The timeshare "in perpetuity" clause: what it means, how to exit

Last updated 2026-07-25

what does an "in perpetuity" clause actually mean in a timeshare contract

"In perpetuity" is contract language that says the agreement has no end date. It doesn't renew every ten years and quietly expire if you ignore it. It just continues, year after year, decade after decade, and in most contracts it binds your estate too. That's the part that catches people off guard: your kids or whoever inherits your property can inherit the maintenance fee obligation along with it, whether they want the week in Orlando or not. This language shows up most often in older deeded timeshare contracts, particularly ones from the 1980s and 1990s when many resorts recorded the interest as real property with no fixed term. Some contracts use "perpetuity" explicitly. Others just omit any termination date or renewal mechanism, which has the same practical effect: nothing in the document tells you how to make it stop. A timeshare consumer guide from the Consumer Financial Protection Bureau explains that timeshare interests can be structured as deeded real estate (a fee simple interest) or as a right-to-use contract with a set number of years, and notes that with a deeded interest, "you own a piece of real property" that transfers like other real property, including through inheritance, unless the owner takes action beforehand ^[1]. That's the legal reality driving most of the calls people make to exit companies: the contract was written to last, and the resort has little incentive to help you leave early. None of this means the clause is unbreakable. It means you can't just stop paying and expect it to lapse on its own. You need an actual exit mechanism, whether that's rescission, a deed-back, resale, or a negotiated release, and each one has its own timeline and paperwork.

is a perpetuity clause even legal, can a state void it

Yes, it's generally legal. Perpetual real property obligations aren't new; conservation easements and certain covenants run with land indefinitely too, and courts have upheld perpetual timeshare obligations as valid contracts when properly disclosed. There is no federal statute banning these clauses, and no federal timeshare cancellation law at all. Timeshare regulation happens almost entirely at the state level. What states DO regulate closely is the sales process, specifically your right to cancel shortly after signing. Every state with active timeshare sales has some form of rescission (also called a "cooling off" period), and the length varies a lot. Florida gives buyers 10 calendar days under its timeshare statute ^[2]. California requires developers to give purchasers a minimum of 7 calendar days to cancel ^[3]. Some states go shorter, some longer. This window is your cleanest, cheapest, and fastest way out, but it only exists for a few days after you sign, not years later when the fee increase shows up. Once you're past rescission, the perpetuity clause stands. States don't retroactively void it just because you regret the purchase or the fees went up. If you want out after the window closes, you're negotiating an exit through a deed-back, a resale, or a release, not challenging the clause's validity in court (courts do sometimes void contracts for fraud or misrepresentation in the sales pitch, but that's a fraud claim, not a challenge to "perpetuity" as a concept).

how to get out of a timeshare with a perpetuity clause

Start by checking your calendar, not your contract. If you signed recently, your first move is confirming your state's rescission window and sending a written cancellation notice before it closes. This is free, doesn't require a lawyer, and works if you're inside the deadline. States commonly require the notice to be in writing and sent to the developer at a specified address, often by certified mail, so follow the notice instructions printed in your contract or purchase agreement exactly. If you're past rescission, here's the order I'd actually work through, roughly cheapest and lowest-risk first: 1. Ask the resort about a deed-back or surrender program. Many major chains (Marriott Vacation Club, Wyndham, Bluegreen, and others) now run some version of a voluntary deed-back or "exit" program for owners current on fees. Terms vary by brand and change often, so ask directly and get anything promised in writing. 2. Try resale, even at a steep discount. Timeshares have almost no resale market value; industry-reported average purchase prices run around $24,140 per interval ^[4], but resale listings for comparable weeks often sell for $1 or a few hundred dollars because there's no secondary demand. Still, if the deed-back option isn't available, listing it (even for nearly nothing) can be cheaper than a paid exit company, since your main cost is a transfer fee, not a service fee. 3. Consider a licensed real estate attorney in the state where the resort is located if the contract seems to have real legal defects, like misrepresentation during the sales pitch. This costs real money, likely more than four figures, but it's the legitimate route if you believe you were defrauded rather than just remorseful. 4. Look at paid exit help only after you've ruled out the free options, and vet the company hard (more on that below). For a broader walkthrough of the mechanics, see how to get out of a timeshare and how do you get out of a timeshare.

