A. The developer shall prepare and distribute to each prospective purchaserprior to the execution of a contract for the purchase of a time-share, a copyof the current public offering statement about which the time-share relates.The public offering statement shall fully and accurately disclose thematerial characteristics of the time-share project registered under thischapter and such time-share offered, and shall make known to each prospectivepurchaser all material circumstances affecting such time-share project. Adeveloper need not make joint disclosures concerning two or more time-shareprojects owned by the developer or any related entity unless such projectsare included in the same time-share program and marketed jointly at any ofthe time-share projects. The proposed public offering statement shall befiled with the Board, and shall be in a form prescribed by its regulations.The public offering statement may limit the information provided for thespecific time-share project to which the developer's registration relates.The public offering statement shall include the following only to the extenta given disclosure is applicable; otherwise no reference shall be required ofthe developer or contained in the public offering statement:
1. The name and principal address of the developer and the time-share projectregistered with the Board about which the public offering statement relates,including:
a. The name, principal occupation and address of every director, partner,limited liability company manager, or trustee of the developer;
b. The name and address of each person owning or controlling an interest of20 percent or more in each time-share project registered with the Board;
c. The particulars of any indictment, conviction, judgment, decree or orderof any court or administrative agency against the developer or managingentity for violation of a federal, state, local or foreign country law orregulation in connection with activities relating to time-share sales, landsales, land investments, security sales, construction or sale of homes orimprovements or any similar or related activity;
d. The nature of each unsatisfied judgment, if any, against the developer orthe managing entity, the status of each pending suit involving the sale ormanagement of real estate to which the developer, the managing entity, or anygeneral partner, executive officer, director, limited liability companymanager, or majority stockholder thereof, is a defending party, and thestatus of each pending suit, if any, of significance to any time-shareproject registered with the Board; and
e. The name and address of the developer's agent for service of any noticepermitted by this chapter.
2. A general description of the time-share project registered with the Boardand the units and common elements promised available to purchasers, includingwithout limitation, the developer's estimated schedule of commencement andcompletion of all promised and incomplete units and common elements.
3. As to all time-shares offered by the developer:
a. The form of time-share ownership offered in the project registered withthe Board;
b. The types, duration, and number of units and time-shares in the projectregistered with the Board;
c. Identification of units that are subject to the time-share program;
d. The estimated number of units that may become subject to the time-shareprogram;
e. Provisions, if any, that have been made for public utilities in thetime-share project including water, electricity, telephone, and seweragefacilities;
f. A statement to the effect of whether or not the developer has reserved theright to add to or delete from the time-share program a time-share project orany incidental benefit or alternative purchase; and
g. If the developer utilizes the possibility of reverter, a statement to thateffect referring the purchaser to the reverter deed for an explanationthereof.
4. In a time-share estate program, a copy of the annual report or budgetrequired by § 55-370.1, which copy may take the form of an exhibit to thepublic offering statement. In the case where multiple time-share projects areregistered with the Board, the copy or exhibit may be in summary form.
5. In a time-share use program where the developer's net worth is less than$250,000, a current audited balance sheet and where the developer's net worthexceeds such amount, a statement by such developer that its equity in thetime-share program exceeds that amount.
6. Any initial or special fee due from the purchaser at settlement togetherwith a description of the purpose and method of calculating the fee.
7. A description of any liens, defects, or encumbrances affecting thetime-share project and in particular the time-share offered to the purchaser.
8. A general description of any financing offered by or available through thedeveloper.
9. A statement that the purchaser has a nonwaivable right of cancellation,referring such purchaser to that portion of the contract in which such rightmay be found.
10. If the time-share interest in a condominium unit may be conveyed beforethat unit is certified as substantially complete in accordance with §55-79.58, a statement of the developer's obligation to complete the unit.Such statement shall include the approximate date by which the condominiumunit shall be completed, together with the form and amount of the bond filedin accordance with subsection B of § 55-79.58:1.
11. Any restraints on alienation of any number or portion of any time-shares.
12. A description of the insurance coverage provided for the benefit oftime-share owners.
13. The extent to which financial arrangements, if any, have been providedfor completion of any incomplete but promised time-share unit or commonelement being then offered for sale, including a statement of the developer'sobligation to complete the promised units and common elements comprising thetime-share project that have not begun, or begun but not yet completed.
