Mexican Timeshare Law: Know Your Rights Before You Sign
Mexican Timeshare Law: Know Your Rights Before You Sign
Mexico is a top vacation destination, and many travelers are tempted to purchase a timeshare while enjoying the country’s beaches and resorts. While timeshares can seem like an attractive way to secure regular vacations, it’s critical to understand Mexican timeshare law before making any financial commitment.
Timeshare laws in Mexico are designed to protect consumers—both locals and foreigners—from scams, pressure tactics, and misleading contracts. However, many people still fall victim to aggressive sales teams and contracts they don’t fully understand.
In this guide, we explain how Mexican timeshare law works, what protections exist for buyers, your legal rights, and how to cancel a timeshare legally in Mexico.
What Is a Timeshare?
A timeshare is a type of vacation ownership agreement that allows you to use a property—typically a resort—for a certain amount of time each year. Most timeshares in Mexico are:
Located in tourist destinations like Cancun, Puerto Vallarta, Cabo San Lucas, and Playa del Carmen.
Sold to foreigners while on vacation.
Promoted with free tours, gifts, or cash offers to attend presentations.
Timeshares may seem affordable upfront but can involve long-term contracts, high maintenance fees, and limited flexibility.
Overview of Mexican Timeshare Law
Timeshares in Mexico are regulated by PROFECO (Procuraduría Federal del Consumidor), which is the Mexican consumer protection agency. Under Mexican timeshare law, several important protections are in place for consumers:
✅ Key Legal Rights:
A 5-business-day cancellation period (right of rescission).
Contracts must be written in Spanish (even if also translated).
Sellers must provide clear and truthful information.
Buyers cannot be forced to sign under pressure or misleading promises.
Mexican timeshare law is part of the Federal Consumer Protection Law, which applies to all commercial transactions in Mexico, including those with foreigners.
The 5-Day Cancellation Rule (Right of Rescission)
One of the most important protections under Mexican timeshare law is the 5-business-day cancellation rule. Also known as the cooling-off period, this allows the buyer to cancel the contract without penalty within five business days of signing.
To cancel legally:
Submit a written cancellation request to the seller within the 5-day window.
Deliver the notice in person or via certified mail or email (get proof of delivery).
You are entitled to a full refund of any money paid.
If a seller refuses to honor this cancellation, you can file a complaint with PROFECO.
Common Timeshare Scams in Mexico
Despite legal protections, many tourists fall victim to unethical sales tactics. Here are some common timeshare scams that violate Mexican timeshare law:
Pressure Selling: High-pressure presentations that last for hours, where buyers feel trapped or intimidated.
False Promises: Salespeople promise that you can rent out your timeshare easily or sell it back at a profit—often untrue.
Fake Resale Companies: Scammers claim to have a buyer lined up for your timeshare but ask for upfront fees.
Always remember: If it sounds too good to be true, it probably is.
Key Clauses to Watch for in Timeshare Contracts
Before signing a timeshare contract in Mexico, review these key areas:
Contract length: Many contracts last 10–30 years.
Maintenance fees: These often increase annually and are required even if you don’t use the property.
Usage restrictions: Some weeks may be “floating” or have blackout periods.
Cancellation policy: Must mention your right to cancel under Mexican law.
Never sign a contract without reading and fully understanding it. If possible, consult with a Mexican attorney before signing.
How to Cancel a Timeshare After 5 Days
Canceling a timeshare after the legal cancellation window becomes more complicated but is still possible. Legal strategies may include:
Proving fraud or misrepresentation: If the seller lied during the sales process.
Breach of contract: If the developer failed to deliver promised services.
Negotiated exit: Some resorts offer buy-back or exit programs (though often expensive).
Legal assistance: Hiring an experienced lawyer to file a claim through PROFECO or a Mexican civil court.
Avoid third-party timeshare exit companies unless you verify their credibility thoroughly—they’re often scams themselves.
Filing a Complaint with PROFECO
If your rights under Mexican timeshare law have been violated, PROFECO can help. Here’s how to file a complaint:
Gather documents: Timeshare contract, proof of payment, cancellation notice, emails, etc.
Submit your complaint: Online at www.gob.mx/profeco or at a PROFECO office in Mexico.
Participate in mediation: PROFECO may contact the seller to negotiate a resolution.
While not all cases succeed, PROFECO is a free and legitimate legal channel to pursue justice.
Tips for Staying Safe
To stay protected under Mexican timeshare law:
Never make a decision during a high-pressure sales pitch.
Walk away if you’re promised guaranteed rental income or future profits.
Never pay cash or wire money on the spot.
Ask for a copy of the contract in advance and have it reviewed by a legal expert.
Always exercise your 5-day cancellation right if you change your mind.
Final Thoughts
Timeshares can be tempting, but you must be cautious and informed. Mexican timeshare law exists to protect consumers—especially foreigners—from dishonest practices. Know your rights, read the contract carefully, and act quickly if you want to cancel.
If you feel misled or pressured, you’re not alone. Legal help is available, and there are legitimate steps you can take to cancel a bad timeshare deal or get your money back.