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Royal Mayan Probably to Be Sold

31 Oct

The Developers of The Royal Mayan conducted a professional survey of Royal Mayan members on whether an extension of the Royal Mayan Trust would be justified. It appears that the survey, even though only less than 6% responded came back that due to economic conditions, health, and age of the members that the majority of owners want to stop paying maintenance fees and sell The Royal Mayan. We took our own survey and came up with 10% of owners would consider renewing for an additional thirty years and that number increased to 28% if it were only for fifteen years.

To this extent it appears that The Royal Mayan is headed in the direction of being sold.  An appraisal of The Royal Mayan will more than likely take place in 2012, and an earnest effort to find a company who would like to purchase The Royal Mayan will in all likelihood be made. It is of The Owner’s Manual opinion that the sale price will be in the Forty Million Dollar range and after taxes, commissions, employee compensation for the number of years of service provided, owners should not expect more than 40 cents on the dollar of what they initially invested (40% of residual value).

We are looking for an alternative way of preserving our second home for those who want to continue to use it and to accommodate those who want to sell now. We would like your input as to other possible scenarios on how we as vested owners could accomplish this. Please send us your comment.

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67 Comments

Posted by on October 31, 2011 in Royal Mayan

 

67 responses to “Royal Mayan Probably to Be Sold

  1. Frank Pulaski

    June 23, 2012 at 12:58 pm

    Hi… I have read the comments with interest. I have been a member with 1 week in the Royal Mayan since it opened – but have not recieved the survey. I have gotten the newsletter, etc… I have enjoyed the resort, as have my children & grandchildren… So have no regrets – and think that overall, the value of the resort for the amount of maintenance fees has been fair. But – I would support the idea of getting a lawyer that could advise us of our rights in this matter. There are ways to track down a core number of members (starting on this site), the Advisory Council, asking members that have rentals yet this year to try to network, using the internet/twitter, posting a note with the address at the resort, etc…the grass roots approach. Willing to help start this approach if we can get a clear legal opinion on the validity of the claim.

     
    • George Fiehn

      June 23, 2012 at 2:25 pm

      Your comments are very thought provolking Frank. And I too believe that the OM is a great place to start a dialog on the future disposition of the RM. It would be interested if the OM could email a survey to its subscribers asking simply if they would renew their ownershp (assuming the terms are fair) should the opportunity present itself. Because of the age of the property and changes in lifestyle of its members it may be a mute issue.

       
  2. Cindy

    June 22, 2012 at 4:54 pm

    I did receive a survey, and as much as I love the RM, I can no longer afford to keep it. I have not been able to go there for 4 years now, and sorry to say I do want out and I was expecting a residual payout.

     
  3. George Fiehn

    May 23, 2012 at 12:49 pm

    What did you find out from your Attorney Diann?

     
  4. javier

    April 26, 2012 at 11:53 pm

    en español
    Ese es el trabajo de un abogado, a el corresponde juntar a las personas, la demanda se debe de realizar en estados unidos, porque el fideicomiso tiene leyes internacionales, alla es que deben encontrar un abogado que quiera llevar a cabo una demanda colectiva o en ingles “class action law suite” , el abogado buscara la forma de juntar las firmas, no lo se., publicidad en periodicos, tv, etc. el abogado tiene que invertir dinero, aqui en mexico la ley es un chiste,. la demanda tiene que ser fuera de mexico,, al fin los clientes son la mayoria extrangeros…. en español oriinal

     
  5. javier

    April 26, 2012 at 11:49 pm

    That’s the job of a lawyer, to bring together the appropriate people, the demand should be performed in United States, because the trust has international law is that they must find beyond a lawyer who wants to conduct a class or in English “class action law suite”, the lawyer would seek to gather the signatures do not know., advertising in newspapers, TV, etc.. the lawyer has to invest money here in mexico the law is a joke. demand has to be outside of Mexico, in the end most customers are foreigners

     
    • George Fiehn

      April 28, 2012 at 6:17 pm

      Diann perhaps the place to start is with the Mexican Consulate in your city who should be able to render an opinion regarding the legal process of filing of a class action suite. in Mexico Then go to the US Department of State and seek legal advice which should be free as we pay for their services with our taxes. I believe, because of the allegedly high number of RM Timeshare Owners who want to just cash out, it will be difficult to raise the funds necessary to retain Attorneys to file.

       
      • javier

        April 28, 2012 at 6:30 pm

        depends of the real value of the hotel,because truly is not 40 milions that is the fraud, , I believe in a United States attorney in a class action law suite, charge a percentage of the total of all customers are, for that invest in publications in newspapers .. sorry for the google translator

         
  6. George Fiehn

    April 26, 2012 at 4:09 pm

    let me know what your Attorneys opinion is Diann. Thanks

     
  7. omcancun

    April 26, 2012 at 2:52 pm

    Your comments are posted below the original post you are commenting on.

