Manhattan Club - Attorney General Decision Temporarily Barring Developer Sales

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

I haven't had a chance to carefully read it, but here's the link:

http://www.ag.ny.gov/pdfs/Order%20si...07-24-2014.pdf

Looks like the developer's assets have been frozen and a temporary restraint on developer sales.

Maria

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Wow, interesting! What would it mean for current owners?

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

Wow, interesting! What would it mean for current owners?

Most likely an increase in maintenance fees due to the cost of defending the lawsuit(s) - .

Another interesting note, one of the discovery items is evidence of how many units Bluegree owns.


Link to Amanda Fung’s new article in Crain’s, http://www.crainsnewyork.com/article...-suspend-sales.

Maria

[billymach4 Super Moderator Find all posts View Profile Close billymach4]

You would think that this place would be sold out since it opened in 1997. How many developer sales can they have in stock?

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Most likely an increase in maintenance fees due to the cost of defending the lawsuit(s) - .

Another interesting note, one of the discovery items is evidence of how many units Bluegree owns.


Link to Amanda Fung’s new article in Crain’s, http://www.crainsnewyork.com/article...-suspend-sales.

Maria

In my mind, bluegreen owns either 2 or 3 units….so 104 or 156 weeks?
there is a way to check online if you need to know.

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

You would think that this place would be sold out since it opened in 1997. How many developer sales can they have in stock?

I expect they have plenty of defaulting owners so those units are reabsorbed. And they are so expensive to purchase through the developer, I doubt they sell that many.

eta: I read the order - they are being investigated by the AG for fraud. Not shocking and I hope they nail the Btards.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Most likely an increase in maintenance fees due to the cost of defending the lawsuit(s) - .

Another interesting note, one of the discovery items is evidence of how many units Bluegree owns.


Link to Amanda Fung’s new article in Crain’s, http://www.crainsnewyork.com/article...-suspend-sales.

Maria

From Amanda's article

"
The attorney general's office sent undercover investigators to attend a sales presentation for the Manhattan Club and confirmed claims of misleading promises to buyers. Buyers were told that the club does not rent rooms to the general public and that few restrictions apply to owners of the timeshare when they want to reserve a room. The attorney general's office found that the developers withheld an offering plan for the Manhattan Club from potential buyers until a purchase agreement was signed. What's more, that offering plan differs from what was described to owners in the sales presentation. For instance, the offering plan stated that timeshare owners' reservations are subject to room availability and that rooms are rented to the general public."

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

Maybe the AG will authorize a bigger developer to take positions on the Board to better manage the reservation process.
Bluegreen, Marriott, Hilton, Disney, or most likely Wyndham since they're already in bed with RCI. There's been a big push for owners to move to Wyndham/RCI points.

When I was there last week chatting it up with some other guests, they were part of a Disney owners group tour, which I found interesting.

One bedroom yearly maintenance fee is $2700. Includes a Developer 12% management fee.

Maria

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

From Amanda's article

"
The attorney general's office sent undercover investigators to attend a sales presentation for the Manhattan Club and confirmed claims of misleading promises to buyers. Buyers were told that the club does not rent rooms to the general public and that few restrictions apply to owners of the timeshare when they want to reserve a room."

Maybe AGs in different States should start doing this for more timeshare presentations. That will help to stop the lies.

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

More juicy court filings:

https://xa.yimg.com/kq/groups/210215...pport%20%2Epdf

Maria

[Ryne08 Senior Member Find all posts View Profile Close Ryne08]

Maybe, the AG from the states of Virginia, South Carolina and Florida would follow the AG from New York and attend some timeshare presentations.