§ 42-103mm — Time share disclosure statement. Written acknowledgment of receipt.

Connecticut § 42-103mm

• Jurisdiction: Connecticut
• Title 42: Business, Selling, Trading and Collection Practices
• Ch. 734b: Time Shares

Text

(a) Before a prospective purchaser signs any agreement to acquire a time share interest, the developer shall provide a time share disclosure statement to the prospective purchaser and shall obtain from the purchaser a written acknowledgment of receipt of the time share disclosure statement. (b) The time share disclosure statement for a single-site time share plan or a multisite time share plan that includes a specific time share interest shall include: (1) The type of time share plan offered and the name and address of the developer and the single site or specific site offered for the multisite time share plan; (2) A description of the duration and operation of the time share plan; (3) A description of the existing or proposed accommodations, including the type and number of time share interests in the accommodations expressed in periods of seven-day-use availability or other time increment applicable to the time share plan. The description of each type of accommodation included in the time share plan shall be categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity, and shall include a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven and refrigerator. If the accommodations are proposed or incomplete, a schedule for commencement, completion and availability of the accommodations shall be provided; (4) A description of any existing or proposed amenities of the time share plan and, if the amenities are proposed or incomplete, a schedule for commencement, completion, and availability of the amenities; (5) The extent to which financial arrangements have been provided for the completion of all promised accommodations and amenities that are committed to be built; (6) A description of the method and timing for performing maintenance of the accommodations; (7) A statement indicating that, on an annual basis, the sum of the nights that purchasers are entitled to use the accommodations does not exceed the number of nights the accommodations are available for use by the purchasers; (8) A description of the method by which purchasers' use of the accommodations is scheduled; (9) A statement that an association exists or is expected to be created or that such an association does not exist and is not expected to be created and, if such an association exists or is reasonably contemplated, a description of its powers and responsibilities; (10) Relating to the single-site time share plan or the specific time share interest of a multisite time share plan, copies of the following documents, if applicable, including any amendments to the documents, unless separately provided to the purchaser simultaneously with the time share disclosure statement: (A) The declaration; (B) the association articles of incorporation; (C) the association bylaws; (D) the association rules; and (E) any lease or contract, excluding the purchase contract and other loan documents required to be signed by the purchaser at closing; (11) The name and principal address of the managing entity and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it; (12) The current annual budget, if available, or the projected annual budget for the time share plan or time share properties managed by the same managing entity if assessments are deposited in a common account. The budget shall include: (A) A statement of the amount reserved or budgeted for repairs, replacements and refurbishment; (B) The projected common expense liability, if any, by category of expenditure for the time share plan or time share properties managed by the same managing entity; and (C) The assumptions on which the operating budget is based; (13) The projected assessments and a description of the method for calculating and apportioning those assessments among purchasers; (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 time share 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 time share plan of which the developer has knowledge; (17) A description of any financing offered by or available through the developer; (18) Any current or anticipated fees or charges to be paid by time share purchasers for the use of any accommodations or amenities related to the time share plan, and a statement that the fees or charges are subject to change; (19) A description of the insurance respectively insuring the (A) time share property against damage and destruction, (B) association against liability to others, and (C) owners of time share interests against liability to others; (20) A description of the type of insurance coverage necessary to protect the purchaser and reasonably repair or replace the accommodations and amenities; (21) The extent to which a time share interest may become subject to a tax lien or other lien arising out of claims against purchasers of different time share interests; (22) A description of the purchaser's right to cancel the purchase contract identified in section 42-103pp ; (23) A statement disclosing any right of first refusal or other restraint on the transfer of all or any portion of a time share interest; (24) A statement disclosing that any deposit made in connection with the purchase of a time share interest shall be held by a closing agent until expiration of any right to cancel the contract and that if the purchaser elects to exercise the right of cancellation, any deposit shall be returned to the purchaser, as set forth in subsection (d) of section 42-103pp , or, if the commissioner accepts from the developer a surety bond, irrevocable letter of credit or other form of financial assurance instead of an escrow deposit, 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 a closing agent and that if the purchaser elects to exercise the right of cancellation, any deposit shall be returned to the purchaser, as set forth in subsection (d) of section 42-103pp ; (25) If applicable, a statement that the assessments collected from the purchasers may be placed in a common account with the assessments collected from the purchasers of other time share properties managed by the same managing entity; (26) If the time share plan provides purchasers with the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program; and (27) Any other information the commissioner deems necessary to protect prospective purchasers or to implement sections 42-103cc to 42-103ddd , inclusive. (c) A developer who offers a specific time share interest in a multisite time share plan also shall fully disclose the following information in written, graphic or tabular form: (1) A description of each component site, including the name and address of each component site; (2) A description of each type of accommodation in each component site, categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity and a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven and refrigerator; (3) A description of the amenities at each component site available for use by purchasers; (4) A description of the reservation system, including, but not limited to: (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; and (C) The existence of and explanation regarding any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-served basis; (5) The name and principal address of the managing entity for the multisite time share plan and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it; (6) A description of any right to make additions to, substitutions in or deletions from accommodations, amenities or component sites, and a description of the basis on which accommodations, amenities or component sites may be added to, substituted in or deleted from the multisite time share plan; (7) A description of the purchaser's liability for any fees associated with the multisite time share plan; (8) The location of each component site of the multisite time share plan, the historical occupancy of each component site for the prior twelve-month period, if the component site was part of the multisite time share plan during such twelve-month time period, as well as any periodic adjustment or amendment to the reservation system that