     
  8. Dan Rich

    April 26, 2012 at 12:21 am

    I want to go. I do like the RM but, almost $1,000 per year maint fee??? To some it may seem ok, but it seems too high for me. Look around what you can rent from TUG or e-bay or sky auction. Maybe even a cruise. Then add airfare ontop of the maint fee and food ect and it is way too high. Take one year for one unit and you have maint fees over $50,000. I feel that it could be more reasonable. Then add an internal exchange fee of $150… please. I do not want to loose my investment but cannot afford to keep this up. Look, they put NEW plasma TV’s in the rooms today (April 24, 2012) HELLO!!! It is due to be sold in 2014.

     
    • Nora

      April 28, 2012 at 2:24 am

      ok = really where are you going to find a place to sleep 6 people, comfortably with a FULL kitchen and 2 bathrooms for $1000 without it being at one of the RR? I also think supply and demand will kick in if RM sold — where are us RM owners going to go when sold? (for those of us who still love going to cancun) back in 1983? 1982? whenever we bought — even then the word timeshare did not mean “investment” — I don’t care what they said. We thought, “ok, this is a foreign country and could be taken away tomorrow – so can we afford to lose our initial investment?” With everything being said – we have enjoyed all these years, all the friends we have made, enjoyed the well maintained units, but feel bad for the employees that have taken such care of us all these years. oh, and the TVS? why shouldn’t the people going till the end, not get THEIR money’s worth? – we are paying for it.

       
      • George Fiehn

        June 21, 2012 at 3:27 pm

        I agree with you Nora. We all knew that, despite the sales presentation and wording of the membership documents, we were buying the use of a great condo in a great location for the length of the trust. And I believe most thought they would recover their initial investment…THEN THE WORLD TURNED UPSIDE DOWN! We as owners are feeling the sting of the economy however my family and I own several weeks at the Royals and have albums of photos of the good times we have had there over the past 33+years making it the best investment we could have made. And, contrary to the media warnings, will have our entire family i.e. kids and grandkids down there again in July to enjoy the condos, beach, people and food. :-)

         
  9. two buttons

    April 22, 2012 at 5:51 pm

    We just saw a voting ballot from the royal resorts providing 2 options on the experation of the mayan , A.to sell at market price less expenses which would net each member aprox. 20 % of the original value or B.pay $100.00 admin. fee and “sacrifice all residual value” for a 15 yr.right to use (averaging each member aprox.$8000-$10,000) We would like to see a option that benefits both parties,members and mgmt. co. Although the Royal Resorts deserves praise for a job well done,its known by all members that the residual value pitch was a key in the promotion of the royal resorts to friends and family.If you take away the residual rights the members have nothing of value to sell and what has the mgmt. co. gained? Who would own the resort at the end of the 15 yrs? Who would profit at the end of the 15 yrs? Why have we not been offered a 30 yr. with residual rights? This would allow the royal resorts to continue to profit as a mgmt. co. doing business as usual and allow members to continue vacationing or sell at a price close to the original residual value,the mgmt. co. may even profit by selling resales for members and as the contract reads will receive everything equal to the original residual value. Why would the royal resort mgmt. co. want to lose the $800,000 a yr. in mgmt. fees? People understand economic conditions worldwide and the mayans expiration date is bad timing ,we also believe that quality timeshare products priced properly are still selling and the mayan combined with the caribbean and islander have tremendous value.We should exhaust every option until it is best for both parties.The options offered dont appear to be the best for the mayan members or any other royal resorts in the future and certainly not the best option for the legacy of the royal resorts.

     
  10. javier

    April 12, 2012 at 8:09 pm

    the price that they want to sell the resort is ridiculous, 40 million dolars, just consider, the cost of the land itself, is much more, than that, these figures are to fool the partners not to pay the amount originaly disclose in the contract, which is the original price we spent plus some profit., somebody has to stop them,,lets put a class action law suite against them, contact me .. j_brindis@hotmail.com

     
    • Editor

      April 13, 2012 at 2:49 pm

      Javier, without a doubt everyone is up in arms about the potential Royal Mayan possibilities after the Trust ends. The Developers own the resort, we only have a right to use a specific villa during a specific week for the duration of the 30 year trust. When the trust ends, if they choose to sell it, we will receive a proportional residual value after taxes, commissions, etc. (net proceeds). You are correct $40 million is too cheap, but we too believe the Resort will sell for somewhere in that neighborhood, giving today’s economic climate, Mexico’s drug war, airline ticket prices, and what other resorts have recently sold for in Cancun. The Hilton next to the Royal Resorts sold for $80 million dollars including the golf course.

