Timeshare Law in Mexico

Timeshare contract could be a real nightmare for those who did not take proper precautions due to unreasonable terms and obscure clauses with outrageous penalties and overcharges; fortunately Mexico has developed a robust legal regime to prevent abuse related to timeshare services and provide remedies for those affected by illegal practices.

According to the World Tourism Organization, UNWTO, Mexico is among the 10 most visited countries in the world. Connectivity and a sophisticated tourism infrastructure, including timeshare programs, are some of the reasons why Mexico is one of the favourite destinations for Americans and Canadians.

For some families timeshare programs are a reliable option to have a “dream vacation” with an affordable investment. A timeshare may offer some advantages including access to prime facilities and services for a fraction of the cost of ownership of a vacation property abroad; no management nor maintenance responsibilities and the possibility of enjoying different locations and resorts world-wide for pre-fixed rates. However, sometimes, a timeshare contract could be a real nightmare for those who did not take proper precautions due to unreasonable terms and obscure clauses with outrageous penalties and overcharges.

Fortunately, Mexico has developed a robust legal regime to prevent abuse related to timeshare services and provide remedies for those affected by illegal practices. This industry is federally regulated and supervised by the Federal Attorney for Consumer Protection, PROFECO. In accordance with Mexican law any service providing lodging in pre-fixed dates with a payment of pre-fixed rate without transferring ownership of a property shall be considered as a timeshare, no matter if the service is denominated as a club, association, membership, fraternity, etc.

if you are considering get into a timeshare program you should not forget that you are protected and you are entitled to the following:

  • Full Disclosure

    Getting full disclosure from the service provider;

  • Cancellation Policy

    Getting information of the cancellation policy; in accordance with Mexican law, each contract must contain a cancellation clause without penalty if it is exercised within 5 business days after it was signed;

  • Clear Informatiom

    Getting a clear description of the services, fees, schedule, payments, etc. and full information about warranties, fines and penalties;

  • License to Doing Business

    Getting proof that the service provider has permit and license to conduct business in Mexico; it must show that is authorized to conduct business in accordance with Mexican law

  • Independent Legal Advice

    Getting a copy of the contract and ask for independent legal advice before you sign it; contracts must be drafted in accordance with statutory provisions and the Mexican Official Norm

  • Contract Registration

    Asking if the contract has been registered before the Mexican authorities (PROFECO)

In case that you have entered into a contract and the service has not been delivered in the way it was promised; you should contact PROFECO, it has a special unit to assist foreign nationals and receive complains related to timeshare services.