Stay In a Contract That Is Not Yet Completed? Grupo Velas for a timeshare in Velas Vallarta

[Shapefur76]

I'm sorry if you see this post twice, but I had mistakenly responded with this question in an old thread (over a year old), and have not yet received any feedback, so I think I may have done it wrong the first time around. Here goes:

I'm looking for advice after reading the chain of advice in the prior notes. My wife and I signed a contract with Grupo Velas for a timeshare in Velas Vallarta on November 18, 2019. Based on the prior notes, I realize this was a very poor decision. That said, this is the reason for the discussion and questions below.

The total purchase price at signing was $20,864. At signing, we paid a downpayment of $8,186.00 using our Capital One Visa credit card. To date, we have made no additional payments. That said, the first monthly payment against the loan and the annual maintenance fee are due very soon, at the end of January. Versus the prior discussion, we were not smart enough to cancel the contract within the 1st 5-days. That said, clause 12 of the Velas contract includes the following wording which I would like to get input on:

"Outside the 5 (five) working days term referred to in the previous paragraph to carry out a cancellation, if any of the parties involved should voluntarily cancel this herein Agreement, may only do it during the first 6 (six) months starting from the signing date of this herein Agreement. The party who wishes to terminate this herein document in advance must previously notify the other party of his/her decision, being bound to pay as a conventional fine 30% (thirty percent) of the total value of the operation within the following 15 (fifteen) calendar days after the notification. In the event of a voluntary cancellation on behalf of THE PURCHASER outside the 6 (six) months term, both parties agree that all amount paid will not be reimbursed."

I have gotten a note from the Velas lawyer that the "total value of the operation" is the original purchase price of $20,864. I have not taken any action beyond asking for that clarification. Given the prior discussions, I would assume TUG Review Crew would recommend that we terminate the contract now, even though we would forfeit the 30% of the purchase price (or $6259.20). If we did this, we might some day get the balance of our $8,186 downpayment returned. Thoughts/advice?

Thanks tremendously in advance. Like Jieamoniqe17, this never felt right from the beginning. I should have trusted my gut.

 

[Synergy]

That is an interesting clause and situation, and I'm glad you posted it as its own thread. I don't know enough to give you advice, but I'm hoping some of the experts will have some for you. Good luck!

 

[T-Dot-Traveller]

:I'm looking for advice after reading the chain of advice in the prior notes. My wife and I signed a contract with Grupo Velas for a timeshare in Velas Vallarta on November 18, 2019. Based on the prior notes, I realize this was a very poor decision. That said, this is the reason for the discussion and questions below.

The total purchase price at signing was $20,864. At signing, we paid a downpayment of $8,186.00 using our Capital One Visa credit card. To date, we have made no additional payments. ........

Velas runs top quality resorts . They are All Inclusive and have excellent reviews for the food & restaurants .

Basically you have advance paid for a portion of 25 or so weeks of quality vacation(s).

Velas like many timeshares has little or no resale value and as an AI is not a trader / exchanger.
(ie) all the “value” is in vacation use at Velas Vallarta .

*****
Your **choices in money : are lose 6K or commit 14K more - and go on vacation(s)

I have no knowledge on the refund of the balance of your deposit / I suspect that you will get it back - based on Velas having quality reputation .

** personally - I would consult my wife on this call - since she also signed the contract .

 

[Fredflintstone]

I'm sorry if you see this post twice, but I had mistakenly responded with this question in an old thread (over a year old), and have not yet received any feedback, so I think I may have done it wrong the first time around. Here goes:

I'm looking for advice after reading the chain of advice in the prior notes. My wife and I signed a contract with Grupo Velas for a timeshare in Velas Vallarta on November 18, 2019. Based on the prior notes, I realize this was a very poor decision. That said, this is the reason for the discussion and questions below.

