Can someone reset the "Aulani Problem"

[ramkam]

With the removal of Lewis I am hearing more comments about Aulani being a big problem for Disney. Can someone lay out what the problem is. I have not seen much reporting on it. Will there be a problem with contracts that have already been sold or is it just an issue for new sales going forward. We purchased a small Aulani contract at the start of the year. I am just wondering what if any effect Disney's problems with Aulani will have on us.

Thanks for any thoughts or information you can share.

 

[DenLo]

You might want to read the Jim Lewis fired thread here on Mousecellaneous.

Or http://dvcnews.com/index.php/dvc-program/owning-dvc/1670-jim-lewis-out-at-dvc/

What I'm most surprised is that no news company including in Orlando or Hawaii has picked up on the fact that Aulani sales have been suspended. Good grief, the resort is scheduled to open the end of the month and no one is interested?

 

[Simba's Mom]

OK, so Aulani sales have been suspended. But what about building? Is it still going to take reservations, open, and operate as planned?

 

[kdzgon]

OK, so Aulani sales have been suspended. But what about building? Is it still going to take reservations, open, and operate as planned?

My guess would be "yes" as I understand the issue is with the RE sales licensing not the resort itself.

 

[DebbieB]

Could contracts already sold be voided? It seems they would not be legal if DVC did not have the proper license.

 

[KBoopaloo]

Could contracts already sold be voided? It seems they would not be legal if DVC did not have the proper license.

I was wondering this as well. They've been selling Aulani for quite a while now, haven't they? It certainly feels like they've been promoting it forever.

Is there anyone here who has bought Aulani? Has DVC contacted you in any way about this issue?

 

[ramkam]

So if the problem concerns the RE sales licensing, what does it mean for Aulani owners who purchased from an unlicensed agent? How does that affect the contract. Does it have implications if the owner wants to sell that "tainted" contract someday? DVC really needs to let Aulani owners know what is going on.

 

[tjkraz]

The full extent of the problem is not publicly known...but I bet it will be in the next few days. Until 24 hours ago, DVC was giving off the distinct impression that it was more of an internal contracting issue--as in their lawyers were revising documents.

If DVC was not properly licensed dating back to when sales began, buyers could most likely request that their contracts be voided and monies refunded. It seems highly unlikely that all sales would be unilaterally reversed against the will of current owners.

 

[EWL]

Wow! Had not been paying much attention to this... So if we were to go to this week's welcome home wednesday and see the Aulani model room, they couldn't even actually sell us a contract at Aulani?! When it opens in 2 weeks?! No wonder he got fired!

 

[kikiq]

OK, so Aulani sales have been suspended. But what about building? Is it still going to take reservations, open, and operate as planned?

The building will continue, and the HOTEL and finished DVC units will operate as planned. MS is taking reservations for the DVC units as posted by several DIS members. What is happening is that you cannot buy Aulani points until the State of Hawaii and DVC settle some internal paperwork.

I was at the Pasadena event on Saturday when the sales presentation was changed to AKV and how to use your points outside DVC. We did meet with our guide to ask questions about buying points as a family unit. She told us Saturday afternoon that all Aulani sales had been suspended because there were questions about the percentages of hotel/timeshare units in the paperwork submitted to Hawaii. That paperwork had to be rewritten before sales continued. We know someone that was working as support staff at that event and the word came to suspend Aulani sales after the last presentation on Friday. They said that the DVC staff was up all night rewriting the presentation, reworking the video/slide presentation and reworked the sales presentation to promote AKV.

Even if it is just revising paperwork, JL was still ultimately responsible for all the pieces being in place for sales to begin. And I will say AGAIN, that real estate paperwork in Hawaii is complicated. The "buck stopped at JL" to be aware of everything in opening a new DVC property.

 

[Frikitiki]

I had heard two weeks ago from another DVC point holder at the Aulani site that the sales had been suspended. I didn't say anything or bring it up at that time. Maybe I should have.

 

[Frikitiki]

I went to the DVC kiosk at Ala Moana Center tonight and spoke with one of the CMs. I asked when they would be able to sell points for Aulani again and he said that they can sell them now. I asked a few other probing questions and he said "I don't know anything about that."

I will be going to the resort itself tomorrow (Sunday) and I'll ask the people at the kiosk there and see if I get the same answers.