may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at the time within the multisite time share plan; and (9) Any other information the commissioner deems necessary to protect prospective purchasers or to implement sections 42-103cc to 42-103ddd , inclusive. (d) A developer who offers a nonspecific time share interest in a multisite time share plan shall disclose the following information in written, graphic or tabular form: (1) The name and address of the developer; (2) A description of the type of interest and the usage rights the purchaser will receive; (3) A description of the duration and operation of the time share plan; (4) A description of the insurance respectively insuring the (A) time share property against damage and destruction, (B) association against liability to others, and (C) owners of time share interests against liability to others; (5) An explanation of who holds title to the accommodations of each component site; (6) A description of each component site, including the name and address of each component site; (7) A description of the existing or proposed accommodations, expressed in periods of seven-day use availability or any other time increment applicable to the time share plan. The description of each type of accommodation included in the time share plan shall be categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity, and shall include a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven and refrigerator. If the accommodations are proposed or incomplete, a schedule for commencement, completion and availability of the accommodations shall be provided; (8) A statement that an association exists or is expected to be created or that such an association does not exist and is not expected to be created and, if such an association exists or is reasonably contemplated, a description of its powers and responsibilities; (9) If applicable, copies of the following documents applicable to the multisite time share plan, including any amendments to the documents, unless separately provided to the purchaser simultaneously with the time share disclosure statement: (A) The declaration; (B) the association articles of incorporation; (C) the association bylaws; (D) the association rules; and (E) any lease or contract, excluding the purchase contract and other loan documents required to be signed by the purchaser at closing; (10) A description of the method and timing for performing maintenance of the accommodations; (11) A statement indicating that, on an annual basis, the sum of the nights that purchasers are entitled to use the accommodations does not exceed the number of nights the accommodations are available for use by the purchasers; (12) A description of amenities available for use by the purchaser at each component site; (13) The location of each component site of the multisite time share plan, the historical occupancy of each component site for the prior twelve-month period, if the component site was part of the multisite time share plan during such twelve-month time period, as well as any periodic adjustment or amendment to the reservation system that may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at the time within the multisite time share plan; (14) A description of the 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 time share plan; (15) A description of the reservation system that shall include all of the following: (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; and (C) The existence of and an explanation regarding any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-served basis; (16) The name and principal address of the managing entity for the multisite time share plan and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it, and a description of the relationship between the multisite time share plan managing entity and the managing entity of the component sites of the multisite time share plan, if different from the multisite time share plan managing entity; (17) The current annual budget of the multisite time share plan, if available, or the projected annual budget for the multisite time share plan, which shall include, but not be limited to: (A) A statement of the amount reserved or budgeted for repairs, replacements and refurbishment; (B) The projected common expense liability, if any, by category of expenditure for the multisite time share plan; and (C) The assumptions on which the operating budget is based; (18) The projected assessments and a description of the method for calculating and apportioning those assessments among purchasers of the multisite time share plan; (19) If applicable, a statement that the assessments collected from the purchasers may be placed in a common account with the assessments collected from the purchasers of other time share properties managed by the same managing entity; (20) Any current fees or charges to be paid by time share purchasers for the use of any amenities related to the time share plan and a statement that the fees or charges are subject to change; (21) Any initial or special fee due from the purchaser at closing, together with a description of the purpose of and method of calculating the fee; (22) A description of the purchaser's liability for any fees associated with the multisite time share plan; (23) A description of any lien, defect or encumbrance on or affecting title to the time share interest and, if applicable, a copy of each written warranty provided by the developer; (24) The extent to which a time share interest may become subject to a tax lien or other lien arising out of claims against purchasers of different time share interests; (25) A description of the cancellation provisions and the waiver prohibition set forth in subsections (a) to (c), inclusive, of section 42-103pp ; (26) A description of any financing offered by or available through the developer; (27) A description of any bankruptcy of the developer that is pending or that has occurred within the past five years, pending civil or criminal suits, adjudications or disciplinary actions material to the time share plan of which the developer has knowledge; (28) A statement disclosing any right of first refusal or other restraint on the transfer of all or a portion of a time share interest; (29) A statement disclosing that any deposit made in connection with the purchase of a time share interest shall be held by a closing agent until expiration of any right to cancel the contract and that if the purchaser elects to exercise the right of cancellation, any deposit shall be returned to the purchaser, as set forth in subsection (d) of section 42-103pp , or, if the commissioner requires from the developer a surety bond, irrevocable letter of credit or other form of financial assurance instead of an escrow deposit, 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 a closing agent and that if the purchaser elects to exercise the right of cancellation, any deposit shall be returned to the purchaser, as set forth in subsection (d) of section 42-103pp ; (30) If the time share plan provides purchasers with the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program; and (31) Any other information the commissioner determines is necessary to protect prospective purchasers or to implement the purpose of sections 42-103cc to 42-103ddd , inclusive. (e) A developer may include any other information in a time share disclosure statement approved by the commissioner. (f) If a time share plan is located wholly outside this state, the commissioner may permit the developer to submit a time share disclosure statement the developer is currently providing purchasers or an equivalent time share disclosure statement filed for the time share plan in another state if the current statement or the equivalent statement substantially complies with the requirements of this section. Use of an equivalent time share disclosure statement pursuant to this subsection does not exempt the developer from other requirements of this section.

Legislative History

(P.A. 09-156, S. 11; P.A. 10-5, S. 55, 56.) History: P.A. 09-156 effective January 1, 2010; P.A. 10-5 amended Subsec. (b)(16) by adding “of the developer” re bankruptcy and made a technical change in Subsec. (d)(25), effective May 5, 2010.