GRAND LUXXE RESIDENCE CLUB Amazing/Harsh Transfer Conditions

gkbiiii · Aug 17, 2014

GRAND LUXXE RESIDENCE CLUB RIVEIRA MAYA

This is for sale on ebay, notice the rather harsh transfer requirement.

http://www.ebay.com/itm/GRAND-LUXXE-RESIDENCE-CLUB-RIVEIRA-MAYA-TIMESHARE-FOR-SALE-/221523167996?pt=Timeshares&hash=item3393cf4afc

DETAILS:

Anniversary Date:
N/A
Usage Time:
2015

Type of Ownership:
Deeded
Perpetual

Trading Company:
Interval International

Maintenance fees & Taxes approx.:

1 Bedroom

$ 1,700.00 Yearly

Availability:
2015

FEES DUE AT TIME OF SALE:
2015 Maintenance Fee:
To Be Billed By Resort

Settlement Fee (Closing Cost):
$450

Resort Transfer Fee:
$8,500 5 Years of Prepaid Maintenance Fees

Plus The Winning bid:

1Kflyerguy · Aug 18, 2014

Looks like a nice place, but that is an amazingly harsh transfer fee... Guess they want to discourage resales as much as possible...

csxjohn · Aug 18, 2014

Yep, this has been mentioned here before. Totally insane.

LannyPC · Aug 18, 2014

gkbiiii said:
Resort Transfer Fee:
$8,500 5 Years of Prepaid Maintenance Fees

Does this mean that the transfer fee is the equivalent of 5 years' MFs or that the new buyer has to prepay 5 years of MFs (IOW, do the $8500 go towards the MFs)?

Seaport104 · Aug 18, 2014

LannyPC said:
Does this mean that the transfer fee is the equivalent of 5 years' MFs or that the new buyer has to prepay 5 years of MFs (IOW, do the $8500 go towards the MFs)?

My understanding is the 8,500 does NOT go towards MF 's, strictly money to the developer for the transfer.

Gorgeous resort but if I was going to spend that much, I would buy something else on resale market.

gkbiiii · Aug 18, 2014

Seaport104 said:
My understanding is the 8,500 does NOT go towards MF 's, strictly money to the developer for the transfer.

Gorgeous resort but if I was going to spend that much, I would buy something else on resale market.

I thought that the 5 years was pre-paid annual dues, thus you would not owe anything for 5 years? Just in year 6, would you owe dues.

I just now posed the question to the seller.

gkbiiii · Aug 19, 2014

gkbiiii said:
I thought that the 5 years was pre-paid annual dues, thus you would not owe anything for 5 years? Just in year 6, would you owe dues.

I just now posed the question to the seller.

Here is the answer:

Dear acobbfan,

Does this mean, that the dues would be paid for 5 years and the first payment due (after the $8,500 payment) would be in year 6?

Dear 2014_bausl,

Hello and thank you for your inquiry. That is absolutely correct. We do accept offers if you would like to make one.

- acobbfan

gkbiiii · Aug 19, 2014

So, if the seller is correct and you are pre-paying 5 years of dues upfront, at today's price; perhaps for the right person, this might be a reasonable deal.

Fern Modena · Aug 19, 2014

I don't believe this answer is correct. I believe the correct answer is that the transfer fee is "equivalent to five years' maintenence fees." It is not five years' prepaid maintenence fees at all, from what I understand, but an additional transfer fee, which is the same amount as five years' maintenence fees would be. It is NOT prepaid maintenence fees, but a transfer fee, and nothing more, unless it has changed.

I wouldn't take the seller's word for it, but would contact the resort and ask them, because it is a heck of a lot of difference between what the seller is saying and what I believe to be true.

Fern

gkbiiii said:
Here is the answer:

Dear acobbfan,

Does this mean, that the dues would be paid for 5 years and the first payment due (after the $8,500 payment) would be in year 6?

Dear 2014_bausl,

Hello and thank you for your inquiry. That is absolutely correct. We do accept offers if you would like to make one.

