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4 Comments

  1. 1

    John

    Mike, nicely done. One thought to add is this: if the current timeshare model is a RTU instead of a deeded one, why is the contract a perpetual one? If I don’t want to be in the club, why can’t I quit? The deeded model means that I have some property rights, and I can’t walk away without repercussions. But RTU product means that I don’t “own” anything.

    If I am in a country club, and my life circumstances change, I can call the club and resign my position. I ,may loose an initiation fee, but my dues are canceled. Or, if I have a lawn service that I don’t like, I can tell them that I am not renewing next year. The newer timeshare model imposes the obligations of ownership without the corresponding benefits. Doesn’t seem fair.

  2. 2

    Mark

    Good point John but keep in mind that when any of us own a full ownership vacation (or 2nd) home and we don’t use (rent or loan out) the property for (e.g.) 8-10 months of the year it still has to be maintained.

    I.E. There is always an ongoing cost; regardless of use (or no-use).

    Most of us agree however that whether a TS is a RTU or perpetual; there must and should be an out.

    Lastly, here in PV – we sell a RTU for 25 years.

    When the time is done; time served (LMAO)!

    Viva Mexico!

  3. 3

    Sandee

    Hello I am so glad this article came out right when I am investigating how to have my Parent’s timeshare canceled, terminated… or just give it back. They have been paying on it every year so they are current, but they purchased it under duress.. they either had to sign or the price that they were being offered would be higher the next day. They never had the opportunity to have an Attorney review or even myself and as a Realtor of over 25 years would have told them NO.. It was one of those free weekend get away, 10 plus years ago. The deal was to use it or have the resort rent it out and make an income.. The first year they actually received tax paperwork for income received though my parents NEVER received and monies and when the resort was asked multiple time about the funds the answer was always “we will look into this and get back” Never heard a word.. Both of my parents are now in the mid 80’s and I personally called the resort and they stated that they don’t take back timeshares and what was astonishing to me is the rep stated that the contract that my parents signed actually will transfer to his estate upon death… need to look into it.. Being a a SA I told the timeshare that I will have my father will state that the timeshare will be left to them.. Well I hope you can add some light to this.

  4. 4

    Nick

    Hi Sandee,

    There is much in your story that doesn’t’ make sense; to me.

    One portion though that really stirred my attention is the tax paperwork your parents say they received for income (rental) that first year.

    If the resort (developer or HOA) sent out the paperwork and if you have the paperwork and if your parents never received any funds or never had any funds applied to (e.g.) paying off their TS then that could be a possible tax problem for the resort (developer, management company or HOA).

    Try exploring that further and then take whatever you find to an Attorney and see what they say.

    Good Luck

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