34               

You cannot sell and get back your money. The developer's price is much higher than what you can get on the resale market.

posted 11-24-2003 10:41               

Given that you signed on Nov 15th you are probably 2 days beyond the rescind date which would have likely been Saturday the 22nd - I don't know if there is an argument to be made that Saturday and Sunday weren't business days - I'd be faxing, emailing and registered mailing the cancellation documentation required as per your contract - read your contract and do everything required to rescind and do it now. IF (and it's a huge IF) you are eligible to still back out it probably only exists until today.

You could try telling the credit card company that you wanted to rescind on Saturday but the office wasn't open. If you don't succeed with the first person, talk to their manager, and then their manager, cry, do whatever you have to.

All the above are very long shots but I'd still try as you have nothing to lose.

Selling is a non-starter. If you follow through and pay 100% you might be lucky to get back 20%-30% (or less) of what you paid.

posted 11-24-2003 14:04               

There is much available on this topic on the Internet. Here is a sampling from the U.S. State Department advice for travelers to Mexico:

quote:

---

American citizens also should exercise caution when considering time-share investments and be aware of the aggressive tactics used by some time-share sales representatives. Buyers should be fully informed and take sufficient time to consider their decisions before signing time-share contracts, ideally after consulting an independent attorney. They should resist pressure to sign a contract the very day that they see the model unit. Mexican law allows time-share purchasers five days to cancel the contract for unconditional and full reimbursement. U.S. citizens should never sign a contract that includes clauses penalizing the buyer who cancels within five days.

---

So your best bet may be to seek legal help as to how to negotiate your way out of this and what the risks are, including possible damage to your credit record, if you just don't pay.

There have been occasional reports here of collection agencies going after U.S. purchasers of Mexico timeshares. I'm not sure whether they venture into Canada.

As stated above, selling is not an option. At least not without taking a bigger loss than paying the 50% that your contract apparently requires. Resale prices for most timeshares (including those in Mexico) are generally between 25% and 40% of original cost. So if you contracted to pay $12,000 for your week, you would likely be able to sell it for somewhere between $3,000 and $5,000. Hard to believe, but true.

If it's any consolation, many of us here spent way more than we should have on our first timeshare by doing exactly as you did. Some of us did it again!

posted 11-24-2003 15:19            

Dave, thanks for that post. I don't ever recall seeing that before. I hope this is archived in a place that can be easily found, or perhaps it should even be in buying and selling FAQs.

posted 11-24-2003 15:29               

quote:

---

Originally posted by Stacey27:

They told me verbally that there was a cooling off period, but then once I'd signed everything they told me that there wasn't?

---

Maybe someone else can comment on this statement, but this seems clear to me that she would have a case for cancelling this based on signing under false pretences. Regardless what the contract indicates in writing, if she was lied to during the presentation in order to get her to sign I believe this will invalidate the purchase.

Personally, I suggest that you contact your credit card company and ask what their policy is.

posted 11-24-2003 16:40            

BTW, she has lots of options for trying to get out of the purchase, but I don't think it's wise for us to get her hopes up about any of them, since they more than likely won't work, so in my opinion, and with the knowledge we have gleened from others concerning this same issue, it's best to be truthful and frank.

posted 11-24-2003 17:34               

quote:

---

Originally posted by Stacey27:

They told me verbally that there was a cooling off period, but then once I'd signed everything they told me that there wasn't?

---

That sounds like a lie to me.

------------------
Patri
I'm ready to go, but it isn't time.

posted 11-24-2003 18:49            

This is why people should go over any contract backwards and forwards and inside and outside before signing their name on the dotted line, especially for major purchases. When you sign your name on that dotted line they have you where they want you legally.

posted 11-25-2003 06:14               

As usual, your information and advice can't be beat.

This situation happens often. The buyer returns home, and "buyers remorse" occurs. Unfortunately, a 5-day recission period doesn't give the buyer enough time to return home and really think about their purchase in a neutral environment. That's unfortunate.

posted 11-25-2003 11:48            

When I signed the paperwork, I was told that because of a "deal" they were giving me, I had to waive the 5 day cooling off period... which I did by signing a piece of paper. When I had reconsiderations, I was stuck because I had waived my ability to cancel...

But when i returned home, i discover that Mexican law considers such waivers to be fraudulent and not valid... so I got rooked into thinking I couldn't cancel at all... STUPID me.

I am doing what little I can to hassle them, but I suspect I am stuck, much like Stacey27.

posted 12-08-2003 22:38               

------------------
beach mom

posted 12-17-2003 12:54            

This is crazy and something should be done about this fraud of all frauds. Also, why would one sign a waiver when they had previously been told they had 5 days to rescind?

