# Please Help! Cancelling Contract on Fractional House



## Andief2008 (Mar 24, 2008)

Please help! I signed a contract for a fractional share in a villa in Cabo San Lucus last Thursday. After returning home...I want to know my options for cancelling this contract. I realize there is a 5 day grace period to rescind a contract in Mexico...however I also signed a "Cardholder's Acknowledgement" stating that it is a irrevocabele and that the earnest money ($14,500) is non-cancelable and non-refundable. Does this mean if I cancel the contract I'll lose that money? Any help is appreciated.


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## garfunct (Mar 24, 2008)

*stick to your guns*

cancel it and fight

99 % of the time a judge will rule in your favor if it comes to that

registered mail your cancellation and fax for proof you canceled within your 5 days.

do a charge back on your credit card or stop payment on check.

credit card companies will fight for you if you pursue it.

time share resorts are under huge pressure from credit card companies to live by their rules not 'timeshare' rules

fight it if you want out.


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## Andief2008 (Mar 24, 2008)

The contract also says I have 5 "business" days...does that mean Mon-Fri? I notice there is NO address to send the cancellation to?


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## Steamboat Bill (Mar 24, 2008)

If you cancel ASAP (assuming you follow the contract rules) you can probably win. Remember Easter is a holiday and friday was good friday so they may be exempt.

What company is this
What exact timeshare did you sign for
what was the number of days/weeks allocated
what was the total price
what was the deposit
what was the interest rate on financing

you may want to google the company and get a fax number and fax a letter TODAY.


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## Andief2008 (Mar 24, 2008)

Pueblo Bonito -Montecristo
No timeshare - Fractional Housing is the way it was described to us. 
2 weeks every OTHER year.
$72,500 total
$14,500 deposit
12% interest - but we planned on paying it off when we got home to get a better rate.

Contract rules says: The USER shall have a term of 5 business days from the business day which follows the signing of this contract in order to cancel this same contract. The refund of this remaining investment if such is the case, shall be made at least within 15 calendare days following the date of the cancellation of the contract. Said cancellation shall be made in writng at the place where the operation was carreid out or at the official address of the Provider or representationve of the company indication in the contract


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## Andief2008 (Mar 24, 2008)

If anyone has a sample letter to cancel a contract I would be very appreciative! 

Not sure of all information that needs to be included. The contract states that I would have to return ANY "gifts" given to us. They gave us certificates for $300 to use at the hotel (which we did) so I know I'd have to pay back the $300...and they also gave us two free weeks at the Sunset Beach hotel to use in the next 15 years. Do I need to send this back with my cancellation letter?


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## Karen G (Mar 24, 2008)

I think just a simple statement of your intent to rescind the contract is all that is required:  "I hereby rescind my contract to purchase two weeks every other year at Pueblo Bonito Montecristo dated _______."  Sign your name as you did on the agreement and send copies of all the paperwork. Be sure to keep copies of everything for yourself.

Notify your credit card company of the rescisssion and dispute any charges made to the card.  If they ever try to reference the document they had you sign giving up your right to cancel the charges, refer them to the specific language in the article from Profeco that states that it is illegal for them to have you sign away your right of rescission.

You could send back the certificates for future stays at Sunset Beach, but I don't believe you are obligated to return the $300 in restaurant credits that you used at the hotel. That was their gift to you for attending the presentation.

Time is of the essence here and be sure you send everything off ASAP.


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## rickandcindy23 (Mar 24, 2008)

Profeco is an agency in Mexico that can help you.  I know Emmy has a lot of information about this.  I believe there is a website. 

It is illegal to take away your right to rescind with a second document to sign, which Profeco is especially likely to get involved.  

I just did a Google search on Profeco timeshare and came up with a lot of information about them.  There are threads here on TUG about this very thing.


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## rickandcindy23 (Mar 24, 2008)

This thread should help you a great deal:

http://www.mexicantimesharefraud.com/MexicanTimeSharaeFraud.pdf

Emmy gave good information on the above thread, involving the same thing you are going through right now. 

Good luck to you.


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## Passepartout (Mar 24, 2008)

And after you dodge the bullet you fired at yourself, join TUG, read the newbies area a time or two, decide where you want to vacation, and get yourself a nice, fairly priced, usable timeshare. You've already found out what a bunch of funloving, helpful, cheapskate folks TUGers are!

Jim Ricks


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## Andief2008 (Mar 24, 2008)

You all have been a tremendous help! Thank you Tuggers! And you are right about dodging my own bullet. My husband insisted that we attend the presentation to get $300 worth of certificates...and we walked away with a $72K investment! I told him if he ever did that again...grr! Although I have to admit I was totally hooked too. The Montecristo property is absolutely gorgeous and it is easy to imagine yourself living there year round.


