Multi-Location Developers; Information for Purchasers; Violations

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Section 54. (a) A multi-location developer shall, except as provided in subsection (b), deliver to the purchaser, prior to the execution of the contract of sale the following written information which the purchaser shall certify in writing to the receipt thereof:

(1) a complete and accurate description of the procedure to qualify for and effectuate use rights in time-share units in the multi-location plan;

(2) a complete and accurate description in boldface type of all restrictions, limitations or priorities employed in the operation of the multi-location plan and the manner of application thereof, including, without limitation, any restrictions, limitations or priorities on reservations, use or entitlement rights based on seasonality, unit size, levels of occupancy or class of owner;

(3) a statement indicating whether use is arranged on a space-available basis and whether any guarantees of specific requests for use are made by the multi-location developer and if so, the nature thereof and the number, type and description of units available at each property;

(4) the name and address of each time-share property included in the multi-location plan;

(5) the number of time-share units in each time-share property which are available for occupancy, the interest which the multi-location developer has in each of said time-share units, and if less than fee ownership the relevant terms of said interest and whether each of said time-share units may be withdrawn from the multi-location plan;

(6) the following information which, except as provided in subsection (b), shall be independently audited by a certified public accountant or accounting firm and reported for each year on or before July first, of the succeeding year:

(i) the number of owners in the multi-location plan;

(ii) for each time-share property in the multi-location plan, the number of properly made requests for use of time-share units in said time-share property;

(iii) for each time-share property, the percentage of owners who properly requested use of a time-share unit in said time-share property who received the right to use a time-share unit in said time-share property;

(7) a statement in boldface type that the percentage described in clause (6) of subsection (a) does not indicate a purchaser's or owner's probabilities of being able to use any time-share unit since availability at individual locations may vary.

(b) The information required by subsection (a) shall be accurate as of a date which is no more than thirty days prior to the date on which the information is delivered to the purchaser, except that the information required by paragraphs (4), (5) and (6) of subsection (a) shall be accurate as of December thirty-first of the preceding year if the information is delivered between July first and December thirty-first of any year; information delivered between January first and June thirtieth of any year shall be accurate as of December thirty-first of the year prior to the preceding year. All references in this section to the word ''year'' shall mean calendar year.

(c) The failure of a multi-location developer to comply with the provisions of this section, or the use by it of any unfair or deceptive act or practice in connection with the operation of the exchange program, shall constitute a violation of this chapter.


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