37-53-303. Public offering statement. Unless exempt from registration, a person who offers or sells a timeshare interval shall provide the prospective purchaser with a written public offering statement before the prospective purchaser signs an agreement for the purchase of a timeshare. The public offering statement must include and fully and accurately disclose:

(1) the official name and address of the developer, its parent or affiliates, and the names and addresses of the director and officers of each;

(2) the location of the timeshare property;

(3) a general description of the timeshare units and associated real property, including but not limited to the developer's schedule of commencement and completion of all buildings, units, and amenities or, if completed, a statement that they have been completed;

(4) a list of all timeshare units and timeshare intervals offered by the developer or promoter in the same project, including:

(a) the types, current prices, and number of units;

(b) the types and durations of the timeshare intervals;

(c) the maximum number of units that may become part of the timeshare property;

(d) a statement of the maximum number of timeshare units and timeshare intervals that may be created or a statement that there is not a maximum;

(5) a description of the types of financing offered by the promoter or developer;

(6) a statement of ownership of all properties included in the timeshare offering, including any liens or encumbrances affecting the property;

(7) copies of any agreements or leases to be signed by purchasers at closing and a copy of the timeshare instrument or instruments;

(8) the identity of the managing entity and the name, address, and telephone number of the person or persons in charge and the manner, if any, whereby the developer may change the managing entity;

(9) a copy of the current budget and projected budget for the timeshare offering. The budget must include:

(a) a statement of the amount included in the budget as a reserve for repairs, maintenance, and replacement of the timeshare units;

(b) a detailed list of projected common expenses, liabilities, and expenditures for the timeshare units and timeshare intervals; and

(c) a statement of any services or expenses not reflected in the budget that the developer provides or pays.

(10) a statement in boldface type on the cover page of the public offering statement that, within 7 days after receipt of the public offering statement or the signing of the timeshare purchase agreement, whichever is later, a purchaser may cancel any agreement for the purchase of a timeshare interval and that the cancellation must be in writing and be delivered either in person or by certified mail to the developer or the developer's agent;

(11) a prepared legal document that once executed will effectively cancel the agreement between the purchaser and the developer;

(12) any restrictions on transfers of a timeshare interval or portion of the timeshare interval;

(13) a description of any insurance coverage provided for the benefit of timeshare interval owners by the managing entity or the timeshare interval owners' association;

(14) a full and accurate disclosure of whether the timeshare interval owners are permitted or required to become members of or participate in any program for the exchange of property rights among themselves or with the timeshare interval owners of other timeshare units, or both, and a complete description of the program; and

(15) any additional information the board finds necessary to fully inform prospective purchasers, including but not limited to the financial information required by 37-53-202.

History: En. Sec. 14, Ch. 444, L. 1987; amd. Sec. 9, Ch. 317, L. 2009.