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FYI $3000 Resort Transfer Fee at Plaza Suite in NOLA

Discussion in 'Buying, Selling, Renting' started by mpeter15, Sep 8, 2017.

  1. mpeter15

    mpeter15 Guest

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    I have been recently in talks with a fellow TUGger about purchasing her 2 Plaza Suite week 18(Jazz Fest) 1Br units for a decent price. That all ended when I called the resort to confirm the resort transfer fees. Imagine my surprise when the Resort manger informed me that it would be $3000 per unit to transfer compared to $300 per unit in all the surrounding resorts. SMDH, apparently they don't want anyone buying their units but themselves because nobody is going to pay a $3000 transfer fee. Has anyone else heard of similar transfer fees at other resorts?
     
  2. TUGBrian

    TUGBrian Administrator

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    thats sickening
     
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  3. mpeter15

    mpeter15 Guest

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    Yes it is. I can't understand why the owners would allow that considering it prevents any of them from selling their units in case of financial hardship

    Sent from my SM-G920T using Tapatalk
     
  4. RX8

    RX8 TUG Member

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    Is it possible those fees are prepaying maintenance fees?

    Not sure what the selling price is or what you are willing to pay but counter with a lower offer to the seller. If the total out of pocket cost is acceptable to you then it doesn't matter what the breakout is for purchase price and transfer fees. All this is bad for the seller because the HOA is taking the seller's profit.
     
    Last edited: Sep 8, 2017
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  5. mpeter15

    mpeter15 Guest

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    No, I confirmed asked about 3 different ways, the $3000 was strictly a resort transfer fee per unit. How can I counter lower when $3000 is way more than I am even willing to pay for a 1br timeshare Jazz Fest or not. Not to mention I'd be setting myself up for disaster should I ever want to get out/sell.

    Sent from my SM-G920T using Tapatalk
     
  6. theo

    theo TUG Review Crew: Veteran TUG Member

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    Not uncommon at some Mexican facilities, but I'd not heard of any such numbers in the U.S. I thought Hyatt was the champ at $599 --- apparently not. :eek:
     
    Last edited: Sep 8, 2017
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  7. K2Quick

    K2Quick TUG Member

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    I think Marriott charges more than $3,000 to transfer a points ownership.
     
  8. Panina

    Panina TUG Review Crew: Veteran TUG Member

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    I do not know the law but wonder at what point for US timeshares do these fees become excessive and are considered illegal, unfair practices, not allowing open competition to sell?

    I understand when you buy, you are stuck if you can't sell or give away but add in the factor of Excessive fees to transfer when you give it away and the timeshare company unwilling to take it back, somewhere there has to be an illegal aspect to this.
     
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  9. rpennisi

    rpennisi Guest

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    Even more sickening is Vidanta charging a transfer fee equal to 10 maintenance fees for a Grand Luxxe transfer. At over $2000 per maintenance fee, that's over 20,000 dollars!
     
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  10. mpeter15

    mpeter15 Guest

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    That is quite ridiculous. Of course I know nothing about that resort/system, so I can really compare or comment too much. With the Plaza Suite, I can reference other local independent resorts in the immediate area that have similar or even better amenities that transfer for 1/10 of what Plaza Suite charges. 1 thing I can tell you for sure, I won't be buying at either Plaza Suite or Vidanta lol
     
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  11. rpennisi

    rpennisi Guest

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    And in addition to the 10X MF, they also strip away the extra benefits from the original contract (free massages, golf, etc). All that has basically shutdown the resale market for Grand Luxxe.
    Great resorts to visit if you want to trade, but if you do, the sales presentation is deadly.
     
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  12. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    These resorts aren't found on the resale market often. It isn't because buying direct from Vidanta is so great, it is because they make resale so hard. I wouldn't take one if someone gave it to me. Even if exchanges no longer possible.
     
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  13. theo

    theo TUG Review Crew: Veteran TUG Member

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    That's Mexico however; any such attempted practice here in the U.S. would very promptly be addressed and definitively resolved in a courtroom.

    To that point, it wouldn't surprise me one bit if someone launches a legal challenge to the NOLA transfer fee situation cited by the OP, perhaps alleging "unfair restraint of trade" or something along those lines. I dunno; it's certainly not an area of expertise for me. :shrug:
     
    Last edited: Sep 10, 2017
  14. T-Dot-Traveller

    T-Dot-Traveller TUG Member

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    The Vidanta transfer fee changes to 5 x MF was instituted when they added MF on use only ( "no go / no pay") to most new contracts in 2006 .
    This addendum and other benefits ( generally) do not transfer to a new owner .

