Need advice om timeshare maintenance fees

[rwhite4520]

My FIL purchased a timeshare at LeCasa Kona in mid-1995. He wanted my wife to co-own it so she signed for it as well. Fast forward to 2012 and my FIL has passed away and now we have a timeshare we don't want. We have never used it nor do we intend to use it. The issue that we are having is with maintenance fees. Nothing in the contract that we signed mentions anything about any maintenance fees. LeCasa has sent a bill to collection for $1200.00 worth of fees. I contacted them and asked for any documents they may have where we sogned and agreed to pay a yearly fee. Their response was to send me a newsletter stating that the fees have increased. I also stated in the letter that they could send me a quit claim deed and I would gladly sign it and turn any interest we have over to them. They sent me a rental form. I guess the question I have is can they collect on these fees? Do we have a leg to stand on if they can not provide anything that we agree to the fees? Do most timeshare deeds include statements regarding fees?

Thanks for any help you provide! We have finally dug ourselves out of all debt and now this!

 

[DeniseM]

Are you sure you have the name right? Could it be Lea Casa, Kailua-Kona

You don't have a leg to stand on regarding the maintenance fees - the obligation to pay the MF is standard in the industry. In this economy, lots of people are trying to get out of their timeshare, so the resort probably doesn't want it back. If they take it back they have to cover the MF, and the costs of re-selling it, and it may be difficult to sell.

You should try to give it away:

Why?
-You can give it away yourself for nearly no cost.
-You can control the transfer process to make sure it is truly transferred out of your name.
-You won't have to deal with companies that may or may not be Legit.
-You can transfer it to a private individual who will be happy to have it for their own use.
-You will have the satisfaction of knowing that you ended your ownership legally and ethically.

There are TWO places on TUG where you can give away your TS's for free (no charge for the Ads.) THEY ARE COMPLETELY DIFFERENT - SO YOU SHOULD POST IN BOTH AREAS. There are other cheap and free sites on the internet, as well.

TUG Marketplace - the only cost is your TUG membership - $15 (List it for $1 and it will automatically go in the Bargain Basement Ads.)

Bargain Deals - Totally FREE! - just write a simple post with all the pertinent info. In your post, include the following info.:

-resort name
-unit size
-season owned
-maintenance fee
-current reservations​

To make it more attractive I would:

1) Pay the 2013/2014 maintenance fees and don't ask for reimbursement.

2) Pay for the title transfer (you can get a simple title transfer with no escrow or title search for about $100.) Many Tuggers (including me) have been using Legal Timeshare Transfers, a no frills document preparation company, and they are receiving good reviews on TUG.:

Legal Timeshare Transfers/Ready Legal
Lisa Short and Mary Pless
http://legaltimesharetransfers.com/
1.706.219.2709

3) Reserve a popular holiday week in 2013/14 for the new owner

4) Instead of paying a fee to a rescue company - consider offering a cash incentive to the new owner.

5) Here is the very important step that most people miss: Come back to TUG once a week and add more info. to your thread - this will bump it to the top of the page.​

Good luck!

 

[rwhite4520]

You are correct, it is Lea Casa.

 

[rwhite4520]

So I guess I am completly unaware how timeshares work. My wife is as well as she was not present at the sales pitch or signing. I think she signed the deed via mail. BTW, there is no money owed on the timeshare other than fees. Anyhow how can they hold you liable for a debt that you never agreed to take on? Shouldn't there have been an attachment or something in the deed mentioning fees? I know of no other industry that is allowed to state that even though we didn't tell you about it it's an industry standard so you owe us. I know it seems like I'm whining (and I am) since this is a 25 year old contract and now that my wife and I are married the debt come from the same account.

 

[DeniseM]

All timeshares have a yearly maintenance fee. This pays for the on-going maintenance of the resort - repairs, replacement, staffing, utilities, landscaping, and so forth. Besides the contract, your FIL was probably given a book or binder that contains all the terms and conditions of ownership - including the maintenance fee. Since he bought nearly 20 years ago - this info. may be long gone.

 

[tschwa2]

Generally I believe MF's not the specific amount but their existence and how they are determined-generally by an elected HOA board and and annual budget. These are in the CC&R's (covenants,conditions and restrictions) and the master deed. These are usually referred to on the individual deed or at least a reference is made to the original master deed and that may have the reference to the CC&R's.

