Timesharing

Luis · #1 01-21-2002, 01:20 PM

Dear Dr,

Taking in consideration that the Dominican Republic is a well known destination for tourism,
I would like to know if there are some regulations or laws regarding timesharing in the Dominican Republic, what protection have I as a consumer of these type of modalities in the DR?

Paul Thate · #2 01-21-2002, 04:21 PM

regardless where, timeshare is always
a bad deal.
you will loose money.
stay away from it.

Fabio J. Guzman · #3 01-21-2002, 06:42 PM

None exists, unfortunately. A buyer of timeshare in the D.R. usually signs a one page personal contract with the hotel owner, or even sometimes just with the hotel operator. He/she has no rights "in rem" ("over the thing", that is, over the property).

What does this mean? Let's assume the hotel owner has a mortgage with a bank and defaults for whatever reason. The bank will foreclose on the property and the poor timeshare "owner"would be left with no property to "timeshare" He will have a recourse vs. the hotel owner but this gentleman will by then have no money! Another situation: the hotel owner may just sell the property without mentioning the existence of timeshares. The third party purchaser is not obligated to honor the timeshare contracts since they are not recorded on the property records.

In other countries, the timeshare owner has a recorded right over the property which must be acknowledged by all.

abe · #4 01-22-2002, 09:17 AM

If the developer can demonstrate that there is no indebtedness, there is therefore no chance that a lender can foreclose. This format of timesharing exists in the DR. Interestingly, the pricing of resort timesharing can be so favorable in the DR considering its very high "exchange power" due to the Caribbean location that, even if the whole property should fall into the ocean after five years, most vacationers will have gotten their money's worth. To issue a blanket statement like "you will lose money" demonstrates a lack of understanding of timesharing. No matter how you vacation, you are going to spend money. Timesharing, when done correctly, redirects your money into a membership that gets you a condo instead of a hotel room, and, in the case of a DR timeshare, can leverage you into a much more expensive condo resort in other locations. If you are invited into a timesharing presentation by a tout on the beach who says "Just go see it, stay 20 minutes, and I will get money to feed my kids." then you should run the other way. However, there are several well-thought out timeshare programs in the DR that will provide what you want. Try www.sunsetresorts.com, a Canadian company with a well-established, well-priced Cabarete property.

El Jefe · #5 01-22-2002, 11:13 AM

This is not my idea of a timeshare...you are selling vacation weeks with no apparent legal claim to the property. At 300 a week it does beat some hotels but as friend Fabio pointed out...what protection is there if you go belly up?

You put down your weekly rate but not your membership cost.

Luis · #6 01-22-2002, 12:13 PM

Thank you for your information. Nevertheless I have to pose another thing but related to the type of Timesharing. As far as I know there is a modality of Timesharing that allows me as an user to acquire the property and become an owner. I have been told that this is something called "Lease Back" or "Timeshare Twist", and what I have to do is let the promotor the right to exploit the property for a certain time.

Do they have this in the DR?

And if they do...what should I face as an owner or property in DR?, Real Estate taxes?, how much?.

abe · #7 01-22-2002, 01:19 PM

If so, you may not have read far enough through the website. But, nonetheless, throughout the world there are various formats of "timesharing". The two main ones are "Right to Use" which is effectively a lease with finite end, and "Deeded" which conveys ownership in perpetuity. Even the vaunted Marriott Vacation Club does not convey ownership in perpetuity at all its very expensive and very fine "timeshares". It depends on what the local legal structures, among other things, will allow. In the DR and in many Caribbean and all Mexican destinations, there is no legal right in perpetuity conveyed since it is impossible to do so. If you or anyone absolutely wants to own "deeded" timeshare--and there are pluses and minuses to each format--you might have to buy it in the US for 3x the DR price and exchange back into the DR to use properties on the island. Doesn't make much sense to me. But you cannot say that a Right to Use format does not convey legal rights to access the property because it does.

El Jefe · #8 01-22-2002, 05:32 PM

If Sunset should be sold or go bankrupt what would be my rights? And how enforceable would they be from the US?

Paul Thate · #9 01-22-2002, 06:15 PM

How can you not call this a scheme , where the investor is bound to loose.

but its a goldmine for the promoter.

Typically timeshare people sell one condo 52 times

you probably have to pay over 5000 dollars for the right of one week

may be more for popular weeks.

Those people are receiving more than 255 000 dollars per unit.

the unit cost probably 70 000 to built.

So the time share should have cost you only 1500 maximum.

Then after you paid that exorbitant price , they dare to ask for another 300 to 500

dollar maintenance.

So if you have to pay more then 1500 dollars for your timeshare

and a 100 dollar cap on fees guaranteed.

, you have lost money already

Ask anybody if they ever made money on the resale of their timeshare..

I have never met any.

Its just bad news allover for the buyer

jjsk · #10 01-22-2002, 06:25 PM

Has anyone tried setting up a "private" timeshare arrangement (for lack of a better term), where a group of people get together and buy a condo together and make an agreement for sharing the use of it? That way, you'd all be equal owners of the property, not a client of a company. Would this work?