    Vidanta wanted their product off ebay for $1 - and they were successful .

    That said - for many owners there is no ongoing / unending MF obligation .

    Their older contracts are either renewed at 25 years for an additional payment( 5 x current MF) or end .
    Post 2010 contracts renew at 10 years for a payment (generally 1 or 2 x current MF )

    Those who want to leave can easily do so . The upfront money is left behind BUT you are out without any headaches .
     
  15. tschwa2

    tschwa2 TUG Member

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    Another difference is Vidanta included the transfer fee in the contract be it 5 or 10 x's the current MF or 10% of the original purchase price etc. You knew going in what the transfer fee was going to be and could make the decision to buy or not to buy. Looking at old posts as recently as 2014 Plaza Suites transfer fee was under $500 so in this case an owner could have bought with a $300 transfer fee 5 years ago and now goes to sell or give away and it is $3000, much worse.
     
  16. klpca

    klpca TUG Review Crew: Veteran TUG Member

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    What is wrong with the the HOA? I am sure that they are trying to prevent viking ship scenarios, but there has to be a better way to do it. At this rate, people will just abandon these units and the HOA will get stuck with a bunch of foreclosures.
     
  17. spackler

    spackler TUG Member

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    Maybe they *want* those deeds & hoping current owners just sign over the intervals.
     
  18. theo

    theo TUG Review Crew: Veteran TUG Member

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    Possibly, but wouldn't any such "signing over" also invoke the exact same required transfer fee?
    It seems hard to believe that the HOA could get away with selective or subjective application of a $3k transfer fee requirement.
    Did you perhaps instead intend to refer to resort acquisition of deeds by foreclosure? :ponder:
     
    Last edited: Sep 11, 2017
  19. spackler

    spackler TUG Member

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    Maybe; I don't know what (if any) ulterior motives are in play here...but this whole thing seems illegal or unethical. Or both.
     
  20. stumahlin

    stumahlin TUG Member

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    If you're an owner of, and fortunate enough to find a buyer for, a Southwind/Spinnaker Management timeshare in Hilton Head (and probably Orlando and Branson), your buyer will have to put $1500 into a maintenance fee escrow account and submit him/herself to a variety of disclosures (even including supplying a copy of his/her drivers license) in order for the transaction to go through. We're lost three prospects so far because of Southwind/Spinnaker requirements. There's no freedom for a buyer and a seller to just make a deal and get it done without interference by the Resort management.
     
  21. theo

    theo TUG Review Crew: Veteran TUG Member

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    With all due respect, required pre-payment of maintenance fees and i.d. to ensure that it's not a Viking Ship transaction is profoundly different from a flat out money grab of $3000 for the mere "privilege" of transferring an ownership. Apples and oranges / night and day.
     
    Last edited: Sep 13, 2017
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  22. zzcn69

    zzcn69 TUG Member

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    Chateau Orleans also has a similar fee. Ray Peacock is head of both resorts. He was the developer of Plaza Suites and took over several years ago as Property manager at the Chateau. I am owner at both and will simply give the units back to them or walk away when I am no longer able to travel. i have noticed a funny thing in NO timeshares among the "good old boys" who originally built these TS, they don't seem to care if you pay MF or not. If MF are owed, the resort rents the units. I know for a fact that if the unit is rented at Chateau, the money goes in Mr. Peacock pocket The only money the HOA gets is the MF. I have been to a couple of HOA meetings - a joke really. Board is just going thru the motions. Not much interest shown by owners or Board. i brought up the question, if it is almost impossible to sell a unit now and the owners decrease each year, how high will MF go. No one could answer that. To be fair, Mr. Peacock has made a lot of improvements there and MF is a reasonable $560 a year. I think his eventual plans are to make a boutique hotel. There is a sign out front now advertising CO boutique hotel. As for me, I shall enjoy it as long as I can, and then walk away.
     
  23. klpca

    klpca TUG Review Crew: Veteran TUG Member

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    Perhaps it is the business plan to acquire the property for almost free then sell it to a new (ahem) developer.
     
  24. madsr

    madsr Guest

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    I took ownership of a 1 bedroom unit in Avenue Plaza in February '16, the week floats with the exception of Sugar Bowl week, 2 weeks Mardi Gras, and the 2 Jazzfest weeks. The seller paid all closing costs, deed was transferred and the fee was under $400(which she paid). I only pay the mf which is $743 per year. If they changed since then I am not aware. Beautiful place though and in a great location.
     
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  25. madsr

    madsr Guest

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    Also, if deposited in RCI the unit is worth 34, whatever that means, I have not traded yet so not sure what kind of value that is..
     

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