14. The extent to which a time-share unit may become subject to a tax orother lien arising out of claims against other owners of the same unit.
15. The name and address of the managing entity for the project.
16. Copies of the project instrument and the association's articles ofincorporation and bylaws, each of which may be a supplement to the publicoffering statement.
17. Any services that the developer provides or expense it pays and that itexpects may become at any subsequent time a time-share expense of the owners,and the projected time-share expense liability attributable to each of thoseservices or expenses for each time-share.
18. A description of the terms of the deposit escrow requirements, includinga statement that deposits may be removed from escrow at the termination ofthe cancellation period.
19. A description of the facilities, if any, provided by the developer to theassociation in a time-share estate project for the management of the project.
20. Any other information required by the Board to assure full and fairmeaningful disclosure to prospective purchasers.
B. If any prospective purchaser is offered the opportunity to subscribe to orparticipate in any exchange program, the public offering statement shallinclude as an exhibit or supplement, the disclosure document prepared by theexchange company in accordance with § 55-374.2 and a brief narrativedescription of the exchange program which shall include the following:
1. A statement of whether membership or participation in the program isvoluntary or mandatory;
2. The name and address of the exchange company together with the names ofits top three officers and directors;
3. A statement of whether the exchange company or any of its top threeofficers, directors, or holders of a 10 percent or greater interest in theexchange company has any interest in the developer, managing entity or thetime-share project;
4. A statement that the purchaser's contract with the exchange company is acontract separate and distinct from the purchaser's contract with thedeveloper; and
5. A brief narrative description of the procedure whereby exchanges areconducted.
C. The public offering statement of a conversion time-share project shallalso include the following, which may take the form of an exhibit to thepublic offering statement:
1. A specific statement of the amount of any initial or special fee, if any,due from the purchaser of a time-share on or before settlement of thepurchase contract and the basis of such fee occasioned by the fact that theproject is a conversion time-share project;
2. Information on the actual expenditures, if available, made on all repairs,maintenance, operation, or upkeep of the building or buildings within thelast three years. This information shall be set forth in a tabular mannerwithin the proposed budget of the project. If such building or buildings havenot been occupied for a period of three years then the information shall beset forth for the period during which such building or buildings wereoccupied;
3. A description of any provisions made in the budget for reserves forcapital expenditures and an explanation of the basis for such reservesoccasioned by the fact that the project is a conversion time-share project,or, if no provision is made for such reserves, a statement to that effect; and
4. A statement of the present condition of all structural components andmajor utility installations in the building, which statement shall includethe approximate dates of construction, installations, and major repairs aswell as the expected useful life of each such item, together with theestimated cost, in current dollars, of replacing each such component.
D. In the case of a conversion project, the developer shall give at least 90days' notice to each of the tenants of the building or buildings which thedeveloper intends to submit to the provisions of this chapter. During thefirst 60 days of such 90-day period, each of these tenants shall have theexclusive right to contract for the purchase of a time-share from the unit heoccupies, but only if such unit is to be retained in the conversion projectwithout substantial alteration in its physical layout. Such notice shall behand delivered or sent by first-class mail, return receipt requested, andshall inform the tenants of the developer's intent to create a conversionproject. Such notice may also constitute the notice to terminate the tenancyas provided for in § 55-222, except that, despite the provisions of § 55-222,a tenancy from month to month may only be terminated upon 120 days' notice asset forth herein when such termination is in regard to the creation of aconversion project. If, however, a tenant so notified remains in possessionof the unit he occupies after the expiration of the 120-day period with thepermission of the developer, in order to then terminate the tenancy, suchdeveloper shall give the tenant a further notice as provided in § 55-222.
The developer of a conversion project, shall, in addition to the requirementsof § 55-391.1, include with the application for registration a copy of thenotice required by this subsection and a certified statement that such noticewhich fully complies with the provisions of this subsection shall be, at thetime of the registration of the conversion project, mailed or delivered toeach of the tenants in the building or buildings for which registration issought.
E. The developer shall amend the public offering statement to reflect anymaterial change in the time-share program or time-share project. If thedeveloper has reserved in the time-share instrument the right to add to ordelete incidental benefits or alternative purchases, the addition or deletionthereof shall not constitute a material change. Prior to distribution, thedeveloper shall file with the Board the public offering statement amended toreflect any material change.
