Deed timeshare expiration?

[samich91320]

I inherited a timeshare from my parents in HHI. I am under the impression that the timeshare deed has an expiration of the first Sat in 2034. Now that I am rereading this Exhibit A noted below, I am not so sure.

Does anyone have insight into if we still own this timeshare after the "termination date of 2034? I have called the TS company asking the same question and cannot get to the right person to get an answer.

I appreciate any insights you can share!

(I have taken out the details on the deed location and the specific property.)


EXHIBIT "A"
The following described property from 4:00 p.m. on the first day until 4:00 p.m. on the last day assigned to the Grantee during the period below described Unit Week(s) Number(s) as said Unit Weeks are numbered and defined in the Declaration of Interval Ownership for HILTON HEAD TIMESHARE, recorded in the Office of the Clerk of Court for Beaufort County, South Carolina in Deed Book ...... ("lots of details") ...... which are hereafter described below, which estate is to be succeeded forthwith by a succession of other estates in consecutive or chronological order, revolving among other Unit Week(s) described in the aforesaid Declaration of Interval Ownership Supplement to Master Deed for HILTON HEAD TIMESHARE in order annually, it being the intent of this instrument that each Unit Week shall be considered a separate estate held separately and independently by the respective owners thereof for and during the period of time assigned to each in said Declaration of Interval Ownership HILTON HEAD TIMESHARE, each said estate being succeeded by the next in unending succession governed by said Declaration of Interval Ownership for HILTON HEAD TIMESHARE until 4:00 p.m. on the first Saturday in 2034, at which date said estate shall terminate.


TOGETHER with the remainder over in fee simple absolute, as tenant in common with the other owners of all Unit Weeks in the hereafter described HILTON HEAD TIMESHARE) in that percentage interest as determined and established by the aforesaid Declaration of Interval Ownership for HILTON HEAD TIMESHARE and the amendments thereto, which UNIT (as shown on that certain as-built survey entitled "An As-Built Survey of HILTON HEAD TIMESHARE, a Section of Shipyard Plantation," dated October 24, 1984 and last revised July 9, 1993 and prepared by Coastal Surveying Co., Inc.,DEED BOOK inHILTON HEAD TIMESHARE according to the above-referenced Declaration of Interval Ownership for HILTON HEAD TIMESHARE.

 

[dioxide45]

This is referred to as a sunset clause in the deed. It does look like the timeshare plan will sunset on that first Saturday in 2034. That doesn't mean it will happen. The HOA could hold a vote to modify this date or remove the clause. Though that is unlikely to pass. The BOD and HOA will need to work on starting the wind down process a few years ahead of that date to ensure all costs are covered and the timeshare is legally dissolved. The property can then be sold or the units sold as fee simple.

 

[jasontugaccount]

The property can then be sold or the units sold as fee simple.

Do the timeshare owners have any rights to the proceeds of that sale or do they get nothing at the sunset date?

 

[dioxide45]

Do the timeshare owners have any rights to the proceeds of that sale or do they get nothing at the sunset date?

After a sale when all necessary fees and expenses are paid any remaining funds will be paid out to owners of record as residuals. Some owners have recently reported receiving a few thousand dollars after their timeshare sunset.

 

[samich91320]

This is referred to as a sunset clause in the deed. It does look like the timeshare plan will sunset on that first Saturday in 2034. That doesn't mean it will happen. The HOA could hold a vote to modify this date or remove the clause. Though that is unlikely to pass. The BOD and HOA will need to work on starting the wind down process a few years ahead of that date to ensure all costs are covered and the timeshare is legally dissolved. The property can then be sold or the units sold as fee simple.

Thank you! This is how I have read it too. I will be in the area in about 2 weeks and plan to see if I can actually see someone face to face. We enjoy this unit a lot and plan to use it until then but we would like to be done after that. Appreciate you taking the time to help!

 

[samich91320]

After a sale when all necessary fees and expenses are paid any remaining funds will be paid out to owners of record as residuals. Some owners have recently reported receiving a few thousand dollars after their timeshare sunset.

Good to know! Thank you!

 

[Carolinian]

Many timeshares in the US have provisions for winding up at some point. Sometimes, a vote must be taken to continue the timeshare at a given date, and in others there is a right to demand such a vote at a given date. However, it may also be an estate for years, and at the specified time the timeshare ends and the property reverts to the original grantor, the developer. In the UK, many timeshares are set up that way, often with the timeshare holding a leasehold on the property. My UK timeshare was set up that way, and when the termination date occured, the timeshare went away and the property reverted to the developer, with no funds shared out to members.

I would have a South Carolina attrorney look at the entire deed and also the declaration of covenents.