Deed vs Trust owner’s liability for special assessment

[Singersmom]

We own in the Hawaii Trust and are considering a resale deed to add to our ownership. The property has both old deed and trust owners. There is a real possibility of significant maintenance coming up. Does anyone know how the liability for that is split?

 

[dioxide45]

The trust pays the maintenance fees for all the weeks that the trust owners. Those maintenance fees are determined on a cost per point of all the points that make up the trust. So it evens out the maintenance fees. Trust point owners won't see the special assessment, but they will be paying the special assessments of all the weeks when those get calculated into the maintenace fees on each point.

 

[singlemalt_18]

We own in the Hawaii Trust and are considering a resale deed to add to our ownership. The property has both old deed and trust owners. There is a real possibility of significant maintenance coming up. Does anyone know how the liability for that is split?

We owned HT back in 2010 when there was a SA for POP for the water intrusion issue. There were endless discussions on this forum about it at that time. I don't remember the specific numbers, but I can tell you that Hawaii trust owners paid significantly less on equivalent ownership versus the deed holders of POP. Although NOBODY was happy about all of that back then, trust owners assessment was about 40% lower than the deeded amount.

In situations like that, trust ownership does in fact significantly mitigate that type of risk.

 

[Singersmom]

Thanks for the info. I kind of figured it would work that way so I was hesitating about taking the deeded week. As they convince more folks to sell and into the trust there will fewer deeded owners so I guess I’ll need to noodle around some of the math for the risk.

 

[artringwald]

We owned HT back in 2010 when there was a SA for POP for the water intrusion issue. There were endless discussions on this forum about it at that time. I don't remember the specific numbers, but I can tell you that Hawaii trust owners paid significantly less on equivalent ownership versus the deed holders of POP. Although NOBODY was happy about all of that back then, trust owners assessment was about 40% lower than the deeded amount.

In situations like that, trust ownership does in fact significantly mitigate that type of risk.

That's true, but remember the trust owners pay a big overhead every year for the management of the trust. We also own at POP. It would take trust owners 15,500 points to book an oceanfront week. I don't know what the fees are for 15,500 points, but I believe it's about 50% higher than the $2,300 in fees that we pay for a deeded oceanfront week.

 

[someguy2233]

There is a real possibility of significant maintenance coming up.

@Singersmom - what makes you think this?