Troubled timeshare resort sold
A timeshare resort in Ontario, Canada which first opened its doors in the 1990s’ has informed disgruntled owners that the property will now be sold.
We heard about The Carriage ridge and Carriage Hills timeshare resorts back in October when a Judge ordered the resort to close its doors permanently. The two separate timeshare resorts were managed by Wyndham Vacation Club and had 250 separate timeshare units situated in a beautiful Skiing location. The resort also had 11,000 timeshare owners who had all originally purchased timeshare contracts in perpetuity. This meant owners were trapped in timeshare contracts for life and in the event of their death it would form part of the individual’s estate and would be handed down to family members who would be forced to take the timeshare on, whether they wanted to or not.
Many of the owners were unhappy with the resort as it had fallen into disrepair and despite having to continue to pay maintenance fees, the resort had failed to make any improvements to it. Because of this many owners had defaulted on their maintenance fee payments and abandoned their timeshares altogether. The judge in the case ordered a survey of owners be conducted which clearly showed that most of the owners were unhappy with their timeshares. The judge ruled that the resorts were no longer fit for purpose and should be closed, and liquidators brought in.
Liquidators were then instructed to sell the two properties, but also told delinquent owners if they could pay a reduced amount of what they owed they would no longer be tied to the contracts for life. The remaining, non-delinquent owners were told in a hearing last week that the resort had in fact now been sold and they would be free from their life-long obligations, however they would probably not get any compensation. The owners were told it would be up to a judge to decide who gets compensation and this would depend on the sale and any proceeds of that sale. Bearing in mind the resorts had been running at a loss for a few years and unable to make any repairs or improvements, it is yet to be seen whether any owners will be compensated for the price they purchased or indeed the years of maintenance fees they paid.
Do you have a timeshare contract in perpetuity?
Terminating a timeshare contract is difficult for a reason, simply put resorts do not want you to stop paying maintenance fees, that is why it is so difficult for you to surrender your ownership.
A perpetuity clause essentially means that you will own your timeshare forever and your children and their children will be liable for the fees when you pass away. This is a scary thought for many people who have likely been through the timeshare turmoil mill for some time and do not want to pass the burden on to their loved ones. You can’t simply give up your timeshare either, if you have an in-perpetuity contract, Very few companies let you do that as losing you as a member means they will lose out on management fees. Even if this is an option with your resort, bear in mind that any financial investments you have ever made during your ownership will be lost and you cannot get your membership back if you change your mind.
You may be able to make a claim!
Many Timeshare owners who have been trying to get out of Timeshare for years are just happy to be free from the crippling maintenance fees and an inflexible holiday system, however making a claim is still possible under certain circumstances. Timeshare Finance Claims are the leading provider of regulated timeshare claims in the UK. Contact us today to be considered for a claim.
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