legal rights in a condo that is no longer doing timeshares

[amoses Junior Member Find all posts View Profile Close amoses]

We have been owners at a timeshare in Texas that is getting out of the timeshare business, they want to just sell or rent out the condo's. They offered to buy our week back for $500.00 (I paid about $6000.00 in 1993) or transfer me to one of two other resorts. One of the other resorts was not acceptable, it looked like a hotel in the middle of town, ours is not top of the line but I definitely considered this one to be worse. The other option was a condo in Corpus Christie which was maybe a step up. However, that condo was a studio 4/4 where as we now have a 1 bedroom 4/4. The studio is basically a one bedroom but they call it a studio for some reason. Currently we are able to upgrade to a 2 bedroom sometimes and if we go to this studio I am worried that we will not be able to do that or that we might not even get a one bedroom because this is considered a studio.

So, neither option seems great to us, I would like advise on the situation. I am not sure what our legal rights are. I thought that we "owned" that week. I did not realize that they could force us out like this. Don't I have some legal rights here? I have a deed for 1 week in a specific condo. How can they force me to do this?

Aaron

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

First, what is the name of your resort.. That may help us to search for any public documents and legal announcements..

As to ownership, if the condo docs came up for renewal and a quorum did not approve that process, the result would be the dissolution of the condo association, sale of the property, and subsequent distribution of the collective assets. Normally, this is not a positive experience for an individual owner.

At this time in the industry, many resorts and developers are considering measures to take a long hard look at the viability of the individual timeshare regimes.. If a resort does not look like it has a realistic chance at survival in the future, a change of use and marketing strategy may be the best option.

Now, if no such vote has taken place and the developer simply has decided to "buy out" the current owners for whatever reason, then you likely will have more options. A good example of this is the process that occurred when Harrah's purchased the old Summer Bay Las Vegas resort.. The owners were moved to a brand new facility, and upgraded in unit type. In that case, many owners responded very positively to the proposal.

[amoses Junior Member Find all posts View Profile Close amoses]

The resort is The Ridge on Lake Granbury (RCI #1132). I appreciate any help you can give me. I don't have a clue about the voting thing you were talking about. The letter we received said:

"The ridge Condominiums have been in existence for almost thirty years and have reached the point where the timeshared use in no longer economically viable. With aging facilities, maintenance and repair continue to escalate. Linens, maid service, insurance, taxes, utilities and salaries continue to increase and the Association has been unable to accumulate any reserves. We think the best solution for all owners will be to consolidate ownership into whole units that can be rented on a permanent basis or sold to individual owners".

That is basically all the info they give us. Does that help?

Aaron

[bnoble Senior Member Find all posts View Profile Close bnoble]

Realistically, $500 is probably more than the interval is worth as a timeshare, but possibly less than it is worth as 1/52nd of a whole-condo sale.

You might look to taking them up on their offer, and using the proceeds to buy something else on the resale market that better fits your vacation needs going forward. There are a *lot* of timeshares available for essentially closing costs (or, in some cases less) that may well end up being of better value to you. And, as we are entering "maintenance fee season", there will be even more shortly.

Edited to add: remember, though, that what *you* paid for it has nothing to do with what it is worth today.

[amoses Junior Member Find all posts View Profile Close amoses]

Really!!! Wow..... We always use our timeshare every year, so we thought it was great. did not know it worth so little. At any rate, is there any way I can get them to transfer us to better condo's the ones they are offering have very poor reviews and scare me. The Ridge is not the Hilton, but it is nice, clean and we enjoy it when we go there. I am worried that either one of the ones they are offering to us may close as well? Do they hold all the cards here?

Aaron

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

Aaron,

bnoble is correct in his assessment of value for your resort.. Unfortunately, weeks at this resort have been extremely difficult to liquidate, even on eBay.. I've seen several of the PCC's offering them for $1. with no closing costs to the buyer..

You may be best served by cashing out and cutting your losses, and simply moving on to another ownership week for your portfolio. There are some great deals available now, so you will likely find a more suitable replacement week than the studio. Although, if that is a better resort it might be worth considering! What resort are they offering to swap?

If you decide to hold out for a better offer (or some other type of compensation)- you may find that it takes a financial commitment from you to do so.. Often in cases like this, as the association takes back weeks- it results in huge increases in assessments for the remaining owners with a decrease in services...

Sorry for your situation..

[amoses Junior Member Find all posts View Profile Close amoses]

The resort in corpis christie is Fairway Villas (RCI #0574). It has poor reviews, but supposedly the trading power will be better than what I have. Is there a way to verify that?