F. The Board may at any time require a developer to alter or supplement theform or substance of the public offering statement to assure full and fairdisclosure to prospective purchasers. A developer may, in its discretion,prepare and distribute a public offering statement for each product offeredor one public offering statement for all products offered.
G. In the case of a time-share project located outside the Commonwealth,similar disclosure statements required by other situs laws governingtime-sharing may be acceptable alternative disclosure statements.
H. The developer shall prepare and distribute to each prospective purchaserprior to the execution of a purchase contract for a registered alternativepurchase, a copy of the public offering statement about which suchalternative purchase relates. The public offering statement shall fully andaccurately disclose the material characteristics of such alternativepurchase. The public offering statement for an alternative purchase shall befiled with the Board and shall be in a form prescribed by its regulations, ifany.
The public offering statement for an alternative purchase need not containany information about the time-share project, time-share program or thetime-shares offered by the developer which was initially offered to suchpurchaser by the developer. If the developer so elects, the public offeringstatement for an alternative purchase is not required to have any exhibits.
I. The public offering statement may be in any format, including a compactdisc, provided the prospective buyer has available for review, along withample time for any questions and answers, a copy of the public offeringstatement prior to his execution of a contract.
(1981, c. 462; 1983, c. 59; 1984, c. 455; 1985, c. 517; 1986, c. 359; 1989,c. 637; 1994, c. 580; 1998, c. 460; 1999, c. 560; 2001, c. 543; 2004, c. 143;2006, c. 653; 2007, c. 267.)
A. The developer shall prepare and distribute to each prospective purchaserprior to the execution of a contract for the purchase of a time-share, a copyof the current public offering statement about which the time-share relates.The public offering statement shall fully and accurately disclose thematerial characteristics of the time-share project registered under thischapter and such time-share offered, and shall make known to each prospectivepurchaser all material circumstances affecting such time-share project. Adeveloper need not make joint disclosures concerning two or more time-shareprojects owned by the developer or any related entity unless such projectsare included in the same time-share program and marketed jointly at any ofthe time-share projects. The proposed public offering statement shall befiled with the Board, and shall be in a form prescribed by its regulations.The public offering statement may limit the information provided for thespecific time-share project to which the developer's registration relates.The public offering statement shall include the following only to the extenta given disclosure is applicable; otherwise no reference shall be required ofthe developer or contained in the public offering statement:
1. The name and principal address of the developer and the time-share projectregistered with the Board about which the public offering statement relates,including:
a. The name, principal occupation and address of every director, partner,limited liability company manager, or trustee of the developer;
b. The name and address of each person owning or controlling an interest of20 percent or more in each time-share project registered with the Board;
c. The particulars of any indictment, conviction, judgment, decree or orderof any court or administrative agency against the developer or managingentity for violation of a federal, state, local or foreign country law orregulation in connection with activities relating to time-share sales, landsales, land investments, security sales, construction or sale of homes orimprovements or any similar or related activity;
d. The nature of each unsatisfied judgment, if any, against the developer orthe managing entity, the status of each pending suit involving the sale ormanagement of real estate to which the developer, the managing entity, or anygeneral partner, executive officer, director, limited liability companymanager, or majority stockholder thereof, is a defending party, and thestatus of each pending suit, if any, of significance to any time-shareproject registered with the Board; and
e. The name and address of the developer's agent for service of any noticepermitted by this chapter.
2. A general description of the time-share project registered with the Boardand the units and common elements promised available to purchasers, includingwithout limitation, the developer's estimated schedule of commencement andcompletion of all promised and incomplete units and common elements.
3. As to all time-shares offered by the developer:
a. The form of time-share ownership offered in the project registered withthe Board;
b. The types, duration, and number of units and time-shares in the projectregistered with the Board;
c. Identification of units that are subject to the time-share program;
d. The estimated number of units that may become subject to the time-shareprogram;
e. Provisions, if any, that have been made for public utilities in thetime-share project including water, electricity, telephone, and seweragefacilities;
f. A statement to the effect of whether or not the developer has reserved theright to add to or delete from the time-share program a time-share project orany incidental benefit or alternative purchase; and
g. If the developer utilizes the possibility of reverter, a statement to thateffect referring the purchaser to the reverter deed for an explanationthereof.
4. In a time-share estate program, a copy of the annual report or budgetrequired by § 55-370.1, which copy may take the form of an exhibit to thepublic offering statement. In the case where multiple time-share projects areregistered with the Board, the copy or exhibit may be in summary form.