The total purchase price at signing was $20,864. At signing, we paid a downpayment of $8,186.00 using our Capital One Visa credit card. To date, we have made no additional payments. That said, the first monthly payment against the loan and the annual maintenance fee are due very soon, at the end of January. Versus the prior discussion, we were not smart enough to cancel the contract within the 1st 5-days. That said, clause 12 of the Velas contract includes the following wording which I would like to get input on:

"Outside the 5 (five) working days term referred to in the previous paragraph to carry out a cancellation, if any of the parties involved should voluntarily cancel this herein Agreement, may only do it during the first 6 (six) months starting from the signing date of this herein Agreement. The party who wishes to terminate this herein document in advance must previously notify the other party of his/her decision, being bound to pay as a conventional fine 30% (thirty percent) of the total value of the operation within the following 15 (fifteen) calendar days after the notification. In the event of a voluntary cancellation on behalf of THE PURCHASER outside the 6 (six) months term, both parties agree that all amount paid will not be reimbursed."

I have gotten a note from the Velas lawyer that the "total value of the operation" is the original purchase price of $20,864. I have not taken any action beyond asking for that clarification. Given the prior discussions, I would assume TUG Review Crew would recommend that we terminate the contract now, even though we would forfeit the 30% of the purchase price (or $6259.20). If we did this, we might some day get the balance of our $8,186 downpayment returned. Thoughts/advice?

Thanks tremendously in advance. Like Jieamoniqe17, this never felt right from the beginning. I should have trusted my gut.

Based on the clause you shared, it does appear you would lose 30 percent of value within 6 months and 100 percent after six months. Sometimes they put in notwithstanding clauses (ie despite what is said, there are exceptions) in other sections. Perhaps check for that.

Certainly your call. You paid them around 8 k and 30 per cent would eat most of this. If it was me, determining whether I can safety afford the payments would determine what I would do.


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[Fredflintstone]

Btw, you said you and your wife SIGNED or executed the contract? If so, the contract is complete. The terms were the offer as contracted, the execution was acceptance and thus “meeting of the minds” were met.


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[Shapefur76]

All great comments. Thanks! The contract was signed by my wife and I (ie, executed) so pretty clear that I'm in for at least the 30%. I can safety make the remaining payments and associated maintenance fees, so it's just a matter of whether it's worth it to stay in. 3 Owners Link JB weeks per year and 3 Owners Link ASAP weeks per year come with the contract terms, but I'm not sure that they are worthwhile/useable. I've tried to research Owner Link but the comments are equally split between great and bad.

Not clear what you mean by, "The terms were the offer as contracted, the execution was acceptance and thus “meeting of the minds” were met." My wife and I both signed and are both questioning the best path forward. We did enjoy Velas Vallarta. It is a top quality resort as discussed by T-Dot-Traveller. It's more a question of thoughts on whether one path forward is more advisable than the other given the experience and knowledge of the TUG members.

Thanks to all for this and any additional input!

 

[Fredflintstone]

All great comments. Thanks! The contract was signed by my wife and I (ie, executed) so pretty clear that I'm in for at least the 30%. I can safety make the remaining payments and associated maintenance fees, so it's just a matter of whether it's worth it to stay in. 3 Owners Link JB weeks per year and 3 Owners Link ASAP weeks per year come with the contract terms, but I'm not sure that they are worthwhile/useable. I've tried to research Owner Link but the comments are equally split between great and bad.

Not clear what you mean by, "The terms were the offer as contracted, the execution was acceptance and thus “meeting of the minds” were met." My wife and I both signed and are both questioning the best path forward. We did enjoy Velas Vallarta. It is a top quality resort as discussed by T-Dot-Traveller. It's more a question of thoughts on whether one path forward is more advisable than the other given the experience and knowledge of the TUG members.

Thanks to all for this and any additional input!

I am referring to your title that the purchase was not completed and it was after execution.

Not asking or knowing your resources, if I could safely pay, I would. I would darn well get my 20 k back in enjoyment. I would use it regularly, maximize it where I can.

However, I would chalk the experience as lesson learned and either buy resale at pennies on the dollar or not buy again.

I know 20 k hurts, but it could be savaged through simple enjoyment. Just my thoughts.


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[Shapefur76]

Thanks! This is exactly the kind of input I was seeking. Definitely a lesson well learned, and if we do continue forward from here, which is a reasonable chance, will do everything we can to 'get it back in enjoyment' as you say. Thanks again!