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Calling ALL TUGGERS - Advice and Help Needed - Southwind Management - What to Do?

I was pondering this issue last night and an important question came to mind. If the intention of this 3 use year prepayment is in fact to help prevent from people not paying after a purchase, should the same rule not also apply to developer purchases? Lets be honest, many developer buyers fail in teh first few years as well. Often for other reasons, but a fail is a fail in this anaylisis.

I would think it should either apply to both, or neither. That having been said, if the resorts wished to really force the issue it is also simple, dont call it pre-paid maintance fees, call it a very high transfer fee, now the argument falls apart unfortunatly, but at least they are being honest about intentions then.

-- PortableTech
 
Floating week?

As the details are being worked out, I found that the HOA - Southwind Management company is requiring the NEW owners to prepay $1,500 in maintenance fees before they transfer can happen. This would be on top of the transfer fee (in the amount of $125, instead of $50)

Note, since this is an every other year and maintenance fees are approx. $497, they are asking to pay 5 years (even usage - 2012, 2014, 2016)

Peggy

If this is a floating week resort the new owner should be able to reserve his/her 2012, 2014 and 2016 weeks when the MF is paid. I would think this would put him/her at the front of the line for high-demand weeks.
 
And I'll also mention that as a buyer, I wouldn't touch a timeshare unit with a management company that was doing this upfront maintenance fee nonsense. It would be a huge warning that I couldn't sell it.

I guess this policy will please the owners who use & exchange their units regularly but, on the other hand, anger owners who really want to sell/unload theirs.

Might this be a good poll?:rolleyes: ;)
 
The real question is whether legally they are on thin ice with this policy. I have seen too often where a management company just asserts a right to do something that is not supported legally by either state law or the declaration of covenants. The first thing I would demand is their legal authority to do this. A mere resolution of the board is not sufficient unless the declaration gives them that power.

Many, but not all "resort transfer fees" at deeded resorts, for example have no legal basis. If I am ever confronted with one, the first thing I would do is demand chapter and verse of their legal authority to charge it.

The fact that Southwind is apparently just an alter ego for the developer which still controls the HOA really makes this situation smell. Owners at these resorts ought to explore what they can do to elect member-controlled boards and kick the developer to the curb.
 
Update

I am in the process of selling my timeshare (listed on TUG) - Palace View at Spinnaker in Branson and received an offer from a buyer. - $1. (Basically free other than the buyer paying minimal closing cost and transfer fee)

Now the story gets better...

As the details are being worked out, I found that the HOA - Southwind Management company is requiring the NEW owners to prepay $1,500 in maintenance fees before they transfer can happen. This would be on top of the transfer fee (in the amount of $125, instead of $50)

Note, since this is an every other year and maintenance fees are approx. $497, they are asking to pay 5 years (even usage - 2012, 2014, 2016)

I was also told that this change happened as of the 1st of January 2011.

The owner, me, (who own many here) have not been notified of this at all. The letter to all owners is in the process of being drafted and not yet sent out.

Does any TUGGER know to who or what I can do to protest this new change and how "LEGAL" is this? Southwind Management is in Hilton Head, South Carolina.

I know that I can write HOA and copy the Attorney General Office and open a file with the better BBB.

The property that I am selling is in Branson, MO.

Peggy

After filing a complaint with the BBB and writing a letter to Spinnaker, they have decided on biannual memberships that the prepayment of the transfer fee will be $750 instead of $1,500.

I just received the notice today.

Peggy
 
I have seen many weeks (of that management co) on ebay after 1/1/2011 and none of the seller mentions about this new rule.
 
That's great!

After filing a complaint with the BBB and writing a letter to Spinnaker, they have decided on biannual memberships that the prepayment of the transfer fee will be $750 instead of $1,500.

I just received the notice today.

Peggy

Thanks for being pro-active on this! :clap: Your efforts just helped me out on my one bi-annual week.
 
As carolinian points out, this seems shaky and shady even at a reduced rate. Maintenance fees are usually expected to be current, I assume most covenants make that clear, but an arbitrary prepayment?

Legally, I don't see how this could be different than instituting a 15,000 prepayment on transfer. Unless some word like reasonable is in language granting this.

Worth checking into for owners there.
 
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