Holders of timeshare contracts in Ontario real estate could be getting some government assistance to exit their agreements. As part of a new public consultation on updating the Consumer Protection Act, the provincial government is suggesting that timeshare owners should have the right to relinquish their interests after a period of 10 years.

A consultation paper currently posted on Ontario’s regulatory registry also seeks input on new rules for the conduct of the service providers that timeshare owners may engage in an effort to break their contracts ahead of that sunset horizon. Comments on the proposed legislative amendments and/or other issues related to modernizing the Act are invited until March 17th.

“Timeshares are complex arrangements that are often marketed aggressively. Consumers may not realize they are purchasing a real estate interest they may not be able to exit until after they have entered the arrangement and are already committed,” states the consultation paper from the Ministry of Public and Business Service Delivery. “The Ministry is considering improved disclosure requirements for timeshare contracts, which would be set out in regulation.”

The proposed new exit strategy would apply to new and existing timeshare agreements. Owners could give notice that they want to withdraw at any time following the 10-year anniversary of signing the contract. Timeshare corporations could then charge a maximum exit fee of 1.5 times the annual maintenance fee for the property.

Once new rules under the Consumer Protection Act come into force, it’s proposed that exit fees would have to be explicitly included in new timeshare contracts. If not stated upfront, timeshare owners could end their agreements at the allowed time with no cost.

The consultation paper also addresses service providers that promise to help consumers break contracts such as those for timeshare interests or home appliance rentals. Proposed new rules would prohibit such enterprises from receiving payment until clients have received the promised results.

“There is no general prohibition of advance payment for businesses, but the Consumer Protection Act currently prohibits advance payment for certain services — loan brokering and credit repair — where some suppliers were found to be taking consumers’ money without providing any real result,” the consultation paper states.

It’s proposed that contract-breaking services would be added to that list. As with loan brokers and credit repair consultants, a 10-day window would also be mandated in which clients could cancel new contracts for contract-breaking services.