Many people enjoy vacationing in the country of Mexico, and some even also dream of owning a second home there as well. It’s the last bit that can end up attractive timeshare sales agents, who can easily get someone caught up in a resale scam by signing on the dotted line and purchasing a timeshare. Thankfully, there is some relief available in the form of a five-business day grace period, in which someone may legally cancel a timeshare contract, regardless of what an agent may tell them.

There are also others who claim that they can resell the timeshare at a cost, which is often a scam.

Here are a few signs that someone could be experiencing a timeshare resale scam:

*A notice will be received that the reseller has found a buyer offering more than what you paid for the timeshare; however, they then ask that a certain amount of fees be paid upfront.

*A claim will be given to you that the Mexican government is seeking to bail out buyers who have fallen victim to fraud in the country, which is untrue. The individual could then be asked to wire a few thousand dollars in order to pay a “tax” and also enable them to open a bank account in Mexico in your name.

*The reseller may request that an individual wire funds to a supposed “escrow account” in the country for transfer or appraisal fees. Afterward, the sale never happens and the money completely disappears.

*Funds will be requested to be transferred to the reseller using a method that is untraceable. This could include a money order, cashier’s check, cash, or other types of non-traceable payment.

It’s important to note that no legitimate company will charge any amount of fees upfront. All fees or commission will always be deducted from the sale price. You should also check with the timeshare property manager to see if they have some type of resale program or if they are familiar with the company that contacted you. Furthermore, always take the time to research the reseller, as well as contact Mexican consumer protection agencies to see if there are any complaints regarding the supposed “company.”

Lastly, always consult with an attorney in the country to help review all documentation or contracts before you sign anything.

Thank you for visiting the LOIT and Associates blog, a Mexican business attorney. We write to inform people about real estate and doing business in Mexico.