# Royal Islander and Residual Rights



## GoGoNow (Jun 10, 2014)

Hello,

I am a new TUGS member. I joined after our Royal Mayan timeshare ended. We loved the Royal Mayan and appreciate that we will be getting some money back (residual)  from ISCO.

My question has to do with buying into the Royal Islander from a private resale. Are residual rights automatically written into the contract by ISCO or do you have to specifically include wording to ensure residual rights? Can the Royals deny residual rights to private resale purchasers?

We loved the Mayan and thought we would buy into the Hilton system but seems like we are inclined to just stay with what we like- the Royals.

Any help would be appreciated...thanks!


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## urban5 (Jun 10, 2014)

I just bought a week 4 at the Royal Islander private resale and received my membership documents from ISCO in the mail yesterday.  The residual rights clause is contained in the documents.

The only time residual rights are not passed on to a new member is when the purchase is made through the Royal Resorts of a foreclosed unit or a unit that a member returned to the Royals.


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## pjrose (Jun 10, 2014)

But be aware that the residual rights at the Islander are not based in any way on the original purchase price.  When the RTU ends and the resort is sold, the proceeds after taxes, fees, etc etc are divvied up equally among members.


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## urban5 (Jun 10, 2014)

*Good Point*



pjrose said:


> But be aware that the residual rights at the Islander are not based in any way on the original purchase price.  When the RTU ends and the resort is sold, the proceeds after taxes, fees, etc etc are divvied up equally among members.



Good point to bring up PJ.  A Christmas/New Years week beach front will get the same amount of residual as a hurricane season unit low floor located over the lobby.  This is useful information to know when negotiating prices for a resale.


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## tonyg (Jun 10, 2014)

Basing a purchase price on an estimated return is a rather optimistic idea which has not been highly supported by actual results. And I have said that for years before the VCI EOY occurred.


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## GoGoNow (Jun 11, 2014)

Thank you for your help...it seems that as long as the residual rights are in the seller's ownership paperwork they will  transfer to us when we buy 

When buying a resale ISCO will execute the title transfer for $135 and escrow the monies for $199.  Do we have to worry about  having a title search done? ISCO doesn't seem to list "title search" as one of their services- I know they won't release title if any Royal Resort bills are outstanding but can liens be placed by any other creditors against timeshare ownership? 

We want to buy at the Islander and have a unit picked out but feel like we don't know what we should do above and beyond having ISCO transfer the title and hold the money safely while the paperwork is going through.

Your experience and knowledge is greatly appreciated....


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## Phydeaux (Jun 11, 2014)

GoGoNow said:


> Thank you for your help...it seems that as long as the residual rights are in the seller's ownership paperwork they will  transfer to us when we buy
> 
> When buying a resale ISCO will execute the title transfer for $135 and escrow the monies for $199.  Do we have to worry about  having a title search done? ISCO doesn't seem to list "title search" as one of their services- I know they won't release title if any Royal Resort bills are outstanding but can liens be placed by any other creditors against timeshare ownership?
> 
> ...




Have you contacted ISCO and talked with them?


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## urban5 (Jun 11, 2014)

The Royal Islander is a right to use (RTU) property, with a defined expiration date not a deeded property so there is no title, hence no title search required.  

As far as additional liens go I don't think that can happen and if it did it would be through ISCO, so if ISCO says there are no liens then you should be okay to proceed.


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## pjrose (Jun 11, 2014)

*How we did a transfer with ISCO*



GoGoNow said:


> Thank you for your help...it seems that as long as the residual rights are in the seller's ownership paperwork they will  transfer to us when we buy
> 
> When buying a resale ISCO will execute the title transfer for $135 and escrow the monies for $199.  Do we have to worry about  having a title search done? ISCO doesn't seem to list "title search" as one of their services- I know they won't release title if any Royal Resort bills are outstanding but can liens be placed by any other creditors against timeshare ownership?
> 
> ...



