# [ 2013 ] Beware of Grand Luxxe Los Cabos



## iralif1950 (Dec 8, 2013)

I have become quite beside myself with this organization for a number of reasons. First off, the family has been traveling to Los Cabos for the past 30 years, in fact it is the only vacation spot we travel to in Mexico. We came across GM Los Cabos during one of our stays and decided to add another Cabos week.

We became disillusioned early on when we could not get reserved in the size of unit or the week we wanted to be able to spend 2 consecutive weeks in Los Cabos. After "fighting" we finally got a reservation. During the stay we went on the presentation to hear about the new Grand Luxxe los cabos that was to be completed in 2 years.  This was very important for us since Los Cabos is the only destination we travel to in Mexico. Salesteam showed us a beautiful suite and model of the Grand Luxxe and said it will be finished in 2 years.  A major point we asked about various times was when construction would be completed in which manager assured us that it would be within 2 years. They said it will have 2 golf courses and be built on a bluff.They also showed us how profitable it would be to rent out the GLuxxe units to upscale travelers wanting to visit Los Cabos so we decided to upgrade from 2 Weeks GM to 4 Weeks GL and paid an addl 80k on top of the money we already invested. 

When nothing was happening with the rental of my weeks I called the organization and somebody proceeded to inform me that the organization actually does not rent weeks and that a list of companies was given to me of who does rent weeks, which made me very confused since I was under a different understanding.  I knew then that something was not right. I remembered I was told by the salesrep to initial a clause in my contract that clearly contradicted the rental presentation given to me by the salesrep and manager, a clause that says that the company makes NO representations regarding the market for vacation ownership rentals, but during the WHOLE presentation the salesrep and manager spent a lot of time talking and showing...REPRESENTING the amounts that could be made by renting the weeks out to other people.  Classic bait and switch! The salesrep said the organization needed to market weeks to others for marketing purposes. In fact the sheet of companies to rent wks was given to me which after re-reading says that I requested it, which is nothing further from the truth, since it came with the paperwork, but the rep told us the companies on the list would be used if I wanted to rent on my own. That is when I began to feel that an active, organized attemp was being made to cover the tracks, so to speak.

The last straw is the MAJOR fact that Grand Luxxe Los Cabos has not even started construction yet and after hearing from a friend of mine who recently visited and went on a presentation, the salesteam is just giving more excuses saying now that the company is building GLuxxe elsewhere and bringing some big entertainment companies.  That to me says that GLuxxe Los Cabos may not be built for many years to come and that my addl 80k has been used to build another resort that my family does not travel to. We were sold that our money would be put to use to construct Los Cabos.

I am suprised that I am the only one voicing any concern about GLuxxe Los Cabos. I and others have been waiting now for FOUR years for the company to deliver on its promises and they have failed to do so! Heck, they haven't even started on it yet. Buyer Beware! BTW I wonder who the "big" entertainment companies are that have partnered up with this organization?


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## MuranoJo (Dec 8, 2013)

How long ago did you upgrade to Grand Luxxe?  You have 5 business days from signing to rescind, but you have to act fast, following the instructions in your paperwork to a 'T.'  (If you're past the 5 days, you could try writing to their customer service team who post here now & then.  Here's the link: grupomayanblog@grupovidanta.com )

I'm confused, though, regarding exactly how they could be renting out the GLuxxe for you when it isn't even built at that location?  Perhaps they meant that, until the Los Cabos location is built, you could reserve at an existing GLuxxe location and rent that.

I wouldn't bother with their so-called rental program, as you can easily rent yourself.  Many of us use Redweek, myresortnetwork, or TUG for rental ads.
However, I don't own the Luxxe level, but there are several others here who do who might be able to help you more.


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## iralif1950 (Dec 8, 2013)

In regards to rentals, they said that GM inventory would be rented in the meantime but that by 2011 we would be able to rent GLuxxe Los Cabos which I remember to be higher rates.  But all of it is null and void since there is no GLuxxe in los cabos and I feel there will not be for some time.  Have you heard any word on when construction will even begin? This whole situation is causing quite some stress since we feel we wasted or should I say gave a substantial sum of money for something that is currently not panning out as presented. Thank you for your reply.

Ira


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## pjrose (Dec 9, 2013)

Unfortunately, we frequently see posts about TS companies (including GM) promising to rent unused weeks at a nice profit to the owner/member.  It's a lie; if they could rent the weeks at a profit, why not do it themselves? why sell it to someone else?  

The only parts of the contract that count are what's in writing.  Their verbal statements and scribbles are worthless.

It sounds like it's been several years since you signed this agreement, and you've likely been paying them all along for something you never received.