       
      • George Fiehn

        April 25, 2012 at 8:28 pm

        Blog Editor. Would you please reverse the Posts so the most recent are on top and we do not have to scroll through all of the old comments to reach the latest. Thank You!

         
      • javier

        April 25, 2012 at 10:09 pm

        the depelovers doesnt own the resort… …speak whit a lawyer… thast what you need to do… the memmbers are the owners,,,

         
      • Diann Miller

        April 26, 2012 at 5:36 am

        I really think all members of the Royal Mayan who bought primarily because we were promised our residual value returned to us at the termination of our contract in December, 2013, should start thinking about a class action law suite against the Royal Mayan owners. If we let them get away with what they are proposing, we stand to lose A LOT OF MONEY! I’m truly disappointed with the Resort owners, I thought they were people of high integrity. They own resorts all over the Caribbean, so they most definitely are not cash poor! Yes, we have enjoyed our 3 weeks every winter at the Royal Mayan, but we are older now and the world has changed economically. Also, just getting from the U. S. to Mexico is so much more difficult now than when we bought in the mid 90′s. Another thing ~ when we first bought, our maintenance fees were $300 +/- a few dollars, now they have gone through the roof and are almost $1000 per week! As I stated in this blog on Dec. 22, 2011, a class action suite may be our only solution. Please let me know what you all think. I’m going to talk to my personal attorney ASAP!

         
      • Ralph Pisani

        April 26, 2012 at 4:53 pm

        Diann,
        Setting aside the subject of a law suit for a moment, do you have access to the names, addresses or emails of the approximately 10,000 RC interval owners?
        Ralph Pisani

         
      • omcancun

        April 26, 2012 at 2:45 pm

        I still beg to differ. In reality, we would need a Mexican attorney to provide us with a clearer understanding of the Mexican Trust laws as to who owns what but according to our agreement, our membership ends January 2014. If the members own the resort, then that would mean if it doesn’t sell at the end of the Trust, the owners would still be responsible for paying maintenance fees, Mexican asset taxes, electricity etc. on the property. I believe Caribbean Vacation Properties “CVP” who applied for the Trust owns the Trust under Mexican law. We the owners bought a thirty year membership from Caribbean Vacation Properties which ends January 2014. At the time the Trust was granted to Caribbean Vacation Properties, it was against the law in Mexico to extend the Trust. This extension came into effect later during the course of the current Thirty Year Trust. If Caribbean Vacation Properties wishes to extend the Trust, I think the Mexican Government will grant it to Caribbean Vacation Properties but our membership with CVP would have expired under the agreement we signed with them. Caribbean
        Vacation Properties does imply that they will sell the resort according to our contract, which at the time was Mexican law. If memory serves me correctly, the Trust had to be sold to a third party and one of the entities (50%) had to be a Mexican corporation or national. I think they are obligated to either sell the resort and pay our residual values or come up with something that everyone can agree to. Even if they come up with a compromise agreement, I think those that want to sell should get their residual value back. The question is how much of their residual value should and will they get back.

         
      • javier

        April 28, 2012 at 6:05 pm

        in mexico only the bank could own the trust not caribean propperties, they only do administrattion, thats why they make a small survey, because they dont want us to be involve in the “bargain-sale of the property”, i believe that they already found a buyer, of the property, they themselfs, whit another name, and they want to buy for peanuts ,, and in mexico trust have international laws. so why you dont contact an attorney in us.??? is goning to be cheaper than an attorney in mexico.

         
    • Ralph Pisani

      April 18, 2012 at 2:29 pm

      There are approximately 10,000 (200 X 51) interval owners at the RM. How would you contact them?
      Ralph

       
      • javier

        April 26, 2012 at 11:48 pm

        That’s the job of a lawyer, to bring together the appropriate people, the demand should be performed in United States, because the trust has international law is that they must find beyond a lawyer who wants to conduct a class or in English “class action law suite”, the lawyer would seek to gather the signatures do not know., advertising in newspapers, TV, etc.. the lawyer has to invest money here in mexico the law is a joke. demand has to be outside of Mexico, in the end most customers are foreigners
        ….sorry for the google translation program..

         
  11. Mary Jo Pomnitz

    April 6, 2012 at 5:01 pm

    We own three weeks at The Royal Mayan and, like all who have commented, are deeply concerned about the options listed in the recent survey we received on the above issue. The first option; to sell the Mayan and to receive approximately 40 cents on the dollar is a lose-lose situation for us. The second option, to extend the timeshare for another 15 years with NO residual rights is another lose-lose for us. To go along with the 15 year extension with maintenance fees galloping out of control and air fares escalating and nothing to show for it after 15 more years is in my opinion unconscionable. And, if we wanted to sell our units, would anyone be interested in buying with NO residual rights? This is not what we signed up for and we are terribly disappointed in the options proposed by the Royal Management.