And actually you don't have to sign a deed. If your wife signed any kind of acknowledgement from the resort by mail or in person, she accepted everything that went along with ownership. Even if she didn't and knew about it, her failure to contest would mean she went along with it. You could try to open a court case in Hawaii that your FIL fraudulently put your wife on the deed without her consent and she had no knowledge of it for the last 25 years (or else why wouldn't she have contested it earlier). But that seems like it would be even more expensive.

At this point your choices are pay the fees and use it. Pay the fees and try to sell/give it away. Or let them know you will not be paying anything and if they will not accept the deed in lieu of foreclosure, they will have to foreclose and you will need to take any associated credit hit.

If you decide to keep it or give it away, see if you can negotiate removing any late fees. Pay the fees due for 2013. Try to give it away without paying the 2014 fees first and if you can't reserve the best week possible and pay the 2014 fees too.

 

[Passepartout]

No need to be surprised that there is ongoing expense after something is paid off. You have to maintain the house you live in- even pay taxes and other assessments after you pay off the mortgage. If you don't pay to keep your car licensed and insured and maintained, very soon it is illegal to drive and not long after that it falls apart.

Timeshares come with a mortgage (or maybe your FIL paid cash) and the resort (or it's Home Owner's association) assesses a fee to pay the taxes, upkeep, pay the desk folks, keep up the grounds, replace the furnishings, etc, etc. That's what is owed. And it will have to be paid before the week can be sold.

Unfortunately, your FIL mistakenly thought his daughter would want the TS upon his demise. If she didn't, she should have told him, been removed from the deed, and then she could have refused the inheritance. Didn't happen. Too late now. Sorry.

Jim

 

[BJRSanDiego]

Your age when you signed?

I'm guessing that this is a long-shot and not the case, but if you were a minor when you signed the deed, you can probably get out of it.

 

[ronparise]

If you owned a condominium you probably wouldnt be surprised to get a bill for the condo fees and real estate taxes.

I would guess that there is a reference in your deed to the condominium declarations similar to this language (taken from one of my deeds) Ive highlighted some key words

AN UNDIVIDED 1.923% interest in Unit No(s). 724 of AVENUE PLAZA located at Municipal No. 2111 St. Charles Ave., City of New Orleans, State of Louisiana, together with the right to use and occupy a Unit during Unit Week No(s). 9 ANNUAL, and with all other rights and appurtenances thereunto appertaining, including with respect to such Unit, an undivided interest in and to all rights with respect to the “Common Elements” and “Limited Common Elements” therein, all as provided in the Condominium Declaration and Timeshare Plan Creating and Establishing The Avenue Plaza Condominiums (the “Declaration”) dated March 1, 1993, including the Survey Plat of the Condominium Property by Richard T. Dading, Surveyor dated January 12, 1993, which is annexed to an act before David L. Colvin, Notary Public, dated February 11, 1993, and is annexed to the Declaration, registered in the Notarial Archives, Orleans Parish, as No. 93-11571, an in the Conveyance Office of the Parish of Orleans, under instrument No. 65957, (the “Property”), and all of which is made a part hereof by reference, and which Unit is located and situated in square 236, Fourth Municipal District, New Orleans, Louisiana.
This conveyance is subject to and by accepting this Deed Grantee(s) do(es) hereby agree to assume the obligation for payment of real estate taxes for the current year and subsequent years. Further, by accepting this Deed Grantee(s) accepts title subject to the restrictions, liens and obligations set forth in the (1) Conditions, restrictions, limitations, reservations, easements and other matters of record, (2) Declarations for the Project and all amendments and supplements thereto, and agrees to perform obligations set forth there in accordance with the terms thereof.

Timeshares are condos, and you get a bill for your fair share of what it costs to run the place. Sorry if thats a surprise

 

[Patri]

Your FIL knew there were fees when he bought the ts. He probably thought he was doing you a favor to get your wife on the deed. They should have talked at the time.
You can get rid of it or use it and have fun. TUG will help you learn how. But yes, you are obligated to pay the fees.

 

[SMHarman]

My FIL purchased a timeshare at LeCasa Kona in mid-1995. He wanted my wife to co-own it so she signed for it as well. Fast forward to 2012 and my FIL has passed away and now we have a timeshare we don't want. We have never used it nor do we intend to use it. The issue that we are having is with maintenance fees. Nothing in the contract that we signed mentions anything about any maintenance fees. LeCasa has sent a bill to collection for $1200.00 worth of fees. I contacted them and asked for any documents they may have where we sogned and agreed to pay a yearly fee. Their response was to send me a newsletter stating that the fees have increased. I also stated in the letter that they could send me a quit claim deed and I would gladly sign it and turn any interest we have over to them. They sent me a rental form. I guess the question I have is can they collect on these fees? Do we have a leg to stand on if they can not provide anything that we agree to the fees? Do most timeshare deeds include statements regarding fees?

