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Ellis2ca

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Hey! I received this e-mail, which I think pretends to be an "official vote" on the future of the Royal Mayan...

The problem is, this is not a legal vote, the result does not mean a legal decision on the future of the Royal Mayan, and in any case, these are not the only two options possible... and notice that the wording of the option to extend for 15 years is slanted to make us choose this option.

I AM NOT GOING TO VOTE, which means my "vote" is that the Royal Mayan should be SOLD according to the contract.

In my opinion, there is a much better option, which is that we will be paid our residual value when our Villa week is sold, (which could be to us to renew, for 50% of the 2014-2044 resale price which would be determined by the Developers...)

EXACTLY what they did at V.C.I. except we would not get paid until our week is actually sold. Until it is sold, in my plan, we could continue to use our Villa week if we pay the maintainance fee.

In my mind, this is so simple and obvious...

And it would be fair to us, and fair to the developers.

I would be FOR this option... But this better and logical option is not in the ballot.

So who is the wise guy who is trying to separate me from what belongs to me (ie, 50% of the resale value) according to the contract?

The e-mail I received says this: (I erase the part in Spanish)


==========
The CVPL election is open through April 30, 2012, 11:59 PM CDT.

To cast your vote go to the link below and login using your unique credentials :

Membership Number : (XXXXXX)
Election Passcode : (XXXXX)

Go to: https://www.directvote.net/CVPL/

The Royal Mayan information is available on the on-line ballot.

=======

you go to that URL and you read this:

========
Dear Member,

When the Royal Mayan Resort (herein the Resort) was developed, it was intended that the Resort would be sold in 2014, and all interval memberships would therefore be dissolved. The Membership Agreement details the procedure by which this sale was intended to occur, and the manner in which all proceeds from the sale would be distributed.

In short, the Membership Agreement provides that after the resort is sold all proceeds would be paid as follows: first, all expenses and taxes would be paid; next, Members would be paid up to the amount of their residual rights; third, the developer would be paid from available funds an amount up to the sum of residual rights payments to members; and finally, all additional proceeds would be split equally by the Membership and the developer.

If net available funds are insufficient to pay full residual rights, Members would receive payment equal to a pro rata percentage of their residual rights value until all net available funds are exhausted.

Based on this reality, we are writing to get your feedback on a possible alternative to simply selling the resort.

When the Membership Program was conceived, resort industry economics were very different. At that time both the Company and the Members had reason to believe that the resort would enjoy an increase in value by the time of the proposed sale date 30 years later. As mentioned above, the Company and the Members even anticipated there would be extra profit from the sale to split 50%/50% between the Company and the Members.

Based on recent transactions of hospitality properties in the area, we now anticipate that it will be very difficult to sell the resort for more than USD$40,000,000 before taxes. We estimate that in an optimistic scenario, once taxes, commissions, expenses, legal fees, government-mandated severance payments to employees, etc., have been paid, the net available funds to be distributed to the Members would probably be in the range of 25% to 40% of the residual rights amount indicated in your Membership Agreement. The Company will receive no payment from the sale.

(ELLIS: NOTE, THE ONE WHO LOSES IS THE COMPANY, IF THE RESORT IS SOLD TO A THIRD PARTY FOR $40,000,000 BUT THE COMPANY DOES NOT LOSE IF IT RESELLS THE WEEKS AS TIMESHARES, AS THEY DID WITH V.C.I. - ELLIS)

Additionally, there is no guarantee that the property can be sold at market value before the end of the Membership Agreement. It is widely known that selling resort properties at true market value in these economic times is extremely difficult.

The Company has been working diligently to find the best option to provide maximum value for your Membership. An alternative option that is considered viable is to extend the Membership for 15 (fifteen) years for an administrative fee of $100.00 dollars, with no residual rights, as long as over 90% of the Members vote for this option. This will enable Members paying the annual club service fee to use, exchange, rent, lend or resell the Membership during this 15-year period.

(ELLIS: NOTE, IF THERE IS NO RESELL VALUE AT THE END OF 15 YEARS, IT BECOMES A "RIGHT TO USE" FOR 15 YEARS... WE WOULD BE EXCHANGING OUR RESIDUAL VALUES FOR 15 YEARS R.T.U. I WOULD NOT BUY IT.