     
  12. George Fiehn

    April 5, 2012 at 6:41 pm

    I have been made aware that some of the Royal Mayan members (but not us yet) have received a “Ballot” of the 2 options being considered and asked to vote for one. The first is to extend the trust another 15 years, the second is to cash out now. Evidently the RM Owners have discounted the many excellent suggestions that have been posted and narrowed it down to two choices neither of which is acceptable. I believe the Owners will lose the integrity they established at the beginning and set themselves up for potential class action suites from RM members who feel they have been treated unjustly. Like Mark, we have truly enjoyed all of our Royal units we have owned over the years however the winds of change which will virtually kill the investment advantage of owning at the Royals is about to go to full hurrican force.

     
  13. Leanne Howie (owner since 1985)

    March 28, 2012 at 9:04 pm

    Just received a notice today regarding some sort of survey for the RM. Glad to see it go, just holding on to it til it sells and get whatever it’s worth. I bought at the beginning and haven’t been there since 92′ so it’s not a hardship to see it and the high maintenance fees disappear.

     
  14. Mark Blondin

    March 28, 2012 at 12:03 am

    I don’t think anyone should be confused. The Royal Mayan as we know it will close at the end of 2012. Our Rep indicates that the Conquistador will go with it. The payout will be whatever it is. All inclusive is coming for non members, so renting will change if you’re not a member. We’ve loved the Mayan for so many years, it’s hard to see this happen, but it’s coming.

     
  15. Editor

    March 27, 2012 at 4:18 pm

    Has anyone gotten the notification of the All Inclusive at the Sands and Hacienda

     
    • Mary Vinson

      March 27, 2012 at 9:26 pm

      No, I never received notice about the all inclusive nor did I ever receive a survey about my villa in the Royal Mayan. 2 other owners that I know never received a survey also.

       
    • George Fiehn

      March 27, 2012 at 10:41 pm

      We recieved the information on the all inclusive approach a couple of days ago. It is most likely in response to the increasing competition from the all inclusives popping up everywhere and the Royals probably thought it would help rent more units by offering the option. My wife and I are owners (as are several of our adult children) and unless the package pricing was incredibly low and unrestricted we would probably not purchase it as we get tired of the same restaurant food after we have been at one of the resorts for a couple of weeks and prefer to cook in to give it a break. Also really good restaurants are readily available in Cancun and Playa so we wouldn’t want to feel we were wasting our money by buying an all inclusive package then not utilizing it to the full extent. I also heard that only 6% responded to the Trust question however we have never received a questionairre. The 6% that responded evidently want to bail out (even as a loss of their equity) and move on. How about the other 94% that would love to continue the opportunity to continue our enjoyment of the Mayan for a period of time while property values increase. The problem with VCI is the new pricing to renew was exhorbant which caused many people to not even consider renewing although we took our equiry from the ones we previously owned and renewed on just 2 units which required no additional funds. And we still enjoy VCI and it’s small resort laid back attitude and the staff who we have know for many years.

       
    • Patty Havard

      March 27, 2012 at 11:44 pm

      Yes – I received mine over this past weekend and I know of one other owner who received it as well.

       
  16. Mary Vinson

    March 25, 2012 at 10:59 pm

    I have never received a survey. I would like to keep paying the maintenance fees at least until the Carri bean has reached their 30 year mark. Then sell both properties together.

     
  17. George Fiehn

    March 19, 2012 at 2:27 pm

    As a specialist in investment real estate, this is a tough decision due to the current global economic challenges however most countries (except the U.S.) have take very positive steps to create long term solutions to their financials which should result in the markets settling down over the next 5 years with real estate values gradually increasing.

    The Royal Mayan is a well managed and maintained property and, should it remain a timeshare, could compete very easily with other timeshare options in the Cancun area. The bonus is its close proximity to RCB and ROI and a great number of owners enjoy the choices offered by all three properties. Selling the Royal Mayan may negatively impact sales in RCB and ROI as the choices of environment would be diminished.

    VCI cannot be used as a good example of the difficulties of re-marketing a project due to its location being somewhat remote from the entertainment zone and the repricing not perceived as a good value by potential timeshare purchasers. It has its own niche and fans however they embrace the quiet atmosphere of the resort and Bay. Part of the success of the Caribbean side Royals has been the spectacular beaches, amazing pool complexes, variety of restaurants and the clarity of the water, nesting turtles, wave action, etc.

