Diamond Resorts International Trust

[Hicoww]

Today, during an owners update (sales pitch), we were informed that since 2016, new purchases/additions of points transfer into a trust held by Diamond as a membership and your old deed/deeds/contract/contracts go away. Out of all the sales pitches we've been to in the last 4 1/2 years, this is the first time we have heard of this. If you bought points in 2016 or later and want to exit Diamond you can either turn it back to Diamond or have them sell your points (at a discounted rate of course) for a fee of $250. Diamond has first right of refusal on the sale. In our opinion, this is a better option than going through the foreclosure process and risking having a collection agency waiting to collect 7 years of past due mainenance fees plus interest. The Transitions Program also works but, it is $1000 per contract if Diamond will accept you into the program. We were willing to do this in order to buy more points, go to gold and still use Diamond for a while longer and then have and easy out with an outside (SLIM) chance of selling our points. We would be happy to just pay the $250 and happily exit. There are some caveats such as not renting out your points. Has anyone had any experience with this? We were told we don't have the 10-day right of recision (AZ) but, in our paperwork it states we do. We need some quick feedback to know if we did the right thing. Thanks in advance for any and all feedback!!

 

[T_R_Oglodyte]

That's a lot of stuff to unpack. More than I can do right now.

What I would suggest is that you carefully review any sales documents. What is written in the documents trumps anything that you were told in any presentation. In fact, you will probably find in your documents a document that you signed that says that the only thing that matters is what is writing.

So pivot off of that - what is in the documents that you signed, not what you were told.

 

[SmithOp]

It sounds like they talked you in to giving up your deed and purchasing trust points for use in the Diamond exchange DEX. This is what they have been doing since 2016, putting deeds they get people to trade into a trust and issuing point (selling them). In effect they get to sell you again as points what you already owned as a deed.

As Trog said, read your paperwork to see how you can back out and rescind.

 

[Hicoww]

That's a lot of stuff to unpack. More than I can do right now.

What I would suggest is that you carefully review any sales documents. What is written in the documents trumps anything that you were told in any presentation. In fact, you will probably find in your documents a document that you signed that says that the only thing that matters is what is writing.

So pivot off of that - what is in the documents that you signed, not what you were told.

Docs look good. We will be willng to share verbage so all can see!

 

[Hicoww]

It sounds like they talked you in to giving up your deed and purchasing trust points for use in the Diamond exchange DEX. This is what they have been doing since 2016, putting deeds they get people to trade into a trust and issuing point (selling them). In effect they get to sell you again as points what you already owned as a deed.

As Trog said, read your paperwork to see how you can back out and rescind.

There was no mention of DEX in the presentation or the papework. We are to be able to use our points as usual.

 

[CalGalTraveler]

What is the state where your deed is owned?

Rescind now. Especially if you think you might have to walk, never trade a deed for a point trust unless you know what you are doing. If your deed is in certain states (e.g. Florida, California, SC and a few others) you can legally walk and all they can do is foreclose and take back the timeshare but they cannot go after a deficiency in MF (aka anti-deficiency states protect you).

If you own trust points you could be stuck forever because trusts combine deeds from multiple states that have deficiency laws. The courts are unproven with trusts. This is why they want you to switch. It is bait and switch so they can lock you in forever and avert these consumer protection laws.

What happens to abandoned deeds by states:

Links to Official State Timeshare Laws and Guides/Manuals

@TUGBrian @DeniseM @CalGalTraveler take a look. This weekend, I’m creating a spreadsheet with official links to states’ timeshare laws, as well as their statuses as to non-judicial, anti-deficiency foreclosures. In the meantime, I will just keep adding notes. * Legal Disclaimer: This list...

tugbbs.com

Caveat Emptor!

 

[nuwermj]

Today, during an owners update (sales pitch), we were informed that since 2016, new purchases/additions of points transfer into a trust held by Diamond as a membership and your old deed/deeds/contract/contracts go away. Out of all the sales pitches we've been to in the last 4 1/2 years, this is the first time we have heard of this.

If you own a deed at a Diamond managed resort, you have two options. 1) You can surrender your deed and receive trust fund points in exchange. They will require that you buy additional points. Say your deed is valued at 6,500 points. The sale center may require that you buy an additional 3,500 points. In the end, you would have 10,000 trust fund points and no deed.

2) You can keep your deed, enroll it into the Club, and receive the point value of your deed for use in The Club. To do this, the sale center will require that you purchase some trust fund points. Using the first example, you would get 6,500 points every year and you would pay the normal MF on your deed. You would also have an additional 3,500 trust fund points, and you would pay trust fund fees on those points.

If you bought points in 2016 or later and want to exit Diamond you can either turn it back to Diamond or have them sell your points (at a discounted rate of course) for a fee of $250.

I don't believe this program exists. Sounds to me like something the sales person invented to make a sale.

 

[Hicoww]

If you own a deed at a Diamond managed resort, you have two options. 1) You can surrender your deed and receive trust fund points in exchange. They will require that you buy additional points. Say your deed is valued at 6,500 points. The sale center may require that you buy an additional 3,500 points. In the end, you would have 10,000 trust fund points and no deed.

2) You can keep your deed, enroll it into the Club, and receive the point value of your deed for use in The Club. To do this, the sale center will require that you purchase some trust fund points. Using the first example, you would get 6,500 points every year and you would pay the normal MF on your deed. You would also have an additional 3,500 trust fund points, and you would pay trust fund fees on those points.
How to we know for s


I don't believe this program exists. Sounds to me like something the sales person invented to make a sale.

What is the state where your deed is owned?

Rescind now. Especially if you think you might have to walk, never trade a deed for a point trust unless you know what you are doing. If your deed is in certain states (e.g. Florida, California, SC and a few others) you can legally walk and all they can do is foreclose and take back the timeshare but they cannot go after a deficiency in MF (aka anti-deficiency states protect you).

If you own trust points you could be stuck forever because trusts combine deeds from multiple states that have deficiency laws. The courts are unproven with trusts. This is why they want you to switch. It is bait and switch so they can lock you in forever and avert these consumer protection laws.

What happens to abandoned deeds by states:

Links to Official State Timeshare Laws and Guides/Manuals

@TUGBrian @DeniseM @CalGalTraveler take a look. This weekend, I’m creating a spreadsheet with official links to states’ timeshare laws, as well as their statuses as to non-judicial, anti-deficiency foreclosures. In the meantime, I will just keep adding notes. * Legal Disclaimer: This list...

tugbbs.com

Caveat Emptor!

Our deed is recorded in Arizona.

 

[dayooper]

Our deed is recorded in Arizona.

Just wondering, what resort is your week at?

 

[Fried_shrimp]

It sounds like they talked you in to giving up your deed and purchasing trust points for use in the Diamond exchange DEX. This is what they have been doing since 2016, putting deeds they get people to trade into a trust and issuing point (selling them). In effect they get to sell you again as points what you already owned as a deed.

As Trog said, read your paperwork to see how you can back out and rescind.

To note, Diamond and DEX are two different things. Having points into a Diamond trust allows you to use them to book Diamond managed and affiliate resorts, with no additional charges. Owners can also use their points to book via DEX into resorts that are not Diamond managed or affiliated (mostly RCI resorts). Diamond has been selling points in their trust since at least 2007 (when I converted my fixed weeks to the points trust.....2 days after Diamond purchased Sunterra).

 

[Hicoww]

Just wondering, what resort is your week at?

Los Arbrigados, Sedona