How to Protect Yourself When Buying a Mexico Timeshare

Learn how to protect yourself if you're considering buying a timeshare in Mexico.

You need to consider several different issues if you're thinking of buying a timeshare in Mexico. For starters, even though Mexican law protects timeshare purchasers by providing a right to cancel a timeshare contract, it might be difficult to enforce this right. Also, timeshare scams abound in Mexico and you should take steps to avoid becoming a victim.

Read on to learn more about your rights if you purchase a timeshare in Mexico and find out about common timeshare scams and tips on how to avoid them. (Learn more about issues to consider if you’re buying a timeshare.)

Understanding Mexican Timeshares

In Mexico, foreigners are restricted from owning land within 50 kilometers of the coast or 100 kilometers of an international border. But the majority of timeshares are in beach resorts in places like Mazatlan, Los Cabos, Cancun, Cozumel, and Puerto Vallarta. So, in most cases, when you buy a timeshare in Mexico, you're only purchasing a right to use the timeshare, rather than an interest in the real estate. (In the United States, the two main types of timeshare interests are deeded and right to use.)

Generally, with Mexican timeshares, you'll receive the right to use one or more units for a specific number of weeks, during a certain number of years. You will have to pay an initial purchase price and periodic maintenance fees, which are likely to go up each year.

Right to Cancel a Timeshare Purchase in Mexico

If you purchase a timeshare in Mexico, U.S. laws don't apply to the transaction. So, even if your home state strictly regulates timeshare sales, those state laws won't apply to you when you buy a timeshare in Mexico. Instead, you'll be subject to the laws of Mexico.

By law, in Mexico, you have five business days to cancel a timeshare contract after you've signed it. The sooner you act, the better. Also, be aware that this right to cancel can't be waived. If you try to cancel, some timeshare salespeople might tell you that you waived this right when you signed the contract, which isn't true. Mexican law stipulates that purchasers are legally entitled to cancel a timeshare contract without penalty.

How to Cancel a Timeshare Contract in Mexico

To cancel the contract, notify the developer in writing. It's also a good idea to send notification by email, as well as in person, if possible. Be sure to:

  • follow the instructions provided in the contract on how to cancel
  • deliver the cancellation within the rescission time period, and
  • keep proof of the delivery of the cancellation notice, such as receipts, video/audio recordings of your attempt to cancel, etc. (For more information on how to rescind a timeshare purchase, see How Do I Cancel a Timeshare Contract?)

Refunds

The timeshare developer must refund of all the money you have paid, without any penalties for canceling, within 15 business days. Often though, timeshare developers in Mexico are very reluctant to give you a refund. If the developer stalls or refuses to give you a refund, you can file a formal complaint against the company with PROFECO.

Tips for Avoiding Timeshare Scams in Mexico

Timeshare developers often hire aggressive salespeople and thousands of foreigners have fallen for the tricky sales tactics used by numerous timeshare companies in Mexico. If you're thinking of attending a timeshare presentation or purchasing a timeshare in Mexico, it’s important to learn about how to avoid becoming the victim of a timeshare scam.

Be Wary of Free Gifts With No Strings Attached

If someone approaches you during your vacation and invites you to a free breakfast or a free stay at a resort, beware. He or she is probably intending to sell you a timeshare. Mexican law prohibits timeshare salespeople from offering gifts, free vacation certificates, or any other promotion strategies without informing the consumer of the specific purpose of the offer, but this doesn’t stop salespeople from using this tactic.

Don't Purchase a Timeshare Based on the Brochure

If the salesperson only shows you a brochure of the timeshare property—but not the property itself—run away from the deal. There's very likely some problem with the resort. It's probably a dump or maybe it hasn’t even been built yet. You need to visit the resort and the developer’s office before you even considering purchasing a timeshare.

Don’t Sign Anything at the Meeting

Don't sign a contract when you first meet with a timeshare salesperson. Take the documents with you when you leave the meeting so you can spend some time reading the fine print. Consider reviewing the contract and documents with an attorney.

Certainly don’t sign any documents that are in Spanish only. Even if you're fluent in the language, you might not understand all the legal terminology. If the timeshare salesperson has provided you with a "translation" of the contract, it might not be correct or accurate, so get it translated elsewhere.

Do Your Homework

Before you purchase a timeshare at a particular resort, run a search on the Internet to find out more about the company that you’re dealing with. Timeshare owners who have previously been scammed often post their experiences and warnings about scammers online.

You can also check for complaints about the resort developer at any PROFECO office.

Get Any Promises in Writing

If certain promises were made during the sales presentation, make sure those promises are covered in the contract.

Mexico Timeshare Foreclosures Don't Happen Very Often

Because most timeshares in Mexico are of the right-to-use variety, you won’t face a foreclosure if you default on the payments. But the resort could potentially report the delinquency to credit agencies, sue you for the past-due amounts, or turn the debt over to a collection agency.

If you’re having difficulty making your timeshare payments or just want to be relieved of your timeshare obligation, see Options to Avoid a Timeshare Foreclosure to learn about different ways to dispose of a timeshare.

Hiring an Attorney

If you're thinking of purchasing a timeshare in Mexico—or have already done so—it's highly recommended that you hire competent legal counsel in Mexico as soon as possible who can advise you of your rights and responsibilities in the transaction.

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