ALABAMA REAL ESTATE COMMISSION ADMINISTRATIVE CODE

CHAPTER 790-X-4 TIMESHARING REGISTRATION AND LICENSURE

TABLE OF CONTENTS

790-X-4-.01 Registration Of A Timesharing Plan

790-X-4-.02 Qualifying Broker Responsible For License Certificates And Verification Of Bond

790-X-4-.03 Use Of Gifts, Prizes, Etc.

790-X-4-.04 Office And Records Inspection

790-X-4-.05 Public Offering Statement Requirements

790-X-4-.01 Registration Of A Timesharing Plan.

(1) Each timesharing plan offered for sale in Alabama shall be registered separately. If a given timesharing project or development shall offer more than one plan, then each plan shall be required to meet all the conditions of registration and a registration fee shall be paid for each timesharing plan registered.

(2) The registration fee for a timesharing plan registration shall be paid by certified or cashier's check or money order.

(3) The Executive Director of the Alabama Real Estate Commission shall have the authority to issue orders registering or rejecting the registration of timesharing plans. Further, the Executive Director shall have the authority to impose such reasonable conditions upon the timesharing plan within the registration order as will serve to carry out the purposes of Act 83-670 of the Alabama Legislature and of the Rules and Regulations of the Alabama Real Estate Commission.

(4) The Commission shall have the authority to withdraw the registration of a timesharing plan should it be proven to the satisfaction of the Commission that the registrant submitted false or erroneous information as part of its registration documentation or that the registrant did not fulfill reasonable conditions imposed upon it through its registration order. In the event the Commission has probable cause to believe that the registrant submitted such false or erroneous information or has failed to carry out the conditions of a registration order, the Commission shall issue a formal complaint on the matter and conduct a hearing on the matter.

Author:

Statutory Authority: Code of Ala. 1975, 34-27-50, et seq.

History: Filed November 21, 1983.

790-X-4-.02 Qualifying Broker Responsible For License_Certificates And Verification Of Bond.

(1) The qualifying broker of a registered timesharing plan shall be responsible for the care and display of the timeshare seller's license certificates issued to him and to any licensee for whom he serves as the qualifying broker. These certificates shall all be displayed in the main sales office of the respective timeshare plan and shall be open to inspection by any person. Provided, however, that for each branch office, the qualifying broker of that branch office shall be responsible for the care and display of all licenses assigned to that branch office, and all such branch office license certificates shall be displayed at the branch office. Further, the respective qualifying broker shall be responsible for the return to the Real Estate Commission of any license of which a transfer is being sought.

(2) Any qualifying broker accepting responsibility for a given licensee shall be responsible for verifying that such licensee has a current bond which meets the requirements of the Alabama Vacation Timesharing Sales Law.

Author: Edward M. George

Statutory Authority: Code of Ala. 1975, 34-27-62, 34-27-66, 34-27-69.

History: Filed July 24, 1984.

790-X-4-.03 Use Of Gifts, Prizes, Etc. Any timeshare seller desiring to use any gift, prize, award, discount, etc., as a promotional device in soliciting the sale or lease or rental of timeshares shall, prior to the use of each such device, submit evidence satisfactory to the Real Estate Commission that the retail value of each such item and the approximate odds of each item being awarded or given are accurately represented in all advertising thereof. Further, satisfactory evidence shall be submitted to the Commission that any such item will be readily available to be given, awarded, etc., to any valid claimant. No such promotional device may be used until its use has been approved by the Commission.

Author: Edward M. George

Statutory Authority: Code of Ala. 1975, 34-27-60, 34-27-62.

History: Filed July 24, 1984.

790-X-4-.04 Office And Records Inspection.

(1) The staff of the Alabama Real Estate Commission is authorized to make an inspection during any business day of any registered timesharing plan or branch office thereof, its facility and accommodations, and its business records to ensure that such plan is operating in compliance with the Alabama Vacation Timesharing Law, the Rules and Regulations of the Commission, and any Commission order.

(2) In the event of such an inspection, the qualifying broker, or the developer in the event there is no qualifying broker, of the timesharing plan shall ensure that the business records referred to in paragraph (1) above are made available to such Commission representative(s).

(3) The Commission representative(s), at the Commission's expense, may make photocopies of records which the timeshare plan is required by law, rule, or order to maintain.

Author: Edward M. George

Statutory Authority: Code of Ala. 1975, 34-27-52, 34-27-55, 34-27-58, 34-27-62.

History: Filed July 24, 1984.