    Should the company decide to remarket the property I believe they would be well advised to price the units to the current timeshare owners at an attractive price for a 50 year trust which would encourage repurchase from present owners and also offer attractive pricing to referrals from the present owners for the first year. A good benchmark of acceptable and attractive pricing could be determined by the current resale value of the RCB and ROI resales.

    It does not make sense to sell the property at current discounted value created by the world financial challenges, and is a diservice to the timeshare owners that have invested in the property based on the sales pitch of residual value. My family for one would welcome the opportunity to continue using our Royal Mayan timeshares as long as maintenance fees continue to be reasonable and the level of maintenance and services does not decline.

    Should anyone wish to discuss these thoughts please email or call me at 281-481-0831 x 1,

     
  18. Lois Goldberg

    January 22, 2012 at 4:53 am

    I don’t get a warm fuzzy reading all these comments. I own two weeks at the Mayan and one at the Caribbean. Under the assumption the Mayan was ending 2013, I bought an odd-year, interval week at the Royal CanCun (VCI). With the economy being unpredictable, I was not planning on the possibility of paying Mayan maintenance fees past 2013, but I don’t want to lose out on possible residuals when it sells.

     
  19. James Crosson

    January 17, 2012 at 9:35 pm

    Seems like Ellis’s last comment makes sense? I paid $12800 for a super unit on the oceanfront – looking at current prices that same unit today would be more like $45,000 if it was even available!! I’d prefer to just keep the unit and pay maintenance or rent it for1600-1700 (same rate that much newer projects are charging) – the only way we lose is by selling it for s bargain price of less than 40 mil. We renewed at VCI and added 2 more weeks in the same unit for 8x our original price and I still consider it a bargain.

     
  20. Ellis Toussier

    January 17, 2012 at 12:11 am

    Precisely BECAUSE the price would probably be about $40,000,000 IT IS NOT TO THE DEVELOPER’s BEST INTEREST to sell the Royal Mayan to somebody else, and then WE the members divide the $40,000,000 (and we would not be too happy with it.) The LOGICAL thing for them to do is to SELL IT TO US OR TO SOMEBODY ELSE as a TIMESHARE, that is, as the Royal Mayan which is like one of the crown jewels of the Royal Resorts…

    So what is their BEST OPTION? To do EXACTLY what they did with V.C.I. (now “Royal CanCun Vacation Clubs International”) which is to FIX IT UP again, and SELL IT TO US. Please, don’t be alarmists. I am surprised that the staff of the Owner’s Manual would fall for the BALONEY that you hear from the SALESMEN who would LIKE TO SELL YOU another week somewhere else because we are supposed to LOSE the Royal Mayan. That is absolute, total, ridiculous NON-SENSE.

    What do the developers want? They want THEIR HALF of the pie, which they won’t get if they SELL the Royal Mayan for $40,000,000… But if they fix it up and sell it as a timeshare to SOMEBODY ELSE, who cares who buys it or how long it takes for them to sell it? There is nothing that says that MOST OF US should have to renew. When they BUILT the Royal Mayan, NONE OF IT HAD BEEN SOLD. This time around, they will have 10% sold right off the bat, that is better than they had when they built it in 1983-85…

    I really don’t see any PROBLEM. They will sell a Villa for, say, $25,000 and give us our half and they will stay with their half. What do you see so DIFFICULT about that?

    Ellis Toussier

     
    • Patricia Zambrano

      April 6, 2012 at 6:19 pm

      Ellis,
      The Royal Resorts have indicated in some correspondence that if the Royal Mayan goes up for sale they might bid themselves for it (which is a great opportunity for them to then redevelop the resort and sell it at a profit for themselves whilst the current timesharers will only get whatever the percentage of the residual value that the sales proceeds might bring). So the developer will not lose, whichever way things turn out to be. If instead of the sale, the Royal Mayan is extended people will not get any residual value at the end anyway, as Royal resort’s reasoning is that by extending it for another 15 years, they are giving us that extra term in exchange for what the residual value is worth. However many people do not want an extension because they do not want to pay maintenance fees, so if the term is extended, it would seem that these people would be the losers because they would not get anything at all?

       
  21. Diann

    December 22, 2011 at 2:56 am

    Concerning our contract with The Royal Resorts, my husband and I have the same understanding as Mark. We own 3 weeks in the Royal Mayan. Since we knew our time in Cancun is coming to an end very shortly, we purchased a townhouse in Florida this past summer…and we were hoping the money we SHOULD be getting from the Royal Resorts would help us pay it off. I have been a Realtor for over 20 years and have read and written many contracts, and one thing I do know ~ a contract is binding. It would seem to me that if we could get a majority of the R.M. owners to agree, we would have a pretty good case for a class action lawsuit, if the resort owners don’t live up to their end of the bargain. (But, all I really know about class action suits, is what I’ve read in a John Grisham novel!) Does anyone know if this is feasible?

