(a) Before a prospective purchaser signs any agreement to acquire a timeshare interest, the developer shall provide a disclosure statement to the prospective purchaser and shall obtain from the purchaser a written acknowledgement of receipt of the timeshare disclosure statement.
(b) The timeshare disclosure statement must include the following information and must contain a date indicating when the disclosure information was last updated. For a multisite timeshare plan, the information can be presented in chart from where appropriate:(1) The name and address of the developer.(2) The type of timeshare plan offered.(3) A description of the type of interest and the usage rights the purchaser will receive, whether single-site site, multisite specific site, or multisite nonspecific site.(4) A description of the duration and operation of the timeshare plan.(5) The name and address of the escrow agent, and the account number of the bank or savings and loan company where the escrowed funds are maintained.(6) A description of the method by which owners’ use of the accommodations is scheduled. Where a reservation system is used for scheduling timeshare periods, the following information is to be provided:(A) The entity responsible for operating the reservation system, its relationship to the developer and the duration of any agreement for operation of the reservation system;(B) A summary of the rules governing access to and use of the reservation system;(C) The existence of and an explanation regarding any priority reservation features that affect an owner’s ability to make reservations for the use of a given accommodation on a first-come, first-served basis; and(D) For a multisite specific interest timeshare plan, a description of how usage rights are provided for the specific site and for the other component sites in the multisite plan.(7) For each component site in a timeshare plan, the following information must be provided:(A) A description of the existing or proposed accommodations, including the number of bedrooms, number of bathrooms, sleeping capacity, a description of the minimum duration being purchased, and a statement indicating whether the accommodation contains a full kitchen. If the accommodations are proposed or incomplete, the estimated date for commencement, completion and availability of the accommodations must be provided.(B) A description of any existing or proposed amenities and, if the amenities are proposed or incomplete, a schedule for commencement, completion, and availability of the amenities; and(C) The extent to which financial arrangements have been provided for the completion of all promised accommodations and amenities that are committed to be built.(8) A description of the method and timing for performing maintenance of the accommodations.(9) A statement indicating that on an annual basis the one-to-one owner to accommodation ratio is maintained.(10) For multisite timeshare plans, a description of the following:(A) Any periodic adjustment or amendment to the reservation system that may be conducted from time to time in order to respond to actual owner use patterns and changes in owner use demand for the accommodations existing at the time within the multisite timeshare plan; and(B) Any right to make any additions, substitutions, or deletions of accommodations, amenities or component sites, and a description of the basis upon which accommodations, amenities or component sites may be added to, substituted in, or deleted from the multisite timeshare plan.(11) A statement that a timeshare association exists or will be established and a description of its powers and responsibilities or reasonably expected powers and responsibilities.(12) The name and principal address of the timeshare association and managing entity, if any of the timeshare plan. Multisite timeshare plans must also provide a description of the relationship between the multisite timeshare plan managing entity and the managing entity of the component sites of the multisite timeshare plan, if different from the multisite timeshare plan managing entity.(13) The projected assessments and a description of the method for calculating and apportioning those assessments among owners, but such assessments must be allocated among all timeshare interests on a reasonable basis. In the event the developer is not paying assessments for unsold units, the developer shall guaranty the level of assessments. If the developer intends to guarantee the level of assessments for the timeshare plan, a statement disclosing that the developer may be excused from the payment of the developer’s share of the common expenses which would have been assessed against developer-owned timeshare interests during a stated period of time during which the developer has guaranteed to each owner in the timeshare instrument that the assessment for common expenses imposed upon the owners would not increase over a stated dollar amount, and that the developer is obligated to pay all common expenses incurred during the guarantee period in excess of the total revenues of the timeshare plan.(14) Any initial fee or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee.(15) A description of any lien, defect or encumbrance on or affecting title to the timeshare interest and, if applicable, a copy of each written warranty provided by the developer.(16) A description of any bankruptcy of the developer that is pending or that has occurred within the past five years, pending civil or criminal suit, adjudication or disciplinary actions material to the timeshare plan of which the developer has knowledge.(17) Any current or anticipated fees or charges to be paid by owners for the use of any accommodations or amenities related to the timeshare plan, and a statement that the fees or charges are subject to change.(18) A description of the insurance respectively insuring the (i) timeshare property against damage and destruction, (ii) timeshare association against liability to others, and (iii) owners of timeshare interests against liability to others.(19) A description of the type of insurance coverage necessary to protect the owner and reasonably repair or replace the accommodations and amenities.(20) The extent to which a timeshare interest may become subject to a tax lien or other lien arising out of claims against owners of different timeshare interests.(21) A description of the purchaser’s right to cancel the purchase contract.(22) A statement disclosing any right of first refusal or other restraint on the transfer of all or any portion of a timeshare interest.