§ 37:1437.1 — Timeshare registration

Louisiana § 37:1437.1

• Jurisdiction: Louisiana
• Title 37: Professions and Occupations

Text

§1437.1. Timeshare registration
A. Any person or entity desiring to engage directly in the business of selling
timeshare interests must register with the commission.
B.(1) The application for registration shall be in such form as may be required by the
commission and in accordance with R.S. 9:1131.9.
(2) The commission shall approve or deny such applications for registration within
forty-five days from receipt of the application by the commission.
(3) When an applicant has been convicted of forgery, embezzlement, obtaining
money under false pretenses, larceny, extortion, conspiracy to defraud, or theft or has been
convicted of a felony that the commission finds is directly related to real estate activity
pursuant to R.S. 37:2950, the conviction may in itself be sufficient grounds for refusal of
a timeshare interest sales registration.
(4) When an applicant has made a false statement of material fact on his application,
such false statement may in itself be sufficient grounds for refusal of a timeshare interest
sales registration.
(5) Grounds for suspension or revocation of a registration, or real estate license, or
the previous revocation of a real estate license or registration in Louisiana or any other
jurisdiction, shall be grounds for refusal to grant a timeshare interest sales registration.
(6) A timeshare registration shall not be issued to any person who has not attained
the age of eighteen years. A timeshare interest sales registration shall not be issued to any
person who is not a high school graduate or the holder of a certificate of high school
equivalency.
C. The provisions of this Section shall not apply to a licensed real estate broker or
salesperson or to employees of a timeshare developer registered under this Section.
D. Notwithstanding any other provisions of law, a timeshare developer may not
avoid liability to timeshare purchasers for the acts of timeshare interest salespersons or real
estate licensees on the basis that the timeshare interest salesperson or real estate licensee is
merely an independent contractor.
E. Every nondeveloper timeshare sales registrant shall file and maintain with the
Louisiana Real Estate Commission a bond issued by a surety company authorized to do
business in this state in the amount of ten thousand dollars. This bond shall be in favor of
the state for the use, benefit, and indemnity of any person who suffers any damage or loss as
a result of the sale registrant's unfair or deceptive practice or other violation of law in
connection with the sale offer or solicitation to sell of a timeshare interest.
F. Except for the provisions contained in R.S. 9:1131.12, the changes and additions
effected by Act No. 999 of the 1985 Regular Session of the Legislature shall not apply to any
timeshare project approved to operate by the Louisiana Real Estate Commission on or before
June 1, 1985, if all of the following conditions have been met:
(1) Protection under the federal bankruptcy law has not been filed.
(2) The developer has not been suspended by the Louisiana Real Estate Commission.
(3) The project has been actively and consistently marketed as a timeshare project,
if approved prior to July 20, 1984.
G. Any timeshare interest salesperson or seller of a timeshare interest shall comply
with the provisions of the Louisiana Real Estate License Law and the rules adopted pursuant
thereto, including licensure, unless otherwise exempt.
(1) The Louisiana Real Estate License Law shall not apply to a timeshare developer
registered under this Section, acting as sole owner or sole lessor of real estate solely owned
or solely leased by the developer, a registered affiliated entity, or a registered wholly-owned
subsidiary of the developer.
(2) The Louisiana Real Estate License Law shall not apply to an existing timeshare
owner who refers prospective purchasers, for compensation, provided that the existing
timeshare owner adheres to all of the following:
(a) Refers no more than twenty prospective purchasers in any calendar year.
(b) Limits such activities to referring prospective purchasers of timeshare interests
to the developer or the developer's employees or agents.
(c) Does not show, discuss terms or conditions, or otherwise participate in
negotiation with regard to timeshare interests.
{{NOTE: SEE ACTS 1985, NO. 999, §5.}}

Legislative History

Added by Acts 1983, No. 552, §2; Acts 1984, No. 943, §2, eff. July 20, 1984; Acts 1985, No. 999, §§2,4; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 2003, No. 978, §1; Acts 2016, No. 533, §1; Acts 2024, No. 644, §1.