In terms of it never being built, do you have anything in writing, preferably in the contract, that says it'll be started or completed by xx date?  Or anything in writing that says specifically you are buying GL Los Cabos?  If so, then you have a case that you have been paying for something that doesn't exist.  If not......you may be out of luck on that.  

It is *possible* that the people at the email given you by muranjo may help you.   Please give them a try, and let us know what happens.  

Meanwhile, post warnings on other TS sites and wherever else you can think of.


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## california-bighorn (Dec 9, 2013)

We were taken to a Grand Luxxe presentation in Los Cabos a couple of years ago.  When I say "taken," I really mean taken as we were originally told we were going to another timeshare on Medano Beach we wanted to check out.  When we started heading out of town I asked what was going on and we were told we were going to a better timeshare to see.  I told them we didn't want to go to another one, but, they upped the offer another $100 and threw in some spa credit so my wife was OK with that.
Not long into the presentation, I asked to see the actual property they were talking about that they said was under construction.  Even though there was no way we would buy anything from this organization, I thought I could end the presentation early by saying I would never buy anything "sight unseen" since I already knew there was no construction taking place.  
They brought in a second sales man who admitted the previous sales lady was misinformed (she was new-right) and they would lower the asking price _even_ more since it was not yet under construction.  From there it was the usual timeshare presentation.
This was the last presentation including "owners updates" we will ever attend.  Not because it was the worst, but, there are so many other ways to become informed on the various resorts and what they have to offer without wasting everyones time.


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## iralif1950 (Dec 9, 2013)

I have checked the contract again and it says Nuevo Vallarta and not los cabos but I remember them saying that Vallarta would be the first. That was not a problem since they said they would build Grand Luxxe and GM actually on another piece of property within a timeframe that we accepted to be understandable and suitable. 

I see now that there is no date written in the contract when los cabos will be built, so in the end we went on the information that was given to us by the sales department. Great! This is even more scary then because the company has not binded itself by adding a date. Can they really do that?

If this were taking place in the U.S. there definately would be legal ramifications for such lack of construction. I am positive many more clients will feel like I do as time goes on. It didn't take pueblo bonito as long to build their resorts when they were being presented as pre-construction.


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## LisaH (Dec 9, 2013)

I went to a so-called "timeshare disclosure report" meeting while at The Grand Mayan Riviera Maya last month and I can totally see how someone who is less timeshare savvy could easily be taken by the claims that were thrown around at the presentation. First of all, they kept emphasize the rental incomes and, when pressed, they even promised that it would be put in writing in the contract (of course I never went that far to see the actual contract). Then they used the fuzzy math to make it sound like such a great investment. I just can't understand why a company that caliber has to resort to such blatant lies in order to get business. 

Other than that, the resort is gorgeous and service was first class. I would not hesitate to return as exchanger.


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## VacationForever (Dec 9, 2013)

The best advice to anyone reading is to not attend any timeshare presentation in Mexico.


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## csxjohn (Dec 9, 2013)

sptung said:


> The best advice to anyone reading is to not attend any timeshare presentation in Mexico.



Better yet.


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## pjrose (Dec 9, 2013)

sptung said:


> The best advice to anyone reading is to not attend any timeshare presentation in Mexico.





csxjohn said:


> Better yet.



Agreed.  The worst one we ever went to was in Virginia  .


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## geekette (Dec 9, 2013)

pjrose said:


> Agreed.  The worst one we ever went to was in Virginia  .



brow-beaten in Branson.


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## MuranoJo (Dec 9, 2013)

iralif1950 said:


> In regards to rentals, they said that GM inventory would be rented in the meantime but that by 2011 we would be able to rent GLuxxe Los Cabos which I remember to be higher rates.  But all of it is null and void since there is no GLuxxe in los cabos and I feel there will not be for some time.  Have you heard any word on when construction will even begin? This whole situation is causing quite some stress since we feel we wasted or should I say gave a substantial sum of money for something that is currently not panning out as presented. Thank you for your reply.
> 
> Ira



If your contract is anything like the typical Grupo or Vida contracts, you are entitled to reserve at any of their locations (where there are Luxxe buildings) and you can use or rent your reservation.  So you shouldn't be limited to renting only GM at the Los Cabos location.  However, if I were you, I'd rent on my own, vs. using any of their partner resources.  

pjrose nailed it:  If it isn't written in the contract, then it's simply sales tactics.  I remember others have said they were told years ago they're building in HI, but that's not materialized either.  There's a much better chance of a GL being built in Cabo vs. HI, though I've not heard of a timeline.


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## iralif1950 (Dec 10, 2013)

Thanks for your help, guys! 