- acobbfan

csxjohn · Aug 19, 2014

gkbiiii said:
Here is the answer:

Dear acobbfan,

Does this mean, that the dues would be paid for 5 years and the first payment due (after the $8,500 payment) would be in year 6?

Dear 2014_bausl,

Hello and thank you for your inquiry. That is absolutely correct. We do accept offers if you would like to make one.

- acobbfan

gkbiiii said:
So, if the seller is correct and you are pre-paying 5 years of dues upfront, at today's price; perhaps for the right person, this might be a reasonable deal.

Fern Modena said:
I don't believe this answer is correct. I believe the correct answer is that the transfer fee is "equivalent to five years' maintenence fees." It is not five years' prepaid maintenence fees at all, from what I understand, but an additional transfer fee, which is the same amount as five years' maintenence fees would be. It is NOT prepaid maintenence fees, but a transfer fee, and nothing more, unless it has changed.

I wouldn't take the seller's word for it, but would contact the resort and ask them, because it is a heck of a lot of difference between what the seller is saying and what I believe to be true.

Fern

Since Fern and the seller can't both be right, one of them is wrong.

You definitely need to check this out indepently of the seller, most likely someone reliable at the resort.

BTW my money is on Fern from what I've read in the past on this issue.

Either way you really need to find out for sure and the person who stands to gain from the sale is not the one to ask.

tschwa2 · Aug 19, 2014

Acobbfan as a whole probably has the most inaccurate ads and info of any ebay time share seller who sells more than 5 a year. I wouldn't trust anything without verification from another source.

nazclk · Aug 19, 2014

Transfer fees

Mayan has been 5X the maintenance fees for quite a while now. They used to be 10% of the sales price and before that it was one maintenance fee.

traveler36 · Aug 20, 2014

My understanding is the 5X maintenance fee is a transfer fee to the resort. It does not cover future maintenance fees of the buyer. Technically it is paid by the seller on resale. Incidentally newer contracts usually require a 10X maintenance fee for a resale. The purpose is to make resales expensive and avoid competition for the resort from a resale market. Fewer and fewer Grand Luxxe resales are being offered because it now makes little ecomonic sense for the seller. Moreover this maintenance fee is waived for transfers to immediate family or heirs.

nazclk · Aug 20, 2014

Transfer fees

For that amount the seller would have to pay, but the norm is the buyer pays the transfer fee, unless of course they are just trying to dump it.

travs2 · Aug 20, 2014

Grand Luxxe Transfer fee

My understanding is that this transfer fee goes to Vida Group and is NOT for 5 yrs of free maintenance fees. Do you really think Vida would miss getting this exorbitant MF from a new owner? Not a chance. And yes, I thought the new contracts specify 10 MF's for a transfer fee as well. Good luck to the owner trying to sell. I really wish them well. There are so many GL ownerships for sale on the internet now and I suspect there will be many many more when the uninformed "new owners" get home and realize how expensive the week actually will cost them in the future. The MF's never go down. :hi:

dougp26364 · Aug 21, 2014

And I thought Southwind Management was bad. They require (at least the last time I checked) $1,500 advance fee payment plus transfer fee's. It looks like this may become the method of choice to combat the Viking ship companies. Almost makes me think I should dump our Spinnaker (Southwind Management) timeshare before they decide to increase their advance payment charge.

MuranoJo · Aug 21, 2014

OTOH (just trying to spin a different angle here), if someone really wants to get into a GL, this is less expensive than buying direct.

(Though I'm sure some of the direct bennies may not transfer--a buyer really needs to check this out.)

So glad my old MP contract is only one low m/f to transfer.

GRAND LUXXE RESIDENCE CLUB Amazing/Harsh Transfer Conditions

gkbiiii

1Kflyerguy

TUG Review Crew: Veteran

csxjohn

TUG Review Crew: Expert

LannyPC

Seaport104

TUG Review Crew

gkbiiii

gkbiiii

gkbiiii

Fern Modena

csxjohn

TUG Review Crew: Expert

tschwa2

TUG Review Crew: Veteran

nazclk

traveler36

nazclk

travs2

dougp26364

TUG Review Crew: Expert

MuranoJo