how do rescission windows interact with a perpetuity clause

Rescission is the only point in the ownership lifecycle where you can cancel unilaterally, no negotiation, no resort approval needed, just a timely written notice. Once that window closes, the perpetuity clause takes over and you're bound until you find another exit path. This is why the window matters so much and why exit companies spend a lot of ad money targeting people who are already years past it (those buyers are the ones stuck, and stuck buyers are the ones who pay for help). If you're reading this while still inside your state's rescission period, stop researching exit companies and just cancel. It's the only free, no-negotiation way out. Rescission periods differ by state, and some resorts operate under different state law than where you live if the property sits elsewhere; the Florida Vacation Plan and Timesharing Act, for example, applies to Florida-based timeshare plans regardless of the buyer's home state ^[2]. Always confirm your state's rescission window and count calendar days (not business days, unless your state's statute says otherwise) starting from the date you signed or received all required disclosure documents, whichever your statute specifies. For a state-by-state breakdown, see timeshare cancellation.

how much is a timeshare, and how much do the fees add up to over time

The purchase price is only half the story, and often the smaller half over time. Industry-reported survey data has put the average timeshare purchase price at roughly $24,140 in 2023 ^[4], though prices range widely from a few thousand dollars for older weeks-based units to $40,000 or more for newer points-based systems at premium resorts. Maintenance fees are the recurring cost that makes perpetuity clauses painful. Industry survey data has placed the average annual maintenance fee in the $1,000 to $1,200 range in recent years, and these fees climb almost every year, often faster than general inflation, plus special assessments can hit owners for storm damage, renovations, or unexpected repairs on top of the regular fee ^[4]. Do the math over a 20 or 30 year "in perpetuity" horizon and the fees alone can exceed the original purchase price several times over, especially once assessments and annual increases compound. That's the real cost of the clause: it's not really that you owe one big lump payment, it's that you owe an open-ended stream of payments with no defined end. For a fee-focused breakdown, our maintenance fees coverage on this site walks through typical fee escalation patterns.

how to sell a timeshare when the contract runs in perpetuity

Selling doesn't erase the perpetuity clause, it transfers the obligation to a new owner (a buyer, if you can find one). The clause itself keeps running; you're just no longer the one bound by it. The honest starting point: resale demand is weak. Most timeshares aren't scarce real estate, they're inventory the resort keeps selling new units of every year, so a used unit has to compete with the developer's own sales floor. That's a big reason resale prices are so low compared to purchase price. Practical steps: get a copy of your deed or contract and check for a right of first refusal clause (some contracts require you to offer the resort first crack at buying it back before you sell to anyone else). List through a licensed timeshare resale broker or a reputable marketplace rather than an unsolicited caller who contacts you out of the blue claiming they have a "buyer already lined up", that's a classic advance-fee scam pattern the Federal Trade Commission has warned about in its guidance on timeshare resale schemes ^[5]. Expect to possibly pay closing and transfer fees even on a $1 sale. And never pay a large upfront fee to a company promising a buyer exists before you've seen any proof.

how to get rid of a timeshare that has been passed down to you (inherited timeshares)

Inherited timeshares are where perpetuity clauses hit hardest, because the new owner (an heir) often never wanted the property and finds out about the obligation only after fees start showing up in the mail. If you're an executor or heir, check whether the estate can disclaim the interest. Under most state probate law, an heir can formally disclaim (refuse) an inheritance, including a timeshare, within a set period after the death, which can prevent the debt and fee obligation from transferring to them at all. The Uniform Disclaimer of Property Interests Act, adopted in some form by many states, generally requires a written, irrevocable disclaimer delivered within a set period, commonly nine months, after the decedent's death ^[6]. This has to be done properly and often has a strict deadline, so consult a probate attorney in the state where the estate is being administered rather than assuming you're automatically stuck. If the disclaimer window has passed and you already accepted the interest, you're back to the standard menu: deed-back, resale, or a paid exit service. Some resorts have simplified deed-back programs specifically for heirs who don't want the property, since an uncontested surrender is often easier for the resort to process than chasing an unwilling new owner for fees for the next 30 years. Ask directly whether such a program exists before assuming you have no options.

are timeshares scams, or is the exit industry the scam

The timeshare product itself generally isn't illegal, but the sales tactics around it have a long, well-documented history of high-pressure and misleading practices, and the exit industry that grew up around unhappy owners has its own scam problem layered on top. On the ownership side: aggressive, hours-long sales presentations, understated fee increases, and vague resale value promises are common complaints, but the underlying contract is a real legal agreement, not a scam by itself. State attorneys general have brought numerous enforcement actions against companies for deceptive timeshare resale and exit practices specifically, not against timeshare ownership as a category. The Tennessee Attorney General's office, for instance, has published consumer alerts specifically warning owners about upfront-fee timeshare exit and resale schemes operating in the state . On the exit side, the scam pattern is well documented and consistent: a company cold-calls or advertises promising a specific promised result before ever reviewing your contract, collects a large upfront fee (sometimes thousands of dollars), and then does little or nothing, or worse, tells owners to stop paying maintenance fees, which triggers credit damage and even foreclosure on the timeshare. The Federal Trade Commission has brought enforcement actions against timeshare exit companies for allegedly charging large upfront fees while failing to deliver promised cancellations ^[5]. If a company promises your exit or cancellation before doing any actual review of your contract, that's a signal to walk away, no legitimate exit process can promise a specific outcome for every contract. Never stop paying fees you legally owe as a strategy, since it can lead to collections, credit damage, and in some states foreclosure on the timeshare interest, even if you're also pursuing an exit.