I don't want to sound negative because I truly believe being positive is much better and more productive. Yes, you are correct in theory I could reserve in Vallarta or Cancun and rent there. But, due to being immersed in my own work it appealed to me to have someone else to do the actual marketing/renting/collecting part of the process. I have now done research on the two properties and it appears that Vallarta is the only property that has truly built the GLuxxe. The cancun property has a lesser number of units and it appears that more people are happy with Vallarta. The other properties are yet to have GLuxxe built either, so it appears that many others are in the same shoes.

My lawyer contacted Profeco in Mexico this morning and asked about the situation of pre construction laws and they said it had something to do with Promise of Sale. They said that the law did not give an exact timeframe where the situation would be deemed a fraud, but they did say that the law took into account a "reasonable" timeframe and that Four Years was a lot of time to wait.

They also informed him that all contracts should be in Spanish and English, and the two contracts I/we signed were only in English.  They said the Spanish version is what is deemed legal and the translation is not. He is currently trying to get the Spanish Version sent to him. Will keep you posted.

Ira


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## drguy (Dec 10, 2013)

If your contract states that your "home" resort is Nuevo Vallarta, Vida seems to have performed.  Even though you bought on the promise of a new Grand Luxxe being built in the Cabo area (East Cape), it does not appear that you have been harmed.  Frustrated, yes.
Much of the construction going on is in Nuevo Vallarta, with some taking place in Riviera Maya.  The collaboration with Cirque du Soliel is driving a lot of the construction in Nuevo.  
Good luck in sorting out your feelings about the purchase.  In the meantime, enjoy Cabo and stay at the Grand Mayan there.  Your mf's will be lower, you get to stay where you like and your family will enjoy the area.  I have no idea what is in the East Cape area.  San Jose del Cabo is a nice little town that I enjoy, but it will be 15 miles South of the new Grand Luxxe if/when it is built.


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## pittle (Dec 10, 2013)

You really just bought the Right to Use (RTU) weeks at a Grand Luxxe, or even a Grand Bliss, Grand Mayan or Mayan Palace.  All of the Grupo Mayan contracts are RTU.  We have been owners at all levels (but Grand Bliss) since January 1999 and they always say "If you own at one, you own at all."  I have had contracts that were based in Acapulco, Puerto Vallarta, and Nuevo, but have been to Mayan Riviera and Cabo.  They just use the "home" resort designation to keep track of how many units have been sold.  The largest resort is Nuevo, so more are based there.

Even if your contract said Cabo, that would not give you first choice to stay there.  Some people may have a wider window to make reservations than others do and some have higher "ownership levels" and will get a unit before you would.  That is just how it works.

When you said you have 4 weeks, are all 4 regular weeks or are some the Vacation Fair, Bonus, "Extra", optional weeks that you can book but within certain time frames? (Not in February or March or Easter or Christmas).  I have 2 weeks that are regular weeks and 4 that are "optional" ( I can't remember the name they gave them recently.)

When we upgraded this past June, we read the contract while there and went back to the Sales office and they made an addendum to our contract to cover our questions and included them.


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## drguy (Dec 11, 2013)

A small correction to pittle's response.  Units in the Grand Luxxe Spa Towers are deeded weeks, not RTU.


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## MuranoJo (Dec 11, 2013)

drguy said:


> A small correction to pittle's response.  Units in the Grand Luxxe Spa Towers are deeded weeks, not RTU.



Interesting.  I had not heard this before.


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## pittle (Dec 12, 2013)

Thanks for the info drguy - I did not know that.  

But, since this guy bought a few years ago, his probably would be RTU since the Spa Towers & Lofts are the newest in the line.


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## bmatthews (Dec 16, 2013)

I was not aware either that grand luxxe offered deeded weeks.  I thought too everything was rtu!


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## rpennisi (Dec 16, 2013)

I wonder if that is because of the higher prices that some of the Grand Luxxe units cost?  I thought I remember reading somewhere that deeding for US citizens in Mexico on the water required a certain amount of investment.


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## MuranoJo (Dec 16, 2013)

Bet you're right, Ron.  I'd love to see those Spa units, but (alas) not in my financial destiny, unless I win tomorrow's MegaMillions.


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## iralif1950 (Jan 15, 2014)

I would like to state that the Customer Service displayed by the Grand Luxxe organization has been exceptional. I now wish to retract the above statements due to having all of our customer issues satisfactorily resolved by the organization. Our confidence has been restored and we are now content members. 

Thank you


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## Tropical lady (Jan 15, 2014)

*congrats for issues resolved!*

Depending upon your "sister resort exchange" that is in your contract, if you go to Cabo, you get more units as a downgrade, ie an extra unit!  I hear the new contracts do not include that anymore.  Ours does.
Glad that you got your issues resolved.  The resorts are great, but the sales are not. The contract as written is honored, but verbal presentations are not.  If you get the chance, try Nuevo. We enjoyed RM very much in the beginning, but Nuevo is so different we end up going there more than RM.


