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Ontario’s Recent Timeshare Legislation

Ontario's Recent Timeshare Legislation

Bill 142, Better for Consumers, Better for Businesses Act, 2023Ontario’s Recent Timeshare Legislation

The timeshare industry in Canada has long been a topic of debate and discussion, especially when it comes to the rights of consumers. Timeshares, while offering a membership vacation experience, have often been criticized for their binding and restrictive contracts that can sometimes be a lifetime commitment.

However, a new wave of change is on the horizon in Ontario, as the provincial government introduces a proposal that could potentially shape the timeshare landscape across Canada should other provinces follow. The “Better for Consumers, Better for Business Act” ushers a number of changes in consumer business practices. In this article, we will look closer at Ontario’s recent timeshare legislation and what the modernized consumer act may mean for Ontario timeshare owners.

Adirondack red wooden chairs by lake shore. Peacefull scene.Providing An Exit for Timeshares

One of the most significant aspects of Ontario’s newly proposed legislation is the provision for consumers to exit their timeshare contracts. As it stands, many consumers find themselves and their families indefinitely locked into these arrangements, with little to no recourse. The new legislation aims to change this by granting consumers the right to exit a timeshare contract after 25 years. This provision would be applicable to both new and existing timeshare contracts, ensuring that consumers who have been bound by these contracts for decades have a way out.

Furthermore, the legislation also considers scenarios beyond the primary owner’s tenure. In the event of a timeshare owner’s death, the proposed law would provide a similar exit option for other parties involved, such as the owner’s heirs. This is a step forward, as it ensures that the financial and contractual obligations of a timeshare do not become an undue burden on the next generation.

Another noteworthy aspect of the proposal is the limitation on costs that a consumer may incur when exercising their exit option. While the specifics are yet to be determined and will be outlined in subsequent regulations, this provision indicates a commitment to protecting consumers from potential financial exploitation of so called exit programs.

Toronto city skyline, Ontario, CanadaImplications for the Timeshare Industry in Ontario

The forthcoming legislation is poised to bring about significant changes to the timeshare landscape in Ontario. Historically, the absence of a comprehensive timeshare act, similar to what is prevalent in most U.S. states, coupled with minimal government oversight, has allowed for various issues to arise in the industry.

Notably, many of these problems were propagated by smaller real estate developers, who, eager to capitalize on the timeshare marketplace, often lacked the necessary infrastructure and financial stability. As a result, many of these developers have since become insolvent.

For years, major developers have been dormant in the region, with the most significant activity being the sale of the two largest timeshare resorts out of bankruptcy. These properties have since been transformed into whole ownership structures. The introduction of this legislation might prompt a reevaluation of the timeshare model in Ontario. If branded developments are reconsidered, we could witness a paradigm shift in how timeshare contracts are structured and promoted. Companies would be wise to recalibrate their long-term strategies, especially in light of the fact that consumers will now have a transparent exit mechanism after 25 years.

Furthermore, the new legislation has the potential to reshape consumer perceptions of timeshares. Armed with the knowledge that they have a defined exit strategy and potentially better protections, more consumers might be inclined to venture into timeshare contracts. This could rejuvenate the industry, provided the necessary safeguards are in place to prevent past mistakes.

Ontario legislation includes timeshareOntario’s Progressive Approach to Timeshare Reforms

Ontario’s newly proposed legislation reflects a broader trend towards prioritizing and enhancing consumer rights. Recognizing the myriad of challenges and grievances that have historically plagued the timeshare sector, the provincial government is proactively addressing these issues to foster a more equitable and transparent industry. This legislation not only aims to rectify long-standing concerns but also seeks to establish a framework that ensures both consumers and businesses can operate with clarity and confidence.

While it’s still early days, and the full ramifications of this legislation are yet to unfold, its introduction undeniably signifies a pivotal juncture for Ontario’s timeshare landscape. Both consumers and industry stakeholders stand to benefit from these reforms, as they pave the way for more informed decisions, greater accountability, and a renewed trust in the timeshare market. Keep an eye on developments in this space as other provinces may soon follow suit with their own legislation. It will be interesting to see how these reforms shape the future of timeshare ownership in Canada. So, stay tuned for more updates on this topic!

Note: For more details on the proposed legislation, you can also refer to the official backgrounder.

This article is for information purposes only and is not intended as legal advice. Readers are advised to consult a lawyer for any legal matters related to timeshares or real estate in Ontario.


Led by attorneys J. Andrew Meyer and Michael D. Finn with over 75 years of combined legal experience. The Finn Law Group is a U.S. based law firm based in St. Petersburg, Florida.

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