5. In a time-share use program where the developer's net worth is less than$250,000, a current audited balance sheet and where the developer's net worthexceeds such amount, a statement by such developer that its equity in thetime-share program exceeds that amount.
6. Any initial or special fee due from the purchaser at settlement togetherwith a description of the purpose and method of calculating the fee.
7. A description of any liens, defects, or encumbrances affecting thetime-share project and in particular the time-share offered to the purchaser.
8. A general description of any financing offered by or available through thedeveloper.
9. A statement that the purchaser has a nonwaivable right of cancellation,referring such purchaser to that portion of the contract in which such rightmay be found.
10. If the time-share interest in a condominium unit may be conveyed beforethat unit is certified as substantially complete in accordance with §55-79.58, a statement of the developer's obligation to complete the unit.Such statement shall include the approximate date by which the condominiumunit shall be completed, together with the form and amount of the bond filedin accordance with subsection B of § 55-79.58:1.
11. Any restraints on alienation of any number or portion of any time-shares.
12. A description of the insurance coverage provided for the benefit oftime-share owners.
13. The extent to which financial arrangements, if any, have been providedfor completion of any incomplete but promised time-share unit or commonelement being then offered for sale, including a statement of the developer'sobligation to complete the promised units and common elements comprising thetime-share project that have not begun, or begun but not yet completed.
14. The extent to which a time-share unit may become subject to a tax orother lien arising out of claims against other owners of the same unit.
15. The name and address of the managing entity for the project.
16. Copies of the project instrument and the association's articles ofincorporation and bylaws, each of which may be a supplement to the publicoffering statement.
17. Any services that the developer provides or expense it pays and that itexpects may become at any subsequent time a time-share expense of the owners,and the projected time-share expense liability attributable to each of thoseservices or expenses for each time-share.
18. A description of the terms of the deposit escrow requirements, includinga statement that deposits may be removed from escrow at the termination ofthe cancellation period.
19. A description of the facilities, if any, provided by the developer to theassociation in a time-share estate project for the management of the project.
20. Any other information required by the Board to assure full and fairmeaningful disclosure to prospective purchasers.
B. If any prospective purchaser is offered the opportunity to subscribe to orparticipate in any exchange program, the public offering statement shallinclude as an exhibit or supplement, the disclosure document prepared by theexchange company in accordance with § 55-374.2 and a brief narrativedescription of the exchange program which shall include the following:
1. A statement of whether membership or participation in the program isvoluntary or mandatory;
2. The name and address of the exchange company together with the names ofits top three officers and directors;
3. A statement of whether the exchange company or any of its top threeofficers, directors, or holders of a 10 percent or greater interest in theexchange company has any interest in the developer, managing entity or thetime-share project;
4. A statement that the purchaser's contract with the exchange company is acontract separate and distinct from the purchaser's contract with thedeveloper; and
5. A brief narrative description of the procedure whereby exchanges areconducted.
C. The public offering statement of a conversion time-share project shallalso include the following, which may take the form of an exhibit to thepublic offering statement:
1. A specific statement of the amount of any initial or special fee, if any,due from the purchaser of a time-share on or before settlement of thepurchase contract and the basis of such fee occasioned by the fact that theproject is a conversion time-share project;
2. Information on the actual expenditures, if available, made on all repairs,maintenance, operation, or upkeep of the building or buildings within thelast three years. This information shall be set forth in a tabular mannerwithin the proposed budget of the project. If such building or buildings havenot been occupied for a period of three years then the information shall beset forth for the period during which such building or buildings wereoccupied;
3. A description of any provisions made in the budget for reserves forcapital expenditures and an explanation of the basis for such reservesoccasioned by the fact that the project is a conversion time-share project,or, if no provision is made for such reserves, a statement to that effect; and
4. A statement of the present condition of all structural components andmajor utility installations in the building, which statement shall includethe approximate dates of construction, installations, and major repairs aswell as the expected useful life of each such item, together with theestimated cost, in current dollars, of replacing each such component.
