Delray South Shore Club, a timeshare condominium chartered in 1981, is one of the only beachfront properties left available for the average person as an economical vacation on the east coast of Florida. 2019 has seen a concentrated effort by speculators to sell this property to a developer despite the owners wishes to remain a timeshare resort.
In 2017 the BOD solicited, then received, an owners vote to continue as a timeshare. The scheme to sell the property began after this vote according to investigations by concerned owners.
A long time owner used many methods, including outright fraud to manipulate the BOD and Owners into consenting to terminate the timeshare and sell the beachfront property to developers.
There is proof and the search of public records, real estate transactions, BOD meeting minutes and media reports reveal a paper trail. There is documentation of the intent to use the legal system, State Agencies and relationships with public officials and developers to obtain this property for their own enrichment.
The Florida Condo/Timeshare Compliance Division was used by an owner over 20 times to initiate State compliance investigations and paperwork for the Association. In addition, this Owner sued the BOD for information not available to other owners for information on foreclosures and delinquents. This same Owner and an associate were elected to the BOD with questionably fraudulent resumes.
Unsolicited offers for purchase of the property were tendered with the BOD and Owners were not notified for three (3) months.
Four out of seven BOD purchased auctioned weeks without timely notification to Owners. BOD members also purchased foreclosed intervals, weeks the Owners paid to have legally foreclosed on, from DSSC on information not shared with Owners for $10 to $500 each week.
The resort was sabotaged twice costing the Association over $20,00 in repairs.
This was reported to the Delray Police with the resort manager stating that he believed this occurred because a developer wanted to buy the property.
Another survey was sent out by the DSSC attorney asking if the Owners wanted to sell with the count still in favor of keeping the resort.
The BOD has a full list of Owners and sends out missives while owners cannot communicate. The BOD consistently failed to make needed renovations and repairs to the property despite Owners payment of required assessments and maintenance fees.
Despite the Owners expressed wishes to remain a timeshare resort the BOD sent out a proxy vote to all owners regarding the termination of the timeshare and sale of the property. The ‘ballot’ cited renovation/repairs in excess of 1.5 mil not based on any contractor quotes. The ballot was confusing with owners having many questions not answered by the BOD. The DSSC attorney, citing a 92% compliance rate stated, an overwhelming consent vote to terminate and sell. The proxy was not sent as required by Florida Law and there is over 5%, actually 12%, of the Owners that do not want to sell
The BOD is now in a ‘trustee’ position. Nothing is being repaired and the Annual Owners Meeting and Elections required by Association bylaws has been cancelled.
This property will be sold at below market value to developers that will bulldoze the resort and build multi-level beachfront condos for the wealthy, $5-10 million each.
The BOD was not honest and did not fulfill their fuduciary responsibility to Owners, a legally binding responsibility. The BOD misinformed, failed to inform and used outright disinformation to obtain the result they wanted, the termination of the timeshare and sale of the property to their own benefit. The BOD engaged in self dealing to enhance their financial windfall at their own direction.
Four of the Owners have initiated a lawsuit to stop the sale of the property. The suit asks the court to have the BOD return the fraudulently purchased intervals, toss the flawed proxy vote, order continued operations as a condo association for regular people to vacation until settlement of the suit. The court is asked to require the property to be placed on the open market for a fair bid with detailed information for the Owners to decide to sell or stay.
These developers have money and connections while we ‘regular people’ from all over the country cannot even communicate the real facts nor request support.
Want to know more? See the website at https://bit.ly/delrayssc
To help us fight big real estate money contribute to the legal fund at https://www.gofundme.com/save-south-shore
e-mail with comments:
transparencyssc@gmail.com
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