[2012] Confused - Triennial interest vs. points and Developer week?

[lmkucala]

OK - now that we have had our RCI account a couple of years I want to make sure I'm not missing something. I'm guessing I'm not but need some help translating what we bought in 2009. I just pulled all of the documents and I'm really confused.

In 2009, we purchased what I believe is a triennial interest in a floating week system from Coral Resorts, at Island Links in Hilton Head. Our deed specifically says:

Unit: 119 Week: 1 Tri-Y Season: Bronze

I know this gives me the right to occupy a unit once every three years during a designated season at our home resort, and we pay a maintenance fee once every 3 years. Now, when we purchased this we also enrolled in the tri-ennial program to convert it to points, and we receive 14,166 points (I know that is basically nothing) per year (I assume this is instead of using our home resort at Island Links once every 3 years). We're enrolled in the RCI Points system as a result of this.

In a nutsshell, we have two documents attached to our deed that describe what I think we have:

1. Acknowledgement of Points for Deposit - this says we deposit our existing RCI WEEKS resort into the RCI POINTS account. I assume this is what gets us our measly 14,166 points/year.

2. Developer Week Addendum - Indicates we "have the option to use an additional week per year, per unit owned. This week is known as 'Developer Week'. Reservations may be made up to (but no more than) twelve months in advance of the arrival date and are based on availability. The current annual maintenance fee will be charged for use and must be paid when reservation is made. Accommodations may be made at the owner's resort or at any affiliated Coral Resorts property. The "Developer Week" is designed for the personal use and enjoyment of the owners, their friends, and families. This option is available for the above owners on an ANNUAL basis.

Lastly, I can't find anywhere in my documents what my annual maintenance fee (that I am supposed to pay every 3 years starting in 2010). I can't find an entry in my checking account showing I paid Coral Resorts anything after the initial purchase.

So - here are my questions:
1. How do I find out what the maintenance fee is (or 1/3 of the annual fee I'm supposed to be paying every 3 years). Or do I only pay this if I use the developer week?
2. Am I missing out on something by not using (or renting out) the developer week every year? I'm thinking not since it states to use it you must pay the maintenance fee, and I would guess the rental profits may not be that much more than that.
3. Is there anything else I'm missing (besides the fact that I know I thought I was getting more than I paid for). After being on and reading these forums for awhile, I now know never to by from a developer!

Sorry for the long post but hoping some of the experts out there can help!

Thanks!

p.s. - although we have very few points - it does work 'ok' for us as we also have a week with II, so we just plan that we will use RCI once every couple of years, or take advantage of getaways and/or last minute exchanges if we can find things for a small amount of points. I just want to make sure there are not other things I should be taking advantage of that I'm missing.

 

[terden]

I own a biennial unit at Coral Sands. My maintenance fees are paid every other year in the full amount, not 1/2 each year. Therefore, I pay all one year and nothing the second. I would presume you would pay your entire fee one year and nothing the other two. While other resort systems might have you pay 1/3 each year, this does not seem to be how Coral Resorts does it .

I don't have a "developer week", but based on the phrasing you used, it appears that you would pay a full maintenance fee to use such a week, if you decide to do so. This is separate from your regular triennial maintenance fee.

As to what the maintenance fee is, it changes every year, almost always going up a little, as costs increase. Therefore, the amount would not be spelled out in your contract. Hope that helps.

 

[tschwa2]

Your documents wouldn't state the MF because the change (go up) every year and are based on the HOA's approved budget. I own an EOY at Island Links and in 2011 the fee for a 3 bedroom was about $970. You can call Reba and ask what the current fee.

 

[ronparise]

I think you spelled out exactly what you bought in tor post

1)a triennial week is you base ownership this is a deeded interest in realestate that you can use every three years (subject to the payment of a maintenance fee

2)a "right to use week" subject to availability and a use fee


3)your resort has affiliated with RCI points for exchanges. and points have been assigned to your ownership..If you choose not to use your week you can "spend" the points to make a reservation at another resort

Since you havent yet seen a bill for your fees, I would assume you are billed every 3 years...look for it at the end of this year.

