Dominican Timeshares and Vacation Plan Scam

Legal Advice Against Fraud in Buying Holiday Plans and Timeshares in the Dominican Republic

By Yvelia Batista Tatis, M.A.

In the years I exercised as a prosecutor on the National Institute for the Protection of Consumer Rights (Pro-Consumidor) in the Dominican Republic, one of the main concerns was fraud against foreign consumers, simulating the sale of time shares or real estate, under the guise of vacation plans in points program or holiday clubs.

In the Dominican Republic, there is no legal regulation regarding time shares or sale of timeshare properties. In European countries and the United States, where there is regulation, timeshares are extensions of property rights that operate legally as properties, and can be sold, bequeathed, exchanged and even leased in the specific time period over which they will be used by the contractor or beneficiary (right of use). You, along with the other timeshare owners, own the holiday complex.

Undoubtedly the right of use can be reflected through a holiday plan in points program. It can also be reflected through a fixed or floating time option, fractional ownership, biennial property and partial occupation. However, in the Dominican Republic, the right of use through vacation plans in program points has been the most marketed and definitely the one that has originated claims for fraud, without generalizing.

In Points Program Vacation Plans, you purchase a certain number of points and exchange them for the right to use a time slot in one or more resorts. In a vacation plan of this type (also called holiday clubs), the number of points needed to use a range varies according to length of stay, unit size, location of the holiday resort and the time of year in want to use the unit.

Before buying a timeshare in any foreign country, be clear that the regulations that exist in your country of residence, in the cases of the United States or Europe, will not be valid in countries where there is no regulation. This does not imply that you will not be able to satisfactorily buy a time share in non-regulated countries, but you will need the assistance of a lawyer specializing in the area that guarantees your rights.

However, I give you brief legal advice if you are interested in buying time shares or holiday clubs in the Dominican Republic. These councils have been offered by the Federal Trade Commission of the United States, FTC, for all the consumer public:

1. Compare the total amount of all these costs with what you would pay for renting similar accommodation with equivalent amenities at the same location during the same time of year. If you determine that buying a timeshare or vacation plan is convenient, your next step is to search and compare.
2. Evaluate the location and quality of the holiday resort, as well as the availability of units. Visit the facilities and talk to current timeshare owners or vacation plans to share your experiences. Local real estate agents are also often another good source of information. Find out if complaints are filed with the state attorney general's office and the local consumer protection office about the real estate developer or resort management company.
3. Before buying, check the background of the seller, the real estate developer and the management company. Ask for a copy of the current property maintenance budget. Review the policies applicable to the administration, repair, replacement of furniture and the schedule of all services promised. You can also do an internet search to find out if there are any complaints about it.
4. Inquire about all the obligations you will have to assume and the benefits of the purchase of a timeshare or vacation plan. Does everything the seller promises is written on the contract? If not, give up the purchase.
5. Do not act on impulse or under pressure. It is possible that while you are walking or staying in a holiday complex they offer you incentives to stimulate you to buy. While these incentives may be interesting, it is up to you to decide on the right time to make a purchase. You have the right to obtain all written promises and sales representations, as well as the public offering document and other relevant documentation.
6. Study the entire stationery outside the sales presentation, and as much as possible, before you make a decision, ask someone you trust who is familiar with contracts and real estate issues to review the documentation.
7. Get the name and phone number of a company representative who can answer your questions - before, during and after the sales presentation and after your purchase is completed.
8. Inquire about your right to cancel the contract, sometimes called a "right of withdrawal". Several laws - and perhaps your contract - grant you a right of withdrawal, but the time granted to exercise your right of cancellation may vary. In state law or in the terms of your contract you can also specify a cooling-off period - that is, the term you are granted to cancel the deal once you have signed the papers. In case the law does not establish a right of withdrawal or reflection period, ask them to include them in your contract.
9. If for any reason you decide to cancel the purchase - whether exercising the right established in your contract or provided by law - cancel it in writing. Send your letter by certified mail with acknowledgment of receipt, in this way you can document that the seller received it. Keep copies of your letters and all attached documentation. You should receive a prompt refund of what you would have paid, as legally established.
10. If you buy a property that is under construction, use a escrow account and ask to be given a written document in which the seller establishes his commitment to complete the facilities such as promised. This is a way to protect your contractual rights in case the real estate developer breaches their obligations. Check that your contract includes clauses to provide for the protection of your continuation rights in the event of dissolution of the non-performing company and non-performance clause. The so-called non-disturbance clause ensures that you can continue to use your holiday unit if the promoter or the management company declares bankruptcy or breaches their obligations. The clause called non-performance allows you to retain your rights, even if a third party acquires your contract. For detailed information on these contractual provisions, consider consulting a lawyer.

Be wary of timeshare offers or holiday plans located in non-regulated countries. There are wide possibilities of success, as long as their interests are legally protected. All our readers who have additional doubts or who have had negative experiences in the Dominican Republic do not hesitate to contact us at advocacyrd@gmail.com