# Owner's Update at Welk San Diego



## Guitarmom (May 8, 2012)

We finally gave in and took a tour while staying at Welk San Diego, Villas on the Green (VOG). I figured that spending one hour with a high pressure sales rep would be worth getting free theater tickets. And it was, but I also wanted to let folks here on TUGBBS know how it all played out.

First, we were told at check in that Welk has changed their procedure for owners. They no longer give 90 minute tours for owners; instead they offer a one hour "owner's update" where we could ask any questions we want and we'd learn about new benefits for owners. The reps working with owners are "specially trained" to address the concerns of current owners.

Our Welk rep was very friendly, but we were shocked when he said, "Oh, I hardly ever get owners. I usually deal with people who are new to timesharing." So much for "specially trained."

He was a really nice fellow, his wife is due to have a baby any minute and he was just thrilled. We liked him very well. We chatted for a full half hour while he found out about our current ownership. Then he said he needed to leave for 15 minutes to find out about what we currently own.

When he came back, he told us we owned a dinosaur (floating week, floating unit). We were completely upfront that we love what we have and we there was no way we'd be buying. He said that everyone tells him that; it would be red flag to him if we said something different.

Then, full machine gun style, he started telling us about upgrading to Platinum Points, getting 6 weeks through II if we traded our Platinum Points in as three one bedroom weeks, all of which would trade into AT LEAST a two bedroom. He said that our maintenance fee would only go up a hair (it turned out to be $400 more per year) and why wouldn't we want six weeks instead of one? (We feel like we have two one-bedroom weeks, so that was also deceptive.)

I mentioned that I found those bonus week certificates from II to be less than useful, as they only last six months and carry a pretty high fee. He completely ignored that. I also mentioned that they cannot be used at Welk, but he said that they can if you're within a 45 day window. (The certificate says it can't be used at any Welk property, so I don't know where he gets the "45-day window" exception.)

We asked what the cost would be to turn in our VOG and get Platinum Points. He said that he had to show us the unit and then someone else would talk about the price with us. Interesting.

At 12:15 I told him I had to leave at 1pm to meet my mother for lunch. He didn't bring in the "price lady" until 1pm. She started telling us we could rent out our weeks through their rental department and we would get a  check for $5,000 a year. I said I had to go. He said that if we left we'd have to waive our right to EVER upgrade to Platinum Points. We thought this was an advantage, but we didn't say so. 

He pushed a price sheet in front of us and said that I needed to handwrite on it that I understand I am waiving those rights. I happily did (no more phone calls, no more pressure from the concierge desk). And we raced off to meet my mother for lunch.

The following is PURE SPECULATION. Did he bring the price lady in at the last minute  and use scare tactics that we were giving up our rights forever in hopes that we'd say, "But we don't want to give up our rights forever"? Would he then say that we could sign now but have 5 days to rescind? I don't know, I'm just speculating. There was no way with a 1pm deadline that we could have bought!

Oh, bottom line? To upgrade our VOG annual two bedroom to 360,000 Platinum Points was going to cost us $10,345 and would increase our MFs by about $400 a year. All this to go from two one-bedroom weeks (four with II bonus certificates) to a three small one-bedroom weeks (six with II bonus certificates), which -- I might add -- have some pretty hefty fees on those bonus week certificates.

All I can say is that I'm glad I had a lunch date with my mom!


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## Guitarmom (May 9, 2012)

*One More thing ... A slight untruth?*

One thing the rep said was that Welk has a Platinum Points equity protection program. He told us that if anyone tries to sell their Platinum Points for less than they bought them, Welk would exercise its Right of First Refusal (ROFR) and would buy the points back.

I tried to show him on the Internet that Platinum Points are selling for much less on the resale market. He said that it doesn't matter what the points list for, Welk would ROFR anything that sold at less than its original price. This did not ring true to me.

I contacted a broker who specializes in Welk resales to see if that's what happens. Nope, it's not.

I suppose that a rep can only tell us what he's been told. He truly may believe the ROFR is always exercised. But out in the real world, ROFR only happens on super low price sales.


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## VacationForever (May 9, 2012)

ROFR price is what the resale buyer has agreed to pay, if exercised.  Welk and any other TS companies pay that price, not a penny more.


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## mjm1 (May 9, 2012)

Thanks for the udpate.  You can always go back to them if you ever decide to.  We did upgrade from the older section (an even older dinosaur than you own) because our kids are now out of the house and it gives us more flexibility. However, like most, we wish we would have held off until the resale market developed.  If you do decide to buy points resale, the contract will be kept separately from what you own, or even current points for someone already in the Platinum Program.

I hope you enjoyed your stay at Welk.  We always do.  In fact, we will be down there next week for our son's graduation from college.  We are using some remaining points to enjoy the area.

Cheers.


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## Guitarmom (May 10, 2012)

@sptung -- You make a really good point. The sales rep made it sound as if Welk would pay the original owner his original price when exercising ROFR. That can't possibly be true, or people would be colluding to transact $100 resales expecting Welk to ROFR at full price. Not a happening thing.

@mjm1 -- We love staying at Welk, and this week is no exception. We're actually visiting OUR daughter at college.

You know, I wondered how my handwriting "I wave my rights..." could possibly be binding. Usually when one is giving up some valuable right, there are pages and pages of legal-ese. I suppose that the next time we stay here, they'll have a new approach to getting us to upgrade. Ah well, I won't mind another set of free theater tickets.

Hope you have a wonderful week when you're down here. And please post when you get home -- let us know if Welk offered you an "owner's update" and what it consists of.


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