D. In the case of a conversion project, the developer shall give at least 90days' notice to each of the tenants of the building or buildings which thedeveloper intends to submit to the provisions of this chapter. During thefirst 60 days of such 90-day period, each of these tenants shall have theexclusive right to contract for the purchase of a time-share from the unit heoccupies, but only if such unit is to be retained in the conversion projectwithout substantial alteration in its physical layout. Such notice shall behand delivered or sent by first-class mail, return receipt requested, andshall inform the tenants of the developer's intent to create a conversionproject. Such notice may also constitute the notice to terminate the tenancyas provided for in § 55-222, except that, despite the provisions of § 55-222,a tenancy from month to month may only be terminated upon 120 days' notice asset forth herein when such termination is in regard to the creation of aconversion project. If, however, a tenant so notified remains in possessionof the unit he occupies after the expiration of the 120-day period with thepermission of the developer, in order to then terminate the tenancy, suchdeveloper shall give the tenant a further notice as provided in § 55-222.
The developer of a conversion project, shall, in addition to the requirementsof § 55-391.1, include with the application for registration a copy of thenotice required by this subsection and a certified statement that such noticewhich fully complies with the provisions of this subsection shall be, at thetime of the registration of the conversion project, mailed or delivered toeach of the tenants in the building or buildings for which registration issought.
E. The developer shall amend the public offering statement to reflect anymaterial change in the time-share program or time-share project. If thedeveloper has reserved in the time-share instrument the right to add to ordelete incidental benefits or alternative purchases, the addition or deletionthereof shall not constitute a material change. Prior to distribution, thedeveloper shall file with the Board the public offering statement amended toreflect any material change.
F. The Board may at any time require a developer to alter or supplement theform or substance of the public offering statement to assure full and fairdisclosure to prospective purchasers. A developer may, in its discretion,prepare and distribute a public offering statement for each product offeredor one public offering statement for all products offered.
G. In the case of a time-share project located outside the Commonwealth,similar disclosure statements required by other situs laws governingtime-sharing may be acceptable alternative disclosure statements.
H. The developer shall prepare and distribute to each prospective purchaserprior to the execution of a purchase contract for a registered alternativepurchase, a copy of the public offering statement about which suchalternative purchase relates. The public offering statement shall fully andaccurately disclose the material characteristics of such alternativepurchase. The public offering statement for an alternative purchase shall befiled with the Board and shall be in a form prescribed by its regulations, ifany.
The public offering statement for an alternative purchase need not containany information about the time-share project, time-share program or thetime-shares offered by the developer which was initially offered to suchpurchaser by the developer. If the developer so elects, the public offeringstatement for an alternative purchase is not required to have any exhibits.
I. The public offering statement may be in any format, including a compactdisc, provided the prospective buyer has available for review, along withample time for any questions and answers, a copy of the public offeringstatement prior to his execution of a contract.
(1981, c. 462; 1983, c. 59; 1984, c. 455; 1985, c. 517; 1986, c. 359; 1989,c. 637; 1994, c. 580; 1998, c. 460; 1999, c. 560; 2001, c. 543; 2004, c. 143;2006, c. 653; 2007, c. 267.)
A. The developer shall prepare and distribute to each prospective purchaserprior to the execution of a contract for the purchase of a time-share, a copyof the current public offering statement about which the time-share relates.The public offering statement shall fully and accurately disclose thematerial characteristics of the time-share project registered under thischapter and such time-share offered, and shall make known to each prospectivepurchaser all material circumstances affecting such time-share project. Adeveloper need not make joint disclosures concerning two or more time-shareprojects owned by the developer or any related entity unless such projectsare included in the same time-share program and marketed jointly at any ofthe time-share projects. The proposed public offering statement shall befiled with the Board, and shall be in a form prescribed by its regulations.The public offering statement may limit the information provided for thespecific time-share project to which the developer's registration relates.The public offering statement shall include the following only to the extenta given disclosure is applicable; otherwise no reference shall be required ofthe developer or contained in the public offering statement:
1. The name and principal address of the developer and the time-share projectregistered with the Board about which the public offering statement relates,including:
a. The name, principal occupation and address of every director, partner,limited liability company manager, or trustee of the developer;
b. The name and address of each person owning or controlling an interest of20 percent or more in each time-share project registered with the Board;
c. The particulars of any indictment, conviction, judgment, decree or orderof any court or administrative agency against the developer or managingentity for violation of a federal, state, local or foreign country law orregulation in connection with activities relating to time-share sales, landsales, land investments, security sales, construction or sale of homes orimprovements or any similar or related activity;
d. The nature of each unsatisfied judgment, if any, against the developer orthe managing entity, the status of each pending suit involving the sale ormanagement of real estate to which the developer, the managing entity, or anygeneral partner, executive officer, director, limited liability companymanager, or majority stockholder thereof, is a defending party, and thestatus of each pending suit, if any, of significance to any time-shareproject registered with the Board; and
e. The name and address of the developer's agent for service of any noticepermitted by this chapter.