"GIMME MY MONEY, WHATEVER IT AMOUNTS TO, AND THE DEVELOPER GETS ZERO" IS BETTER FOR ME THAN "I GET ZERO RESIDUAL IN EXCHANGE FOR I CONTINUE TO BE A MEMBER FOR 15 R.T.U. YEARS"... - ELLIS)

We hereby invite all Members in good standing to vote on one of these options as presented below.

To sell the Resort in accordance with the Membership Agreement and likely return a fraction of the residual rights to the Members.

(ELLIS: THE WORDING IS SLANTED "AND LIKELY RETURN A FRACTION OF THE RESIDUAL RIGHTS TO THE MEMBERS" IS TELLING US TO NOT VOTE FOR THIS OPTION. UNFAIR. - ELLIS)

To extend the Membership for 15 (fifteen) years for an administrative fee of US$100 dollars with no residual rights and the obligation to pay the yearly club service fee

In order to conduct this voting process in an independent manner, we have hired Survey & Ballot Systems (SBS), headquartered in Eden Prairie, MN, which has specialized in election services including traditional paper ballot elections, online voting, telephone voting and hybrid voting systems since 1990.

Please note:

Only one vote will be accepted per membership regardless of the number of individuals registered on the membership. Once SBS has received the vote it will not be allowed to be changed.

If a vote is made by the Internet and also via fax, only the Internet vote will be considered valid.

If a vote is not received by internet or fax, it will be considered a vote towards the sale of the resort as stated in the Membership Agreement.
The voting period (by internet or fax) starts on March 30 and ends on April 30, 2012. Results will be announced by email to registered Members after June 1, 2012.

NOTE: The attached FAQs will provide Members with more information before casting the vote. If you have any further questions, please feel free to call Interval Servicing Co, LLC: Toll Free (US/CA): 877-736-4563, Elsewhere: 954-736-5563 or send an email to: royalmayan@intervalservicing.com

=======

The Ballot itself is worded as follows. Notice that it is SLANTED to make you want to vote for 15 years extension for $100 administrative fee. But... It does not mention that there will be a LIMIT on the maintainance fees... so... If they RAISE THE MAINTAINANCE FEES to $4000 per week, I would not be able to pay my maintainance and after that, I would surely LOSE my week.

I will NOT vote, so my vote counts as I am NOT in favor of extending my ownership another 15 years. Let them sell it for $40,000,000 and give me whatever corresponds to me, and that means the Developers will get zero, if that is what it sells for, which I can't see it is true. 200 Villas on the beach in CanCun, at a minimum cost $100,000,000 dollars (half a million each).

=====This is the wording on the ballot:


To cast a vote
Check the box next to an option
To change your vote, click the box again, and the mark will be removed /

To review your selections, click the “Proceed the Ballot Confirmation” button

You may save you ballot and return later by clicking the “Logout” link
Logout
Membership Agreement Vote

Select ONE from below :

To sell the Resort in accordance with the Membership Agreement and likely return a fraction of the residual rights to the Members

To extend the Membership for 15 (fifteen) years for an administrative fee of US$100 dollars with no residual rights and the obligation to pay the yearly club service fee.

=====

Hey, Mr. Developers: I'm not STUPID. Why would I accept zero residual value at the end of 15 years? Why did you give 100% residual value at V.C.I. and now you wish we would accept zero at Royal Mayan, at the end of 15 years?

If you would LIMIT the maintainance fee to 80% of what you pay us if we deposit into the rental pool, and if we still have 50% of residual at the end of 15 years, I MIGHT vote otherwise...