ISCO's service is efficient and cost effective.  We did it with just their $135, no title search, no escrow, years ago, like this:

buyer checked w/ISCO that we did indeed have right to that villa/interval, account in good standing, and so forth
we and buyer agreed via letter on the particulars, including a deposit of $x toward final price of $y
buyer paid us the $deposit
we wrote or emailed ISCO cc buyer that the sale was in progress and to prepare the papers but hold till we confirmed the total money had been paid (this was ISCO's suggestion, don't know if they'll do that anymore. I believe the person to whom we spoke was Edna Rolon but it was quite awhile ago so she may be gone.)
buyer checked with ISCO that the transfer papers were prepared but on hold till ISCO got our ok
buyer sent us the rest of the $
We told ISCO cc buyer to go ahead and complete the transfer
Done.

Can't remember who paid the $135.  There was no actual escrow or additional $199 involved.


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## GoGoNow (Jun 11, 2014)

*Royal Islander and Property Transfer*

Hello again,

Thanks,  for the additional posts... I called ISCO today and spoke with Carolina who said that title search is not needed as ISCO holds the title so no personal liens can be levied against the timeshare (if I got that straight). This is in distinction to deeded timeshares like the Hilton where the individual holds title (again, if I got this straight). Bottom line, ISCO said their transfer process ($135) gives clean title to the next owner who will get the same residual rights as the seller provided they were, in fact, in the seller's ownership papers. ISCO won't release title if the owner has any outstanding balance. So that was good to know as the paperwork can be reviewed before signing. The procedure is very straightforward.

Another member suggested ISCO instituted escrow services ($199 per transfer) in order to avoid being the middle person as they did for pjrose...but I will call again tomorrow anyway to verify. 

We are buying two consecutive weeks from two different owners at the Royal Islander. Both sellers recently sold  weeks to buyers who sent the owners money in advance of getting paperwork. I retired from working in NY and I just can't get my head around doing it that way....but maybe I am jaded from my city experiences. It would be a nice world if it could work that way all the time as I would rather spend the $199 x 2 at the Palapa on guacamole and grouper!

oops...the Palapa was at the Mayan...not sure what the eatery is called at the Islander but I will soon find out!

Thanks again


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## tonyg (Jun 22, 2014)

Escrow is something buyers may be concerned about and if that's the case they should pay for it or at least split the cost. I never used escrow, except for one sale where a transfer company mishandled things, and never used it again. The process of buying and selling the Royals is simple and there is no need for anything more than a simple contract to do it.


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## pjrose (Jun 24, 2014)

urban5 said:


> I just bought a week 4 at the Royal Islander private resale and received my membership documents from ISCO in the mail yesterday.  The residual rights clause is contained in the documents.
> 
> *The only time residual rights are not passed on to a new member is when the purchase is made through the Royal Resorts of a foreclosed unit or a unit that a member returned to the Royals.*



What about a privately owned unit that the owner put in the Royal Resorts' resale program?


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## urban5 (Jun 24, 2014)

pjrose said:


> What about a privately owned unit that the owner put in the Royal Resorts' resale program?



When using the resale program the Royal Resorts is the broker not the owner like they are when a unit is foreclosed or returned.


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## pjrose (Jun 25, 2014)

urban5 said:


> When using the resale program the Royal Resorts is the broker not the owner like they are when a unit is foreclosed or returned.



Therefore the rights are most likely conveyed? I'll check of course.


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## bbstug1162015 (Jan 16, 2015)

urban5: The only time residual rights are not passed on to a new member is when the purchase is made through the Royal Resorts of a foreclosed unit or a unit that a member returned to the Royal.

I had this same question. How do you know this is true?


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## urban5 (Jan 16, 2015)

bbstug1162015 said:


> urban5: The only time residual rights are not passed on to a new member is when the purchase is made through the Royal Resorts of a foreclosed unit or a unit that a member returned to the Royal.
> 
> I had this same question. How do you know this is true?



Based on a friends purchase last year of a Royal Caribbean unit through the Royal Resorts which came with no residual clause in the member documents, and from my purchases of several weeks in the past year from individual owners where the residual clause carried over into my contract.


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## Tfish (Jan 16, 2015)

The Royal Resorts that I have purchased on the Secondary Market have always had the residual clause included in the paperwork.

Mike


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## tonyg (Jan 23, 2015)

As Urban said the Royals sometimes do not forward residual rights on some units they resell. In that it would have no monetary effect on what they get from the sale, it might be something negotiable on the few that fall into the no residual category.


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