bought pueblo bonita pacifica timeshare -- questions about contract and fees

[nurblon]

A relative has informed me that they purchased a timeshare from Pueblo Bonita Pacifica about a month ago. I believe it was for 2 floating weeks, and cost $10,000. They were convinced at a pitch while staying at the resort, and did not consult with a lawyer. Neither I nor they have any prior experience with time shares.

What I'm most worried about is the duration of the contract, and the risk of increased fees.

The small print I skimmed through seemed to indicate something about 4 blocks of 25 years, and one interpretation I had of this was that after 25 years, renewing for another 25 years would be optional. However, a form discussing a "subscription" had 100 years written in with pen (next to checkboxes for 3 and 25 years). Could the contract really be binding for 100 years?

I couldn't find anything in my skimming of the contract which guaranteed a rate or schedule for maintenance fees, but my relative told me they were assured that maintenance fees would only rise with inflation. Is this a plausible condition? What power does the resort have to raise these fees arbitrarily as they see fit?

You can imagine that the idea of a 100 year contract with annual fees which can be raised arbitrarily in Mexican jurisdiction is a little scary!

Lastly, would it be worthwhile to consult with an American lawyer to get clarity over these details and the rights my relative has?

Thanks for any information or advice!

 

[oldbuyer]

Here is what I know about contracts and the Pueblo group.
First of all the buyer is past the 5 day rescission period allowed by Mexican law so it's money spent with no recourse that I know of. Join the rest of us that did the same and are now trying to get the best use out of a nearly worthless purchase.

The contract I've seen at Sunset (a sister resort) is for a up to three -30 year durations that can be renewed by paying an additional MF fee no more than 5x the mf fee in effect at that time. (clause #4 on the sample but check your contract). The contract does not list this "renewal" as optional or mandatory but I guess if you don't pay you do not renew.

There may be a clause that states the current MF fee is X and is subject to a maximum of a y% (usually 5-6) increase yearly. (this is typical of all timeshare contracts)

Also look for a clause that states an additional refurbishment fee equal to a mf is to be paid every 5 years to provide for unit refurbishment. (several resorts have started putting this clause in their more recent contracts to get larger MF fee increases than allowed by contract- a net 20% more)

When they are done using their purchase they can typically unload it on Ebay for a few dollars and they'll have to negotiate who pays the transfer fee to change the contract owners name.

Most resorts will not go after owners who turn in contracts to the resort that are paid in full and current on the MF fee- sort of like our mortgage walk a-ways in the US). If the contract is not paid in full or you default on the MF fee they sell it to a collection agency and they hound you till they get the money or give up.

The good news is it's a nice resort.

Welcome to TUG where every new TS buyer eventually finds us- usually a few weeks after their first purchase. The best thing to do is for them to learn how to use what they bought. If they need the member services number PM me as I own at PBS next door.

 

[Passepartout]

Too bad your relative didn't look here to TUG for more information within 5 days or so of making this purchase. We would have advised him/her to rescind immediately. Mexican timeshares are worth very little on the resale market, and as such can be bought for a pocket full of pennies (literally) instead or $10K or more. But that's all water under the bridge. He/She owns it now and there is for all practical purposes no way out- especially if they still owe on it.

As you discovered, most Mexican timeshares are what's called 'Right To Use' for a certain period instead of deeded in perpetuity. Most are 25 years and are renewable, though not all.

As you suspect, they CAN and DO raise MF. Fortunately in the world of TSs, Pueblo Bonito is (IMO) one of the better players. They have an assortment of nice properties and I understand they exchange well in (I think) RCI. I think that Pacifica is All Inclusive, and frequently AI rates increase faster than MF. PB also has some resorts that are not AI.

I'd advise your relative to hang around TUG for a while. Ask questions. Read especially the newbies and Mexico forums. If they are interested in exchanging, pay the $15 to actually join TUG and get reviews by TUGgers of thousands of resorts worldwide.

All in all, I can't see what information a US based lawyer can give that can't be found here and studying the PB contract will give them.

Best wishes and Welcome to TUG. Pass it on.

Jim Ricks

 

[pacodemountainside]

I would suggest you carefully read contract rather than skimming. If your relative got two weeks at 1 BR condo 52 week floating he got a steal as far as Developers go. Generally 1 week goes for $15K +.

Most RTU contracts require a big fee to extend as Developer would love to have back and sell again. Based on my experience Mexican law limits foreign ownership rights.

As far as I know, RTUs do not have owner HOA Board, so Developer/landlord can use loop holes to increase MF as he sees fit!


I never discourage one from consulting an attorney, but don't expect any good news.

Read stickies and other posts here to get a better feel for what is involved.

 

[california-bighorn]

Timeshare or Hotel or Both?

We have been owners at PB Sunset beach for 5 or 6 years and I was not aware that PB Pacifica was a timeshare. I thought it was a hotel only. Has Pacifica always been a timeshare or did it change to a timeshare at some time? Last month at the PBSB "owners update" nothing was mentioned about Pacifica.

 

[nazclk]

Pacifica

They did not buy a timeshare at Pacifica as it is a hotel. They probably bought one at Sunset Beach, but for $10,000 at best they got probably 100 points which equates to a week in a studio. as that is what they are selling now and not weeks. As far as the lawyer goes unless there was fraud involved you are just chasing good money after bad. You may want to read it more closely to see what they actually have. When I was there in October we were in the lobby at Sunset Beach and a gentleman starting chatting with me and my wife, guess what he sold timeshares there. I asked about a two bedroom presidential and he said it would be 300 points, when I asked the cost, he said $30,000 and I about choked, and then I said what about cash money, and he said $30,000