If you are considering purchasing, or already have a timeshare you may be interested in the financial records of one large scale timeshare developer.
Their annual accounts suggested that one resort, with 576 units had over $20,000,000 of annual dues attributed to it! This is a colossal figure and would seem impossible. However, upon closer inspection the following facts became obvious:
- There are more buyers in the resort than available apartments. In effect it is grossly overbooked as all deeds have been sold and yet you can still purchase points to enable you to join the system.
- There appears to be a general duplication issue, management fees are frequently charged several times throughout the year.
- You can rent a unit directly in the property as a member of the general public and it will cost you less than it would someone with a timeshare in the resort!
- The developer has a conflict of interests which will not be resolved. This is due to the fact it controls the management group and the development side. The result of this is the ability to sell more units even though they are all sold.
The developer should be looking to sell the individual units while the management team should look after the rights of the timeshare owners. The fact that they are both owned by the same firm means that the developer’s interests will always come first. In fact, they have even attempted to justify this conflict of interests in their annual report.
In many cases, every managed resort owned by a developer is managed by a Home Owners Association (HOA). These HOA’s are run by a small board of directors and they are chosen via an election which all timeshare owners have the right to vote in. However, the contract may also state that the associations can have representatives appointed by the timeshare developer as well. This is important as it ensures the developer can vote in the HOA affairs, steering them in the direction the developer wants and needs them to go.
An obvious part of this process is to ensure that the developer is hired as the management company for the development. This ensures they have complete control over the building and the units; despite a process designed to prevent this! If you look into this a little deeper you will also find that none of the appointed directors vote against the management firm. They are all there on behalf of the developer and are looking to take care of the developer’s interests. This means that there are no financial cross-checks on practices and procedures; allowing the developer and the management firm to overcharge and duplicate charges. In fact, some major developers appear to have maintained this situation for ALL of their timeshare resorts, leaving you, the timeshare owner, out of pocket.
Fidelity timeshare lawyers have decades of experience in legal timeshare cancellation. As a consumer, you have the right to be thoroughly informed about the product you are purchasing and to be protected from fraudulent or misleading information when making a buying decision. The Fidelity timeshare attorney network makes expert representation affordable.
Fidelity Resource Management offers a free evaluation of your situation and our legal team will determine if you have a case for legal timeshare cancellation.
Call us today at 1-877-218-3223!