2. A general description of the time-share project registered with the Boardand the units and common elements promised available to purchasers, includingwithout limitation, the developer's estimated schedule of commencement andcompletion of all promised and incomplete units and common elements.
3. As to all time-shares offered by the developer:
a. The form of time-share ownership offered in the project registered withthe Board;
b. The types, duration, and number of units and time-shares in the projectregistered with the Board;
c. Identification of units that are subject to the time-share program;
d. The estimated number of units that may become subject to the time-shareprogram;
e. Provisions, if any, that have been made for public utilities in thetime-share project including water, electricity, telephone, and seweragefacilities;
f. A statement to the effect of whether or not the developer has reserved theright to add to or delete from the time-share program a time-share project orany incidental benefit or alternative purchase; and
g. If the developer utilizes the possibility of reverter, a statement to thateffect referring the purchaser to the reverter deed for an explanationthereof.
4. In a time-share estate program, a copy of the annual report or budgetrequired by § 55-370.1, which copy may take the form of an exhibit to thepublic offering statement. In the case where multiple time-share projects areregistered with the Board, the copy or exhibit may be in summary form.
5. In a time-share use program where the developer's net worth is less than$250,000, a current audited balance sheet and where the developer's net worthexceeds such amount, a statement by such developer that its equity in thetime-share program exceeds that amount.
6. Any initial or special fee due from the purchaser at settlement togetherwith a description of the purpose and method of calculating the fee.
7. A description of any liens, defects, or encumbrances affecting thetime-share project and in particular the time-share offered to the purchaser.
8. A general description of any financing offered by or available through thedeveloper.
9. A statement that the purchaser has a nonwaivable right of cancellation,referring such purchaser to that portion of the contract in which such rightmay be found.
10. If the time-share interest in a condominium unit may be conveyed beforethat unit is certified as substantially complete in accordance with §55-79.58, a statement of the developer's obligation to complete the unit.Such statement shall include the approximate date by which the condominiumunit shall be completed, together with the form and amount of the bond filedin accordance with subsection B of § 55-79.58:1.
11. Any restraints on alienation of any number or portion of any time-shares.
12. A description of the insurance coverage provided for the benefit oftime-share owners.
13. The extent to which financial arrangements, if any, have been providedfor completion of any incomplete but promised time-share unit or commonelement being then offered for sale, including a statement of the developer'sobligation to complete the promised units and common elements comprising thetime-share project that have not begun, or begun but not yet completed.
14. The extent to which a time-share unit may become subject to a tax orother lien arising out of claims against other owners of the same unit.
15. The name and address of the managing entity for the project.
16. Copies of the project instrument and the association's articles ofincorporation and bylaws, each of which may be a supplement to the publicoffering statement.
17. Any services that the developer provides or expense it pays and that itexpects may become at any subsequent time a time-share expense of the owners,and the projected time-share expense liability attributable to each of thoseservices or expenses for each time-share.
18. A description of the terms of the deposit escrow requirements, includinga statement that deposits may be removed from escrow at the termination ofthe cancellation period.
19. A description of the facilities, if any, provided by the developer to theassociation in a time-share estate project for the management of the project.
20. Any other information required by the Board to assure full and fairmeaningful disclosure to prospective purchasers.
B. If any prospective purchaser is offered the opportunity to subscribe to orparticipate in any exchange program, the public offering statement shallinclude as an exhibit or supplement, the disclosure document prepared by theexchange company in accordance with § 55-374.2 and a brief narrativedescription of the exchange program which shall include the following:
1. A statement of whether membership or participation in the program isvoluntary or mandatory;
2. The name and address of the exchange company together with the names ofits top three officers and directors;
3. A statement of whether the exchange company or any of its top threeofficers, directors, or holders of a 10 percent or greater interest in theexchange company has any interest in the developer, managing entity or thetime-share project;
4. A statement that the purchaser's contract with the exchange company is acontract separate and distinct from the purchaser's contract with thedeveloper; and
