Sunterra Trusts

[johnsorg Member Find all posts View Profile Close johnsorg]

I am a new member to Club Sunterra. I converted my Powhatan Plantation unit. Spence's post on 10-19 details the transaction. I am in the CSV trust which is a trust comprised of 19 properties. However, I have seen posts on this board referring to the Florida Trust and the Hawaii trust. Can anyone explain these trusts and how are they different from the CSV trust?

[Spence Super Moderator Find all posts View Profile Close Spence]

I am a new member to Club Sunterra. I converted my Powhatan Plantation unit. Spence's post on 10-19 details the transaction. I am in the CSV trust which is a trust comprised of 19 properties. However, I have seen posts on this board referring to the Florida Trust and the Hawaii trust. Can anyone explain these trusts and how are they different from the CSV trust?

The Florida Trust and the CSV-1 Trust are one in the same as far as I can surmise. The 19 properties are sometimes said to be 21, I forget what the add ons are, one is Flamingo Beach Villas separate from Flamingo Beach. The resorts are detailed in a 'sticky,' the transaction referenced is detailed here. Johnsorg, thanks so much for the information, the trade-in potential is news as well as the extra perks you got which definitely have value.

The Hawaii Trust is separate and distinct and consists of Kaanapali and Poipu (not the other Hawaii Resorts that Sunterra lists which really belong to Vacation Internationale.) TROglodite may have more/better info on this, he's a member of the Hawaii Trust, I am not, can't afford those HI MFs.

We're all wondering what the real advantage of Trusts is to Sunterra. I've asked some direct questions of the Manager of my home resort and his usual quick turnaround on emails is not what I've gotten so far with this question. I think it's got to be some sort of legal voting/proxy control, so that they always maintain control over these resorts even when sold out.

[johnsorg Member Find all posts View Profile Close johnsorg]

Thanks Spence

Thanks for info. I probably could have got a better deal by converting to Club Sunterra for $2995 and buying sun options on re-sale market. However, salesman said I had to purchase at least 3000 options from Sunterra to be in Club Sunterra. If I purchase any more Sun Options, it will definitely be through the re-sale market.

[Spence Super Moderator Find all posts View Profile Close Spence]

Thanks for info. I probably could have got a better deal by converting to Club Sunterra for $2995 and buying sun options on re-sale market. However, salesman said I had to purchase at least 3000 options from Sunterra to be in Club Sunterra. If I purchase any more Sun Options, it will definitely be through the re-sale market.

Don't look back, you did OK, enjoy. The only thing is you're 1000 points shy of Silver Elite and the only other thing you probably could have negotiated is addition of one or more properties within the next 12 months, that sometimes appears to be possible.

[Spence Super Moderator Find all posts View Profile Close Spence]

We're all wondering what the real advantage of Trusts is to Sunterra. I've asked some direct questions of the Manager of my home resort and his usual quick turnaround on emails is not what I've gotten so far with this question. I think it's got to be some sort of legal voting/proxy control, so that they always maintain control over these resorts even when sold out.

The answer is that the Trustee has the vote for the whole Trust and they will vote in what they believe to be in the best interest of the Club membership as opposed to the entire membership of the association of the individual resort. That says to me that the Trustee is in Sunterra's pocket and this is how Sunterra intends to remain in control when resorts like Powhatan finally turn over to an owner controlled HOA. Guess who has a block vote?

[Spence Super Moderator Find all posts View Profile Close Spence]

Sunterra CSV-1 Trust Maintenance Fees?

What are 2007 Sunterra CSV-1 Trust maintenance fees?
I'd been told that 2006 fees were 6.5¢/pt, but have no personal experience.
Now personal experience is telling me that 2007 fees are a whopping 7.3¢/pt. So much for the salesman rhetoric that you'll be shielded from big jumps in MFs with the Trust of 19 properties. That's a jump of 12.3% if I'm right.

Powhatan jump was 7.18% and Greensprings was about 7.7% and these are big resorts with lots of inventory in the Trust. I wonder what resorts are causing the Trust MFs to go so high?

Please respond with what you think your 2007 Trust MFs are, remember to subtract out the Club/Trust annual fee that is the same regardless of how many 'contracts'/points you own. Then divide the MF by the number of points you own.

Thanks for the info.