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Unfortunately, this sounds scaringly close to a possibility at a resort I am familiar with, where a couple has bought up a substantial portion of it, mostly full-ownership, and converted it to a rental property.

Now they (the boards) are whining about non-payment of fees. Well, duh!

The couple is the COA board!!! (as opposed to the Interval Board)

[bnoble Senior Member Find all posts View Profile Close bnoble]

is there any way I can get them to transfer us to better condo's

I don't see any way you can force them. Legally, the only thing that is probably required is that when the property is finally disposed of, you share in the proceeds (after expenses). That could be a long time from now---it can be hard to get all the current timeshare owners in line unless there is a sunset provision terminating the timeshare without everyone's assent. Until that happens, you will still have to pay annual fees which, as Rich points out, can go up substantially as other owners default. What's more, it is possible that the resort, as a "walking dead" property, will start falling into disrepair, because no one is willing to spend money on upkeep.

If it were me, I'd take the $500, and look for a suitable replacement on the resale market. Take your time, and I bet you'll find something you really will love.

[amoses Junior Member Find all posts View Profile Close amoses]

Thanks for all the relplies and help. The Ridge swears that I will have increased trading power if I transfer to the studio in Corpis Christi, since it is on the Texas coast. I just wish there were a way for me to verify that this is the case. I would never stay there because we always bank our week and go somewhere else, so if it did increase the trading power then that would be okay. I just want to know that is the case before I commit to doing it.

Aaron

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Thanks for all the relplies and help. The Ridge swears that I will have increased trading power if I transfer to the studio in Corpis Christi, since it is on the Texas coast. I just wish there were a way for me to verify that this is the case. I would never stay there because we always bank our week and go somewhere else, so if it did increase the trading power then that would be okay. I just want to know that is the case before I commit to doing it.

Aaron

Is it RCI?

If you will be patient . . . as in a matter of a few days . . . if it is RCI, they are in the process of delivering a promised enhancement of disclosure.

They have promised that every deposit will disclose what it can get compared to everything that is available.

My questions to feedback regarding it were circumvented in their reply, m/l them just saying the rollout is imminent, so wait and see.

I, specifically, asked if we will be able to see full disclosure before making our deposit decision, and that was not answered.

There is also the question as to whether there will be full disclosure of trading power prior to purchasing.

Anyway, wait and see.

http://www.timeshareforums.com/forum...ancements.html

[PHILL12 Senior Member Find all posts View Profile Close PHILL12]

I would have to agree with earlier post of letting them buy it now! $500 is more than many timeshares now worth on the open market and from the sound of it you own at a older resort and only a one bedroom.

You might be much better off taking the money and no more maintenance fee's on this resort. Then you could check out all the offers that are for sale and not only buy a really nice resort but move up to a two bedroom if you want. Two bedrooms have more trading power than one bedrooms. Also if you want you could still trade into a Texas resort.

Remember that if this company wants to do this and get stopped by timeshare owners they probably will find another way or hit owners with special assessments fee's stating they need the money to improve the resort.

You might just be much better off taking their money and run! You would be shocked what resorts are being offered for low to free. Just check out bargan section on Tug. There are owners offering some free and paying all closing fee's just to get out. Many great deals out there!

PHILL12

[longtimer Senior Member Find all posts View Profile Close longtimer]

Thanks for all the relplies and help. The Ridge swears that I will have increased trading power if I transfer to the studio in Corpis Christi, since it is on the Texas coast. I just wish there were a way for me to verify that this is the case.

As many of us have learned the hard way - never trust what the sales people tell you. If the Corpis Christi unit is listed as a studio, I would guess the trading power would be less (or perhaps equal at most) - even if it really is a 1 BDRM unit. It's possible that it doesn't have full kitchen facilities or other criteria that would give it a designation as a 1 BDRM.

Sorry - made a reference to condo rather than studio - corrected typo

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Just because you own a studio does not mean that's all you can trade for.

We have gotten only one that I can remember in 120-plus exchanges.

Just because you own a 2-bedroom, does not mean you will get at least a 2-bedroom. If you search for at least that, you may get nothing.

[fishingguy Member Find all posts View Profile Close fishingguy]

Going back to the OP, I see where there is a 1BR week 39 on the auction site that is in Phase 2 of the resort. It ends in ~7hrs, and one has to wonder if Phase 2 is also affected?

There is a $1 bid on it... with $25 closing fee. If so, it might be a good way to flip for a cool $474 profit? Nah....