Timeshare Trade Ins Can Affect Your Mexico Timeshare Purchase
If you have recently traded-in a timeshare property from the sunshine state of Florida towards the purchase of your new Mexico Timeshare, the new Florida Timeshare Law, HB-7025 will surely affect you. It would be wise to learn how. The wording of the law serves to protect timeshare consumers with respect to their dealings with Timeshare Resale and Timeshare Trade In Companies(also know as Transfer Companies). Timeshare owners in the last few years have been bombarded by companies that claim they can Resell their timeshare interest(s). It has been reported that some Resale companies have even gone so far as telling the timeshare owner that a buyer already exists for the timeshare interest, giving the allusion that “it’s a done deal”! On one hand, most companies who handle timeshare trade ins have assisted many timeshare owners and developers by handling the administrative task of transferring a timeshare interest out of the existing owners name listed on the deed to another name, thereby ridding the client from the contract’s continued maintenance fees. These companies also provide a major tool to developers who are looking to acquire a 2nd or 3rd time sale from a buyer due to their seeming ability to remove all financial responsibility of the previous contract(s) forever and ever, which then enables the buyer to buy again without being responsible for multiple memberships. A very similar practice is used in the car industry….trade in one and drive out with another! It seems on the surface that everyone’s a winner! However on the other hand, some companies who handle timeshare trade ins have resorted to using methods that has ended up hurting the Home Owners Association’s of the traded in or transferred timeshares.
Why Do H.O.A.’S Suffer Due To Certain Actions Of Companies Who Handle Timeshare Trade Ins?
It’s been discovered that Trade In companies have been known to create asset-less corporations to dump the multiple timeshare trade-ins into. At a later date, like the following year, they bankrupt the corporation which then forces the Home Owner’s Associations to foreclose and take back the inventory resulting in a loss of maintenance fees that would normally be used to upkeep the timeshare resort. This loss is even more dramatic for resort developments that are sold out and no longer have an active sales department.
What Does The New Law HB-7025 Say With Respect To Timeshare Trade Ins?
Basically, the idea of the law is to prevent this loss of revenue due to asset dumping tactics by enacting more stringent procedures with regards to the transfer of ownership such as:
- Requiring the successor in interest to be LISTED as owner of timeshare interest under certain conditions. This will FORBID the ability to transfer the timeshare into a corporation!
- Prohibits certain activities related to offering timeshare interest transfer services. New regulations have been imposed upon the transfer. Mainly, that there now exists a penalty for anyone who knowingly participates in transferring the timeshare into the hands of someone who knowingly will not financially upkeep the required payments as per the terms and conditions of the contract.
How Can This New Timeshare Trade In Law Directly Affect My Mexico Timeshare Purchase?
Let’s face it, the reason why this new tactic was employed was due to the extreme difficulty of being able to resell the traded in timeshares to other parties. Since 2008, and continuing to this day timeshares are being sold or “being given away” for $1 dollar on major online resale sites. It has become extremely difficult for Timeshare Trade In Companies to put the time into reselling the trade ins the old-fashioned way since the sales prices are so-so low now. This method worked when the trade in company could resell the timeshare trade ins for a few thousand dollars each! Point Blank: If the Trade In Company cannot change the name on the Florida Deed to another name then YOU will still be responsible for all fees owed on the contract until such name change is made. Very Important Point: If the Trade In Company can never fulfill such change of name then YOU will forever be responsible for such fees, which now makes you responsible for TWO TIMESHARES INSTEAD OF ONE!
What Are the Penalties Stated In The New Law?
The Law States The Following:
(d)A person providing timeshare resale transfer services,
an agent or third party service provider for the timeshare
resale transfer services provider, or an escrow agent who
intentionally fails to comply with the provisions of this
subsection concerning the establishment of an escrow account,
deposits of funds into escrow, withdrawal therefrom, and
maintenance of records is guilty of a felony of the third
degree, punishable as provided in s. 775.082, s. 775.083, or s.
What Else Does The New Law HB-7025 State?
The Law States The Following:
(e)No person shall participate, for consideration or with
the expectation of consideration, in a plan or scheme, a purpose
of which is to transfer a consumer resale timeshare interest to
a transferee that the person knows does not have the ability,
means, or intent to pay all assessments and taxes associated
with the consumer resale timeshare interest.
(g)A managing entity may bring an action to enforce the
provisions of paragraph (e). In any such action, the managing
entity may recover its actual damages, and the prevailing party
may recover its reasonable attorney fees and court costs.
The wording of the law is quite vague at this point with respect to the above stated penalty being levied onto the timeshare owner who is attempting the trade in. Although the law does state that “No Person Shall Participate” in a plan or scheme that “knowingly” transfers the timeshare to an entity that does not upkeep payments, it is highly unlikely that the timeshare owners know what method is being used to transfer the timeshare trade ins.
What Will Be The Lasting Effects To Your Bottom Line?
Without a doubt the new law will limit the amount of Florida Timeshare Trade Ins that can be legally transferred, especially for properties that are older and/or not so popular or have very high maintenance and/or special assessment fees. All of this could end up leaving the client who was depending on the trade in process to in essence become stuck with the property(s) and all the fees that come with it or face credit report implications for as long as the contract stipulates.
What Are Your Options: Do You Now Wish To Cancel Your Mexico Timeshare?
If you have purchased a Mexico Timeshare and have traded in a Florida Registered Timeshare and now find yourself owning multiple timeshares there may be some options for you. For certain this is not what you expected to occur when you signed on the dotted line! If you have now chosen to cancel Your Mexico Timeshare Contract we have created a Free Resource called, “How To Cancel Your Mexico Timeshare E-Report”. It will provide Step-by-Step Instructions of the necessary steps that need to be taken. Click Here To Download Free Information!
If You Wish To Learn More About Mexico Timeshares, Contact us Today and Receive Your Free Consultation! Call Now to 1(800)947-3761.