One of the main lines of thought that goes into purchasing a Timeshare is for genuine private use, a family wants a lovely resort they can plan an annual vacation around, bring the kids, and enjoy the week without a hassle. The Timeshare industry however, understands its consumers well, and often employs deceptive tactics in their contacts, none of which are more concerning than successor liability clauses. The idea of passing on your ownership of the resort to your children may be sound on paper, but in reality, creates a pitfall of debt that is passed on to your descendants.
What is Successor Liability?
In short, the clause exists to ensure that when the original owner passes, the contract is not voided. It is usually sold as the transfer of the property by means of will to your children, so that the property remains in the family. What is never mentioned is that the inheritor would also inherit the debt, maintenance fees, and any other charges the original owner was unable to pay off before they passed.
When included as part of a Will, the descendants have the option to claim or reject the Timeshare, however, they would be still be forced by successorship to pay for the yearly maintenance fees, as well as any unsettled debt, as per the original contract. This debt is accrued through no accord of their own, and even if the mortgage is completely paid off by the original owner, they cannot renegotiate the fees they have inherited, in fact, these fees usually just keep climbing.
Where Does this Debt Come From?
The crux of the issue is that almost all Timeshares have no market value, and therefore, no inherited value. They are sold for only what the contract deems they are worth on an individual basis. Thus, an inherited Timeshare cannot generate value, only detract from it as rates are raised and yearly maintenance fees accrue.
How to Proceed
As a Timeshare owner, you must consider the far-reaching consequences of a contract, especially when it cannot be dissolved even through death. A lawyer may be able to force the resort directly to break the contract in the proper circumstances. And the state of jurisdiction may have laws granting consumer protection against these types of predatory contracts, a far safer and less expensive route. Regardless of how one chooses to pursue it, always consider first speaking with a licensed lawyer experienced with Timeshare divestment to handle your case.
If you wish to know more, please visit, https://thetimesharelawfirm.com/
For a consultation, contact The Timeshare Law Firm at, 1-(360)-918-8169