If you are going to Mexico on holiday, you may get an invite to attend a timeshare presentation. Now, timeshare presentation invitations are quite common in most of the Mexican resorts but it is very important that you prepare adequately BEFORE you attend these presentations. Here is what you need to know.
1. Get an independent and competent lawyer who is familiar with Mexican laws and practices with regards to real estate. This will ensure that you are well informed as Mexican real estate laws are to a large extent different from those in the United States.
2. In the event that you as the purchaser want to cancel your timeshare contract then there is some good news; Mexican law gives timeshare purchasers the chance to cancel their contract (with unconditional and full reimbursement) within 5 days of signing the contract.
3. In the event you have a property dispute with in Mexico, there is a chance that your case may be treated with some bias by the Mexican Justice authorities and courts. An important point to note here is that unless a Mexican time-share company has an office or business presence in the United States, they cannot sued in the United States.
4. The Mexican Constitution imposes restrictions on foreign real estate owners and as such foreign real estate owners rely on a trust mechanism instituted by the Mexican government which basically gives a bank the title to the property but the trust beneficiary enjoys the benefits of ownership. There is a catch to this arrangement; U.S. Citizens are vulnerable to title changes in such an arrangement and this may result in years of litigation and possible eviction.
5. All complaints originating from US Citizens are handled by the English speaking Mexican Federal Consumer agency office – PROFECO in Mexico City; phone 011-51-555211-1723, fax 011-52-55-5211-2052.