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Rescission period with timeshare upgrade?

samedw

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Hello all,

I have a few questions I'm hoping someone might be able to answer. If you purchase an upgrade for a pre-existing timeshare with the same company, you sign a new contract for the upgrade, correct? Does this new contract void the initial contract? Most importantly, do you get a new rescission period with the upgrade?

I haven't been able to find any information about this elsewhere online. Thanks in advance for your input!
 

DeniseM

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By law, the recession info is supposed to be in your purchase Docs, but it might be difficult to find or hidden.

-What company?
-What state?
-What date did you sign?

*If you rescind, it will only be for the new contract - not the original contract.
 
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samedw

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By law, the recession info is supposed to be in your purchase Docs, but it might be difficult to find or hidden.

-What company?
-What state?
-What date did you sign?

*If you rescind, it will only be for the new contract - not the original contract.
But if the upgrade voids the original contract and you ARE able to rescind the new contract, you won't be tied to any contracts then, right? I haven't purchased a timeshare yet, just looking for general info.
 

DeniseM

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But if the upgrade voids the original contract and you ARE able to rescind the new contract, you won't be tied to any contracts then, right? I haven't purchased a timeshare yet, just looking for general info.

No - if you rescind the 2nd contract, it will just revert back to the first contract.
 

tschwa2

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So when you rescind you are voiding everything from the second contract. Part of that void is the void of the original contract. The Rescission makes it as though that second purchase (contract) never took place. You end up exactly where you were before you went in to upgrade your original contract.
 

Ace

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This post caught my interest because I bought a 2BR triennial unit from a developer (full price - didn't know about TUG then) and am in the process of doing a DIY upgrade. I am in the process of buying another triennial unit at the same location on the resale market (which is a really good deal). The second one is a 3BR unit in a better week (more points) at a newer and better resort in the same resort group in the same general location. Let's hope this new deal falls into place. So basically I am upgrading myself and now I either need to keep the first one for a while or try to sell it (or give it away) later.

I am going to this location maybe this summer, but more likely next year. I suspect they will ask me to attend an "owners update" and try to convince me to upgrade. I still am interested in upgrading further, and I want to find out what they have to offer and how much they want for it. I want to find out whether they will take both of these off my hands in return for something else (such as a biennial instead of two triennials - or maybe put me into another type of 3BR unit that is worth more points). That would give them 2 units to resell. (The same developer is selling units at both of these places.)

They might surprise me, but I strongly suspect they will not take an even trade. If they are willing to make an upgrade deal for what I otherwise would have to pay to unload the first triennial, I might just go ahead a do it. I have a general sense of what is would cost me to give away the first 2BR triennial. If they want too much, I won't do it, and you'll probably see my first unit in the TUG bargain basement. Even though I might be interested in an upgrade, I still would be very happy with the second unit I am buying.

The only advantage I have (if it is any advantage at all - probably not) is that I have 2 units to trade in.

If I had only one unit to trade in, I would not even hope for a good deal from the developer for an upgrade. They are likely going to ask too much. This would basically be the same thing as buying a new unit from a developer with some (emphasizing "some") credit for the prior unit. If I had one unit and was doing an upgrade, I would be very surprised if they gave me full credit for what I paid them in the first place.

There is only one way to find out. Go to the presentation, ask them about it and see what they say. If the price seems too high, you probably could save yourself a bunch of money by buying your own upgrade on the resale market (assuming what you want is available - you might have to search the listings daily or weekly for one to pop up). You might even find a free one. Maybe the best benchmark is to figure out how much it would cost to give away your current unit and pay the closing costs, and then convince yourself that you would not pay the developer more than that.

If anyone on this forum has paid a developer to upgrade, perhaps you let us know what your experience was like. Don't be afraid to admit you paid too much. I certainly did with my first unit. We learn from our mistakes and move on.
 

tschwa2

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FYI- no developer will ever do an even exchange no matter how many units you offer in exchange. Any deal to upgrade to a better unit will generally cost $10,000-$20,000 in new money. In some cases you may get them to do a down grade taking your resale platinum unit or units and then only paying them $4000-$8000 to change you into a fully recognized developer purchase (with all the perks that go along with it) of a gold or silver unit.

I think you mentioned Coral resorts in one of your posts. Don't forget when you sell or give it away, someone (buyer or seller) has to put up a $1500 transfer fee paid to Reba of which $1000 goes toward prepaid MF and $500 goes in the pocket of Reba. That has basically killed any possible resale market. I bought a biennial Island links on ebay in 2008 before the fee for $900 which included the current years use of the 106,500 points. So basically I only paid MF for that first year. I thought no problem I won't have any problem giving this away if need be in the future. Now with the $1500 fee I would imagine I will need to pay 1/3 to 1/2 of that in order to find a taker willing to pay the remaining plus closing costs. At this point even though I could find better ratios it wouldn't be worth upgrading knowing I will have to pay to move this one.
 
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