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Re: When Vacation Clubs Go Broke

[Q=orvillef2] Does anyone know what might happen if a Club filed bankruptcy. Would club members have rights if there membership had no real estate deed attached? Would the best resort belonging to the club have to pay for the worst resorts failure. What if you have a deed and other people gave up their deed to belong to the club? Any protection or first right for the deed holder? Has this ever happened?[/Q] ================================== Vacation Clubs, by definition, are "right to use" and have no ownership (and hence no deed, since you have no "ownership" of anything). Only the owners of the properties (underlying club investors) actually have any ownership interest. What YOU would have is basically a "membership", for a clearly specified period of time, while owning absolutely nothing. While such clubs rarely if ever fail, if they did you'd have no further obligation since you really have no ownership of anything in the first place. By the same token, in the event of financial failure, you'd also have little or no recourse for recovery of your "lost" membership costs either. The nature and financial interrelationships of multiple resorts within such "clubs" varies on a case by case basis, with no "one size fits all" situation or answer to that particular part of your question. Perennial Vacation Club (based in Nevada) is a strong company with solid management and with which I've had direct personal experience, but I surely don't claim to know the status or financial organization of ALL VC's. They are all quite different, the only common feature to all of them being "right to use membership" vs. "deeded ownership".