Fractional Ownership

[las226]

What is the name of your state?What is the name of your state? Canada/CA
My spouse and I signed papers to purchase a Fractional ownership in
> Mexico in March. We were rushed and pressured into making a decision.
> To "sweeten" the deal, they gave us extra burn weeks. In exchange for
> this we had to initial the purchase agreement and sign another paper
> saying we were waiving our right to a cooling off period. Once we got
> back to our hotel, we had second thoughts regarding the purchase. As we
> had signed these papers, we thought we could not cancel the contract.
> We attempted to make arrangements to pay out the loan once we got back
> to Canada, but no bank would touch it. We contacted the resort to let
> them know we were not able to make any payments (prior to the first
> payment due date) and requested that the deal be rescinded. The
> purchase agreement, section 13, states that this is an option. When we
> spoke with another person down there, we were told that we still would
> have had the option to cancel within five days of signing the original
> contract even though we had initialed and signed the other papers. We
> know another couple who signed the same paper.
> We have made no payments towards the purchase, other than the
> downpayment, and have not utilized any services connected with it. Can
> the lending company come back on us and collect over the border (lending
> company is in California). Does the resort have to refund our funds?
>

 

[blameshifting]

Why don't you post, word for word, what Section 13 says about rescinding the deal prior to the first payment.

 

[bistro]

You need to contact an attorney related to this. Unless you can prove "fraud", I expect you'll have a difficult time getting out of this.

Good Luck.

 

[las226]

Section 13 reads as follows:

13.DEFAULT.-The parties to this Agreement agree to be subject to the following terms in the event of default.
a) If the default is caused by the Member and subject to the terms established in c) below, the Club, at its discretion, may (i) proceed against the Member and or the Membership and exercise all the rights and actions under law as Creditor, calling in any previous financing and requiring the forced fulfillment of the Agreement; or (ii) rescind this agreement by written notice to the Member at the Member’s address indicated on the coversheet without the need for a judicial hearing and applying as liquidated damages the amount of one hundred percent (100%) of all payments made to the Club by the Member as of the date of default. In the event of rescission of this Agreement, any Maintenance Fees or Closing Costs paid by the Member shall not be refunded. The Club will cancel all Membership registrations in the event of the contract and will notify the Resort Operators. The Club will then be free to sell the Membership as a new membership.
b) If the default is caused by the Club or the Resort Operators, and subject to the terms established in c) below, the Member may rescind the present contract and the Club shall be obligated to reimburse the Member for all amounts paid as of the date of default.
c) The present Agreement is subject to an express agreement which gives both the Club and the Member the right to rescind the present contract, without the intervention of the judicial authority, if any default by the parties of the obligations contained in this Agreement and in the Internal By Laws and Use Agreement is not remedied within 30 days following the notification in writing of said default by the injured party to the defaulting party.

 

[blameshifting]

13 (c) appears to give you the right to rescind the agreement if the give notice to you that you are in default

13 (a) says they can rescind the agreement and keep all the money you paid them and proceed to resell the timeshare

Don't expect to get any money back, stay away from timeshares, walk away from salespeople who are pressuring you. Sounds like they make a good living reselling units over and over again. You can't sign away your right of recession, that's just a trick they use to make you THINK you've signed away your rights so you won't actually take advantage of your right of recession.

 

[las226]

We have learned the hard way about staying away from these sales people. I can't believe that they can lie about signing away your right for a cooling off period. Could that be grounds to have everything wiped clear and get our $ back? We know another couple who had to sign this same paper? (same company selling the memberships) The Club is now offering us a 10 year membership to HSI for money already paid. It's almost like they know they have been caught at their fraudent practices and are trying to look like the good guys and covering their tracks.