(23) A statement disclosing that any deposit made in connection with the purchase of a timeshare interest must be held by the escrow agent until the expiration of any right to cancel the contract or until construction is completed, if applicable, and that if the purchaser elects to exercise the right of cancellation, any deposit must be returned to the purchaser, as set forth in section 1104 of this chapter, or, if applicable, a statement disclosing that the developer has provided a surety bond, irrevocable letter of credit or other form of financial assurance in an amount equal to or in excess of the funds that would otherwise be held by the escrow agent, and that if the purchaser elects to exercise the right of cancellation, any deposit must be returned to the purchaser, as set forth in section 1105 of this chapter.(24) If applicable, a statement that the assessments collected from the owners may be placed in a common account with the assessments collected from the owners of other timeshare properties managed by the same managing entity.(25) If the timeshare plan provides owners with the opportunity to participate in an exchange program, the name and address of the exchange company and the method by which an owner accesses the exchange program.(26) Relating to the governing documents of the timeshare plan, the following documents, if applicable, including any amendments to them, must be provided to purchasers: the declaration and any applicable documents creating the timeshare plan; the timeshare association articles of incorporation; the timeshare association bylaws; the timeshare association rules; reservation rules and regulations, and any lease or contract, excluding the purchase contract and other loan documents required to be signed by the purchaser at closing. For multi-site timeshare plans where a specific interest is offered, applicable governing documents for both the specific site and the multi-site timeshare plan must be provided. The items referenced in the subsection may be included as exhibit to the timeshare disclosure statement or as a supplement thereto.
(1) The name and address of the developer.
(2) The type of timeshare plan offered.
(3) A description of the type of interest and the usage rights the purchaser will receive, whether single-site site, multisite specific site, or multisite nonspecific site.
(4) A description of the duration and operation of the timeshare plan.
(5) The name and address of the escrow agent, and the account number of the bank or savings and loan company where the escrowed funds are maintained.
(6) A description of the method by which owners’ use of the accommodations is scheduled. Where a reservation system is used for scheduling timeshare periods, the following information is to be provided:(A) The entity responsible for operating the reservation system, its relationship to the developer and the duration of any agreement for operation of the reservation system;(B) A summary of the rules governing access to and use of the reservation system;(C) The existence of and an explanation regarding any priority reservation features that affect an owner’s ability to make reservations for the use of a given accommodation on a first-come, first-served basis; and(D) For a multisite specific interest timeshare plan, a description of how usage rights are provided for the specific site and for the other component sites in the multisite plan.
(A) The entity responsible for operating the reservation system, its relationship to the developer and the duration of any agreement for operation of the reservation system;
(B) A summary of the rules governing access to and use of the reservation system;
(C) The existence of and an explanation regarding any priority reservation features that affect an owner’s ability to make reservations for the use of a given accommodation on a first-come, first-served basis; and
(D) For a multisite specific interest timeshare plan, a description of how usage rights are provided for the specific site and for the other component sites in the multisite plan.
(7) For each component site in a timeshare plan, the following information must be provided:(A) A description of the existing or proposed accommodations, including the number of bedrooms, number of bathrooms, sleeping capacity, a description of the minimum duration being purchased, and a statement indicating whether the accommodation contains a full kitchen. If the accommodations are proposed or incomplete, the estimated date for commencement, completion and availability of the accommodations must be provided.(B) A description of any existing or proposed amenities and, if the amenities are proposed or incomplete, a schedule for commencement, completion, and availability of the amenities; and(C) The extent to which financial arrangements have been provided for the completion of all promised accommodations and amenities that are committed to be built.
(A) A description of the existing or proposed accommodations, including the number of bedrooms, number of bathrooms, sleeping capacity, a description of the minimum duration being purchased, and a statement indicating whether the accommodation contains a full kitchen. If the accommodations are proposed or incomplete, the estimated date for commencement, completion and availability of the accommodations must be provided.
(B) A description of any existing or proposed amenities and, if the amenities are proposed or incomplete, a schedule for commencement, completion, and availability of the amenities; and
(C) The extent to which financial arrangements have been provided for the completion of all promised accommodations and amenities that are committed to be built.
(8) A description of the method and timing for performing maintenance of the accommodations.
(9) A statement indicating that on an annual basis the one-to-one owner to accommodation ratio is maintained.
(10) For multisite timeshare plans, a description of the following:(A) Any periodic adjustment or amendment to the reservation system that may be conducted from time to time in order to respond to actual owner use patterns and changes in owner use demand for the accommodations existing at the time within the multisite timeshare plan; and(B) Any right to make any additions, substitutions, or deletions of accommodations, amenities or component sites, and a description of the basis upon which accommodations, amenities or component sites may be added to, substituted in, or deleted from the multisite timeshare plan.