how do deed-back programs work, and are they a real way out

A deed-back (sometimes called a surrender or "exit program") is where you voluntarily transfer your deed back to the resort developer, typically for no money, in exchange for being released from future fee obligations. It's the closest thing the industry has to an official, resort-sanctioned exit, and it directly ends the perpetuity clause's grip on you because the resort agrees to take the obligation back. Major timeshare brands including Marriott Vacation Club, Wyndham Destinations, Bluegreen Vacations, Diamond Resorts (now part of Hilton Grand Vacations), and others have operated some form of voluntary surrender or deed-back program in recent years. Eligibility rules vary and change: many require your account to be current on maintenance fees with no outstanding loan balance, and some limit the program to certain resort locations or ownership types. There is no federal or nationwide rule requiring any given resort to offer this, it's a discretionary program the company runs (or discontinues) at its own choice. To pursue this path: call the resort's owner services line directly and ask specifically about deed-back, surrender, or exit programs (use those exact terms). Get any acceptance in writing, including confirmation that all future fee obligations end on a specific date. Don't pay a third party to "arrange" a deed-back that you could request directly from the resort at no cost; this is one of the more common places where paid exit companies charge a fee for something an owner could often do themselves with a phone call. Our timeshare exit companies guide covers how to evaluate a paid service if a deed-back genuinely isn't available to you.

should you hire an exit company to break a perpetuity clause, and how do you avoid getting scammed

Sometimes, yes, but vet hard before paying anything. A legitimate exit service reviews your specific contract, tells you honestly whether a deed-back or resale path is realistic, and charges a fee that's disclosed upfront with a clear scope of work, not a vague promise of a specific result before any review has happened. Red flags worth memorizing: any promise of a specific outcome before reviewing your contract; pressure to pay the full fee immediately, especially by wire transfer or gift card; instructions to stop paying your maintenance fees or mortgage as part of the "strategy"; no physical business address or verifiable Better Business Bureau history; and unsolicited contact out of nowhere claiming they already have a buyer or a resort partnership. State attorneys general in Florida, Missouri, Tennessee, and several other states with heavy timeshare resort concentration have pursued enforcement actions against exit companies for these exact practices, and the FTC has litigated against timeshare exit companies over allegedly deceptive upfront-fee practices ^[5]. Check any company against your state attorney general's consumer complaint database and the FTC's scam alert pages before signing anything or paying a deposit ^[5]. Ask for the total fee in writing, ask what happens if the exit doesn't succeed (refund policy, if any), and get a specific description of what work will be done, more than a promise of an outcome. If you decide a paid path makes sense for your situation, our Timeshare Exit Kit is a flat $149 one-time toolkit built to help you organize your documents, understand your contract's specific mechanics, and pursue the legitimate self-directed exit paths (rescission where still available, deed-back requests, and resale steps) without paying a percentage-based exit company fee. It doesn't promise a cancellation outcome and doesn't contact the resort on your behalf. Nobody legitimately can promise that outcome for every contract.

what happens if you just stop paying on a perpetual timeshare

This is the option to avoid, and it's worth being direct about why. A perpetuity clause means the obligation doesn't expire on its own, so simply refusing to pay doesn't end the contract, it puts you into default. Consequences of default commonly include late fees and interest piling onto the balance, the account going to a collections agency, negative marks on your credit report, and in many states the resort can pursue foreclosure on the timeshare interest itself (similar in concept to a mortgage foreclosure, since deeded timeshares are real property). Some resorts also retain the right to pursue a deficiency judgment for fees owed even after foreclosure, depending on state law and the contract terms. None of this means you're stuck paying forever with no options. It means the exit has to happen through an actual mechanism (rescission if you're still in the window, deed-back, resale, or a negotiated release), not through simply going silent on the fee statements. If money is genuinely the issue, contact the resort's owner services line before you miss a payment; some have hardship or payment plan options, and a documented conversation is a better position to be in than an unexplained default.

