Deed or trust?

[CHRH]

Hi I wonder if I can get some help here, I originally bought a week in a 3 bed lock off at Mystic dunes florida in 2008, finding out in 2011 that the original company had been bought out by DRI. Our week was converted to 13000 points by DRI and we were persuaded to purchase another 2000 points by DRI to get us upto Silver level. I now get two maintenance bills, one for my original resort ownership (DEED)at Mystic Dunes and one for my DRI 2000 points ownership(trust). last year about 2600$ which is fine. we use the system every year and have had some great holidays.However Diamond at our "members update" meeting each year seem very keen on us relinquishing our DEED and as they put it "bringing it into" the TRUST. not for free i might add, last Quote was 12000$!!!!!! ha ha, luckily as in a past life I used to sell life insurance and real estate i have not been pushed into what i feel is a bad deal, my question is why are DRI so keen on me relinquishing my DEED, and at an exorbitant price, if they want my Deed so badly they should transfer it for free! or even better pay me for it!!!!!!!

 

[artringwald]

$12,000 is why they want you to relinquish. They'll tell you anything to get you to spend more money. If you relinquish, you'll end up paying more in maintenance fees because there's a fat overhead for the trust. If you keep the deed, there is a risk that you could get hit with a big special assessment, but if you're in the trust there's a risk that a special assessment for any resort in the collection could increase your fees. We've had a deed with points since 2004 and have enjoyed the flexibility of booking with points.

 

[nuwermj]

@CHRH In case this helps: If all your 15,000 points were in the US Collection trust, your annual fees for 2018 would be $2,879.10.

Here are the details:
Point Standard Assessment Base fee = $230.00
Per Point Std Assessment = $2,390.40 ($0.15809 per point)
The Club Base Collection Assessment = $181.00
Per point The Club Point Collection Assessment = $77.70 ($0.00518 per point)

 

[CHRH]

$12,000 is why they want you to relinquish. They'll tell you anything to get you to spend more money. If you relinquish, you'll end up paying more in maintenance fees because there's a fat overhead for the trust. If you keep the deed, there is a risk that you could get hit with a big special assessment, but if you're in the trust there's a risk that a special assessment for any resort in the collection could increase your fees. We've had a deed with points since 2004 and have enjoyed the flexibility of booking with points.

Thanks for the info, was hit for a S/A this year due hurricane damage at mystic dunes only $170 though, maint went down $100 for 17 over 16 so interested as to what 18 will be.They told us that only a minority 2% of original mystic owners have not transferred to the trust but I'm not sure i believe them, just trying scare tactics!

 

[CHRH]

@CHRH In case this helps: If all your 15,000 points were in the US Collection trust, your annual fees for 2018 would be $2,879.10.

Here are the details:
Point Standard Assessment Base fee = $230.00
Per Point Std Assessment = $2,390.40 ($0.15809 per point)
The Club Base Collection Assessment = $181.00
Per point The Club Point Collection Assessment = $77.70 ($0.00518 per point)

Thanks i think we will tough it out.

 

[artringwald]

@CHRH In case this helps: If all your 15,000 points were in the US Collection trust, your annual fees for 2018 would be $2,879.10.

Here are the details:
Point Standard Assessment Base fee = $230.00
Per Point Std Assessment = $2,390.40 ($0.15809 per point)
The Club Base Collection Assessment = $181.00
Per point The Club Point Collection Assessment = $77.70 ($0.00518 per point)

It's apples to oranges, but I get 15,500 points for my deed at the Point at Poipu, and my annual fees for 2018 were $2,104.59.

Details:
HOA maintenance fees = $1666.45
2018-THE Club® Base Standard Assessment = $285.00
2018-THE Club® Point Standard Assessment = $153.14 ($0.00988 per point)

 

[youppi]

Thanks for the info, was hit for a S/A this year due hurricane damage at mystic dunes only $170 though, maint went down $100 for 17 over 16 so interested as to what 18 will be.They told us that only a minority 2% of original mystic owners have not transferred to the trust but I'm not sure i believe them, just trying scare tactics!

The US Collection trust own 56% of all units at Mystic Dunes. So, DRI + deeded owners own 44% of units.
If 2% of original owners have not transferred to the trust then those owners own a tons of week each or DRI own a tons of week or it's a lie because there is a tons of unit (44%) that are not in the trust.