The Perpetual Contract Problem: How Timeshares Keep Owners Trapped

The Perpetual Contract Problem: How Timeshares Keep Owners Trapped

Timeshare ownership often sounds like a dream come true – an opportunity to enjoy luxury vacations at your favorite destinations. However, the reality of timeshare contracts can be quite different. In this article, we will explore the issue of perpetual contracts in the timeshare industry and how these agreements keep owners trapped.

1. Perpetual Contracts Defined

Perpetual timeshare contracts are agreements that extend indefinitely, often for the life of the owner and, in some cases, even beyond. These contracts continue to obligate owners to pay maintenance fees and other expenses as long as they live or until they are passed on to their heirs.

2. The Problem with Perpetual Contracts

The perpetuity of timeshare contracts presents several problems for owners:

a. Ongoing Financial Obligations

Owners are required to pay maintenance fees, annual dues, and other costs for the duration of the contract. These expenses can become a financial burden, especially for retirees or individuals on fixed incomes.

b. Lack of Exit Options

Perpetual contracts make it extremely difficult to exit timeshare ownership. The long-term commitment leaves owners with few options for escape.

c. Passing Down the Burden

In some cases, perpetual contracts are inheritable, meaning that the timeshare and its financial obligations can be passed on to the owner’s heirs. This can be an unwelcome financial burden for the next generation.

d. Changing Vacation Preferences

Over time, vacation preferences can change. What was once a dream destination may no longer hold the same appeal. Perpetual contracts offer little flexibility to adapt to these changing preferences.

3. Exit Challenges

The perpetual nature of timeshare contracts makes exiting the ownership arrangement a significant challenge. Owners looking to exit may encounter obstacles such as:

a. Limited Resale Opportunities

Reselling a timeshare is often challenging due to a saturated market and a lack of interested buyers. This lack of liquidity in the resale market further traps owners.

b. Exit Companies and Scams

Owners desperate to escape their timeshares are often targeted by exit companies, some of which are scams that promise relief but deliver nothing. These scams can exacerbate the problem and lead to additional financial losses.

c. Developer-Imposed Restrictions

Timeshare developers may impose restrictions on the resale or transfer of ownership. These restrictions can include high transfer fees, buyback clauses, or the right of first refusal.

4. Legal and Ethical Concerns

Perpetual contracts have faced legal and ethical scrutiny. Some have been challenged in court for their lack of transparency and the burden they place on consumers.

5. The Need for Reform

Consumer advocates have called for reform in the timeshare industry to address the issue of perpetual contracts. Some proposed changes include:

a. Shorter Contract Terms: Limiting the duration of timeshare contracts to make them more manageable for owners.

b. Clear Exit Provisions: Ensuring that contracts contain clear exit provisions, allowing owners to exit without excessive costs or complications.

c. Transparency: Requiring developers to provide more transparent and honest information during the sales process.

d. Regulation: Introducing stricter regulation in the timeshare industry to protect consumers from perpetual contracts and other predatory practices.

6. Protecting Your Interests

If you find yourself trapped in a perpetual timeshare contract, consider the following steps:

a. Consult Legal Advice: Speak with an attorney specializing in timeshare matters to explore legal options for exit.

b. Negotiate with the Developer: Contact the timeshare developer to discuss potential exit options, though be prepared for resistance.

c. Explore Legislative Action: Support legislative efforts to reform the timeshare industry and address the issue of perpetual contracts.


Perpetual timeshare contracts have become a source of financial and emotional distress for many owners. The problem of perpetual contracts is a complex one, and it requires attention from both the industry and legislators to protect the interests of timeshare owners. Until reform occurs, owners must navigate the challenging landscape of timeshare ownership and seek legal advice when necessary to find a way out of these binding contracts

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