RDO’s code of conduct gives enhanced flexibility to “legacy” timeshare owners

RDO (Resort Development Organisation) had been aware of the problems faced by some timeshare owners who bought their timeshare back in the 1980s and 90s, the so-called “legacy cases” when timeshare weeks were sold in “perpetuity” and could be up to 80 years in length. Given this background, in 2015 RDO updated its Code of Conduct to provide more options to owners who wished to relinquish (hand back, dispose) of their timeshare.

RDO’s updated requirements, approved by the Board, go over and above those covered by law and in addition to it being mandatory for members to have an overall exit programme in place, the following specific new elements were adopted (although in the case of some members and their clubs such practices had already been in place for a number of years):

• *In the event of the death of a joint owner, the surviving owner can surrender their timeshare if they wish and additionally, the beneficiaries of a will are not obliged to take on the timeshare if they do not wish to do so.

• *A timeshare owner who has been declared bankrupt may hand back the timeshare without charge.

• *If a sole owner or either of the joint owners is suffering from a long-term illness that prevents them from travelling to their resort for the foreseeable future, the timeshare interest may be surrendered.
• In all other cases, an owner may surrender their timeshare interest at any time, subject to the agreement of the RDO member. In such cases any surrender fee shall not exceed a sum equivalent to 3 years current maintenance fees.

*Maintenance fees must be up to date for the surrender to be accepted and any on-going loan repayments will be the responsibility of the owner.