     
    • Ellis Toussier

      January 17, 2012 at 12:39 am

      The contract says that at the end of 30 years the Royal Mayan will be sold… then… the MEMBERS will get paid FIRST for up to the amount of the “residual value” in each contract… if there is any money left over, then the Developers get an equal share… if there is still any money left over, then it is split equitably 50 / 50 between the members and the developers.

      If they sell the Royal Mayan for $40,000,000 and we, the members, do NOT get paid up to the residual value, then THAT IS WHAT THE CONTRACT SAYS we would get. We have NO REASON to have a “class action lawsuit” (unless the $40,000,000 is squandered away, etc., which I am certain it will NOT be…)

      I, myself, will NOT join a “class action” lawsuit if I get LESS than my residual values, unless the developers break the contract, which I assure you 100% they will NOT do. I don’t know why or where you are worrying publicly that the resort developers will not live up to their end of the bargain, when they have ALWAYS lived up to their end of the bargain, and MORE…

      Have you EVER been mistreated, or have you EVER been cheated? Do you have ANY COMPLAINT of any kind, or do you KNOW SOMEBODY ELSE who was cheated or mistreated?

      So why are you now raising the alarm, as if the developers are intent on cheating you?

      - Ellis Toussier

       
      • Patricia Zambrano

        April 6, 2012 at 2:47 pm

        Hi Ellis,
        I do know of many others who feel that they have been cheated by Royal Resorts, and those are the timesharers of the Pelican resort at St Maarten which was being auctioned due to its debts. These people lay the financial failure (rightly or wrongly) on mismanagement by Royal Resorts who allegedly was borrowing from Quantum Investments to maintain the resort (QI is apparently owned by Mr Richard Sutton too). If you google these news you might be able to read more details about it.
        I also think that the only way to find out the real value of the Royal Mayan is when it sells.
        Some of us fell for the sales gimmick that we would get a residual value back, but now that I can see things from a different perspective, I believe that residual values was just a way to entice buyers who would probably not have bought if they had been told that there was no payout at the end. Was it ever feasible that the timesharers would get their residual value back? It would have been fairer if the contract had also stated that the value of the resort may go down and you might not get your money back which I’m sure would have deterred many people. Most of the people I know who own these timeshares actually believed that they would get their money back, so it is not surprising that some are dissappointed or even upset. Having said this, I do agree with you that there is no call for legal action unless the people who want the resort sold , do so on the grounds that the resort should be sold as stated on the contract (instead of extending it).

         
  22. Nora Stanbury

    November 24, 2011 at 1:34 am

    i guess you could read it either way. wondering if that was the wording in the VCI contracts in the beginning and how that worked out. In regards to the “rental property” – I really don’t know, but like I said earlier, we have told them in any survey’s they have sent us, that we would be willing to go until the Islander expiration.

     
  23. Mark Blondin

    November 23, 2011 at 7:38 pm

    I read that differently. I believe we get paid first, after expenses, then if there’s more left, a like amount goes to the Company. Since we won’t get our full cost back, there won’t be any left for Company. Not sure whose reading is correct.

    Also, based on reading the agreement, I don’t see any basis for the continued operation, charging maintenance fees, even if they wanted to. I guess that’d have to operate as rental property after the January, 2014 date. Does anyone have any comments on that?

     
    • Editor

      January 4, 2012 at 10:33 pm

      Thank you for your question. The Thirty Year Trust reads that until a suitable Buyer can be found, the Trust can go on. The tricky part comes in “What happens to those owners who do not wish to pay maintenance fees until it sells. My guess is the Developers will have to pay. This is a good question which I will try and find an answer to.

       
      • Mark Blondin

        January 26, 2012 at 4:05 am

        There’s an entry in the RoyalResorts forum saying that following the end of 2013, the Royal Mayan Timeshare will terminate, be on the market for sale and that the resort will remain open as a hotel until it sells. Current RM owners would have no relationship with it. I guess they believe that so many current owners would not be willing to continue paying the maintenance fee that they have no choice. That being the case, I worry that our “investment” will diminished as they use up equity running the hotel. A final thought, nothing says the entry I read in the RR forum is correct either.

         
  24. Nora Stanbury

    November 23, 2011 at 1:58 pm

    Now with all that being said, even though we are first they have us by having to pay all the other stuff before us and then they say we are first but really not because Second has to paid even to what they pay us, so if there is not enough to pay our residuals & pay company, we don’t get the full residual. I think most people think we get paid in full and then what ever is left over, the company, up to our portion gets paid, then we split. Wrong.

