557A.11 Disclosure requirements.
1. A developer or an agent of a developer of a time-share program shall provide a current property report to a purchaser not later than ten days after the purchaser signs a purchase agreement. Prior to any sale or solicitation for sale of a time-share interval, a copy of all disclosure materials required to be given to a purchaser by this section and section 557A.12 shall be filed with the commission. The property report shall contain the following:
a. A cover sheet of the same approximate size and shape as the majority of the disclosure materials required in this section, bearing the title “Property Report” and containing the name and location of the time-share project, the name and business address of the developer and the name and business address of the developer’s agent. Following this information, on the front of the cover sheet, but set apart from it, there shall appear four statements in boldface type, or capital letters no smaller than the largest type on the page, in the following wording:
[1] These are the legal documents covering your rights and responsibilities as a time-share interval owner. If you do not understand any provisions contained in them, you should obtain professional advice.
[2] These disclosure materials given to you as required by law may be relied upon as correct and binding. Oral statements may not be legally binding.
[3] You may at any time within ................ (developer or developer’s agent shall insert a number, not less than five, designating the rescission period) business days following receipt of a current property report, cancel in writing the purchase agreement and receive a full refund of any deposits made.
[4] The filing of this document with the commission does not constitute approval of the sale or lease, or offer for sale or lease, by the state, commission, or any officer thereof, or indicate that the state, commission, or any officer thereof has in any way passed upon the merits of the offering.
b. A general description of the units including, but not limited to, the developer’s schedule of approximate commencement and completion of all buildings, units, and amenities; or if completed, a statement that they have been completed.
c. As to all units offered by the developer in the same time-share project:
(1) The types and number of units.
(2) Identification of units that are subject to time-share intervals.
(3) The estimated number of units that may become subject to time-share intervals.
d. A brief description of the time-share project.
e. If applicable, any current budget and a projected budget to be used for the time-share intervals for one year after the date of the first transfer to a purchaser. The budget shall include, but is not limited to:
(1) A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement.
(2) The projected liability for common expense, if any, by category of expenditures for the time-share intervals.
(3) A statement of any services not reflected in the budget that the developer provides, or expenses that the developer pays and which, upon completion of the project or the commencement of association control, would be payable by purchasers as part of their annual share of common expenses.
f. Any initial or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee.
g. A description of any liens, defects, or encumbrances on or affecting the title to the time-share intervals.
h. A description in general terms of any financing offered by the developer and a statement that documents showing specific terms and conditions of financing will be furnished upon request.
i. A statement of any pending lawsuits material to the time-share intervals of which a developer has actual knowledge.
j. Any restraints on alienation of any number or portion of any time-share intervals of which a developer has actual knowledge.
k. A description of the insurance coverage, or a statement that there is no insurance coverage, provided for the benefit of time-share interval owners.
l. Any current or expected fees or charges to be paid by time-share interval owners for the use of any amenities or facilities related to the property.
m. The extent to which financial arrangements have been provided for completion of all promised improvements.
n. The extent to which a unit may become subject to a tax or other lien arising out of claims against other owners of the same unit.
2. If the time-share program has been registered under a law or rule of another state of the United States, which registration has a similar goal in the protection of prospective purchasers of time-share programs, the developer may substitute for the property report required by subsection 1 an abbreviated property report which consists of a first page to which have been attached the disclosure materials required by the other registering jurisdiction.
a. In addition to the information required to be included on the cover page under subsection 1, paragraph “a”, the cover page of the abbreviated report shall contain the following conspicuously noted language:
PROPERTY REPORT OF
(Name of time-share program)
IMPORTANT NOTE TO
PROSPECTIVE PURCHASERS:
The attached information has been provided by (name of time-share program) under the laws of Iowa and (other registering jurisdiction). Read it carefully before you spend any money.
b. If the commission finds that some states do not have disclosure requirements adequate to protect prospective purchasers in this state, the commission may adopt rules identifying those states and requiring the amending of the language of the first page of the abbreviated property report or the abbreviated property report from those states to insure adequate disclosure.
3. The developer shall pay a filing fee in an amount set by rule by the commission when filing the property report required in subsection 1 or 2.
4. At the same time as the developer files the property report or abbreviated property report, the developer shall provide the commission with a list of the names, addresses and phone numbers of all persons authorized to sell time-share intervals on the developer’s behalf in Iowa. This list shall be periodically updated as the commission may by rule require.
85 Acts, ch 155, §11; 86 Acts, ch 1237, §36
Referred to in §557A.2, 557A.3, 557A.12, 557A.13, 557A.14