Throw back Thursday to our April-June 2017 Letters to the Editor.
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Apparently, the big push now is to be active in the point system. A friend of mine indicated that he was considering purchasing from another member; while told to do whatever he wanted to do but to be aware that in 2 years anybody who rented from a member (owner) would be forced to take the “all-in plan.”
First, they sell us on the Private Club ownership, and then introduce the Hotel’s All-in Plan. Why did they do this? Well they had empty units, and when they advertised them for rent, they were competing with the rest of Cancun etc., where “All-in Hotels” were the norm. Then they discovered just how much money “they” could make converting to this plan, probably a minimum $4,000 per week per Villa, and all their promises and purchase contracts went Poof. It would appear that they are going to give all owners the fol-lowing option: if you rent to other owners or friends, they must take the all-inclusive plan, like it or lump it.
Oakville, ON Canada
I believe the salesperson is incorrect in what he is advising. I do not think the Royals will be able to force an owner who ““lends” or rents his villa to another member, according to our contracts, which allows us to use the kitchen in our villa and allows us to lend it to someone. We, as owners, own a timeshare and we can lend (rent) our villa to whomever we desire. If the Royals rent out a room on their own, they probably have the right to call it a hotel room and force someone to take the all-inclusive package. – O.M.
I was reading your October issue and saw your answer to a fellow member’s question. I was thinking they would be working on a sale. I also seem to have a hard time ex-changing for one of The Royal Re-sorts with Interval. It just seems that I am not quite up to date on my knowledge. Tom
Trent Woods, NC
Even though The Royal Resorts are keeping a tight lid on The Royal Caribbean, I feel quite certain they are looking at various companies that would be interested in purchasing The Royal Caribbean. If the sale goes the same way as The Royal Mayan, they will probably get the resort appraised in the fourth quarter of this year. They will then set a minimum purchase price and send out official requests to bid on The Royal Caribbean. The trust ends in October 2018, so I would think a bid date would be set a few months prior to this, possibly during the summer of 2018. It would not surprise me to see The Emporio Group (purchaser of The Royal Mayan) and The Royal Resorts also bidding on the property.
The Royal Resorts are now associated with RCI. I think if you are trying to get into The Royal Resorts using Interval International, it may contribute a little to your situation, but the reality is Cancun is in high demand and especially The Royal Resorts. If you are depositing your week and looking to go somewhere else, this would have nothing to do with The Royal Resorts being associated with RCI. – O.M.
One issue in probate law is the use of time-shares by heirs, but before that, use of time-shares when the owner is living, but not mentally competent, such as in the case of Alzheimer’s.
I am 74 years of age. My will says my Royal Resort units will be left to my three children with my son in charge of determining who gets to use them in what years.
None of my adult children wants to be on the deed before I die, because they do not want to assume responsibility of ownership or annual maintenance fees until necessary.
I want to put Royal Resorts on notice in advance of my death that my adult children can book and use my RS Villa any year in the future with-out me having to complete a one-off Owner Loan Form. I may not be capable of completing or signing such.
The Royal Resorts will surely want someone alive as owner of that membership. We do not own the real estate but only a club membership with the right to use the villa at prescribed times of the year; your children have no liability in being listed on the timeshares you own. If at any time they do not wish to use the villa any longer or pay maintenance fees, they can simply give them back to The Royal Resorts. Another way of limiting any exposure is adding a corporation to the villas, of which your children will be the beneficiaries of, and they can use or give back the villas anytime they want. The President or General Partner, if it is an LLC, can pay the maintenance fees and dictate who is going to use the villa, etc. You could also put it into a trust and have the trustee assume those duties. – O.M.
Pickle ball is the fastest growing sport in America and Canada. Options for play are cropping up in the mid-west and many other locations. We have found folks that would like to play at The Royal Resorts and the activity directors have shown interest in having the option to play at the various resorts. If you have interest in playing at the Royals, please con-tact the activity directors or the managers suggesting that they add this to the list of activities. It is easy to play on a tennis court and put down a kitchen line to allow for pickle ball. We have fun doing this at The Is-lander and Haciendas.
Those of you that are pickle ball players or are interested in doing so should contact the Royals and en-courage them to add this activity, by purchasing paddles, balls and possibly a portable net. I would suggest that you point out that the availability of playing the sport can be a drawing card for retirees as well as younger players that are taking up the sport.
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There seems to be an error in Roy-al rewards – VCI points. The B unit has more points than a C unit does. The C unit is bigger. Does not make any sense.
New York, NY
Thank you for letting us know. The “B” Villa points should have been the “C” Villa point value and the “C” villa points should have been the “B” villa point value. You can go on our website and see the actual point value your villa are worth for 2017 if you were to convert it to a points option. – O.M.
I’m just wondering if you have any information in regards to the end of owner’s right to use their Royal Caribbean units in 2018: what options will be offered to owners and what valuations of their residual values they can expect? Are there any lessons that can be learned from what happened with VCI? Any information you can provide would be much appreciated.
The end of the trust is October 2018. What happened to VCI was that a survey was sent out that showed many owners were willing to re-up and continue for another 30 years. When it came to actually sign on the dotted line, most owner chose to receive their initial purchase price back (residual rights) and the Developers were left owning and paying for well over 60% of the resort’s maintenance fees. They were still trying to sell villas at VCI when The Royal Mayan’s trust came up for renewal, so they opted to sell the resort rather than have a similar experience as they did with VCI. The Royal Mayan sold for $40 million, half of what the residual values was worth. The Royal Re-sorts have since gone to a points program backed up by inventory and Cancun is in high demand once again; unlike the economic atmosphere when The Royal Mayan was sold.
Using the early sale prices of The R.C., we estimated the residual value of the resort is over $100 million dollars. We don’t think they will be able to sell it for everyone to receive their residual value back, but the percentage we feel will be better than what The Royal Mayan sold for. – O.M.
We own two weeks at the Royals and are talking with someone while we are down here about potentially buying three weeks from him. I re-member seeing in previous issues of the Owner’s Manual what the process is to transfer ownership, but did not save the article. Can you refresh my memory? I think there is a trans-fer fee ($450?) and then a form to fill out.
Transfer are very easy. ISCO handles all of the paper work for $300 per contract. You can go online or call ISCO and they will send the transfer papers for the owner (seller) to fill out and for the buyer to add their information (those individuals who will be on the new con-tract). I would get an agreement between you and the seller, giving him a deposit and making sure he is in good standing (all bills paid). Since he is down there now, this year’s maintenance fees were paid and you will be responsible for next year’s maintenance fees. – O.M.