I was told my a Marriott rep that if you join and sell your week later, the new owner can join for a fee. If you don't join, then the new owner will not be able to join. So basically, a points week sold can get back into points. A weeks week sold cannot. Hopefully we can clarify this soon since, if it is true, it would be a serious issue in considering to join. I'd be more likely to pay the $2K if I thought the resale value of a points week would be higher than a weeks week (which is likely under the scenario I described).
Again, I'm not saing the points transfer on a resale - I am saying the ability to convert to points (for a fee) transfers on a resale if the week was enrolled in points.
I got this info as part of a sales pitch on the phone so take it for what it's worth...
Dan, the disclosure document says this on page 4 for Trust members:
Trust Members. Upon the sale of an Interest, Exchange Company may require the payment of an initiation fee. (The current initiation fee is $200 per Interest with a
$2,000 minimum initiation fee; however, Exchange Company reserves the right to adjust the amount of the initiation fee from time to time and to waive the initiation fee on a case-by-case basis in Exchange Company’s sole and absolute discretion.) Until payment of any required initiation fee is received (or waived by Exchange Company), the owner of such Interest(s) will not be entitled to Base Plus Exchange Benefits or Exchange Benefits; however, payment of the initiation fee will allow access to the Base Plus Exchange Benefits.
If the purchase of an Interest is not made from an Approved Broker, then the owner of such Interest(s) may not be entitled to Exchange Benefits in Exchange Company’s sole and absolute discretion, even if the initiation fee is paid. Additional payments may be required to access the Exchange Benefits.
From Page 14 of the exchange doc:
Effect of Transfer of Member’s Interest. Unless otherwise agreed to in writing by the parties to a sale, assignment, or transfer, if a Member (“Selling Member”) sells, assigns, or transfers the Selling Member’s Interest to another party (“New Member”), the Selling Member will lose any and all rights to utilize the Exchange Points associated with such Interest to reserve the use of a Use Period or to use any previously-reserved Use Period.
Each New Member will be required to remit to the Association an initiation fee; provided, however, an initiation fee shall not be required to be paid by an existing Member. (The current initiation fee is $200 per Interest with a $2,000 minimum initiation fee; however, Exchange Company reserves the right to adjust the amount of the initiation fee from time to time and to waive the initiation fee on a case-by-case basis in Exchange Company’s sole and absolute discretion.) Exchange Company will, within ten (10) business days of receipt from a New Member of the initiation fee, if required, and a certified copy of the recorded deed transferring an Interest to the New Member, change Exchange Company’s official records to reflect such transfer of an Interest from a Selling Member to a New Member. Further, with respect to Trust Members, until payment of any required initiation fee is received (or waived by Exchange Company), the New Member may not be entitled to Base Plus Exchange Benefits or Special Benefits in Exchange Company’s sole and absolute discretion; however, payment of the initiation fee (or waiver by Exchange Company) will allow access to the Base Plus Exchange Benefits.
With respect to Exchange Members, until payment of the enrollment fee, the New Member will not be entitled to participate in the Program. If the purchase of an Interest is not made from an Approved Broker, then the owner of such Interest(s) may not be entitled to Special Benefits in Exchange Company’s sole and absolute discretion, even if the initiation fee is paid.
It seems like if you do not use an approved broker you may be out of luck even if you do pay $2,000. Without having a full base interest or paying the initiation fee you are limited to reservations within 60 days, which is a big disadvantage. They seem to also want to control who brokers their exchange points.
“Approved Broker” which includes: (a) the developer of the Member’s Affiliate Program or Component; or (b) such other entity approved by Exchange Company, from time to time; (ii) acquire the Interest by virtue of being a Family Member by gift, will, divorce decree, testamentary disposition, intestate succession or trust from a Member; or (iii) is otherwise granted Membership by Exchange Company, upon the terms and conditions then determined by Exchange Company in Exchange Company’s sole and absolute discretion. If a Member does not purchase the Member’s Interest from an Approved Broker, such Member may be limited to only Base Exchange Benefits, or upon payment of the initiation fee, if permitted in Exchange Company’s sole and absolute discretion, Base Plus Exchange Benefits.
I think you have some more work to do to understand the implications. It is not very clear to me what all this means except that it gives Marriott all the cards in the deck