But as your proposal is now, this is equivalent to buying 15 more R.T.U. years in exchange payment for my residual value. No, sir, that is too expensive... I won't pay my residual for 15 R.T.U. years. - Ellis Toussier
 
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Cancun Joe

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Royal resorts again throwing long time owner out with the dish water

What a crock 25to40 cents on dollar who did the estimate Richard Sutton, more gas for his jet plane, this is going to a marketing problem for sales of other resorts.oh yea count me in for another 15 years haha what a joke, maint fees will be at 2 K by that time, I own two weeks 9 10 value about 21 k at25 percent return will be about 5k but will have to pay 2013 maint fees 2 K
My return on 30 years of membership 3k such a deal. Any one want my week,

:cheer: :cheer: :cheer: :cheer:
 

Ridewithme38

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Hey, Mr. Developers: I'm not STUPID. If you LIMIT the maintainance fee, I MIGHT vote otherwise, but as it is, this is equivalent to giving away my residual value, which I PAID for. - Ellis Toussier

I don't know of any Timeshare agreements that have limits on the Maintenance fees, not saying they shouldn't have limits....Just thats its very unusual to be in the contract
 

X-ring

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The Ballot ... does not mention that there will be a LIMIT on the maintainance fees... so... If they RAISE THE MAINTAINANCE FEES to $4000 per week, I would not be able to pay my maintainance and after that, I would surely LOSE my week.

I wouldn't be able to pay either but insofar as I can see, the current contract doesn't specify limits on the maintenance fee, so what's different?

While I don't claim intimate familiarity with all the financial numbers being bandied about, I do know that there a lot of grey skies out there. When I was concerned about the North American situation a while back, I was comforted somewhat by information that the Spaniards were investing heavily in the Mayan Riviera. While that may indeed be true, many Spanish banks are now teetering on the edge of insolvency as well.

I may be wrong but under the current economic climate plus the Royals' experience with VCI members in the recent past, I can't see 90% of members voting for it.
 
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tschwa2

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I have heard of a few places that tried to put a limit to the amount MF's could be raised each year and if I remember correctly it was somewhere in which the original developer went bankrupt and a second company bought the developer rights and essentially ignored the provision and owners were not successful in getting the courts to enforce the original provisions.

I do own at one (Sandals Ocho Rios) that despite being in another country and despite being sold to 2 subsequent management companies has continued to honor the provision not to increase either the MF or all inclusive fees for any given year by a higher percentage than the CPI change for that year. Part of the reason they have been able to do this is the TS's are a fairly small portion of the overall facilities. I think the MF's are comparable to other similar locations but it has really kept the AI fee's down which has definitely helped the TS keep more of its value compared to other AI's
 

easyrider

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I don't know of any Timeshare agreements that have limits on the Maintenance fees, not saying they shouldn't have limits....Just thats its very unusual to be in the contract

I believe these are mostly expiring RTU contracts.

Bil
 

pjrose

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90% agreeing to re-up is highly unlikely, probably not possible, given that a response rate is likely to be far below 90%, and lack of responses will be counted as votes to sell.

This is indeed biased.
 

pjrose

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Royal Resort owners were never promised full return of the residual. It was always coupled with caveats depending on the eventual sales price, minus expenses, etc etc.

Now maybe some salespeople left those caveats out of the verbal discussion, and maybe people didn't hear those caveats, but they are clearly stated in the member agreements.

Did you buy for the eventual return, or to have years of great vacations? I know I did the latter, hoping that there might also be a nice return, but unfortunately the economy just might not allow that.

I'm SURE the developers would like the resort to be sold for 10 times the current market, so everybody can get a nice big return....but that just doesn't seem like reality.

What other timeshares allow for the possibility of ANY return?
 

Ellis2ca

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Royal Resort owners were never promised full residuals...

Royal Resort owners were never promised full return of the residual. It was always coupled with caveats depending on the eventual sales price, minus expenses, etc etc.

Now maybe some salespeople left those caveats out of the verbal discussion, and maybe people didn't hear those caveats, but they are clearly stated in the member agreements.

Did you buy for the eventual return, or to have years of great vacations? I know I did the latter, hoping that there might also be a nice return, but unfortunately the economy just might not allow that.

I'm SURE the developers would like the resort to be sold for 10 times the current market, so everybody can get a nice big return....but that just doesn't seem like reality.

What other timeshares allow for the possibility of ANY return?

We were never promised full residuals and I am not insisting on full return of the residual. But if we don't get full residuals, the developers get zero, and I think they should take an economically logical decision which is to do almost exactly what they did at V.C.I., except perhaps we shouldn't get the residual until our particular week is resold.