 

[Sammie]

I went to the DVC kiosk at Ala Moana Center tonight and spoke with one of the CMs. I asked when they would be able to sell points for Aulani again and he said that they can sell them now. I asked a few other probing questions and he said "I don't know anything about that."

I will be going to the resort itself tomorrow (Sunday) and I'll ask the people at the kiosk there and see if I get the same answers.

Did they know that Jim Lewis had been fired.

I know nothing about the timeshare laws of Hawaii, but is it possible the problem was selling outside of Hawaii, and possibly selling in Hawaii is ok.

 

[Frikitiki]

that was the I don't know anything about that response to the question about Jim Lewis.

 

[disneynutz]

There were some posts two weeks ago where a couple of people bought Aulani in Pasadena. When they received their contracts to sign, they noticed that the paperwork had been switched to Kidani without notice and in one case the Guide when confronted reportedly lied and stated that the DH made the change.

Bill

 

[TisBit]

Did they know that Jim Lewis had been fired.

I know nothing about the timeshare laws of Hawaii, but is it possible the problem was selling outside of Hawaii, and possibly selling in Hawaii is ok.

I don't think anyone really knows the "problem" with aulani sales. From the previous psts about it, it could be a problem selling it in California only or as you stated outside of Hawaii. We do not even know if the "paperwork" being reviewed is really an issue with Hawaii at all, it could very well be that they were somehow violating California's timeshare laws (and might be surround pre-sales, which means they just need to drag their feet until opening).

In essence, we do not know what the problem is and how major/minor it will be.

 

[jagson]

Did they know that Jim Lewis had been fired.

I know nothing about the timeshare laws of Hawaii, but is it possible the problem was selling outside of Hawaii, and possibly selling in Hawaii is ok.

Does anyone? Found this site on Hawaii TS laws. Who can figure out this gibberish, other than a real estate lawyer? How could anyone legally get to the point of selling TSs, and comply with all these restrictions? Especially confounding is chapter 514E-11. And what is that squiggly thing in front of the 514E?
hawaii.gov/dcca/pvl/hrs/hrs_pvl_514e.pdf

 

[Simba's Mom]

Does anyone? Found this site on Hawaii TS laws. Who can figure out this gibberish, other than a real estate lawyer? How could anyone legally get to the point of selling TSs, and comply with all these restrictions? hawaii.gov/dcca/pvl/hrs/hrs_pvl_514e.pdf

I think that although it's OK for you and me not to understand it, DVC paid Jim Lewis big bucks and one of his jobs was TO understand it, or to find a reputable real estate lawyer to. The fact that he didn't may have contributed to him being fired-he didn't do what he was paid to do very well when it got tough.

 

[jagson]

I think that although it's OK for you and me not to understand it, DVC paid Jim Lewis big bucks and one of his jobs was TO understand it, or to find a reputable real estate lawyer to. The fact that he didn't may have contributed to him being fired-he didn't do what he was paid to do very well when it got tough.

"
I suspect the best real estate experts/lawmakers/attorneys couldn't "cross all the I's or dot all the T's" required in this document, even the authors of it. JL's staff probably couldn't comply with all the requirements. Maybe JL didn't "play ball" with the lawmakers, and he was "outed". I doubt all the other Hawaiian timeshares have all complied with the all the requirements, but maybe "played ball" with the politicians. Just a thought.
As TS requirements go, is Hawaii's on par with other States' TS laws? From the little I read, my eyes glazed over, and it had a soporific effect on me.

 

[TisBit]

The issue that I have with the theory that he was fired over Aulani, is generally in the corporate world there is a giant ripple effect in a situation like this. First, they discover the problem....usually the lower echelon and lawyers are the first to take a fall. Those are the ones that were charged with making sure everything is complied with. Then you see senior management shake ups....and lastly the head honcho is held to account if it comes down that he was complicit in the failure....and they are usually "asked" to resign.

To suddenly terminate Jim Lewis, without a lot of other fallout (VP's going down, etc) is not usual for a problem that has been going on for about a month now. This level of coporate management if very political and rarely do they get "fired", as this story says. Now, maybe he officially resigned under pressure, so the story coming out of WDW is that he was fired, but they still will usually let them sit tight for a bit and allow for an orderly transition.

Which, is why I speculate that this might be bigger than just Aulani....but maybe some of the ongoing issues plus some sort of other big thing that we have let learn about has pushed WDW into cutting bait on him.