     
  25. Nora Stanbury

    November 23, 2011 at 1:54 pm

    this is exactly what my RM contract says: Member’s Priority in Residual Rights
    The company declares that following expiration of the Trust in January in the year 2014 the Club will be sold (in an orderly fashion, at public or private sale) for the best price obtainable and any sales proceeds remaining after first deducting taxes, commissions and other appropriate charges and expenses, will be distributed in accordance with the priorities set forth below:
    first: Club members of record on the date of termination of the Trust shall be paid their residual rights as specified in Addendum 1 referred to in Clause Seventeenth hereof.

    second: the Company shall be paid an amount equal to the amount paid out under priority First above.

    Third one half of any remaining net sales proceeds shall be paid pro rata among the persons receiving funds under priority first above and the other one half shall be paid to the company.

     
  26. Susan

    November 23, 2011 at 12:56 am

    No we are not guaranteed full residual value. First all sales fees are subtracted, then owners receive their residual (based on initial purchse price) but may not be full residual based on selling price. Next developers get another cut.

     
  27. Lawrence Gorelick

    November 21, 2011 at 8:58 pm

    Would someone be kind enough to answer Judy’s and my question. As per contract are we supposed to receive, upon sale, our full purchase price returned to us?

     
    • Editor

      January 4, 2012 at 10:29 pm

      Owner’s will receive aproportionate share of the net sale price.

       
  28. Mark Blondin

    November 19, 2011 at 4:17 pm

    I just took the new survey. The questions are very general about timeshares and sometimes the wording is confusing. I’m not sure what intelligence they’ll get from it.

     
  29. Mark Blondin

    November 18, 2011 at 2:10 am

    I agree with Patty. It might be better to continue until all three are ending, rather than try to sell the properties individually. Does anyone know what considerations would be with either of these options?

     
  30. Catherine C Hafenmaier

    November 16, 2011 at 10:09 pm

    we have been 20 yr owners at the mayan . . .never received a survey regarding sale. . .just an inquiry a long while ago re our interest in continuing with the mayan, to which we said it would depend on the cost and length of a renewed time share. . . never received anything since that reply. . .actually, we have just about become indifferent to whether it sells or not and frankly, are not even expecting much of a residual. . .if any. . . we leased, then purchased a week at the islander this past year that follows our mayan week and will hold at that until we have more info regarding mayan sale. . .in which case, will probably consider a consecutive week at islander, as so many owners are chucking their time shares due to the economy. . .so it’s obviously going to play out as a “wait and see” thing. . .

     
  31. Lawrence Gorelick

    November 16, 2011 at 6:31 pm

    It is my understanding that the Royal Caribbean owners are guaranteed by contract that they receive their initial purchase price plus a proportionate share of any profit upon sale of the property. Is this still true and do the Royal Mayan owners have to accept a 40% residual? Does anyone know the correct answer?

     
    • Editor

      January 4, 2012 at 10:16 pm

      The Royal Caribbean owners are not guaranteed to receive their inital purchase price back, only a proportionate share of what the net sales price will be. With the Royal Mayan, we at The Owner’s Manual are anticipating a 40% residual value based on current sales (The Hilton hotel and its golf course recently sold for $80 Million Dollars plus $20 Million in upgrades) less taxes, sales commission, and employee benefits (X amount of Dollars for every year of service).

       
  32. Nora Stanbury

    November 16, 2011 at 3:45 pm

    we would like to see it continued till the end of the RI and sell it all together. if we could find out who owns our unit for week 6 – we would take it till the end of the RI. 50 years? since they went to the 50 years, they have had a harder time selling units at RS & RH. starting prices higher, escalating maintenance fees, etc – too long.

     
  33. Judy

    November 13, 2011 at 7:22 pm

    It was my impression that the residuals were a contract obligation. Is this incorrect?

     
    • Editor

      January 4, 2012 at 10:06 pm

      The Developers have in our contracts that the Resort will be sold at the end of the Thirty Year Trust and owners will receive a residual value for their villa. If the Developers want to extend the trust, those that wish to sell would theoretically get back 100% of their rediual rights. This is what happened at VCI and because so many owners took their residual rights (over two years), the Devlopers took a huge loss. This is why I don’t believe the Developers will take that chance with The Royal Mayan, too many onwers may take their residual rights. They could be a part of a new group purchasing The Royal Mayan, and in that case, owners will receive a portion of their residual rights, depending on what the resort ultimately sells for.

       
  34. Patty Havard

    November 10, 2011 at 6:30 pm

    If the estimated price is that low (40% residual), then maybe we should just continue things as they are for the next 5 years and then see what the market/economy is doing at that time. The Royal Caribbean will be up for sale in 2018………..maybe it would be a more attractive deal for someone to have the 2 properties sold together????

