Diamond Resorts International Timeshares
Did you pay thousands of dollars for “points” Diamond Resorts International timeshare collection? Do you believe your investment is now worthless?
This firm is currently investigating the seemingly astronomical amount of annual fees and dues charged to timeshare owners in the various Diamond Resorts International member associations (“Collections”). Some owners have found that their annual assessments are so high that their timeshare interests (or “points”)—purchased for thousands of dollars—are completely worthless. Some owners feel that there is no true economic benefit of their investment, when the same resorts can be booked off the Internet by the general public at a far lower cost. Some Diamond Resorts owners are trying to unload their “points” on eBay for pennies on the dollar, or even give them away, just to get out from under this crushing annual expense.
There are legal limits on how much a Board of Directors of a timeshare owners association can charge timeshare owners. The charges must be fair honest, based on full disclosure, and overall the amounts charged must be consistent with the Board’s fiduciary duties. In the Diamond Resorts International (“DRI”) systems, DRI itself or one of its related entities appears to own a large number of “points” in each collection, often serves as Developer, and is set up so that its control of the Board is guaranteed. The Board of Directors of the timeshare owners associations are appear to be controlled by DRI executives or related entities. These DRI executives in turn hire DRI’s affiliate or subsidiary to serve as property management company for the resorts in the Collections.
The Board is responsible for overseeing the performance of the property management company and assuring that association’s fiscal affairs are handled reasonably and fairly— with the best interests of individual owners in mind. But when a DRI Board hires a DRI property management company, there is an apparent conflict of interest. Is the fox is guarding the chicken coop.
To be completely fair and accurate: We do not yet know whether the assessments charged by Diamond Resorts International are illegal, or even improper. We do, however, have very serious questions, and we are thoroughly investigating the matter. If the evidence does show wrongdoing, we will take strong legal action to protect owners’ rights.
If you have purchased a timeshare (or “points”) in any of the Diamond Resorts Collections, and if you share in our concerns, give us a call. We would like to hear about your experience, and we may be able to help.
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The information and views contained in this posting are not legal advice, nor do they form an attorney-client relationship.