Sunset provisions were typically included in the governing documents of most legacy timeshare resorts developed through the 1990’s. A sunset date is defined as the planned termination of the timeshare, or shared ownership, regime of a resort property. Many developers included the provision as a precaution if the project failed. It created an opportunity for owners to assess the fiscal health of their association and decide whether to continue.
Without clear legal guidance or a practical arrangement, the sunset provision event can confuse owners and create chaos. In most states, once a timeshare property’s regime sunsets, owners become tenants in common because the timeshare-use plan terminated. Legally, owners can then coordinate among themselves to use their week(s). However, mastering this task is virtually impossible, and continuing to operate under an expired use plan can put the board, the owners, and resort’s staff in legal jeopardy.