Recommended Precautions When Transferring A Timeshare Interest In Mexico

Timeshare transfers in Mexico have become more common in recent years, and unfortunately several forms of scams have been used to victimize timeshare owners. This article lists some important considerations to take into account when receiving an alleged offer to purchase a timeshare interest.

For purposes of Mexico's Federal Consumer Protection Law ("LFPC"), a timeshare service consists of making available to a person or group of persons the use, enjoyment and other rights agreed on a property or part of such, in a variable unit within a specific class, for previously agreed periods of time, upon payment of some amount, without involving a transfer of real property ownership. However, it is important to note that obtaining a capital gain for said right acquired by the user of the service is difficult to occur, since it can be understood as an advance payment or financing of a lodging right.