Timeshare scam is very common these days; never think this could never happen to you. There are still a few honest timeshare sales associate out there; you just need to stay clear of the ones that want to rip you off. Here is a list of the most common lies in a Timeshare scam and the true behind it:
1. Buying the timeshare that way you can rent it for a profit.
The true is there is little or no market to do this, so it’s impossible to rent your weeks or points to get your money back.
2. Owning a timeshare is an investment
Most contract state that if you are buying a membership of a timeshare for a profit that you should reconsider your purchase, owning a timeshare is for the solid purpose of saving money while vacationing.
3. Extended List of Resorts and Locations where you can exchange your weeks or points.
you should do your research on what resorts and locations your timeshare is register at, and if and what you need to do the exchange and if this is what you want and suits you best.
4. “Trade In” your old timeshare, and deducting the cost off the purchase price with a promise of selling your old timeshare.
-More often the sales associate are doing this, when the prospect buyer tells them they don’t wish to buy because they already own a timeshare, and if the buyer agree to trade in, the buyer is refer to a selling company, which the company will ask for a sum of money upfront to list the timeshare, and at the end the buyer will be out of thousands of dollars and now owning two timeshares.
5. Taxes advantages on your timeshare purchase
-The true about a timeshare is that you are buying the right to stay at the hotel once a year, and you do not own the resort, there is why you can’t have taxes advantages with this purchase.
6. The headquarter office of our resort is in USA, the recession period law doesn’t apply in this contract, you cannot cancel.
All contracts sign in Mexico are subject of the Mexican Laws, therefore by law you have 5 days period to rescind if you wish to cancel your timeshare contract, you cannot give away this right, and if the sales associate gave you a waiver to rescind your rights to cancel this is invalid and has no legal power.
At the moment of signing here are some points that aren’t explain or told to the buyer :
1. All inclusive is mandatory in some resorts.
-At the moment of trying to book on your resort, they ask you to pay for all-inclusive, this is not explain at the moment of purchase because it represent an extra cost besides the mandatory maintenance fee every year.
2. The recession period you have to cancel.
-The sales person leaves this information out on purpose, or verbally promise you that this contract cannot be cancel. You should be able to find in your contract fine instructions on how to cancel your contract if you are still within you 5 period days of recession.
3. Don’t allow you to fully read the contract.
Most sales associate won’t let you read the contract so you can sign the contract. Some other sales associate will tell you they mail the contract to your home and let them worry about everything else and when you get home and realize your purchase was full of lies you already pass your 5 days to cancel.
If you have heard any of this lies during your timeshare presentations, I suggest you walk away. Read the contract before signing it, it’s your right to know what you are signing especially with a timeshare. If you felt you were pressure into signing a contract and you don’t feel right about your purchase, seek for legal advice and do your research on how to cancel your timeshare contract.
Owning a Timeshare as an Investment