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Help! Westgate wants my timeshare back.

Discussion in 'Buying, Selling, Renting' started by durrod, May 24, 2007.

  1. durrod

    durrod Guest

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    Hi, I have been a long time reader of your posts and now need the advise and help from all of you. This is another westgate horror story.

    I bought a Westgate smoky mountain week (value season) off e bay back in november, I was the winning bid and my total investment including all costs is 618.00. My time share was transfer and deeded in a timely manner and I received a DEED of CONVEYANCE. When I sent a copy of my deed to westgate to transfer ownership with them ,they did claim this contract had to be submitted for their ROFR, and there is when my problems began. Like some of you know, they made me jump thru a lot of administrative procedures and hassles. They made me wait full thirty days so they could take a decision to buy the unit back or not, (seems obvious they didn't need that much time to make their mind for a 618 purchase). After the 30 days and after lot of calls to them they decided to buy the unit back claiming ROFR (never understood what they were refusing since I already had the unit deeded in my name).
    They said that in about six weeks I would received some papers (february).
    In march I received a letter doing the opposite,giving me the welcome to the Westgate family with my account number :shrug:
    I called reservations and was told my account was in good standing and transferred. I got and account with II ,no problems with westgate. Now in May, after three months I received some papers from their title company asking me to sign and notarized a warranty deed back to them.

    Now, I want to know what my rights are here. Do I am OBLIGATED to sell back to them? What can they do if I refuse? Can they claim ROFR even AFTER the fact I already have a deed in my name and the transfer was completed? Is not to late for them to claim ROFR? I like the resort and would like to enjoy my purchase for some time. Looks to me they just want the TS back making me think they have the right to do so. What would you do? Thanks for your advice and help.
     
    Last edited: May 24, 2007
  2. timeos2

    timeos2 Tug Review Crew: Rookie TUG Lifetime Member

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    Don't even reply - rip it up

    Wow. So typical of Wastegrate. You have a deed, a welcome letter, a paid up account and an II membership. I'd rip up that bogus deed (you don't have to sign it) and forget it. Since the deed in your name was recorded you are the owner. If they want to take it to court let them pay to do it. But be careful - they'll try to slip it through without properly notifying you. Pay attention to any activity on your account, any letters/notices you get but mostly don't sign anything turning it back to them or take any checks from them. Do respond to anything that says they plan to foreclose (although how they could if you are paid up I don't know but they are lower than dirt so you can be sure they'll try some underhanded dealings).

    They screwed up and it seems like you hold the cards. Good for you. Rip up that deed and enjoy your $618 timeshare. Even a Wastegate is a good deal at that low price. From what you say you did what they asked, they didn't respond within the 30 day time frame and you got your deed. Just keep your fees current and enjoy your week. If they contact you again about deeding back tell them you're not interested. No way would I let them get that week. The scum suckers get a taste of their own medicine. Good to hear. Don't give in. The whole ROFR is a crock to begin with and when they ignore the dates they waive it anyway. You got 'em.
     
  3. durrod

    durrod Guest

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    From what you say you did what they asked, they didn't respond within the 30 day time frame and you got your deed. QUOTE]


    To have all the facts clear in this case, I got the deed directly from the e bay broker. The purchase was not presented to westgate before the deed was recorded. When westgate requested a contract to be presented to them, I had to send a letter to westgate with the price and seller and buyer signatures, by then I already had my deed in hand. By the way, they never contacted me. I called their resale dept after several weeks asking to know about my transfer status. They didn't want to talk to me then since I was not in their records as "owner".
     
    Last edited: May 24, 2007
  4. Keitht

    Keitht TUG Lifetime Member

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    I suspect you will need to take legal advice on this. There are so many apparently grey areas I don't think it is possible for members here to give a definitive answer. With all due respect they certainly can't give answers with any certainty that they are legally correct.
    From your own description of the sales process it would seem that Westgate may not have been given ROFR by the vendor. That obviously isn't your fault and you appear to have purchased in good faith. Furthermore it looks as if Westgate may have failed to fulfil their own requirements over the timescale, if they do have the right to force you to sell. As they have issued with the documentation it suggests that they believe(d) you to be the rightful owner.
    The whole thing looks like a complete mess - none of it of your doing, but you are in the middle of it.
    Good luck.
     
  5. timeos2

    timeos2 Tug Review Crew: Rookie TUG Lifetime Member

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    Put it to them

    Keith gives good advice IF you want to waste money over a $600+ sale. The risk is so low that I would simply wait for them to take action - whatever if may be - and refuse to sign anything over to them. Also line up a new buyer for at least $4000 so if they do try to force you to sell based on ROFR you will get far more than you paid.

    Ignore the current deed they mailed. You'll most likely never hear from them again except for the annual billing. Your risking about $600 and you'd even get that back if they somehow won the right to force you to sell. There is virtually no downside for you to wait and see what happens. I would not spend money on a lawyer in this case but you have to decide for yurself what you are comfortable with. Good luck.
     
