What is a fair resolution?

[MOXJO7282]

I'd like some feedback on what people think is a fair resolution to a TS resale deal that has gone bad.

Buyer purchases an EOY 2018 high demand unit with a holiday week usage in 2018 already established in a reservation and contracted to be given to the buyer as part of the deal.

Buyer confirms reservation is valid and properly written in the contract and honors their end of the deal 100%.

As it turns out seller on May 1st converted the reservation to DC points so now that week is gone and cannot be retrieved nor can a similar week be provided because of super high demand.

Buyer cannot rent that week on renter's market for less than $4k if not more.

Seller has proposed offering $2300 cash or another week in place of the high demand week but in comparison it will be a low demand week the buyer can't use or rent for anything near the $4k needed to rent the high demand week they wanted nor give them the option to rent the week and receive the proceeds.

Buyer feels they shouldn't lose any value since they did nothing wrong and since seller made the egregious mistake they need to compensate the buyer fully and make them whole.

The buyer has proposed a $4k cash payment or refund of the full transaction and return of the week because otherwise they bought a week in 2017 they can't use until 2020 which to them is totally unacceptable unless the $4k is paid because they face 2018 and 2019 MFs before usage is available again.

This also involves a reputable broker so it will be interesting to see how they look to make this right.

So should the buyer accept anything less than the reservation in question or the FMV of the week which can be easily confirmed by Redweek?

 

[scootr5]

I would say the seller should negotiate the best deal they can on the open market to secure you the week they contracted to provide. If they can get it for less than $4000, good for them.

On the flip side, how important is the having the ongoing usage of that high demand week worth to you? If you walk away from this deal over a difference of $1000-$1300, will it be easy to acquire a similar week in the future at a similar price?

 

[WalnutBaron]

I have a similar reaction to Scott's. While I understand that the high demand week was part of your calculation in securing the resale purchase of the timeshare interval in question, I'm wondering how important it is to you to have and enjoy the same interval for many years in the future. Since this is a high season unit, I'd try to negotiate the best compensation package I can with the seller--using the expertise of the reputable broker as my guide--without pushing so hard that I lose the deal.

On the other hand, if this is a points purchase with floating usage within high season and you feel the arbitrage for the potential rental value has come and gone, you have every right to scotch the deal since you're not getting what was originally offered.

 

[DeniseM]

As it turns out seller on May 1st converted the reservation to DC points so now that week is gone and cannot be retrieved nor can a similar week be provided because of super high demand.

Unless this is a rare deal, that you will never find again, I would walk away because of the principle involved - the seller tried to defraud you.

 

[bizaro86]

Unless this is a fixed holiday week or something that you're getting a great deal on, I would walk away unless I received the full $4k in value, or a replacement week. The seller can't deliver what was in the contract, so they have no way of insisting that you go through with it, imo.

 

[Quadmaniac]

My brother went through this EXACT situation when he was buying his holiday fixed week. In the end, the seller had to rent for my brother a week off Redweek during that holiday week. It wasn't my brother's fault. It took alot of going back and forth with the broker as they tried to get around it, but in the end they had to pony up on their mistake.

In another case, they reduced the price by $3K as they used the week. Both times, had to chase the broker, but it got done.

 

[vacationtime1]

I would walk away from the deal, rent the week you want on the open market for $4K, and wait two years before looking to buy a replacement unit. Giving the time value of money and the fact that prices are more likely to go down rather than up in the next two years, you will probably come out ahead.

If it makes you feel better, the broker is going to fire her client because there is nothing for the broker to sell (no usage until 2020) and the seller lost the opportunity to sell the unit because no one is going to buy it at this point (no usage until 2020).

 

[MOXJO7282]

A prime resale unit at a good price with the prime week already reserved with it is a very rare circumstance when procuring a resale week and it made the deal go from good to great in the buyer's mind and is the only reason they considered the unit. They would've passed on the deal as it is being offered now as there are many good deals out there but not many great deals.

I'll let everyone know of the outcome.

 

[MOXJO7282]

My brother went through this EXACT situation when he was buying his holiday fixed week. In the end, the seller had to rent for my brother a week off Redweek during that holiday week. It wasn't my brother's fault. It took alot of going back and forth with the broker as they tried to get around it, but in the end they had to pony up on their mistake.

In another case, they reduced the price by $3K as they used the week. Both times, had to chase the broker, but it got done.

This is the buyer's expectation that they receive the week they contracted for or equal value. The problem is Redweek right now only shows $4900 for several units available but that validates the buyer's position that the week's value is min $4k but likely more. The latest offer is $3k cash from the seller but buyer has countered and is waiting for a response to the counter.

 

[MOXJO7282]

Final agreement is a $3200 cash settlement. Buyer feels they lost min $800-$1200 from the rework but still felt the unit was worth it. The unit is a Maui Ocean Club 2BD/3BTH OF even year and the original resale price was $11k plus 2018 MFs minus the $3200 still a very good deal worth keeping but the extra value lost would've made it a great deal.

 

[DeniseM]

What explanation did they give for converting the week that was promised to you to DC points?

 

[MOXJO7282]

They suggested it was just an honest mistake and stated they felt Marriott made a mistake by letting them cancel the original February 17-24 reservation almost a week after the April 27 closing date.

That is not taking responsibility for their egregious error but I wanted to be done with the deal and didn't really want to get into it.

 

[DeniseM]

I had the same thing happen to me once, so I feel your aggravation!

 

[WackyLucy]

This is the buyer's expectation that they receive the week they contracted for or equal value. The problem is Redweek right now only shows $4900 for several units available but that validates the buyer's position that the week's value is min $4k but likely more.

I understand and agree, but am not sure that (perhaps optimistic) asking prices for listed rentals on RedWeek is a rock solid value benchmark.

If the buyer is satisfied with the end result I guess that's all that ultimately matters, despite the fact that the seller inexcusably attempted to deny any personal responsibility or accountability for what appears to have been a very clear breach of contract on their part. Invoking Marriott's name as somehow sharing any seller responsibility or blame was also quite juvenile, imo. All good in the end though I guess, if everyone is satisfied.

 

[MOXJO7282]

Well an even better ending to the story much to my surprise. As i mentioned this was with a broker I knew to be very reputable so I was hoping he would step up and I happy to say he did. He has agreed to add $1000 to the $3200 the seller is offering so the buyer is getting $4200 to replace the Pres week that was to be part of the contract to truly make the buyer whole and happy.

 

[WackyLucy]

Whole and happy is good! Congrats!