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## Andief2008 (Mar 24, 2008)

One other question? Should I send this cancellation letter overnight FedEX or certified mail? I want to make sure that it gets there..and someone signs for it. Any suggestions?


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## Steamboat Bill (Mar 24, 2008)

Andief2008 said:


> One other question? Should I send this cancellation letter overnight FedEX or certified mail? I want to make sure that it gets there..and someone signs for it. Any suggestions?



I like FedEx as they give signature proof.


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## Steamboat Bill (Mar 24, 2008)

Is this the place?
http://pueblobonito.com/montecristo_estates/res_view.shtml

What type of unit did you sign up for?

2 Weeks everyother year is really 1 week per year and that is a timeshare, even though those properties look like a frational home. Fractionals are usually 4 weeks minimum (IMHO).


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## Andief2008 (Mar 24, 2008)

That's the place. But if you notice at the bottom of the page they offer the villas in two week intervals. AND you choose the specific dates you want and they can not be changed. You get a specific villa at a specific time. We bought the first two weeks in February.


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## Andief2008 (Mar 24, 2008)

Ok...you guys have been so much help...maybe I can push my luck and get a little more? 

FedEX first available delivery would be on March 31st. One week from now and would be passed my 5 day cooling off date. Does it matter if it arrives later than that date? OR does it just need to be postmarked by that date? Also I have an address in San Diego I could ship to...and fax a letter today. 

Any comments ....suggestions?


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## lprstn (Mar 24, 2008)

I would send to both and make sure it got postmarked on the date within the deadline.


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## Karen G (Mar 24, 2008)

Andief2008 said:


> Also I have an address in San Diego I could ship to...and fax a letter today.



If you are sending to a San Diego address, can't FedEx get it there overnight?

Be sure to have documentation of the date you send everything and if you need to send it to San Diego and to Cabo San Lucas, do it. Get written confirmation of delivery, too.

Then, when the dust settles and this learning experience is finished, you might want to investigate resales at Pueblo Bonito Sunset Beach or the Rose or even the Blanco next to the Rose.  All are top-notch resorts and offer wonderful vacations. We own at the Rose and have been going every year for the past ten years.

Montecristo is a beautiful development but you can have great Cabo vacations for a lot less money.


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## Karen G (Mar 24, 2008)

Andief2008 said:


> My husband insisted that we attend the presentation to get $300 worth of certificates...and we walked away with a $72K investment!



You'll learn many things by spending time on TUG, but one of the first ones to learn is that timeshare is not an investment--in the real estate investment sense of the word. Timeshare salesmen want to make you think it is an investment, though.  With very rare exceptions, timeshare purchases do not increase in value. They go down in value the moment you buy them just like a new car goes down in value when you drive it off the showroom floor.

What many here have found, though, is that timeshare is an investment in family time--it forces you to take a vacation--and that's a good thing!


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## Andief2008 (Mar 24, 2008)

Well...first off...they provide no physical address on any of the contractual documents...so I had to look it up online. The physical address is Cabo San Lucas. It also says in the contract that I can send it to a Representative Office...which I found one online in San Diego. So just to cover all the bases, I'm sending a FedEX package to both, then I faxing the cancellation letter to both offices as well and including the reciept of fax with the documenation. I consulted an attorney and he was the one that suggested putting the fax receipt in with the documentation. Whew! All this work for making a quick decision. Learned a valuable lesson on this one.


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## Andief2008 (Mar 24, 2008)

Thank you all for your feedback on this issue. I was so stressed over all this. Now I know that timeshares are not/and should not be treated as investments. We take family vacations several times a year...I guess this is why it was so appealing to us. We were on vacation and ended up spending $8k so we thought...wow...if we could own something like this and it be a part of our portfolio...that would be great...but again...it was just too quick of a decision. 

My father always told me...and I've listened up until this situation...always sleep on any major decision. That way you'll know you made the right decision...or at least be ok with your decision.


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## Steamboat Bill (Mar 24, 2008)

Andief2008 said:


> My father always told me...and I've listened up until this situation...always sleep on any major decision. That way you'll know you made the right decision...or at least be ok with your decision.



You may buy a timeshare, fractional or destination club in the near future. We all love them. Just buy right and you will be happy in the long run. Proper ownership will beat rentals most anyday.


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## Andief2008 (Mar 25, 2008)

Just wanted to give an update on my situation. I faxed a cancellation letter yesterday as well as sending an overnight letter to Mexico and a Representative Office in San Diego. We got a call today from the salesperson asking why we were wanting to cancel. My husband told him that we were not 100% comfortable with the transaction. The salesperson was very polite and told him if we ever changed our minds to let him know....so...we'll see...I'll feel more comfortable when the $14.5K is refunded!