    Last edited: May 24, 2007
  6. durrod

    durrod Guest

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    Keep your opinions coming. I think I will wait and see, for now. Certainly I don't have the money to fight this, however is a non sense from their part to send me a welcome letter, having me in the system, depositing a week with II to now asking me to hand the week back. I am just going to wait and see like timeos2 said. I will put it to them.
     
    Last edited: May 24, 2007
  7. teepeeca

    teepeeca TUG Member

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    Another thought. Does Westgate Smokey Mountain actually have a "right of first refusal"? Is it in their original documents, OR, (if they "do" have a "ROFR"), when was it added to later sales? If for later sales, at what date would it have been effective? Units originally sold "before" a ROFR being instituted, cannot be later changed to ROFR.

    (Some of the Pahio resorts, on Kauai, have a ROFR, but that was instituted on contracts in mid 2005 and after. They have "tried" to say they have the ROFR on all units, but that has been "knocked down", and original purchases before those dates do NOT have the ROFR.)

    Stand your ground, since apparently Westgate didn't follow their own "rules", and also look at the "original" purchase contract/deed to see if a ROFR is in there, or absent.

    Tony
     
  8. nightnurse613

    nightnurse613 TUG Review Crew: Veteran TUG Member

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    I love giving adviuce when it's not me holding the ball, so to speak. I think you are in an excellent position but I would be interested if there was an escrow company involved. That's what they get paid these big bucks for, eh? In any case, I don't know what these sell for (obviosuly more than $600 or Westgate shouldn't be involved). Finding a buyer who would pay a more reasonable sum might be used as a bargaining chip if they try to take it away! Good luck.;)
     
  9. durrod

    durrod Guest

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    No escrow account was involved. I just paid the ebay broker and got the deed recorded in my name. I notified the resort ,they made wait more than a month to let me know they will buy it back but sent me a welcome letter instead. Now they want me to sign a deed back to them, it doesn't mention anything about ROFR.
     
  10. gmarine

    gmarine Tug Review Crew: Rookie TUG Member

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    I'm not a lawyer but I would think that once the deed is recorded its over and they cant do anything about a ROFR clause in a contract.
     
  11. BevL

    BevL TUG Lifetime Member

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    Again, don't take this as legal advice, but the 30 days is in there for a reason, it's contractual. If they try to pull this three months down the road, what's to stop them coming back in three years when they'd like a nice cheap unit to unload on someone at almost retail prices?

    Again, for $600, I'd ignore them totally.
     
  12. Dave M

    Dave M TUG Lifetime Member

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    Not quite. Most ROFR provisions provide that the resort will (or can) refuse to recognize the new owner if the resort isn't given the chance to exercise its ROFR. Thus, when the OP bought the timeshare, the new deed wasn't valid under the resort's rules, because the resort hadn’t yet been given the opportunity to exercise its ROFR.

    If there weren't such a provision, ROFR provisions would have no teeth. Buyer and seller would never ask the resort for an ROFR waiver.

    However, once the resort is notified of the transfer (as it was) and recognizes the ownership (as it did), it would appear as though the resort was on notice of the proposed or actual transfer and failed to act timely. My guess is that the new deed was recognized because the ROFR department and the new-owner department don't communicate with each other very well. Still, because the OP was eventually recognized and welcomed by the resort as a valid owner, I would bet on the OP if this ever went to court.

    As a qualifier, since none of us seems to have the legal documents available to us to review the ROFR provisions, I agree with Keith: Legal advice might eventually be needed to resolve this. If it comes to that, the cost might not be worth the fight.
     
  13. Jya-Ning

    Jya-Ning TUG Member

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    Hold all your documents including all the response from them. Timeline the date each event happens. Forward a copy notorized and using register letter to the local real estate government body, ask them what is the meaning of this. Maybe they can explan to you in plain English using their local rule. And hold on the explaination after you get tired of the property and sell it to next owner.

    Jya-Ning
     
  14. jalexander

    jalexander TUG Member

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    Do nothing and wait it out. Any action you take right now can only work against you - if they want to take legal action, let them. As long as they are letting you use your unit, don't worry about anything else..

    I'd also suggest that posting in an open forum here might not be the best idea as the hills have eyes (and ears)
     
  15. philsfan

    philsfan TUG Member

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    Excellent advice!
     
  16. bogey21

    bogey21 TUG Member

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    If it were me, I'd give it back to them. Sounds to me like the 30 day clock would start the day you submitted the contract to them for their ROFR. I'm not sure that technically you did that yet. No question that you notified them that you had purchased the Week. I'm not sure that telling them that you purchased the Week and submitting it to them for ROFR are the same thing.

    What can they do if you refuse? For starters they can probably keep you from using the Week. The fact that the Deed is in your name and the transfer was completed means nothing. The issue is when did the 30 day clock start.

    Again, I'd punt and let them have the Week. If they don't let you occupy it, deposit it with II, rent it or otherwise use it, what are you going to do? Sue them? If you do, you might win or you might lose. What is certain is that you will spend a bunch of money to find out.

    GEORGE
     
  17. myip

    myip TUG Review Crew: Expert TUG Member

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    too much headache - I will give it back. I don't want to have a problem in the future if I decide to sell it, use it, rent it, etc... I will be worrying about it.
     

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