§467-30 Registration, bonding, and other requirements for condominium hotel operators. (a) As used in this section:
"Condominium hotel" includes those units in a project as defined in section 514B-3 and subject to chapter 514B that are used to provide transient lodging for periods of less than thirty days.
"Operating a condominium hotel" includes the:
(b) All condominium hotel operators shall register with the commission as a sole proprietor, partnership, limited liability company, or corporation and shall:
provided that this section shall not apply to persons who are subject to section 467-2.
(c) In the course of operating a condominium hotel, neither a real estate broker license nor a real estate salesperson license shall be required of those employees of a condominium hotel operator who only perform or facilitate the delivery of customary hotel services.
(d) All employees handling or having custody or control of the funds received by the condominium hotel operator shall be covered by a fidelity bond. The fidelity bond shall protect the condominium hotel operator against fraudulent or dishonest acts by the employees of the condominium hotel operator.
(e) The condominium hotel operator shall provide to the owner or owners of each apartment or unit under the condominium hotel operation a written contract expressing the exact agreements of each party, including all financial and accounting obligations, and the notification requirements of subsection (g).
(f) A condominium hotel operator shall operate in condominium projects specifically authorized for transient lodgings by county zoning and regulations and specifically permitted by the condominium project's declaration and bylaws.
(g) The registered condominium hotel operator:
(h) Any condominium hotel operator aggrieved by the fraudulent or dishonest acts of an employee shall act promptly and diligently to recover from the fidelity bond required by this section. The condominium hotel operator shall apply all proceeds received from the fidelity bond against all losses incurred by apartment or unit owners due to fraudulent or dishonest acts by employees. If more than one apartment or unit owner suffers a loss, the condominium hotel operator shall divide the proceeds among the owners in proportion to each owner's loss.
(i) All persons handling or having custody and control of either the condominium hotel operator's or the apartment or unit owner's funds shall be either employees of the condominium hotel operator or principals of the condominium hotel operator.
(j) The registration and fidelity bond requirements of this section shall not apply to active real estate brokers, in compliance with and licensed under this chapter, conducting condominium hotel activity. [L 1985, c 141, §1; am L 1987, c 276, §1; am L 1988, c 145, §6 as superseded by c 225, §1; am L 1989, c 144, §1; am L 1990, c 41, §2; am L 1991, c 155, §5; am L 1994, c 100, §13; am L 1995, c 241, §10; am L 1997, c 45, §2 and c 232, §10; am L 1999, c 240, §9; am L 2001, c 245, §2; am L 2004, c 164, §15; am L 2007, c 244, §4; am L 2008, c 28, §27; am L 2017, c 181, §19; am L 2021, c 230, §20]