Barrier Island Station - Duck, NC - Termination Provision

[harveyhaddixfan]

My point is not about converting to points, rather how they went about getting a court decision that gave the HOA some form of a POA.

 

[RonB]

Maybe I am being dense but I don't see where the issue of forcing weeks owners to convert to points has anything to do with the BIS Duck Termination provision? At BIS Duck there is a provision in the deed for all the timeshare buildings, except the VIP one, whereby the timeshare form of ownership will end on certain dates with the first one coming in 2024. This applies to owners of both weeks and points and no one is asking anyone to convert to points in connection with the termination provision. Since this process is confusing enough to some, I at least would prefer that cases having nothing to do with weeks to points not be cited. Thanks.

It is a thin connection, but if the pending court case rules in favor of the resort, there may be something for the BIS HOA to legally hang their hat on. It's a long shot, but at least a faint possibility ~ Ron

 

[harveyhaddixfan]

Part of the suit was requesting the ability to change/restructure the current ownership.

 

[Fayeoctober]

Thank you for the information. My husband was elected to the Board of Directors at BIS Duck a year ago. He unseated (not sure if that is the correct term) the woman who had been the President of the Board for more than 25 years and was part of the original developer's team. Other members of the Board, who have served for a longer time than my husband, have stated certain things as though they were facts and while he has accepted these things as facts, I am a person who likes to see where these "facts" come from. For instance in the case that was referenced, it appears the HOA owns a portion of the timeshares. Our HOA or Board as we call it does not own any portion of the timeshares and we were told that the most they could sell was four weeks since they are not in the Real Estate business. The past President of the Board was a realtor and when an owner was in default on payments for maintenance fees or whatever, she foreclosed and then tried to resell the week. Now that she is gone and there are no realtors on the Board, we have a number of weeks that have been in default for a significant period of time, and the Board is getting legal counsel to procede with the foreclosure process. In the meantime, while most of the weeks are in less desireable timeframes, there are some "red" weeks that other owners might be interested in but again we have been told that when the Board acquires these weeks they can't sell them without the use of a licensed realtor. Right now I have more free time to pursue this issue than my husband (who is working part time) and I just want to make sure that the information we are being given is in fact accurate. I realize I haven't stated this very well and I am sorry for that, but if any TUGGERs can help, it is greatly appreciated.

 

[bmorine]

Many if not all Barrier Island Station (BIS) interval owners have received a "PACKET" mailing that calls attention to a TIMESHARE TERMINATION AMENDMENT that effectively would remove a major provision in the BIS recorded Owners Agreement.

As an owner at BIS that packet has not yet been received. But I am doing my homework and would like to start a discussion regarding the proposed Amendment or change to the BIS Timeshare Ownership Agreement.

When we purchased our timeshare there was a provision in the Timeshare Agreement, Deed, Contract, By-laws, and/or Amendment documents that made it clear that after a lot of years (sometime in 2024) the Timeshare regime could be terminated, dissolved, or be subject to termination based on a vote of the then owners of the property.

According to a recent Board of Directors (BOD) announcement a proposal to AMEND the AGREEMENT to effectively remove the contingency of a Termination will be brought up and possibly voted on at an October 24, 2015 meeting on the Outer Banks.

No doubt many owners have already voted yeah or nay by letter or are about to do so.

The BOD have an interest in getting a Yes vote to change the termination provision of the Owners Agreement.

It is my understanding that it would take a 75% majority of timeshare owners to remove or terminate the clause that could lead to a termination of the interval ownership (timeshare) regime.

On the one hand, those who want to be rid of their timeshare obligation could vote NO to any removal or amendment to the so-called TERMINATION Provision within the current Owner's Agreement and if more than 25% vote NO the TERMINATION Provision would not be eliminated.

On the other hand, 75% of the timeshare owners could choose to vote in favor of a change that would REMOVE or TERMINATE the clause so that the interval ownership model would continue to exist.

The vote is probably taking place by letter; but it is also possible that a vote will be completed as early as October 24, 2015 if the BOD is successful in selling the idea.

Those of us who are owners or those of us with knowledge of how going through a termination or not would work should discuss this subject.

Many of the original owners, current owners or future owners of a UNIT at BIS may want to terminate the timeshare when ever it can be done.

Hypothetically, if done the owners of a UNIT would own 1/52 of each involved UNIT as Tenants in Common and if they later agree the owners of said UNIT could get together and sell the UNIT.

The proceeds of such a sale (after court costs and fees) could then be divided among said owners.

It would be somewhat complicated; but a lot of owners who would want the possibility of a termination to remain in the Agreement may see keeping the provision for a termination as a future benefit that should not be voted away.

BUT OF COURSE THEY WOULD FIRST HAVE TO APPRECIATE THE POSSIBILITY!

Keep in mind that the current BOD is promoting a YES vote which is supposed to get rid of the Termination provision in the Agreement EIGHT YEARS before any termination could possibly happen.

Those persuaded to vote YES are probably going to do so because they feel it is necessary or because of a perceived fear that they could not then sell their timeshare for a "hefty sum" down the road. :hysterical:

Folks who think that way either look at their timeshare as a financial investment (when it is in fact a liability) or they really like their particular timeshare because of the enjoyment that they and their heirs will get over many lifetimes.

At this time, I am not aware of any developers that would consider taking over BIS in a sale; but with the economy's improvement and with interest from a developer their exist the possibility that a developer like Wyndham Vacation Resorts, or Diamond Resorts International may become interested at some point [AFTER ALL OCEAN FRONT PROPERTY IS SCARCE and this property is on the OUTER BANKS OF NC].

That possibility is reinforced by the fact that there is currently a major three year renovation project taking place at the resort already paid for or to be paid for through a three year assessment on current owners.

Since it is possible that the Board of Directors or the Management Company responsible for BIS possibly could be considering a possible sale of BIS (especially after the paid for renovations) that incentive may be the agenda that is driving the attempt to remove the Termination provision.

A developer would probably not like the fact that there is a contingency such as a Termination provision in the Owner Agreement.

Anyone who has input, please comment.