Thanks again for all the help here!  I'll be back to educate myself when we decide we want to vacation!


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## dthorlakson (Apr 30, 2008)

*Montecristo Contract Cancellation*

We have the same problem with Pueblo Bonito Montecristo Estates including the irrevocable decision to purchase acknowlegement.

We are still in Cabo San Lucas and our five day rescinsion peroid will expire before our return home.  Did your attorney say an e-mail is legal?  Do you have the contact information for San Diego?

Please keep us informed regarding your progress?


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## Karen G (Apr 30, 2008)

dthorlakson said:


> We have the same problem with Pueblo Bonito Montecristo Estates including the irrevocable decision to purchase acknowlegement.
> 
> We are still in Cabo San Lucas and our five day rescinsion peroid will expire before our return home.



If you want to cancel your contract, take some action while you are still there.  I think you could just write out your letter of rescission and present it to the sales manager at Montecristo. Make a copy for yourself and get someone there to sign it acknowledging that they received it. Maybe send a copy to the San Diego office, too, if you can get an address.

If the 5-day rescission period is mentioned in your contract, I don't see how they can hold you to signing a form giving up your right to rescind. That is illegal according to Profeco.

I have just looked at the Montecristo website here: http://www.pbmontecristoestates.com/ and it gives the following information for a San Diego contact:

Montecristo Estates
by Pueblo Bonito Hotel & Resorts
PO Box 929070
San Diego, CA 92192-9070

phone: 1-619-955-7763
fax: 1-858-642-2052

If I were you and wanted to rescind, I'd take a letter over to the sales office in Cabo and I'd fax a copy to the San Diego office.

Good luck and let us know what happens.

We have been happy owners of a unit at the Pueblo Bonito Rose for over ten years, and it is so disappointing to hear of people who have had such hassles with any of the Pueblo Bonito sales staff.  Having people sign away their right of rescission is an underhanded tactic and I think it is outrageous.


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## Dave M (Apr 30, 2008)

I agree with Karen. Take care of it while you are there. 

And if they wave the irrevocable decison at you, counter by stating that you want to be sure you understand exactly what they are stating because your next contact will be to Profeco (mentioned above)!


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## dthorlakson (May 3, 2008)

*Pueblo Bonito Montecristo Estates Cancellation*

Pueblo Bonito Montecristo Estates agreed to cancel our contract.  They required the return of all documents and promotional gifts including a promissory note that we did not receive at the time of purchase.  This caused a big problem and delayed the process.  After more than an hour, they agreed to refund our money within 15 days.

Now we are free to consider the resale market in Cabo. We were looking for a 3BR unit that would sleep 10 people.  Montecristo is impressive, but too windy, cold and remote for our family.  The Rose is older, but a better location for us.

Does anyone have advice on purchasing a 3BR resale in Cabo?


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## Karen G (May 3, 2008)

dthorlakson said:


> Pueblo Bonito Montecristo Estates agreed to cancel our contract.


Excellent!  Thanks for posting and letting us know.

As for a 3-bedroom at PB Rose, the largest regular timeshares there are two-bedroom, two-bath, sleeps 8, presidential units.  There are penthouse units with 4 or 5 bedrooms, I think, but I don't really know a lot about them. I've seen the inside of them and they are impressive, but I have no idea of pricing or availability.


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## Racldad (May 4, 2008)

We attended the same presentation last week,  we rented the car from Avis and they signed us up for full car rental of $250, plus $100 in certifricates to be used at any of the Pubelo Bonito restaurants.  I thought we were going to the Pubelo Bonito Sunset, but turned out they showed us the new homes up on the hillside above PBS.  Nice homes, two floors, 2800 square feet and each home has its own pool.  The price quoted to us for 4 weeks was $279,000 for for a 4 week period each june and they wanted $59,000 down, plus over $3000 a month for 10 years based on a 12% interest rate.   When I told him that was way out of my budget he then tried to get me to buy a studio at Sunset, for $23,000 and it had a maintenance fee of $349 per week and they would also let me have an option to use 10 weeks a year of weeks to trade within RCI but none of those 10 weeks would be at Sunset.  I would be required pay the $349 maintenance fee for any of those 10 RCI weeks I might use.  He then attempted to get me to trade a couple of weeks I own for $10,000 bringing the price down to $13,000.  Needless to say I said no way.  My biggest surprise was that I was not turned over to a supervisor or manager.   Our sales person Charlie finally said ok and we went and got our certificates.


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