The Timeshare Perpetuity Clause Explained: Why Your Contract Might Never End
Many timeshare contracts include a perpetuity clause, meaning the agreement has no defined end date and can pass to your heirs. This is general information, not legal advice, but it’s a detail worth understanding before deciding your next step.
What It Means
Unlike a car lease or a mortgage, a perpetuity-clause timeshare continues indefinitely unless the owner takes specific legal action to end it. Maintenance fees and obligations continue for as long as the timeshare exists, potentially for generations.
Why Developers Use Them
A perpetuity clause guarantees ongoing maintenance-fee revenue without needing to renegotiate or find new buyers as owners age out. It benefits the resort’s business model considerably more than any individual owner.
How It Affects Your Heirs
Because the obligation doesn’t expire with the original owner, many perpetuity-clause timeshares pass to heirs through the estate, sometimes without those heirs ever choosing to accept it. Addressing this while you’re able to act yourself, rather than leaving it to probate, is generally the better path.
Perpetuity vs. Right-to-Use Contracts
Right-to-use contracts typically include a defined term, often 20 to 50 years, after which the agreement ends on its own. Deeded contracts with a perpetuity clause don’t have that built-in expiration. Check your own contract’s termination language directly to know which type applies to you.
Cornell Law School’s Legal Information Institute provides accessible background on how perpetuity clauses function in contract law generally: https://www.law.cornell.edu/
What to Do If Your Contract Has One
- Confirm the clause is actually present; not every timeshare has one.
- Check whether the sales presentation matched what the contract actually states.
- Ask your resort about deed-back or surrender options, which can sometimes apply even to perpetuity contracts.
- Have an attorney review whether misrepresentation supports a stronger case.
You can see how our attorney approaches this on our attorney page.
Frequently Asked Questions
Does every timeshare contract have a perpetuity clause? No. Right-to-use contracts have a defined term. Review your specific contract to know which applies.
Can my heirs refuse an inherited timeshare? This depends on state probate law and contract terms; an estate attorney can advise on your specific situation.
If you’re not sure which type of contract you have, you can request a case review.
