Marriott Aruba RTU 2056

[Jo Jo]

Hoping that someone can advise as to what happens to the Marriott Aruba properties when the RTU's expire in 2056?

Thx.

 

[SpikeMauler]

I remember someone from a past thread saying that it was most likely that the lease would be renewed (in 2056). If not, the Aruba government has to pay the developer market value for the property and the proceeds would then be distributed to the owners. This is also what my broker told me when I asked her before purchasing my MAO week.

 

[jimf41]

RTU, right to use, means exactly what it says. In 2056 Aruba might grant another lease period to MVC. If they do MVC has no obligation to the current owners. They could sell the units all over again if they desired. Or they could let the current owners continue and just keep paying MFs. Or they might not get the lease renewed.

Any speculation after 2056 is just that, speculation.

 

[Wally3433]

Is there any history of a RTU timeshare property expiring? If so, what happened?

 

[bazzap]

RTU, right to use, means exactly what it says. In 2056 Aruba might grant another lease period to MVC. If they do MVC has no obligation to the current owners. They could sell the units all over again if they desired. Or they could let the current owners continue and just keep paying MFs. Or they might not get the lease renewed.

Any speculation after 2056 is just that, speculation.

Jim, maybe it is different in Europe but I have just checked the HOPA for our Playa Andaluza RTU ownership and if I read the "legalese" correctly then at the end of term
either
- after discharging any liabilities and management charges, the net proceeds of sale are
distributed to existing holiday owners in good standing
or
- the plan is renewed along with the RTU ownership for existing holiday owners in good
standing

 

[ilene13]

I will be 106 so I'll let my children worry about it then.

 

[jimf41]

If you want to assume these are good scenario's that's a positive way of looking at it,

- after discharging any liabilities and management charges, the net proceeds of sale are distributed to existing holiday owners in good standing
o

Under this solution you are assuming that after liabilities and management charges there will be money left over to divide among the owners. What if there is a net loss?

- the plan is renewed along with the RTU ownership for existing holiday owners in good standing

Under this solution it could be very costly to remain an owner. If the lease is renewed at an increased lease fee then the current owners would have to absorb that in increased MFs. It's possible that the lease could be renewed with the same terms but I would think that a highly unlikely scenario.

 

[jimf41]

I will be 106 so I'll let my children worry about it then.

The problem with you kids is that you never plan for the future. I'll be 109 when the RTU expires so I worry about things like that.:hysterical:

 

[jimf41]

Is there any history of a RTU timeshare property expiring? If so, what happened?

This would give us a good clue but if the normal RTU period is 60 years it will be at least another 20 years before we find out.

 

[Ty1on]

Is there any history of a RTU timeshare property expiring? If so, what happened?

Timeshare has only been around for 50-ish years, and these carribbean and Mexican RTUs less than that.

 

[silentg]

I had a RTU timeshare that expired in 2011. When I originally bought, they told me I could by another contract when that one expired at the same price. We opted not to and gave it back to the resort.

 

[Ty1on]

I had a RTU timeshare that expired in 2011. When I originally bought, they told me I could by another contract when that one expired at the same price. We opted not to and gave it back to the resort.

Yeah, the RTU I just picked up expires in 2019, and I have a clause to renew for 5XMF. Thanks but no thanks, I just got this contract free.

 

[bazzap]

If you want to assume these are good scenario's that's a positive way of looking at it,

- after discharging any liabilities and management charges, the net proceeds of sale are distributed to existing holiday owners in good standing
o

Under this solution you are assuming that after liabilities and management charges there will be money left over to divide among the owners. What if there is a net loss?

- the plan is renewed along with the RTU ownership for existing holiday owners in good standing

Under this solution it could be very costly to remain an owner. If the lease is renewed at an increased lease fee then the current owners would have to absorb that in increased MFs. It's possible that the lease could be renewed with the same terms but I would think that a highly unlikely scenario.

I wasn't really looking at this as good or bad Jim, just sharing information.
With my 3x RTU weeks, I will be aged between 101 and 130 when their term ends.
I will probably worry about how to deal with it nearer the time!

 

[BocaBoy]

Even some deeded weeks (e.g., Sabal Palms) have a time expiration. In the case of Sabal Palms it is 2046.