790-X-4-.05 Public Offering Statement Requirements.

(1) Effective October 1, 1985, it shall be required that any person selling or attempting to sell a timeshare interval in any timeshare plan located or registered in Alabama provide the prospective buyer with a public offering statement prior to the buyer's signing any sale documents or committing himself in any manner to purchase a timeshare interval. The public offering statement shall contain at least the following:

(a) A cover page stating:

1. The name and address of the timeshare project;

2. The name and address of the developer of the project;

3. The following in conspicuous type:

"THIS PUBLIC OFFERING STATEMENT CONTAINS IMPORTANT INFORMATION WHICH SHOULD BE CONSIDERED PRIOR TO ACQUIRING A TIMESHARE INTERVAL."

"THE STATEMENTS CONTAINED HEREIN ARE SUMMARY IN NATURE. A PROSPECTIVE PURCHASER SHOULD REFER TO ALL DOCUMENTS AND OTHER ITEMS REFERENCED IN THIS PUBLIC OFFERING STATEMENT FOR MORE DETAILED INFORMATION."

"ORAL REPRESENTATIONS SHOULD NOT BE RELIED ON AS CORRECT STATEMENTS. REFER TO THIS DOCUMENT FOR CORRECT REPRESENTATIONS."

(b) A separate table of contents;

(c) A detailed description of the timesharing plan being offered, including a description of the accommodations and amenities in existence and those which are planned as part of the future development of the project. The number of timeshare intervals being sold, the total number of units available, a description of the various types of units available, the date by which each unit shall be fully available for occupancy, and the date by which each amenity shall be fully available for use shall be included;

(d) The total financial obligation of a purchaser including the initial purchase price, any interest charges, any costs of completing or recording the transaction, and any additional charges for which the purchaser may be or become subject;

(e) A copy of the documents, including but not limited to a condominium declaration, which established the timesharing plan;

(f) A copy of any purchase contract, lease, and/or any other contract to be signed by the purchaser as part of, or as a result of, the purchase;

(g) The name and address of the entity managing the plan being offered and the manner, if any, by which the managing entity or the duties of the managing entity may be changed by the seller;

(h) A copy of the rules, regulations, conditions or limitations regarding the use of the accommodations or facilities by purchasers;

(i) Any restrictions or condition on the transfer of the timeshare interval by a purchaser;

(j) An explanation of the purchaser's right to cancel;

(k) A copy of all escrow agreements pertaining to the timesharing plan;

(l) A detailed description of the status of the title to the real property underlying the timesharing plan, including a statement as to the existence and place of recording of each deed to the real property held by the seller, and a description of any lien, defect, judgment or other encumbrance affecting title to the property and a statement as to the place, book and page of recording of any recorded mortgage, note, lien, or other encumbrance against the property;

(m) A description of the insurance coverage provided for the benefit of purchasers, including the policy number(s), the amount of any type of coverage, and the company or companies providing the coverage;

(n) If maintenance fees are to be charged, then a projected budget of all items subject to the maintenance assessment must be included along with a description of any and all contracts for any service included as a maintenance expense;

(o) If the timesharing plan is an ownership plan, then a description of how the purchaser's title will be made free of any blanket mortgage on the project property, as well as a description of any nondisturbance agreement pertaining to the purchaser's rights, and the place, book and page of recording of any mortgage release provision, executed partial release, or nondisturbance agreement pertaining to the property being offered the prospective purchaser, must be included;

(p) If the timesharing plan is a lease plan, the following in conspicuous type: "THE PLAN FOR WHICH YOU ARE PAYING DOES NOT GIVE YOU ANY OWNERSHIP OF YOUR UNIT. YOU ARE GETTING ONLY A LEASE AND THE RIGHT TO USE YOUR UNIT UNDER THAT LEASE. ANY FINANCIAL PROBLEMS OF THE PRESENT OWNER OR ANY PRIOR OWNER COULD RESULT IN YOU LOSING YOUR INTEREST ENTIRELY BY FORECLOSURE OF A MORTGAGE, ENFORCEMENT OF A LIEN, BANKRUPTCY, OR OTHER MEANS."

(2) Each timeshare seller shall obtain and keep in his business records a signed, dated receipt acknowledging delivery of the public offering statement to each prospective purchaser.

Authors: Edward George, Charles R. Sowell, Pat Anderson. Statutory Authority: Code of Ala. 1975, 34-27-8, 34-27-51.

History: Filed August 15, 1985. Amended: Filed May 17, 1988.