I wish we get full return of the residual and I wish the developers will get full return of residual too.

If they put the timeshares up for sale again, as they did at V.C.I., either we would buy the week ourselves at 50% of the price, or somebody else will buy it... I am completely satisfied with this solution... We would not receive our residual value until the week is re-sold to ourself or to a third party.

It doesn't matter that we have had great vacations. We have had great vacations... but we still own the residual value... that is what we bought, that is what we paid for, so it is ours.

And it doesn't matter if other timeshares do or don't allow for any return. That is entirely besides the point. Our timeshare contract does allow for residual value, and residual value is what I want to get.

That is why I bought one week, then another, then another and another for a total of 8, because it was a good offer and Mr. Richard Sutton always honors his word.

And now I own 8 residual values and I will receive my residuals, whatever they amount to... I am not going to give it to them for 15 years of membership in an R.T.U.... or else I should continue as a member until the week is re-sold as a timeshare, whether that is in a few years, or maybe at the end of another 30 (or whatever...) year period and another renewal, if my weeks are not re-sold.

Come on, let's be fair to the developers and also fair to the members. These two options are not the only possibilities... reselling the Royal Mayan as a timeshare again is the only and best possibility for all to be happy, and it is not on the ballot. Why not?
- Ellis Toussier
 
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pjrose

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Thanks, RW, and Good points, Ellis. There are certainly more than two options, and I would like to see it re-offered in some way. I hope they can work that out.....

I don't even own at the RM, but I love it, and I'd sure hate to see it walled off from the other two!
 

dbmarch

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You should check the constitution / legal documents of the resort to see if what provisions it allows for upon termination of the RTU.

ie. Does it say it is going to get sold, or get voted on whether a majority want it sold/extended.

My understanding is I don't think they can vote unless it is provisioned for. If they aren't following the bylaws, the legal documents need to be modified to allow for a vote.
 

Phydeaux

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If they really wanted it to continue they wouldn't charge people to vote yes, the charge would be to vote No

If they really wanted it to continue, they wouldn't have made an announcement days prior to change the fundamental principle of a family-oriented resort to one that is AI mandatory for some exchanges and renters. ;)

I didn't fall off no dern turnip truck. :wave:
 

kenie

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If they want to, the Royals can repurchase the Mayan when it is put up for sale.

If they want all-inclusive, it makes more sense to keep the tri-royals together as a mega complex.
The other problem they have is the other 2 expire in 2018 and 2021 or something like that.
 

CancunJFK

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My Letter To Royal Resorts Management

Re: The Proposed Termination of "The Royal Mayan" Membership Program

Dear Royal Resorts Management:

The purpose of this letter is to raise an objection to the vote on whether or not to sell the Royal Mayan as stated in the March 2012 correspondence letter to Royal Mayan members.

You correctly state in item 1 of the FAQs that "According to the terms of the Membership Agreement the Resort should be sold at the end of the Membership Program in January 2014, and the net available funds derived from the sale distributed as available." The agreement says nothing about a vote and option. Period! You refer to a previous survey, but we know nothing about a survey. We have owned two weeks in the Mayan since it's construction in 1986.

We do not want the Mayan membership extended for 15 (fifteen) years for an administrative fee of U.S. $100 dollars with no residual rights and the obligation to pay the yearly club service fee.

Because we believe the option of extension is not within the agreement, and not what we signed up for, we will let our non-vote speak for itself. As noted on the back of the "Dear Member" letter, "If a vote is not received by internet or fax, it will be considered a vote towards the sale of the resort as stated in the Membership Agreement."

CancunJFK
 

tonyg

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...Come on, let's be fair to the developers and also fair to the members. These two options are not the only possibilities... reselling the Royal Mayan as a timeshare again is the only and best possibility for all to be happy, and it is not on the ballot. Why not?
- Ellis Toussier

Not sure that worked out so well with VCI. I was in a small minority a decade or so ago when I stated here that the payment of full residuals was somewhat less than a longshot. I'm glad I sold out before the resale market crashed.
 
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