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## drguy (Jan 16, 2014)

There is some relatively new law in Mexico that requires a certain amount of timeshare development must now be deeded.  I have no idea of how much or little must be owned, or even if the statement by our salesperson was true.
They are now selling units in the 7 figure range in parts of the Spa Towers which are "above" the Punta Tower in ranking.  (The Punta Tower is where Mr. Chavez lives when he is in town).


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## traveler36 (Jan 17, 2014)

In Mexico, foreigners are restricted from owning land within 50 kilometers of the coast or 100 kilometers of an international border. Since all Luxxe timeshares are in beach resorts (in places such as Mazatlan, Los Cabos, Riviera Maya, Puerto Penasco, Alcapulco and Nuevo and Puerto Vallarta), this means that we cannot own any timeshare units that the Grand Luxxe has developed. There was a measure pending recently in the Mexican legislature to lift the restrictions on foreign ownership of property along its coasts and borders. If the law passes or has recently passed, deeded timeshares could become available to Luxxe owners if management so chooses. According to a GL customer service representative that I asked in late December, 2013 in Nuevo Vallarta the Grand Luxxe has not sold anything so far but 'right to use'. The Luxxe however does now require that new owners pay the maintenance fee on registered weeks they have the right to use regardless of whether or not they are used.


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## traveler36 (Jan 19, 2014)

*Follow up to last posting*

The Mexican Constitution since 1917 requires Americans and other foreigners to set up a Mexican bank trust if they want to hold property within roughly 31 miles of the coast and 62 miles from the border — the “restricted zones.” Foreigners must pay trust setup costs and possibly hundreds of dollars in yearly fees, and they still can’t own their properties directly. The current rules require a Mexican bank to be owner of restricted-zone property, with the foreigner listed as beneficiary. These arrangements are good for 50 years and can be renewed in 50-year increments.  Foreigners can sell it or will it to their heirs, but the Mexican bank would be holding the pink slip to the property. 
Legislation to remove the restricted-zone ownership barriers recently was introduced in Mexico’s Congress. As a constitutional reform, it would require approval not just at the national level but among slightly more than half of Mexico’s state legislatures. If it happens it will take at least a couple of years for all the approvals. It isn’t easy to change the Mexican constitution, and Mexico faces other competing major reform efforts.


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## Aimfair (Feb 10, 2014)

*Rights to Use*



drguy said:


> A small correction to pittle's response.  Units in the Grand Luxxe Spa Towers are deeded weeks, not RTU.


With all due respect, the contracts are RTU contracts.  The only deeded properties are the condos north of the Grand Mayan or east of the golf course in NV.


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## Dogwood (Dec 23, 2016)

I have been reading the forum since 1 this afternoon and this is the first time I have seen what I am interested in. Today, I was offered a deeded residence for an xtra bunch of money. I was told my equity with vidanta would double by having the status of deeded. Is this true?


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## Sandy VDH (Dec 23, 2016)

If you buying from the developers you are over paying regardless of what equity they are givng you for previoius purchases.  This is also a 2 year old thread.


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## Karen G (Dec 24, 2016)

Sandy VDH said:


> If you buying from the developers you are over paying regardless of what equity they are givng you for previoius purchases.  This is also a 2 year old thread.


Actually this thread was started THREE years ago! And the warning of overpaying is still true!


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## Karenann (Dec 24, 2016)

Love these resorts!  I have not been tempted to sit in on a presentation at a Vidanta resort due to the warning posts on Tug.  However, I have loved staying at Nuevo Vallarta. The service at the resort is superior to any timeshare I have stayed at: wonderful attitude of wanting timesharers to feel like guests and enjoy their vacations to the fullest.  Riveria Maya has the Cirque de Soleil, a real treat. I took two of my daughters to Nuevo Vallarta in August where we had been assigned to a 3 bed/3 bath and ended up with a 4 bed/4.5 bath unit that was larger than our house. I think it was because we came in the off season, but we loved the unit with balconies overlooking the entire resort. The only real negative with Nuevo is the beaches, which are muddied by the river that flows close by.  Rivera Maya has fabulous beaches and a wonderful Grand Luxxe pool. Why buy when you can trade into these resorts?


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## T-Dot-Traveller (Dec 25, 2016)

question  : Why buy when you can trade into these resorts ?

answer : REAL WINTER - in Canada , Minnesota , Wisconsin  etc. etc .

Jan - mid April  - you meet a lot of owners at the pool .

.


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