In answer to RI Mike's query in another thread . . . . (I hope other Royals regulars will chime in with corrections and/or more details)
At the VCI, RM, and RC, the original purchase price ("residual rights") was/is to be returned to owners at the end of the trust after the resort is sold for the best price IF there are sufficient funds after deducting taxes, legal fees, and so forth. That's not necessarily what you bought it for if you bought resale - it's what the original purchaser of that particular unit/week paid the developer. It is listed at the top of the cover of your ownership papers.
There are various differences between the VCI, RM, and RC. For example at the RC after the resort is sold and the fees deducted, payback of the owners' residual values is first, then the developers get a like amount, then any additional proceeds are split 50/50 between owners and developers.
With the RI, they stopped the "residual value" part of the agreement, and instead the proceeds minus fees are split equally among all owners, regardless of the original purchase price, week, unit, etc. I can't remember if the developers get 50% of the pot or if it's 100% divvied among owners. I'll check my contract when I get home (I'm at the Tris right now). I know that the 50/50 owners/developers split stopped with the RS, and there it is 100% divvied among the owners. In any case, the "residual" AKA original purchase price does not apply to the RI, RS, and RH.
In no case is the original price absolutely guaranteed to be returned - it depends on the final selling price of the resort. The presumption is that after 30 years real estate will have gone so high that there will be more than enough for a return of the original price, but with VCI/CIC they found that wasn't the case. They still honored the original agreement by injecting more money and using funds from those who re-upped to pay back (over four years) those who wanted to stop after the original 30 years.
The offer I mentioned in another thread was that if I bought now at the RH, they would buy back my RC (and I think RM) for the full residual value (original purchase price) and apply that to the RH purchase, so I could get my payback now instead of in 4 years (RM) or 2018 (RC). They also will take off an owner discount and whatever else they offer. (The average Royals owner has about 4 units and a large portion of the sales are to owners.) They are not doing that for the RI because (so they told me) they don't have a planned buy-back value for the RI units.
At the VCI, RM, and RC, the original purchase price ("residual rights") was/is to be returned to owners at the end of the trust after the resort is sold for the best price IF there are sufficient funds after deducting taxes, legal fees, and so forth. That's not necessarily what you bought it for if you bought resale - it's what the original purchaser of that particular unit/week paid the developer. It is listed at the top of the cover of your ownership papers.
There are various differences between the VCI, RM, and RC. For example at the RC after the resort is sold and the fees deducted, payback of the owners' residual values is first, then the developers get a like amount, then any additional proceeds are split 50/50 between owners and developers.
With the RI, they stopped the "residual value" part of the agreement, and instead the proceeds minus fees are split equally among all owners, regardless of the original purchase price, week, unit, etc. I can't remember if the developers get 50% of the pot or if it's 100% divvied among owners. I'll check my contract when I get home (I'm at the Tris right now). I know that the 50/50 owners/developers split stopped with the RS, and there it is 100% divvied among the owners. In any case, the "residual" AKA original purchase price does not apply to the RI, RS, and RH.
In no case is the original price absolutely guaranteed to be returned - it depends on the final selling price of the resort. The presumption is that after 30 years real estate will have gone so high that there will be more than enough for a return of the original price, but with VCI/CIC they found that wasn't the case. They still honored the original agreement by injecting more money and using funds from those who re-upped to pay back (over four years) those who wanted to stop after the original 30 years.
The offer I mentioned in another thread was that if I bought now at the RH, they would buy back my RC (and I think RM) for the full residual value (original purchase price) and apply that to the RH purchase, so I could get my payback now instead of in 4 years (RM) or 2018 (RC). They also will take off an owner discount and whatever else they offer. (The average Royals owner has about 4 units and a large portion of the sales are to owners.) They are not doing that for the RI because (so they told me) they don't have a planned buy-back value for the RI units.