Looking at Timeshares Outside of Canada? Three Things to Consider

When you want to travel and spend some time in warmer places, but you can’t get away for an extended period, purchasing a timeshare may seem like the perfect solution. However, many people may not be aware of the potential complications associated with purchasing and/or selling a timeshare located outside of Canada. Here are the three main challenges:

1. Obtaining a legal opinion is the most significant issue. Lawyers in Canada are not permitted to provide advice on the law in other jurisdictions. If you’re looking at a timeshare in Mexico, you need a lawyer licensed in Mexico to provide a legal opinion. Unfortunately, it can be difficult to know which law firms in other countries will be able to best assist you if you’re unfamiliar with the area. You might also face a sizeable retainer fee up front to ensure the legal bills are paid, given that you reside in another jurisdiction.
2. The decision to purchase a timeshare is often based on the belief you can save money in the long run. That might be true but remember timeshares might be overpriced due to the sales commission inherent in the charge. Don’t sign until you’re satisfied with your own research.
3. Selling your timeshare and/or terminating the contract early will depend on the documentation you signed when you purchased the timeshare. There are often clauses included in the contract that either do not allow for early termination of a contract, or require you pay a hefty penalty.

My purpose isn’t to dissuade you. A time share might be a good idea for you and your family. The best advice I can give, as always, is do your research – especially when you’re facing high-pressure sales tactics.

Reference: http://www.rbc.com/economics/economic-reports/canadian-housing-forecast.html