Before the EU Directive 2008/122/EC stated that all timeshare contracts must be simple to understand, many contracts were full of complicated legal jargon. Much of this legal jargon was implemented to confuse the buyers, making it difficult to understand what their responsibilities were. The most common term that we believe needs to be explained is the timeshare perpetuity clause.
What does perpetuity mean?
Derived from Latin, the word perpetuity means forever. The timeshare perpetuity clause bounds the owner to abide by the terms and conditions indefinitely. Much different from a lease, if you own something indefinitely, this becomes your legal asset.
What happens to my timeshare if I pass away?
Just like owning a house, this does not end if you were to pass away. If your contract is in perpetuity your timeshare will be passed on to your next of kin, usually your children unless willed to someone else. Your children will then be the owners of your timeshare and it would be their responsibility to sell it or terminate the contract if they decide that they do not wish to keep it. The value of the timeshare is also subject to inheritance tax.
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Is the timeshare perpetuity clause legal?
The EU Directive 2008/122/EC states that all timeshares sold within a European Union country cannot be sold for a term that exceeds 50 years. This law applies to all long term holiday products. If you have purchased a timeshare or holiday product outside of the EU, you would need to check that particular countries laws in regard to property ownership.
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LEGAL NOTICE: This information was sighted from the The European e-Justice Portal. For information on all other European laws please follow the link to their website.