[Eileen A. Member Find all posts View Profile Close Eileen A.]

Spence,

Look's like you are right. Haven't got the bill yet but if I look online, my account was charged $784 for 7,000 trust points. If I back out the other fees which I believe were $270 last year it comes to 7.3 per point.

Eileen

[Spence Super Moderator Find all posts View Profile Close Spence]

Spence, Look's like you are right. Haven't got the bill yet but if I look online, my account was charged $784 for 7,000 trust points. If I back out the other fees which I believe were $270 last year it comes to 7.3 per point. Eileen

Thanks Eileen,
Yes, I confirmed with Sunterra that the Trust MFs have jumped from 6.5¢/pt to a whopping 7.3¢/pt or 12.3%, so much for the salesman's rhetoric (read lies, their mouth was moving).

[timeos2 Senior Member Find all posts View Profile Close timeos2]

The basic Trust is a good idea but won't hold down costs

Thanks Eileen,
Yes, I confirmed with Sunterra that the Trust MFs have jumped from 6.5¢/pt to a whopping 7.3¢/pt or 12.3%, so much for the salesman's rhetoric (read lies, their mouth was moving).

Spence - That is an almost unbelieveable jump. The sad part is many former deeded owners have been convinced that the trust was a way to control increases and either didn't get the other side of the story or simply didn't listen. Now they have given up their deed and may be facing ever higher costs. If they miss one payment they can lose the RTU and have little recourse. All of the foreclosure and other costly procedutres don't apply to the Trust members. I don't think that the trust is a good approach to "ownership" (you really own nothing except the right to pay the annual fees just like Disney) but they sure make it sound great for that 90 minute plus presentation and to owners who see the annual fee on their week going up. I had always failed to comprehend how taking 21 or more rising fees and placing a hefty administrative fee on top of those was going to save the buyers money. Now it appears it doesn't.

[Spence Super Moderator Find all posts View Profile Close Spence]

Spence - That is an almost unbelieveable jump. The sad part is many former deeded owners have been convinced that the trust was a way to control increases and either didn't get the other side of the story or simply didn't listen. Now they have given up their deed and may be facing ever higher costs. If they miss one payment they can lose the RTU and have little recourse. All of the foreclosure and other costly procedutres don't apply to the Trust members. I don't think that the trust is a good approach to "ownership" (you really own nothing except the right to pay the annual fees just like Disney) but they sure make it sound great for that 90 minute plus presentation and to owners who see the annual fee on their week going up. I had always failed to comprehend how taking 21 or more rising fees and placing a hefty administrative fee on top of those was going to save the buyers money. Now it appears it doesn't.

John, You have it right, The 'Trust' is an unbelievable tool for Sunterra to railroad anything through anywhere with the Trust owners and with the resorts where a percentage of property is in the Trust. The ONLY thing that has a chance of keeping the Trust fees down is that that is the current product that Sunterra is selling and it'd get hard to sell with MFs through the roof. While is is a humungous jump, 7.3¢/pt is still way better than the 13.9¢/pt that say an off season 4BR owner at Powhatan would pay for a straight conversion. So, I still say the biggest advantage to Sunterra is the CONTROL they keep over the resorts and the fiscal tools they have that you mentioned above with payments and 'foreclosures', etc.

[Eileen A. Member Find all posts View Profile Close Eileen A.]

Spence,

When I bring my recent resale purchase (deed at Villa Mirage) into club by buying additional points from VM do I need to give up my deed to get the 30,000 point equiv. or can I keep the deed and still have use of the points.

I want to be prepared when I met with the salespeople.

Thanks for your help!

Eileen

[Spence Super Moderator Find all posts View Profile Close Spence]

Spence,
When I bring my recent resale purchase (deed at Villa Mirage) into club by buying additional points from VM do I need to give up my deed to get the 30,000 point equiv. or can I keep the deed and still have use of the points.
I want to be prepared when I met with the salespeople.
Thanks for your help! Eileen

Well, I can't say for sure, I will say that all my Deeds have been brought into Club Sunterra by signing something called an Assignment Agreement where you agree to give the Club use of your property in exchange for an annual allotment of SunOptions. If your MFs are less than 7.3¢/pt then you want the Assignment Agreement and not the 'trade' for points in the Trust.