I've read several recent posts that have mentioned special assessment fees. My question is do all timeshare properties from time to time charge these fees, and if so, is there any warning that it would be coming? I hate surprises, and would not be pleased to have to pay this in addition to MF, without some notice.
I would add low annual fees. Many people think "Oh, cool - that means this resort must have better management" when that isn't the case at all. The fees are often low because needed capital reserves are being underfunded.
I would find out if the resort has had a reserve requirements study done and what the status is of the funding of the accounts. It isn't sufficient to simply ask about funding of reserve accounts, because it's also important that resort management know exactly what is needed. If the capital needs are underestimated, the reserves will still be inadequate even through the established reserve accounts are fully funded.
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Another item to be suspicious of is underfunding of reserves when the resort is still in active sales. If the developer does not expect to be involved with the resort after sales are complete, there is considerable incentive for the developer to short the capital reserve accounts to enhance sales. Since the developer usually controls the Board of Directors for the resort, it's easy for them to keep the fees low during sales, then leave the owners to deal with the situation later when the Developer is long gone.