     
    • Patty Havard

      November 19, 2011 at 2:46 pm

      Update to my earlier post – if at all possible I would also like to see them wait and sell in 2023 when the RI has completed it’s 30 years……..but if the powers that be won’t commit to wait 10 years to sell then let’s at least try to get them to wait 5 years and sell with the RC in 2018.

      I agree that another 50 years is too long. Our kids (now in their late 20s & early 30s) wouldn’t even want to commit to a 50 year deal – even though they have grown up and love coming to Cancun every year).

      And we never received a survey either…………..and we also thought the residual was a contract obligation. It sure would be nice to have some straight answers!!!

       
    • Lee Ciampa

      January 3, 2012 at 6:14 pm

      We agree with the 5 year wait. Seems to me every 7 years there is some sort of change in the ecomony for some reason.

       
  35. Norb and Ruth Hattendorf

    November 8, 2011 at 4:08 am

    Renew for 50 years and let us sell on our own.

     
  36. Christina

    November 3, 2011 at 8:53 pm

    Let me know what you think

     
    • John Gibala

      January 29, 2012 at 5:11 pm

      Its really unfortunate the Mayan will be sold. My initial thought goes to the miscues created when Vacation Club was sold. When the owners were contacted for commitments. Almost 60% said they would renew. Far less actually did renew and the company was stuck trying to sell Vacation club, now called the Royal Cancun over again. What should have been done was to ask for a non refundable fee from anyone wanting to renew. Because of this, the company doesn’t want to repeat there past mistake. I declined renewal at Vacation Club but would like to see if something could be done to extend the life at the Mayan. It compliments the Carribbean and the Islander and makes our vacation much more enjoyable. My suggestions to company staff were to offer 10 year renewals. Haven’t received any responses. Any feedback would be appreciated. Currently I own at the Islander.
      John

       
      • Mark Blondin

        January 30, 2012 at 4:07 am

        In the first survey, we suggested either 5 or 10 year renewals. I would think having all three properties for sale at the same time would boost their market value. The problem comes with the, probably, large percentage that would not renew. They wouldn’t be able to sell 5 or 10 year timeshares. They wouldn’t have the maintenance fees they need to run it. I hope they come up with a solution. I do wish they’d communicate better. I think the silence hurts their reputation.

         
    • Wilma Wash

      April 21, 2012 at 11:44 pm

      Below is my letter to the Royal Resorts Management –

      Re: The Proposed Terminated of “The Royal Mayan” Membership Program

      Dear Royal Resorts Management:

      The purpose of this letter is to raise an objection to the vote on whether or not to sell the Royal Mayan as stated in the March 2012 correspondence letter to Royal Mayan members.

      You correctly state in item 1 of the FAQs that “According to the terms of the Membership Agreement the Resort should be sold at the end of the Membership Program in January 2014, and the net available funds derived from the sale distributed as available.” The agreement says nothing about a vote and option. Period! You refer to a previous survey, but we know nothing about a survey. We have owned two weeks in the Mayan since it’s construction in 1986.

      We do not want the Mayan membership extended for 15 (fifteen) years for an administrative fee of U.S. $100 dollars with no residual rights and the obligation to pay the yearly club service fee.

      Because we believe the option of extension is not within the agreement, and not what we signed up for, we will let our non-vote speak for itself. As noted on the back of the “Dear Member” letter, “If a vote is not received by internet or fax, it will be considered a vote towards the sale of the resort as stated in the Membership Agreement.”

       
    • Susan Harrison

      June 21, 2012 at 11:24 am

      We have never received a survey although we own 2 weeks at Mayan (got rid of 1 at RC) and 2 weeks at RI. If our information is correct and the option is 15 year extension with no residuals or receiving 40% of our residual by cashing in, the developer would be well to offer a third option – to use your residuals to “buy” a 15 year extension in another unit. That would give the developer more money to pay the folks that cash out and those who want to stay but may prefer a different unit or week can do so. We do not like the direction the company is heading and there is no guarantee that anyone who stays in will not be subject to increased maintenance fees and upgrade fees for improvements. We love it there but after personally meeting with Richard Corso several years ago and indicating our interest in fractionals, we bought two months on the Riviera Maya in 2005 which was much cheaper, way lower maintenance fees and is as well maintained. If I knew then what I know now I would have purchased a condo. There is no doubt the economy has greatly influenced the rental and timeshare market, but our kids don’t want to be tied to the maintenance fees either – and let’s face it; there is a time and cost factor to renting them. Even to turn them into full time condos with developer financing, who wants to pay $3800 in maintenance fees for a month to stay there. There is a huge cost associated with the resort and its amenities that just isn’t a match for today’s economic climate, unfortunately.

       

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