This is confusing.

posted 12-20-2003 15:41               

quote:

---

Originally posted by GinGin:
I need to have something clarified please? Why do these specific timeshare salesmen tell buyers they have 5 days to rescind, then make them sign a waiver at the end of the transaction saying they have no recission period after all?

This is crazy and something should be done about this fraud of all frauds. Also, why would one sign a waiver when they had previously been told they had 5 days to rescind?

This is confusing.

---

After getting worked for a couple of hours, my wife and I settled on a two week t/s for a great, once in a lifetime price. As the salesman was bringing us the contract, his supervisor came over and told us about an even better, once in three lifetimes deal!

He would be able to sell us a property that a previous customer had just traded in. They were moving into a larger T/S, and now this one was available to sell. It was twice the number of weeks, at only a few more thousand dollars. The only hitch was, since it had already been sold once, the five day cooling off period had already been applied to this particular transaction. They politely explained that the rescission period only applies once per timeshare.

Of course, we all know that everybody who buys from Mayan Palace ends up buying one of these "previously owned" units.

Pretty slick, eh?

tom

posted 12-20-2003 15:44               

quote:

---

Originally posted by musictom:
Originally posted by GinGin:
I need to have something clarified please? Why do these specific timeshare salesmen tell buyers they have 5 days to rescind, then make them sign a waiver at the end of the transaction saying they have no recission period after all?

This is crazy and something should be done about this fraud of all frauds. Also, why would one sign a waiver when they had previously been told they had 5 days to rescind?

This is confusing.

---

After getting worked for a couple of hours, my wife and I settled on a two week t/s for a great, once in a lifetime price. As the salesman was bringing us the contract, his supervisor came over and told us about an even better, once in three lifetimes deal!

He would be able to sell us a property that a previous customer had just traded in. They were moving into a larger T/S, and now this one was available to sell. It was twice the number of weeks, at only a few more thousand dollars. The only hitch was, since it had already been sold once, the five day cooling off period had already been applied to this particular transaction. They politely explained that the rescission period only applies once per timeshare.

So when you go in to sign your life away, one of the things they have you sign is a waiver, stating that you understand that, due to the "special" circumstances of this sale, you waive your rights to the five day cooling off period. In our minds, it was a small price to pay compared to getting this fantastic, benevolent, out of this world deal! Unfortunately, we, as most everyone else, found out about TUG just a wee bit too late!

Of course, we all know that everybody who buys from Mayan Palace ends up buying one of these "previously owned" units.

Pretty slick, eh?

tom

posted 12-23-2003 18:35            

I contacted Mayan Palace by email. Someone from Puerto Vallarta (one of the sales people I was suckered by) called me on the telephone. They said they could cancel it, but I would have to forfeit my 25% downpayment plus the "closing costs" since fees and commissions had been paid by Mayan Palace... I told them I intended to do what I had to to get out of the deal. They told me I could do so (forfeiting downpayment) by sending all paperwork back to them (parent company Desarralo Marina Vallarta) in Houston, TX.

I contacted PROFECO by email - and they responded in two days. They told me to send a letter to DMV's offices in Houston, TX, with all the documentation I had. I was to retain a copy, and send a copy of all the documentation, a copy of my cancellation letter to Desarralo Marina Vallarta, and a cover letter to PROFECO in Mexico City explaining the situation.

They told me to include in the cancellation letter to Mayan Palace that I had already talked to PROFECO and confirmed that the waiver Mayan Palace made me sign was not valid under Mexican Law.

I did as PROFECO recommended. I sent the paperwork to Desarralo Marina Vallarta in Houston by registered mail, and the stuff to Mexico city by regular mail.

About two weeks after I mailed the paperwork, I received a very terse phone call from Puerto Vallarta. A man I had never talked to before said they would cancel my contract and refund all of my money. He said I would have no further obligation to Mayan Palace or Desarralo Marina Vallarta. I don't think my other paperwork likely even reached PROFECO yet, but something got DMV excited...

He hung up the phone before I could demand they send me something in writing. I was suspicious until today, when the refund appeared on my credit card statement (online). Every last US dollar of it. Only problem is I lost some in exchange rate changes... oh well - I think I got out of this pretty well.

posted 01-06-2004 11:23            

Now I am wondering what options I might use to get rid of the contract. I assume I can stop paying maintenance fees and Fairfield will cancel my contract. In this case I will loose all money I put in the contract ($14000 Canadian dollars), but I will not pay the fees and deal with this twisted company and its freaking rules and regulations. Also I hope I can sell the contract and at least partly recover my losses.

Could somebody advise me on what to do and when I can sell my contract (if it is worth to bother)?

According to my research many people became victims of illegal sales practices, where sales reps do everything to make you sign (event shamelessly lie). How come that the re-sale value of timeshares is much less then the cost of the original contract? Why this industry is thriving so long when there are so many disappointed customers?