Pueblo Bonito - Fractional Ownership Contract for a Montecristo Villa

[Shailesh Bhosale]

Hi Folks.

I somehow ended up signing a fractional ownership contract for a Villa in Montecristo ( Pueblo Bonito ) while I was at the resort and would now like to back out of the contract.
I have sent a letter via registered mail to the concerned parties within the 5 day period as required by Mexican laws, declaring my intent to rescind the contract. Also sent them e-mails with documents attached. I had paid an initial deposit amount of US$ 7740.
They have obviously received my e-mail as I got a call from the sales guy who left a voice mail stating that the deposit was non-refundable and that I had signed a piece of paper to that effect. He was therefore suggesting that I rethink on my decision to withdraw.
Is this the case and if so what are my options if they refuse to return my deposit. From the voice mail it seems that they are not questioning my decision to get out of the contract but they want me to rethink as I would not be getting my deposit amount back.
In the worst case, can I dispute this amount with my credit card company.

 

[easyrider]

Call your credit card company and claim fraud. You cancelled within the legal time frame and all deposits are refundable. The paper they claimed you signed is not legal and will never be used except to make you think you can not cancel.

After contacting your credit card you can contact Profeco and report this.

https://consulmex.sre.gob.mx/montreal/index.php/en/foreigners/services-foreigners/318-consumer-protection

Bill

 

[Shailesh Bhosale]

Call your credit card company and claim fraud. You cancelled within the legal time frame and all deposits are refundable. The paper they claimed you signed is not legal and will never be used except to make you think you can not cancel.

After contacting your credit card you can contact Profeco and report this.

https://consulmex.sre.gob.mx/montreal/index.php/en/foreigners/services-foreigners/318-consumer-protection

Bill

Thanks Bill for your reply. That gives me hope.

 

[Grammarhero]

Hi Folks.

I somehow ended up signing a fractional ownership contract for a Villa in Montecristo ( Pueblo Bonito ) while I was at the resort and would now like to back out of the contract.
I have sent a letter via registered mail to the concerned parties within the 5 day period as required by Mexican laws, declaring my intent to rescind the contract. Also sent them e-mails with documents attached. I had paid an initial deposit amount of US$ 7740.
They have obviously received my e-mail as I got a call from the sales guy who left a voice mail stating that the deposit was non-refundable and that I had signed a piece of paper to that effect. He was therefore suggesting that I rethink on my decision to withdraw.
Is this the case and if so what are my options if they refuse to return my deposit. From the voice mail it seems that they are not questioning my decision to get out of the contract but they want me to rethink as I would not be getting my deposit amount back.
In the worst case, can I dispute this amount with my credit card company.

@Shailesh Bhosale We hope your refund and rescission were successful. To track TUG rescission savings, mind sharing how much you'd save with rescission? As half of tuggers initially bought developer timeshares, there is no shame.

 

[Shailesh Bhosale]

@Shailesh Bhosale We hope your refund and rescission were successful. To track TUG rescission savings, mind sharing how much you'd save with rescission? As half of tuggers initially bought developer timeshares, there is no shame.

Hello.
Pueblo Bonito management did acknowledge my e-mail and has accepted my decision to rescind the contract. They have also agreed to refund the deposit amount in 15 days. I have yet to receive the refund on my credit card but I expect to see it in a couple of days. Once I receive the refund, I will update this thread.
This forum has been very helpful and informative about the entire process for rescinding the contract and I am grateful to all the posters who have religiously shared their experiences with others.
Shailesh Bhosale

 

[Shailesh Bhosale]

@Shailesh Bhosale We hope your refund and rescission were successful. To track TUG rescission savings, mind sharing how much you'd save with rescission? As half of tuggers initially bought developer timeshares, there is no shame.

Hello All,

I have received a complete refund of my deposit amount of US$7740 and my contract has been rescinded. Pueblo Bonito was nice enough to accept my cancellation and responded positively. My contract was for a fractional ownership of a Villa at Montecristo and the total contract value was for US$ 38,000.00

I would like to thank TUGB for some excellent advice about the Mexican laws applicable to rescinding a contract and the process to be followed.

Shailesh Bhosale

 

[akinayo]

Hello All,

I have received a complete refund of my deposit amount of US$7740 and my contract has been rescinded. Pueblo Bonito was nice enough to accept my cancellation and responded positively. My contract was for a fractional ownership of a Villa at Montecristo and the total contract value was for US$ 38,000.00

I would like to thank TUGB for some excellent advice about the Mexican laws applicable to rescinding a contract and the process to be followed.

Shailesh Bhosale

Beyond price, I'm curious what the details of the ownership were since I just knowingly purchased one and it is beyond the 5 day period for me. I just found out about this forum.

 

[Shailesh Bhosale]

Beyond price, I'm curious what the details of the ownership were since I just knowingly purchased one and it is beyond the 5 day period for me. I just found out about this forum.

When I read through the contract, I realized that there were a lot of hidden costs which are not explained during the initial marketing talk. In short the 33% return on investment which was indicated to us, is just not possible. One has to bear the cost of listing the property on Airbnb or Vrbo. Every time you manage to rent your share out to someone, there is a fixed amount payable to Pueblo Bonito. There is also no mention of the validity of the initial contract. There could be yearly renewal charges.
We were told that we would be entitled to 10 days of stay at other properties. There was no mention of this in the actual contract. Thus if your hope is that you will make a good chunk of money on your investment, that will not happen. However if you have invested purely for using the fractional share for your annual holiday every year, you might be okay.

 

[akinayo]

When I read through the contract, I realized that there were a lot of hidden costs which are not explained during the initial marketing talk. In short the 33% return on investment which was indicated to us, is just not possible. One has to bear the cost of listing the property on Airbnb or Vrbo. Every time you manage to rent your share out to someone, there is a fixed amount payable to Pueblo Bonito. There is also no mention of the validity of the initial contract. There could be yearly renewal charges.
We were told that we would be entitled to 10 days of stay at other properties. There was no mention of this in the actual contract. Thus if your hope is that you will make a good chunk of money on your investment, that will not happen. However if you have invested purely for using the fractional share for your annual holiday every year, you might be okay.

Interesting. So the documents that I received may not be the actual contract because I couldn't find any hidden fees or charges after reading through at least 3 times. We arranged to have a small deposit of $200 to secure the contract, pay about @2800 3 months from now for a total $3000 down payment and fund the remainder of the purchase over a 5 year time frame. Essentially, we don't actually own anything until the deposit is paid 3 months from now. Every document we signed (and have a copy of) only discuss the purchase price of the unit, purchase conditions, and points associated with their travel club.
We were also told about potentially renting out the units instead of using it ourselves but I have no documents showing that so the listing costs and fixed payments to Pueblo Bonito are news to me. I hope we don't get hit with surprise terms 3 months from now after paying the remainder of the down payment.

 

[Blondie]

Can't you just not pay anymore money and walk away?