 

[lmkucala]

Thanks everyone for the responses. This confirms what I thought. I have points instead of my week once every 3 years, and there really is no advantage to me using the developer week (at least financially it's not like it's an awesome deal), since the cost of the maintenance fees to use the week is likely not much less (or potentially even more) than it would cost me to rent a week there or somewhere on my own, and there certainly would be no profit to renting that developer week to someone else.

 

[gandalf252002]

Pending additional fees

I am looking at an eBay auction now for a triennial at this resort. I have been advised that the management company Reba is following Southwinds Management with a special assessment to cover future MF's. Can anybody confirm this? I would hate to purchase, and then get dinged with $1500 in a SA.

 

[elaine]

Southwind Mgmt's fee is not a SA. A SA is a fee in addition to routine maintenance fees--sometimes for extraordinary items, replacing sewers, adding elevators, hurricane damage or for underpayment of reserves, etc. The Southwind fee is a prepayment of 2 years of future maintenance (annual) fees. I believe that Southwind did this in response to deeds being transferred to LLCs/corps/"sales" companies that then defaulted on ownership and annual fees--which can cause the fees to then rise for legit. owners.
I sent you a PM.
Elaine

 

[Free2Roam]

Southwind Mgmt's fee is not a SA. A SA is a fee in addition to routine maintenance fees--sometimes for extraordinary items, replacing sewers, adding elevators, hurricane damage or for underpayment of reserves, etc. The Southwind fee is a prepayment of 2 years of future maintenance (annual) fees. I believe that Southwind did this in response to deeds being transferred to LLCs/corps/"sales" companies that then defaulted on ownership and annual fees--which can cause the fees to then rise for legit. owners.
I sent you a PM.
Elaine

Reba - on the other hand - has instituted a $1500 transfer fee... None of which goes towards future maintenance fees. At least that was the case last year. I decided not to purchase the deed I was considering at the time.

 

[elaine]

WOW! that's awful---really outrageous.

 

[TGR4ME]

Don't feel bad. We did the same thing. Thought developer week was a deal because we really do enjoy Hilton Head. Didn't tell us it would be so hard to get a week and impossible to rent out!!!!

 

[tschwa2]

Reba - on the other hand - has instituted a $1500 transfer fee... None of which goes towards future maintenance fees. At least that was the case last year. I decided not to purchase the deed I was considering at the time.

I just saw this. The above is not what I got in writing from HOA last year. It is bad but not that bad. They require a $1500 to be paid in order to transfer a unit into a new owners name regardless of whether it is annual, biennial or triennial but $1000 goes toward future MF's and $500 goes to Reba as the transfer fee.

 

[Free2Roam]

I just saw this. The above is not what I got in writing from HOA last year. It is bad but not that bad. They require a $1500 to be paid in order to transfer a unit into a new owners name regardless of whether it is annual, biennial or triennial but $1000 goes toward future MF's and $500 goes to Reba as the transfer fee.

I'm kinda curious...did they change the policy or was I misinformed? I received that info directly from someone at Reba. From what I recall, the seller was offering to pay the $1500, stating that a part of it went to future maintenance fees. I called Reba to confirm and was told repeatedly (I couldn't believe it so I probably asked 3 different ways!) that the entire $1500 was the transfer fee. I decided not to purchase. The seller called Reba and got the same info... and had no qualms with me backing out.

 

[tschwa2]

This was the response to my email in April 2012

Good Morning,
The transfer fee is $1500 all properties. From the $1500, $1000 goes towards the next maintenance fee that would be due (2013, 2014, or 2015 depending on the usage). The remaining amount is the administration fee for the HOA/management company. The transfer fee is payable to the HOA. I hope this answers your questions. If you have any other questions please feel free to contact us.

Regards,
Amy Robinson
Reba Management
P.O. Box 5686
Hilton Head, SC 29938
ph: 843-842-5583 x 77221
fax: 843-785-8037

I emailed this morning to see if anything had changed and this is the response I received:

Hi,
The information you received last year is still correct. Below is the breakdown of the $1500 fee.

$1000 Prepayment of the next maintenance fee
$400 Working capital contribution
$100 Admin fee.

Please let me know if you have any other questions!!

Regards,
Amy Robinson
Reba Management, Inc
PO Box 5686
Hilton Head Island, SC 29938
p) 843-842-5583 x77221
f) 843-785-8037