By Jorge Millan
Texas Border Business
When you go to a resort place on the beach to spend your vacation time you will probably be approached by sales persons who will offer you a “time sharing” apartment in a condominium building.
There may also be “time sharing” houses or apartments in other places as well such as in a famous city or town, a ranch, an amusement or a national park. However, the great majority are built in famous beach resorts.
These “time sharing” are usually in a big condominium building where each apartment is already furnished and offered for sale on a “time sharing” basis.
All “time sharing” apartments that I have heard about are to be used for a limited time only, usually for two weeks per year. But the number of weeks may vary from one building to another.
Recently, a person who owns a “time sharing” in Florida was referred to me. The owner told me that a company from a US northern State had approached him saying that they had a client who wanted to buy his “time sharing” in Florida. In this case the “time sharing” consisted of the use for two weeks per year and they were asking him for an advance payment to be applied towards costs for Notary Public fees and taxes. They told him that payment for the “time sharing” in Florida would be deposited in a bank in Mexico.
The salesman called me very aggressively saying that the advance payment they needed was for US Notary Public´s fees and taxes.
Two questions immediately came to my mind: The first was that US Notaries do not charge a percentage for a sale of any object and that “time sharing” is not real property in accordance with the law.
The “time sharing” concept usually presents itself in the form of a simple right of use. This right does not make you an owner. This formula is similar to a very long-term lease that you pay in advance.
The Consumer Protection Act prohibits unfair business practices but the content of the contract relies solely on the free negotiation process between the promoter and yourself.
The most important knowledge that a potential buyer or an already owner of a “time sharing” is to be conscious that they do not own or are buying real property when they hear: “time sharing”.
Real property consists of land, and all rights and profits arising from it and annexed to land, of a permanent and immovable nature. In order to make one’s interest in real estate, it must be an interest not less than for the party’s life, because a term of years, even for a thousand years, perpetually renewable, would be a mere personal estate.
The definition of Real Property was perfectly described in Roman Law and included three basic elements: (i) The right to use; (ii) the right to abuse and (iii) the right to dispose and receive the fruits from your property. In Latin they have been called: (i) Jus Utendi (The right to use); Jus Abutendi (The right to abuse), and (iii) Jus Fruendi (The right to dispose and receive the fruits).
In other words, “time sharing” gives you temporary use and temporary fruits of someone else´s `property. That´s all.
Jorge F. Millan has been in the Private Legal Practice for the past 25 years. Good working knowledge of French. Lecturer at universities and business centers in the US and Mexico on topics such as: Mexican Corporate Structures, Intellectual Property, Legal Labor Relations in Mexico, export maquiladora border companies, regulatory affairs, labeling and advertising legislation. You can contact him at: lawmillan@serv.net.mx
