Timeshare Agreement: is it a fair contract?
Have you wonder why timeshare contracts protect mostly the developer? Why the "exceptional" benefits told verbally by the sales representative are not in writing? Learn why.
Many vacationers become victims of timeshare scam by signing unfair timeshare agreements. Due to time restrictions and high pressure sales tactics, clients usually won´t get a chance to review their timeshare agreement with a fine tooth comb. As such, they rely on the word of their timeshare salespersons to tell them in detail what they are signing.
This is a remarkable mistake.The contract is only fair if what is written and signed in the timeshare agreement is in alignment with the verbal presentation given by the salesperson at the time of purchase. This example is not the only form of timeshare fraud that leads to unethical timeshare agreement. Many recent timeshare purchasers question if they were treated fairly in the following respects:
Is the Timeshare sold for a fair price?
Timeshares do not have a fixed value. The timeshare salespeople gauge the financial capabilities of each client to determine the price they feel they can bear to pay. The salespeople typically collect preliminary information (this is done casually and at the beginning of the presentation) to see if the client qualifies for credit. This preliminary information gives the sales team an idea of the client’s yearly income so that they can determine a starting price. The starting price is normally an exorbitant amount, which quickly drops to make the client feel that they are getting a bargain deal. The salespeople also use sales techniques, such as offering to take back the client’s first year or two of use in order to bring the price down even more.
These sales tactics are scams because timeshares do not have a fixed value, so the offer to restrict the use for the client is just a ploy to give the illusion of saving money. In actuality, the price of timeshares is normally very unfair. Most vacationers get better deals to the same resorts by booking online, than through using their timeshare.
Also, the timeshare is a lengthy commitment that the owner will have difficulty to sell. The price of timeshares on the secondary market is a small fraction of what it would cost to buy the timeshare directly from the resort.
Does the Timeshare contract State all the Salesperson’s Verbal Promises?
Plain and simple: NO. In order for the timeshare purchase to be considered fair, it should be an exact reflection of what was explained to the client during the sales presentation. Many timeshare scams occur because the verbal promises, such as rentals, resales, annuities, travel discounts, etc. are not stated in the contract. Other timeshare contracts are actually worded to contradict the verbal promises, such as “the salesperson did not offer any rental programs”. The salespeople take advantage of clients by pressuring them to sign without reading every single clause. Timeshare agreement that do not state every verbal promise, and that clients have been given adequate time to read and understand, are not fair contracts.
Is the Timeshare Agreement Financed in the Manner that was explained by the Salesperson?
We hear from many clients that they were told that they were purchasing the timeshare with financing at low interest rate ie. 2.9% through the resort directly. In reality, they are signed up for a credit card (this happened recurrently with BANK OF AMERICA RCI REWARDS ELITE) through one of the timeshare companies affiliated banks, which charges the entire balance onto the credit card. The interest rate may be kept at 2.9% for the first 6 months, but after that time the interest rate rises to a very high amount.
Many clients end up finding alternative financing, such as a home equity loan, to pay off the credit card faster and incur lower interest payments. Ultimately, the timeshare resort is paid in full from the time that the charge is posted to the credit card. These types of agreement are not fair. The agreement should clearly outline the terms of the financing, and get the client’s implicit authorization to set up a credit card. Many clients don’t even realize that the paperwork they signed is actually a credit card application. The terms of the financing should be clearly outlined by the timeshare resort and understood by the client in order for them to be considered fair.
Once the written timeshare contract is signed, the resorts are in a position of power because, according to the law, the client agreed to all the terms of the agreement by accepting to sign the document.
If you find yourself in the position of owning an unfair contract and you want to cancel your timeshare agreement, do not feel helpless. Our staff at Mexican Timeshare Solutions help clients every day to regain their power by cancelling their timeshare contracts and recovering their hard earned money. With our service, we offer a free initial consultation to discuss your timeshare situation and unfair agreement in detail. We will give you an honest assessment of your situation and what we can do to resolve your timeshare fraud. We do not charge any money upfront, so what are you waiting for? You have nothing to lose, except your timeshare!
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