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Re: Has anyone purchased from Vallart Gardens? (by Randall B.):

We were alerted by many of the posts on this Forum (and others), and I am hopeful that it helped us 'see the light' just in time. On 3/17/15, we purchased a 2BR 1 week with an option for an additional 3 weeks in perpetuity for around $51,000. As what was later termed a 'side agreement' with another company, Berkshire Financial Group of Oklahoma City, OK was to liquidate our two existing timeshares for a total of $57,000. Upon reviewing the terms and conditions, my wife and I became concerned about the agreement to liquidate our existing timeshares, since those were to happen within 180 days, while our $51,000 was due within 60 days. It was helpful to learn here (and on other forums) that many people had the re-sale fall through, at which point they are stuck holding more property than they wished - and I mentioned that to the VG sales people as a major concern.

I had also researched Berkshire and could find little about them - they are not registered as a corporation with the Oklahoma Secretary of State, the address they use on their website (with an obious misspelling of the word their on one of their front pages) shows up in Google maps as a vacant lot, their CEO doesn't show up in a Google search, etc.

We returned today (3/20/15) and expressed our concerns and suggested rescinding the contract (as provided within 5 days in clause 11 of the contract). At that point, the original salesman 'Jeff' (and his brother 'Chris') started getting very 'assertive' that we could exercise our right but would be on the hook for 'liquidated damages.' I pointed out that clause 11 allows us to cancel with no penalty. Then the tune changed to 'the liquidator has already disposed of the property and there are damages there.' I pointed out that they couldn't dispose of the property as we still held title to it, but if they wanted to liquidate at the agreed upon price, it was fine with us. Then the tune switched to the fact that we had signed an agreement waiving our 5 day right to rescind - but when we pushed them to show us where, that claim went away.

Around and around and around we went. They finally agreed (probably because we were disrupting other possible sales) to cancel the contract in return for 'reasonable damages' on their part. They brought in their 'legal representative' who told us she would settle for 6 percent of the downpayment - $900 (an absurd amount for a couple of sales pitches, some excursion tickets and two breakfasts). I said 'put it in front of me to consider.' It arrived with a confidentiality clause, at which point I told her we would exercise the right to cancel by noticing them there and sending a certified letter with a return receipt.

At that point, they signed an acknowledgement of our exercising our first requirement to cancel the requirement, security escorted us to the door of the property, and we took (and paid for) a cab back to PV.

We then went directly to the Prefeco office in Puerto Vallarta and met with a very helpful woman. She pointed out some very useful points for those who may find themselves in our situation:

1. It is not possible to waive the right to contract recission within five days - it is also notable that it is five business days.

2. There is not a right to withhold a portion of the downpayment on a rescinded contract for 'damages.' If they have your money and you undertake a valid rescission, they have 15 days to return the funds to you.

The discussion also made clear some other false claims by 'Jeff' and 'Chris.' We indicated that our current timeshares were a purchase of property (and have title/deed to it). We asked if that was the case, and they said it was; however, it appears that under Mexican law, the contract is only for a right to use the property, which provides far less recourse should things fall apart. They also claimed that there was an active secondary market for resale, but they failed to mention that resale would require a title transfer fee of 5 times the annual maintenance fee (nearly $5,000). And on and on.

The good news is the Prefeco representative walked us through the remaining steps to cancel the contract and also provided us contact information to follow up should there be any additional 'issues.' Needless to say, we have alerted our bank and our credit card company to the fact that we have done a valid recission of this contract and that we do not authorize any payments to Vallarta Gardens. I am hopeful this will be the end of it - but I'm maybe only 80 percent confident of that.