Thanks for any help you provide! We have finally dug ourselves out of all debt and now this!

Others have already covered the reason the MF exist, if you own any kind of property you are paying maintainance out of your own pocket (or deferring it), or paying a fee to a coop or condo association who centrally manage building maintainance. A Timeshare is essentially a condo with a further 52 subdivisions of the ownership so instead of one yearly maintainance for the condo there are 52. The money covers the staff to run the place and savings (reserves) to replace the furniture and the roof etc.

Now, do you take vacations?
Do you take vacations a week at a time (or could you)?

If the above then although you don't plan to travel to HI you can pay the Maintainance fee here, join RCI and exchange the use for a week in a unit somewhere you want to stay (subject to availability).

The unit
http://www.rci.com/RCI/rdg/searchRe...ea Casa?&sortAscending=1&sortKey=P_ResortName
Trades on RCI, so you can exchange (subject to availability) to any of those destinations for some fees.

I guess that is a long winded way of saying make lemonade with this 'lemon' you have been given.

Also it would appear it has some value so you should be able to sell it, or at least give it away for no cost to yourselves following the guidance set out by DeniseM

 

[csxjohn]

...Now, do you take vacations?
Do you take vacations a week at a time (or could you)?

If the above then although you don't plan to travel to HI you can pay the Maintainance fee here, join RCI and exchange the use for a week in a unit somewhere you want to stay (subject to availability).

...

There are cheaper options to trading if that's what you'd like to do. I use Dial An Exchange and there are others.

 

[SMHarman]

There are cheaper options to trading if that's what you'd like to do. I use Dial An Exchange and there are others.

Very true, but I think the OP has just landed in the deep end of timesharing wondering why they just got a MF bill on a place they dont want to go to.

Yes, there are many exchange venues. The resort is affiliated with RCI (so that means you cannot use Interval International) but you can you dial an exchange SFX, Platinum Interchange and many of the other independent exchange destinations.

There is a whole section of these forums dedicated to exchanging!
http://tugbbs.com/forums/forumdisplay.php?f=12

A handy sticky on exchanging
http://tugbbs.com/forums/showthread.php?t=108095

And a comprehensive list of exchange companies here
http://www.tugbbs.com/forums/showthread.php?t=51125

 

[LannyPC]

Thanks for any help you provide! We have finally dug ourselves out of all debt and now this!

One thing that has not been mentioned (unless it's escaped my notice) is to not pay any company an upfront fee to allegedly get you out of your timeshare.

You may get phone calls, e-mails, snail mail, or see various Google-type ads on timeshare-related websites that make outrageous promises which seem very attractive to someone in your situation.

Rather than use some of these unsavoury services (most of them are outright scams), follow Denise's advice in the 2nd post of this thread or follow others' advice about how to "make lemonade out of lemons".

 

[Rent_Share]

You didn't mention whether your FIL actually used the property, he probably paid around $15 K for the week and at least $ 15 K in Maintenance fees over the last 18 years.

Hawaii has some quirks in recording deeds and transferring so be careful who you chose if you find a taker to assume this liability that your FIL burdened you with in 1995

Also to remind anyone who is not on a deed YET, just because a timeshare is in the estate and/or trust the beneficiary is not obligated to accept it with the ongoing maintenance fee obligation. There are state specific probate procedures for rejecting the asset as worthless.

Once it's transferred into someone's name you have to find a willing taker, if refused it becomes the challenge of the HOA to convert it into a performing asset

 

[rwhite4520]

Thanks all for the advice. My FIL did use the the place for 10 years or so then was unable to due to illness. Pretty sure that he must have been paying the fees as we only owe 2013, and now 2014. I think our best course of action is pay the 2013 fees and try and rent or give this thing away.

Thanks again.

 

[theo]

<snip> Pretty sure that he must have been paying the fees as we only owe 2013, and now 2014. I think our best course of action is pay the 2013 fees and try and rent or give this thing away.

Good plan. To even be able to give it away for free (...or deed it back to the resort, if the resort even accepts "deedbacks" at all), you'll likely at least need to have the account current and not in arrears.