ARDA-ROC Introduces Termination and Extension bill in Massachusetts

2019-07-18

Issue Brief

Many timeshare plans in Massachusetts include expiration dates which are rapidly approaching.  Without any guidance in the timeshare plans for the orderly process and dissolution of expiring plans, the result is chaotic.  Typically, a condominium plan would still remain in place, but the 52 owners of interests in each unit become tenants in common, making the use or disposition of the unit nearly impossible.  When these expiration dates approach, Massachusetts timeshare owners should be able to choose whether they want to continue owning their timeshare or whether they want the resort to wind down, and have policies and procedures in place to facilitate the option they choose. MA Timeshare Bill H.3421 / S.952 aims to address this issue.

Impact

Allows owners who want to extend their timeshare plan the opportunity to do so through newer more practical voting requirements. 

Gives a terminated resort HOA the authority to maintain and resolve the former timeshare property with owner approval. 

Provides a means for owners in older resorts to manage the end of their timeshare plan.  

Position/Call to Action

The proposed bill aims to update the provisions in MGL c. 183B, §15 to provide an orderly process for the termination or extension of expiring timeshare plans. Specifically, the bill would: 

Establish new and more achievable voting requirements for owners who would like to terminate or extend their timeshare plans. 

After a duly noticed meeting of the association, action can be taken by written agreement of 60% of all eligible timeshare interests.  

Apply retroactively and would supersede existing association documents. Timeshare plans are products of statute, and the near impossibility of obtaining required owner approvals to address timeshare plans even when it is the desire of most owners to do so, far outweighs the potential impairment. 

Allow the Homeowners’ Association (HOA) to act as a representative of the resort owners in order to handle post-termination activities and effect a sale. 

Protect the HOA by stating lawsuits challenging the termination or extension of a time-share pursuant to Section 15 must be filed within one year of when the termination or extension is filed with the registry of deeds. 

 

Issue Updates