Automatic Scheduled Termination?

[brawney]

I'm an owner in The Quarters timeshare in Ocean City Maryland. It's a quarter share, with 4 owners per unit. There are 27 units. I have been researching the documents filed with the state and it looks to me like the CCR specifies that the timeshare will Terminate in January 2026.

"Termination - If not sooner terminated by the owners of all of the Time Intervals in the time share project, this Declaration shall terminate, without further act, at Midnight on the first Thursday of January 2026 or upon the termination of the Condominium, whichever shall first occur."

There is no mention of Termination in the By-Laws document.

It also looks to me like it would require a 100% vote from all owners in order to amend the document.

"Subject to the limitations set forth in this Declaration, the terms and provisions of this Declaration may be amended by the affirmative act of the owners of all of the Time Intervals in all of the condominium units subject to this Declaration. Any such amendment shall be in writing and shall be executed and acknowledged by the owners of all of the Time Intervals in the time share project. Any amendments to this Declaration shall become effective only upon the recordation of such amendment among the Land Records for Worcester County, Maryland or upon such later date as the amendment shall specify."

The By-Laws document mentions needing only 75% owners vote in order to make changes to that document.

Again, I see no mention of Termination in the By-Laws document. I also have not been able to find any amendments or newer documents on the Maryland Records website that would indicate that this Termination date was ever changed.

Am I missing something? Is this timeshare going to close down in January 2026 unless 100% of the owners vote to extend it?

 

[tschwa2]

Am I missing something? Is this timeshare going to close down in January 2026 unless 100% of the owners vote to extend it?

You need to contact your board. They may have already made the extension. They may be planning the votes for or against the extension.

 

[bogey21]

Is this timeshare going to close down in January 2026 unless 100% of the owners vote to extend it?

Could be. I'd start making phone calls and asking questions...

George

 

[brawney]

Thanks for the replies. I am checking with the Board and other owners.

I guess I was wondering if this kind of thing happens much? Am I interpreting the documents correct? Will it really take 100% of owners to vote "yes" to extend the Termination date? I don't see how it is possible to get 100% of any group of people to vote the same way on anything.

 

[tschwa2]

Thanks for the replies. I am checking with the Board and other owners.

I guess I was wondering if this kind of thing happens much? Am I interpreting the documents correct? Will it really take 100% of owners to vote "yes" to extend the Termination date? I don't see how it is possible to get 100% of any group of people to vote the same way on anything.

The ones I have owned at that have this only require a majority, not a majority of those that send in a vote but 50% plus 1 of all the owners. Getting a response that high generally takes 2-5 years of mailings and planning. Many older resorts have trouble just getting the annual quorum to conduct business.

 

[R1964]

It's a common problem with legacy resorts (timeshares from the 1960's to 1990's) they have a sunset clause in the master deed that has a termination date.

 

[theo]

The ones I have owned at that have this only require a majority, not a majority of those that send in a vote but 50% plus 1 of all the owners. Getting a response that high generally takes 2-5 years of mailings and planning. Many older resorts have trouble just getting the annual quorum to conduct business.

The two CC&R termination / extension matters with which I am personally and directly familiar as an owner require at least a 2/3 majority to vote (not just 50%+1). In one case, the CC&R's specifically require 75% of all owners to vote regarding "Termination".

At both resorts (independent, built in early 1980's in coastal SW FL) the original "sunset" date was 40 years after initial construction. That "sunset" matter has already been addressed at both properties, both voting for "extension". In the more recent resolution, the termination "extension" amendment to CC&R's was for 10 years. I seem to recall that the "sunset" extension at the other property was for a longer period (15 or 20 years maybe?), but I cannot specifically recall without researching the pertinent documents.

As noted in post #5 above, amassing votes from the required percentage of owners can take several years. Fortunately, in both of our above referenced ownerships, the HOA / BOD was proactive in addressing this issue long before the approach of "sunset". It must be a real "fire drill" at resorts that fail to address the sunset clause in sufficient advance of the sunset date, but there is really no excuse for such negligence (IMnsHO). After all, the "Termination" section of the CC&R's has been sitting there, in writing, within officially recorded documents since Day One of a property's existence as a timeshare --- several decades ago, so it's hardly a "surprise".

 

[brawney]

As for the required 100% vote, it looks to me like Maryland made a law in 2017 that says it only has to be 60% or less.

"Amendments to Governing Documents (Condominium and HOA) – This new bill authorizes a condominium council of unit owners to amend the condominium bylaws upon the affirmative vote of at least 60% of the condominium unit owners in good standing, or by a lower percentage if required by the bylaws. The law also authorizes an HOA to amend its governing documents by the affirmative vote of at least 60% of the votes in the development by owners in “good standing”, or by a lower percentage if permitted by the governing documents. For purposes of the law, “good standing” is defined as an owner not being more than 90 days in arrears in the payment of any assessment or charge due to the condominium or HOA. (The bill does not apply to an HOA that issues bonds or other long-term debt secured in whole or in part by annual charges assessed in accordance with its governing documents or to a village or community association affiliated with the HOA.)"

md-hoa.org

 

[Patri]

Or more.

 

[brawney]

Or more.

To be specific, it says "at least 60%" or "a lower percentage if permitted by the governing documents".

So my association document from 1987 says "the owners of all of the Time Intervals" (meaning 100%) but I guess this MD law means it only needs to be "at least 60%" now.

 

[theo]

To be specific, it says "at least 60%" or "a lower percentage if permitted by the governing documents".

So my association document from 1987 says "the owners of all of the Time Intervals" (meaning 100%) but I guess this MD law means it only needs to be "at least 60%" now.

Not rendering any unsolicited legal opinions and / or any legal advice here, but I read that material to indicate that that the law authorizes the HOA to amend underlying documents' percentages. I don't see that it actually requires them to do so.

 

[Lemonjuice]

As for the required 100% vote, it looks to me like Maryland made a law in 2017 that says it only has to be 60% or less.

md-hoa.org

This Maryland law Refers to condominiums. Timeshare law has not changed. It's still a minimum of 80% signing a termination agreement in front of a notary, and most timeshare properties have 100% threshold, making any restructuring arduous at best.... For extension, it takes 60% that's in the timeshare law (11a) (not the same law you quoted). There is a dispute if the law applies, though to resorts that declared before the law came into effect, I think in late 90's. However, many people prefer the sunset to take place because the value of whole units is higher than timeshares. then if you want, you can always find 3 other people to set up a sharing agreement with you. This is not legal or market advice.

 

[Lemonjuice]

I'm an owner in The Quarters timeshare in Ocean City Maryland. It's a quarter share, with 4 owners per unit. There are 27 units. I have been researching the documents filed with the state and it looks to me like the CCR specifies that the timeshare will Terminate in January 2026.

There is no mention of Termination in the By-Laws document.

It also looks to me like it would require a 100% vote from all owners in order to amend the document.

The By-Laws document mentions needing only 75% owners vote in order to make changes to that document.

Again, I see no mention of Termination in the By-Laws document. I also have not been able to find any amendments or newer documents on the Maryland Records website that would indicate that this Termination date was ever changed.

Am I missing something? Is this timeshare going to close down in January 2026 unless 100% of the owners vote to extend it?

When timeshares "close down," the units would be sold as whole units with proceeds distributed to unit owners. Usually, the price for whole units is higher than timeshares, including quarters.

 

[brawney]

Update: Extension for something like 25 years was passed and paperwork with the county is being prepared. So we're good to go.