There are a lot of things that we wish could last forever: the perfect evening on the beach, time spent with family, the lovability of a new puppy. For most people, that list doesn’t include timeshares.

It may come as a surprise, but 74 percent of all timeshare contracts are in perpetuity, meaning they have no fixed end. While some timeshare resorts sell this idea as securing a comfortable lifestyle for your children, other resorts may not even mention the clause at all. Timeshare perpetuity places a financial burden on the next generation, as they’re now responsible for paying escalating annual maintenance fees, even if the timeshare mortgage is paid off or not used.

It’s no wonder timeshares continue to be one of the fastest-growing issues people complain about,  according to the Consumer Federation of America.

So, why are there perpetuity clauses in most timeshare contracts? The American Resort Development Association (ARDA) notes that the average timeshare owner is 51 years of age, with the majority in the Baby Boomer generation. Bringing in first-time and younger buyers remains a longstanding challenge for an industry that prioritizes growth over the next decade. One way to ensure continued revenue, is to lock down the next generation in a contract their parents have signed.

If you are concerned that your timeshare will be passed on to your children after you pass away, then you need to find out if your timeshare contract includes a perpetuity clause. Timeshare Exit Team has experience with these contract clauses and can help you navigate a way out.

Thomas Parenteau, COO at Timeshare Exit Team

 

© 2013-2018 Reed Hein & Associates, LLC. Reed Hein is not a law firm*