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A special assessment fee is a payment to the owner's association in order to offset an expense. This is an extra fee in addition to the ordinary maintenance fees.
Over the years, many timeshare developers have changed the wording of their contracts to better protect their interests.
Some timeshare owners are sent a bill for a special assessment, even though there is no mention of these fees in their contract.
Others may have it written in their contract, but convoluted wording used to confuse the buyer at the time of signing.
For example, the special assessments may be noted in the resort regulations document, and the contract will make a statement that the purchaser has read the regulations and agrees to abide by them.
This is a common scam in the industry used to confuse clients. Many clients are unaware of the details outlined in the regulations document at the time of purchase, or they are verbally misrepresented to believe that there are no additional fees besides the regular maintenance fee payments.
Timeshare Fees
Most timeshare agreements outline terms for maintenance fee payments, which are typically levied annually to timeshare owners.
The fees are determined and collected by the Resort Management Company or Homeowners Association based on the type and size of the unit.
The maintenance fees should cover routine expenses such as paying for insurance, utilities, refurbishing and taxes.
These fees should also include additional funds to build up a reserve to pay for non-recurring costs like furniture, appliances, etc. that need replacement periodically and the payment of other capital costs as normal physical deterioration occurs at the resort.
Timeshare Special Assessment
Special assessments, on the other hand, should only be charged for events that are not reasonably foreseeable.
This could include such things as natural disasters that cause a lot of damage and could not have been predicted.
Replacement of routine items, such as bedding or furniture, should not be considered sufficient reason to levy a special assessment.
If you have been charged a special assessment fee, it is important that the resort clearly outlines the reason for which it is being charged so that you do not receive a fraudulent charge.
They should also outline the distribution of your maintenance fee payments to ensure that the funds are not misappropriated.
A major scam that continues in the timeshare industry is that the special assessment fees, and even the maintenance fees, are levied at very high rates to fund other projects, such as acquiring new properties, instead of the routine maintenance that is required.
Often, the clients find that, despite the high fees that they pay every year, the resort's maintenance deteriorates. This is because the funds are not being allocated properly.
Many timeshare companies will levy the special assessments without due cause because they know that the members have few or no options to fight against their large companies.
As the companies are located in Mexico, litigating against these companies would require the clients to proceed with fighting a legal battle in Mexico, which many clients are not willing to do due to the large expense, inconvenience and lack of knowledge of the Mexican legal system.
In addition, if it is written or referred to in the contract that they are entitled to charge special assessments, the case will not hold up in court.
Most North American clients want to protect their financial health; consequently, their credit score is important to them.
As such, they may decide to pay the special assessment, even if it is a scam, in order to avoid any negative information being posted on their credit report.
In doing this, the resorts have succeeded in successfully collecting money that is based on fraudulent premises.
Cancel your Timeshare
If you have received a bill for a special assessment, and you were sold the timeshare plan with no mention of special assessment charges, or verbal promises of no extra fees, contact us today! Instead of paying increasing fees every year, you may be able to cancel your timeshare contract and rid yourself of the obligation to the resort.
Contact our staff at Mexican Timeshare Solutions for a free consultation about your situation.
To receive more information about special assessment fees and how to cancel your timeshare, send a WhatsApp to +52 333 239 6589, fill out the contact form, or call us at +1 714 277 3662
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Leave your comment below and share your opinion with us. To know more about timeshare scams go to:Get out of timeshare legally
I would never buy one. They don’t seem like a good investment at all.
Timeshares rarely make sense purely from a financial standpoint mainly because you can rent timeshares at the same resorts for about what they cost to own without any of the risks. Some people like timeshares because they live busy lives and the timeshare forces them to take a vacation — this is a quality of life decision over a financial one — nothing wrong with that if they know exactly what they are getting into and why they are.
I bought a timeshare thinking that this would be a good investment but is not. Besides the maintenance fees I pay, when I've wanted to go on vacations they tell me there's no place to make a reservation and I couldn't use it propertly, I haven't even seen the benefits they told me I would have. I got this membership at Mayan Palace.
I bought a timeshare thinking that this would be a good investment but is not. Besides the maintenance fees I pay, when I've wanted to go on vacations they tell me there's no place to make a reservation and I couldn't use it propertly, I haven't even seen the benefits they told me I would have. I got this membership at Mayan Palace.
I have a timeshare that we bought in Cabo, San Lucas in January. Its at the beautiful Peublo Bonito Sunset. However, due to health reasons we need to sell the timeshare. We are not trying to make money, just trying to get rid of it. Any suggestions on how to sell the timeshare?
Thanks in advance, all help is appreciated.
Most timeshare companies are taking advantage of people, often those who are more vulnerable and less able to resist hard sales tactics.
I have heard of many cases where maintenance costs rise well above inflation. It would appear the timeshare companies lock people into contracts and then drive up their profits though increased maintenance charges.
It would be good to see legislation whereby timeshare companies can only charge "reasonable" maintenance costs and not use this annual fee to fleece people's bank accounts.
PS - I do not own a timeshare, never have and never will unless legislation is introduced to protect buyers.
We’ve done a few of these presentations, they can be great values especially if you are a family. You just need to have the willpower to forcefully say no and mean it, no matter what they say. Keep track of the time and if your agreed time has lapsed, you can safely walk out because you have fulfilled your obligation under the promotional terms.
We’ve done a few of these presentations, they can be great values especially if you are a family. You just need to have the willpower to forcefully say no and mean it, no matter what they say. Keep track of the time and if your agreed time has lapsed, you can safely walk out because you have fulfilled your obligation under the promotional terms.
Is there an answer to getting rid of a timeshare? Mine is paid for but I am still paying maintenance fees. I have never used it. What happens if I just stop paying the fees? Does anyone know about TransferAmerica? They claim to be able to help you get rid of timeshare and fees.
I also have a timeshare which is draining me financially. I need to get rid of it even if I take a loss. Is it better to let it go into foreclosure now since my credit is already poor?
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