Frequently asked questions

how to get out of a timeshare

Check your state's rescission window first; if you're still inside it, send written cancellation by the method your contract specifies and you're done, free. Past that window, ask the resort about a deed-back or surrender program, try resale through a licensed broker, or consult a real estate attorney if you suspect fraud. Never pay large upfront fees to a company promising a specific outcome.

how to get out of timeshare contracts signed years ago

Rescission has already closed, so your options are a resort deed-back or surrender program (often free if you're current on fees), resale even at a steep discount, or a paid exit service after you've ruled out the free routes. A perpetuity clause means the contract doesn't expire on its own; you need one of these actual exit mechanisms.

how do you get out of a timeshare that has a perpetuity clause

The clause itself isn't voidable just because it says "in perpetuity;" courts generally uphold it as a valid contract term. You get out through rescission (if still in the window), a resort-run deed-back program, resale, or in rare cases a legal challenge based on fraud in the original sale, not by challenging the perpetuity language directly.

how to sell a timeshare with no resale market

List through a licensed timeshare resale broker or reputable marketplace, price realistically (many resale units sell for $1 to a few hundred dollars), check for a right-of-first-refusal clause requiring the resort get first offer, and expect to pay transfer or closing fees regardless of sale price. Avoid anyone who cold-calls claiming a buyer is already lined up.

how to get rid of a timeshare you inherited

If the estate hasn't been settled yet, ask a probate attorney about formally disclaiming the inheritance within your state's deadline (commonly nine months under disclaimer statutes), which can stop the obligation from transferring to you. If you've already accepted it, pursue a deed-back program (some resorts have simplified heir surrender processes), resale, or a paid exit service as a last resort.

are timeshares scams

The ownership product itself is a legal contract, not inherently a scam, but sales presentations have a documented history of high-pressure and misleading tactics, and a separate wave of fraudulent exit companies targets unhappy owners with upfront-fee schemes. The FTC has brought enforcement actions against specific timeshare exit companies over these practices.

how much is a timeshare, on average

Industry-reported average purchase price was about $24,140 per interval in 2023 according to survey data, though prices range from a few thousand dollars for older weeks-based units to $40,000-plus for newer points-based systems. Annual maintenance fees typically add $1,000 to $1,200 or more per year on top, and these fees rise most years.

how much do timeshares cost in total over time

Purchase price is only part of it. With average annual maintenance fees around $1,000 to $1,200 that typically rise each year, plus occasional special assessments for repairs or renovations, a perpetuity-clause contract can cost several times the original purchase price over a 20 to 30 year span, with no defined end date.

how much are timeshares to maintain each year

Industry survey data has placed average annual maintenance fees in the roughly $1,000 to $1,200 range in recent years, and fees commonly increase annually, sometimes faster than general inflation. Special assessments for storm damage or renovations can add unpredictable extra costs on top of the regular annual fee.

how to sell timeshare without paying a big upfront fee

Use a licensed timeshare resale broker or established marketplace that charges a commission on an actual sale rather than a large fee paid before any buyer exists. Be wary of any company demanding thousands of dollars upfront and claiming a buyer is already waiting; that pattern matches known advance-fee resale scams the FTC has pursued enforcement action over.

can a timeshare perpetuity clause be voided by a court

Courts generally uphold perpetual timeshare obligations as valid, enforceable contract terms; there's no blanket rule voiding them for being open-ended. A court might void a contract for fraud, misrepresentation during the sale, or a specific state-law defect, but that's a fraud claim against the seller's conduct, not a ruling against perpetuity clauses as a category.

what is the difference between rescission and a deed-back

Rescission is your unilateral right to cancel a new contract within a short window set by state law, no resort approval needed. A deed-back happens anytime after that window closes; it requires the resort's agreement to accept the deed back and release you from future fees, and it's entirely discretionary on the resort's part.

do all states have the same timeshare rescission period

No. Rescission periods vary by state; Florida requires 10 calendar days and California requires a minimum of 7 calendar days, for example, and other states set their own lengths. Always confirm your specific state's rescission window and count days exactly as your state's statute defines them, since some count calendar days and others may differ.

Sources

1. Consumer Financial Protection Bureau, "What is a timeshare?": Deeded timeshare interests are real property that transfer like other real property, including through inheritance, distinguishing deeded from right-to-use structures
2. California Business and Professions Code Section 11238 (Vacation Ownership and Timeshare Act): California requires a minimum 7 calendar day rescission period for timeshare purchase contracts
3. American Resort Development Association (ARDA), 2023 State of the Vacation Timeshare Industry summary: Average timeshare purchase price and average annual maintenance fee figures reported in industry survey data
4. Federal Trade Commission v. timeshare exit company enforcement action press release: FTC has brought enforcement actions against timeshare exit companies for charging large upfront fees without delivering promised cancellations
5. Uniform Law Commission, Uniform Disclaimer of Property Interests Act summary: State disclaimer statutes generally require a written, irrevocable disclaimer of an inheritance delivered within a set period, commonly nine months, after death
6. Tennessee Attorney General, Consumer Alert on timeshare exit and resale scams: State attorney general consumer alerts have specifically warned owners about upfront-fee timeshare exit and resale schemes