(A) Any periodic adjustment or amendment to the reservation system that may be conducted from time to time in order to respond to actual owner use patterns and changes in owner use demand for the accommodations existing at the time within the multisite timeshare plan; and
(B) Any right to make any additions, substitutions, or deletions of accommodations, amenities or component sites, and a description of the basis upon which accommodations, amenities or component sites may be added to, substituted in, or deleted from the multisite timeshare plan.
(11) A statement that a timeshare association exists or will be established and a description of its powers and responsibilities or reasonably expected powers and responsibilities.
(12) The name and principal address of the timeshare association and managing entity, if any of the timeshare plan. Multisite timeshare plans must also provide a description of the relationship between the multisite timeshare plan managing entity and the managing entity of the component sites of the multisite timeshare plan, if different from the multisite timeshare plan managing entity.
(13) The projected assessments and a description of the method for calculating and apportioning those assessments among owners, but such assessments must be allocated among all timeshare interests on a reasonable basis. In the event the developer is not paying assessments for unsold units, the developer shall guaranty the level of assessments. If the developer intends to guarantee the level of assessments for the timeshare plan, a statement disclosing that the developer may be excused from the payment of the developer’s share of the common expenses which would have been assessed against developer-owned timeshare interests during a stated period of time during which the developer has guaranteed to each owner in the timeshare instrument that the assessment for common expenses imposed upon the owners would not increase over a stated dollar amount, and that the developer is obligated to pay all common expenses incurred during the guarantee period in excess of the total revenues of the timeshare plan.
(14) Any initial fee or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee.
(15) A description of any lien, defect or encumbrance on or affecting title to the timeshare interest and, if applicable, a copy of each written warranty provided by the developer.
(16) A description of any bankruptcy of the developer that is pending or that has occurred within the past five years, pending civil or criminal suit, adjudication or disciplinary actions material to the timeshare plan of which the developer has knowledge.
(17) Any current or anticipated fees or charges to be paid by owners for the use of any accommodations or amenities related to the timeshare plan, and a statement that the fees or charges are subject to change.
(18) A description of the insurance respectively insuring the (i) timeshare property against damage and destruction, (ii) timeshare association against liability to others, and (iii) owners of timeshare interests against liability to others.
(19) A description of the type of insurance coverage necessary to protect the owner and reasonably repair or replace the accommodations and amenities.
(20) The extent to which a timeshare interest may become subject to a tax lien or other lien arising out of claims against owners of different timeshare interests.
(21) A description of the purchaser’s right to cancel the purchase contract.
(22) A statement disclosing any right of first refusal or other restraint on the transfer of all or any portion of a timeshare interest.
(23) A statement disclosing that any deposit made in connection with the purchase of a timeshare interest must be held by the escrow agent until the expiration of any right to cancel the contract or until construction is completed, if applicable, and that if the purchaser elects to exercise the right of cancellation, any deposit must be returned to the purchaser, as set forth in section 1104 of this chapter, or, if applicable, a statement disclosing that the developer has provided a surety bond, irrevocable letter of credit or other form of financial assurance in an amount equal to or in excess of the funds that would otherwise be held by the escrow agent, and that if the purchaser elects to exercise the right of cancellation, any deposit must be returned to the purchaser, as set forth in section 1105 of this chapter.
(24) If applicable, a statement that the assessments collected from the owners may be placed in a common account with the assessments collected from the owners of other timeshare properties managed by the same managing entity.
(25) If the timeshare plan provides owners with the opportunity to participate in an exchange program, the name and address of the exchange company and the method by which an owner accesses the exchange program.
(26) Relating to the governing documents of the timeshare plan, the following documents, if applicable, including any amendments to them, must be provided to purchasers: the declaration and any applicable documents creating the timeshare plan; the timeshare association articles of incorporation; the timeshare association bylaws; the timeshare association rules; reservation rules and regulations, and any lease or contract, excluding the purchase contract and other loan documents required to be signed by the purchaser at closing. For multi-site timeshare plans where a specific interest is offered, applicable governing documents for both the specific site and the multi-site timeshare plan must be provided. The items referenced in the subsection may be included as exhibit to the timeshare disclosure statement or as a supplement thereto.
(c) A timeshare disclosure statement delivered to a purchaser may be the timeshare disclosure statement issued or approved by another jurisdiction so long as the requirements of this section are satisfied.
(d) A purchaser may elect to receive the timeshare disclosure statement by electronic means, so long as the developer gives the purchaser the option of receiving the timeshare disclosure statement in paper format or by electronic means.