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Maintenance Fees and Controlling Interest (by Betty Sue H.):

Jeff.............

Seeing you work for one of these companies now, don't you think you should advise the prospective buyers and disgrunted owners the following advice.........

Find out exactly who owns the controlling interest in your timeshare resort. You may find the developer owns enough units to maintain the controlling interest (developer may have it under several names). which means they also control the Owners Association, maintenance fees, along with everything else.

I just went to the Marroitt St. Kitts Resort to purchase a timeshare. Upon reading the little thick white book with tiny print (purposefully printed in that manner), I found the developer has controlling interest in the resort which means he controls the Owners Association, maintenance fees, along with everything else. I believe it also stated the developer does not have to pay the 'Maintenance Fees' for his units and buildings of which there were several. (Guess who will be paying his share?) The developer fixed the maintenance fees for one year, (start with low fees to draw in the buyers) but seeing he has the controlling interest, he can raise those fees to whatever he wishes. Do you really believe he will give up controlling interest and miss out on all the profits from the maintenance fees?

I also asked for detailed information regarding the maintenance costs vs. maintenance fees. I only received assurances that the Owners Association oversees this and I therefore have nothing to be concerned about. Also, I may even be elected to be on the board of the Owners Association. (Was I supposed to be impressed?)

Some (not all) of these owner assocaiations are there just to make the owners think they have a say. I know of one person who used to be on the board of their owners association. They stated it was a farce, but he got a free weeks trip and a tax write off just for attending the yearly meeting.

The resort sales reps. did not want to discuss how re-sales work. They stated there are no re-sales at their resort because it is such a hot property no one will sell. They only stated they are selling quickly and we might miss out.

Because I have had only limited time to read the little thick white book, I haven't yet finished it So, I'm not sure how the re-sales work for the timeshare, but if it is like the Ascutney resort in Vermont, the owner/developer has rights to first refusal on the units. This is usually done to ensure controlling interest.

I'm sure by the time I get through the book I will find more interesting facts.

Jeff, I hope honesty is your best policy. But, by the manner in which you have written in your messages, I find it may be very difficult if not impossible for you. Good Luck in your new job.