“Often “sunset” is portrayed as something that leads to chaos without clear legal or practical arrangement. That is not accurate. In almost all states, once owners become tenants in common, the property can be sold in what is often called “sale in lieu of partition.” Depending on the state, accomplishing such sale may take some work, which is why it is important to plan. However, most states have very favorable legislation to ensure that such a sale is achievable and that the proceeds from the sale are fairly divided among owners.”
Alex Krakovsky, CEO Lemonjuice Capital
A sunset provision is usually included in the governing documents of most legacy timeshare resorts started in the 1980’s and 1990’s. A sunset date is the planned expiration or termination of the timeshare form of ownership. It was a precaution that developers put in place in-case the timeshare project did not work out. It creates an opportunity for owners to assess the fiscal health of their timeshare association and decide whether to continue.
For many owners, their timeshare has provided years of enjoyment and created wonderful memories. As times change, the needs of owners change as well. Many legacy resorts are struggling with: increasing delinquencies; escalating fees; special assessments; deteriorating units; and an aging group of owners who are finding it difficult to either continue paying or even traveling. The timeshare exit companies are taking advantage of many aging owners charging thousands of dollars to help them terminate their ownership. Sadly, most owners do not realize that paying a third party to get out of their timeshare has a negative impact on the remaining owners of their resort. Meanwhile most timeshare resorts are in prime vacation destinations and have significant real value.
About Lemonjuice: Lemonjuice Capital, LLC is the industry leader in restructuring timeshare properties and has the people, resources, and technology to do so efficiently to achieve your desired results. From timeshare program restructuring and right-sizing to full plan terminations, Lemonjuice Capital delivers positive outcomes for timeshare associations and owners, typically with no out-of-pocket costs for its services.