Hi Ken. The owner would be guaranteed the residual amount plus even more should the sale price be high enough. Here is the exact wording from the Royal Mayan membership paperwork :
"The company declares that following expiration of the Trust in January in the year 2014, the club will be sold (in an orderly fashion, at public or private sale) for the best price obtainable and any sales proceeds remaining after first deducting taxes, commissions and other appropriate charges and expenses, will be distributed in accordance with the priorities set forth below:
First: Club members of record on the date of termination of the trust shall be paid their residual rights as specified [elsewhere in paperwork]
Second: The company shall be paid an amount equal to the total amount paid out under priority First, above.
Third: One half of any remaining net sales proceeds shall be paid pro rata among the persons receiving funds under priority First above and the other one half shall be paid to the Company."
The residual amount is almost always the original developer sales price of the unit. The other Cancun Royals have similar language with slighly different wording, some more favorable and one which pays all owners an equal residual amount.
Club International (de Cancun) has it's RTU ending in 2007 with substantially the same residual payout plan (though some of the units there do not have residual rights). I am perhaps one the most cynical Royal owners, but I believe that the Royals will make good on the residual payment at Club International. I also expect an announcement of a new Royal resort to be built south of Cancun around the end of this year along with a special offer/incentive for Club International owners to buy there.