5. A brief narrative description of the procedure whereby exchanges areconducted.
C. The public offering statement of a conversion time-share project shallalso include the following, which may take the form of an exhibit to thepublic offering statement:
1. A specific statement of the amount of any initial or special fee, if any,due from the purchaser of a time-share on or before settlement of thepurchase contract and the basis of such fee occasioned by the fact that theproject is a conversion time-share project;
2. Information on the actual expenditures, if available, made on all repairs,maintenance, operation, or upkeep of the building or buildings within thelast three years. This information shall be set forth in a tabular mannerwithin the proposed budget of the project. If such building or buildings havenot been occupied for a period of three years then the information shall beset forth for the period during which such building or buildings wereoccupied;
3. A description of any provisions made in the budget for reserves forcapital expenditures and an explanation of the basis for such reservesoccasioned by the fact that the project is a conversion time-share project,or, if no provision is made for such reserves, a statement to that effect; and
4. A statement of the present condition of all structural components andmajor utility installations in the building, which statement shall includethe approximate dates of construction, installations, and major repairs aswell as the expected useful life of each such item, together with theestimated cost, in current dollars, of replacing each such component.
D. In the case of a conversion project, the developer shall give at least 90days' notice to each of the tenants of the building or buildings which thedeveloper intends to submit to the provisions of this chapter. During thefirst 60 days of such 90-day period, each of these tenants shall have theexclusive right to contract for the purchase of a time-share from the unit heoccupies, but only if such unit is to be retained in the conversion projectwithout substantial alteration in its physical layout. Such notice shall behand delivered or sent by first-class mail, return receipt requested, andshall inform the tenants of the developer's intent to create a conversionproject. Such notice may also constitute the notice to terminate the tenancyas provided for in § 55-222, except that, despite the provisions of § 55-222,a tenancy from month to month may only be terminated upon 120 days' notice asset forth herein when such termination is in regard to the creation of aconversion project. If, however, a tenant so notified remains in possessionof the unit he occupies after the expiration of the 120-day period with thepermission of the developer, in order to then terminate the tenancy, suchdeveloper shall give the tenant a further notice as provided in § 55-222.
The developer of a conversion project, shall, in addition to the requirementsof § 55-391.1, include with the application for registration a copy of thenotice required by this subsection and a certified statement that such noticewhich fully complies with the provisions of this subsection shall be, at thetime of the registration of the conversion project, mailed or delivered toeach of the tenants in the building or buildings for which registration issought.
E. The developer shall amend the public offering statement to reflect anymaterial change in the time-share program or time-share project. If thedeveloper has reserved in the time-share instrument the right to add to ordelete incidental benefits or alternative purchases, the addition or deletionthereof shall not constitute a material change. Prior to distribution, thedeveloper shall file with the Board the public offering statement amended toreflect any material change.
F. The Board may at any time require a developer to alter or supplement theform or substance of the public offering statement to assure full and fairdisclosure to prospective purchasers. A developer may, in its discretion,prepare and distribute a public offering statement for each product offeredor one public offering statement for all products offered.
G. In the case of a time-share project located outside the Commonwealth,similar disclosure statements required by other situs laws governingtime-sharing may be acceptable alternative disclosure statements.
H. The developer shall prepare and distribute to each prospective purchaserprior to the execution of a purchase contract for a registered alternativepurchase, a copy of the public offering statement about which suchalternative purchase relates. The public offering statement shall fully andaccurately disclose the material characteristics of such alternativepurchase. The public offering statement for an alternative purchase shall befiled with the Board and shall be in a form prescribed by its regulations, ifany.
The public offering statement for an alternative purchase need not containany information about the time-share project, time-share program or thetime-shares offered by the developer which was initially offered to suchpurchaser by the developer. If the developer so elects, the public offeringstatement for an alternative purchase is not required to have any exhibits.
I. The public offering statement may be in any format, including a compactdisc, provided the prospective buyer has available for review, along withample time for any questions and answers, a copy of the public offeringstatement prior to his execution of a contract.
(1981, c. 462; 1983, c. 59; 1984, c. 455; 1985, c. 517; 1986, c. 359; 1989,c. 637; 1994, c. 580; 1998, c. 460; 1999, c. 560; 2001, c. 543; 2004, c. 143;2006, c. 653; 2007, c. 267.)
