After publishing news on the sad state of affairs at Lake Okanagan Resort in British Columbia, more information has been given to TCA, most not good were afraid. After the McDougall Creek Wildfire destroyed most of the resort, nothing seems to have moved forward, that is with the exception of annual maintenance bills, and the threat of having timeshare leases cancelled for non-payment!
Given that we all understand and accept that timeshare maintenance fees are paid exactly for the purpose of resort maintenance. Now TCA would like to ask, if a resort has 90% burnt to the ground and the reality is that much of what is left is just a pile of ashes, is it fair to continue to have maintenance fee demands? Being flippant, how much does it cost to maintain broken bricks and ashes?
Below we reproduce a rather threatening email. In basic terms, the owner of the timeshare lease logically has come to the conclusion that no resort equals no maintenance fees, but not according to the resort:
“We write with respect to your lease agreement dated for reference the 27 day of Mar, 2024bearing lease number xxxxxxxxx (the “Lease”).
You are in default of payment of your maintenance fees since at least October 19, 2023, and the current balance owing to Lake Okanagan Resort as of October 19, 2023 is $1540.83.
Pursuant to the provisions set out in the Lease, we hereby provide you with written notice that:
1. You have been in default of the Lease since at least October 19, 2023; and
2. Given that there has been over 90 days since the default, Lake Okanagan Resort has the right to terminate the Lease.
If you do not make payment of the $1540.83 owed to Lake Okanagan Resort by April 5, 2024, then Lake Okanagan shall exercise its right to terminate the Lease effective April 6, 2024.
Upon the Termination of the Lease: (1) Lake Okanagan Resort shall be entitled to the full and exclusive right to use and occupy the lands free and clear of all rights of the Vacationer pursuant to the Lease, (2) Lake Okanagan Resort shall not be obliged to account to the Vacationer for the proceeds of any income derived from the lands, and (3) Any money derived from the lands shall be the sole and exclusive property of Lake Okanagan Resort.
Upon the Termination of the Lease, the Vacationer shall be release from all obligations set out in the Lease, save and except for the $1540.83 and/or any other liabilities outstanding as of April 5, 2024.
Balances due can now be settled by mailing a cheque to P.O. Box 32625, Richmond, BC, V6X 3S1 Or you can e-transfer to our account. The email address for e-transfer is: ar@lakeOkanagan.com
All rights reserved.
Lake Okanagan Resort”
No mention of the fire, no mention of any projected rebuilds just some pretty solid threats. In this case the timeshare lease owner paid 8,025 Canadian Dollars in 2005 for a 40 year lease so as per the threat letter potentially loses 21 years of the lease if the threat is carried out.
From a chequered past to a murky future
In our first article we gave a potted history of the ownership of the resort. Bringing us up to date, we established the current owner is a Chinese businessman by the name of Xiao Dong Liu AKA Allen Liu. From our research we have established that Mr Liu has had a fairly colourful past.
It transpires that Lake Okanagan Resort is not the only property in the portfolio of properties owned by Mr Liu. When researching, if you see a headline such as:
“Real estate fraudster is the beneficial owner of 65 properties, transparency registry shows”
It makes you want to investigate deeper. According to the article we found online, and we quote:
“A Surrey man found by a judge to have committed real estate fraud is the beneficial owner of 65 properties, BC’s beneficial ownership registry shows. The Land Owner Transparency Registry shows that an individual by name of Xiao Dong Liu is the beneficial owner of 65 properties. 64 of those titles are held by Carthew Registry Services, which itself had once been named as a defendant in a lawsuit alleging real estate fraud.”
In an unrelated long running lawsuit involving Liu, and concerning the sale of a bowling alley, the presiding judge described the lawsuit as a “Festival of deceitfulness”.
TCA comment
One thing can be said without fear of contradiction, and that is the problems surrounding this resort, and here we are not only referring to the fire, are not going away any time soon. Given the additional evidence TCA discovered, it’s clear that timeshare is not part of the business model of the Allen Liu property Empire. This man is purely a property speculator who just happens to have purchased a timeshare resort.
In all honesty, how can invoices for maintenance fees be sent out to timeshare owners when over 90% of the resort doesn’t exist so the ability to holiday there can’t happen. Then worse still threatening foreclosure and cancellation of leases for non payment, absurd and disgusting business practice.
From our continued research, no mention of an insurance rebuild payout has been revealed, no redevelopment plans have been forthcoming from the developer, and as we write, the site has not even begun a damage clearance programme.
This has all the signs of a pseudo land grab. If the land owner (Xiao Dong Liu) can get rid of all timeshare owners, then the land can be developed. Given the location, a small estate of luxury lodges would undoubtedly sell well. TCA believe the section of the threatening letter as printed above confirms this fact and couldn’t be clearer!
Upon the Termination of the Lease: (1) Lake Okanagan Resort shall be entitled to the full and exclusive right to use and occupy the lands free and clear of all rights of the Vacationer pursuant to the Lease, (2) Lake Okanagan Resort shall not be obliged to account to the Vacationer for the proceeds of any income derived from the lands, and (3) Any money derived from the lands shall be the sole and exclusive property of Lake Okanagan Resort.
This story is far from having a happy ending and for now it appears that the mythical phoenix has no intention of rising from the flames, at least not as a shiny new timeshare resort.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk