721.06 Contracts for purchase of timeshare
periods. ---
(1) Each seller shall utilize, and furnish each purchaser a fully
completed and executed copy of, a contract pertaining to the sale, which
contract shall include the following information:
(a) The actual date the contract is executed by each party.
(b) The names and addresses of the developer, any owner of the
underlying fee, and the timeshare plan.
(c) The total financial obligation of the purchaser, including the
initial purchase price and any additional charges to which the purchaser may
be subject, such as financing, reservation, maintenance, management, and
recreation charges.
(d) The estimated date of completion of construction of each
accommodation or facility which is not completed at the time the contract is
executed and the estimated date of closing.
(e) A description of the nature and duration of the timeshare period
being sold, including whether any interest in real property is being conveyed
and the specific number of years constituting the term of the timeshare
plan.
(f) Immediately prior to the space reserved in the contract for the
signature of the purchaser, in conspicuous type, substantially the following
statements:
You may cancel this contract without any penalty or obligation within
10 days from the date you sign this contract, and until 10 days after you
receive the public offering statement, whichever is later.
If you decide to cancel this contract, you must notify the developer
in writing of your intent to cancel. Your notice of cancellation shall be
effective upon the date sent and shall be sent to (Name of
Developer) at (Address of Developer). Any attempt to obtain
a waiver of your cancellation right is unlawful. While you may execute all
closing documents in advance, the closing, as evidenced by delivery of the
deed or other document, before expiration of your 10-day cancellation period,
is prohibited.
(g) If a timeshare license is being conveyed, the following statement
in conspicuous type:
You may also cancel this contract at any time after the
accommodations or facilities are no longer available as provided in this
contract and the public offering statement.
(h) If a timeshare estate is being conveyed, the following statement
in conspicuous type:
For the purpose of ad valorem assessment, taxation and special
assessments, the managing entity will be considered the taxpayer as your agent
pursuant to section 192.037, Florida Statutes.
(i) A statement that, in the event the purchaser cancels the contract
during a 10-day cancellation period, the developer will refund to the
purchaser the total amount of all payments made by the purchaser under the
contract, reduced by the proportion of any contract benefits the purchaser has
actually received under the contract prior to the effective date of the
cancellation. The statement shall further provide that the refund will be
made within 20 days after receipt of notice of cancellation or within 5 days
after receipt of funds from the purchaser's cleared check, whichever is later.
A seller and a purchaser shall agree in writing on a specific value for each
contract benefit received by the purchaser for purposes of this paragraph. The
term "contract benefit" shall not include public offering statements or
other documentation or materials that must be furnished to a purchaser
pursuant to statute or rule.
(j) If the timeshare period is being sold pursuant to an agreement
for deed, a statement that the signing of the agreement for deed does not
entitle the purchaser to receive a deed until all payments under the agreement
have been made.
(k) Unless the developer is at the time of offering the plan the
owner in fee simple absolute of the accommodations and facilities of the
timeshare plan, free and clear of all liens and encumbrances, a statement that
the developer is not the sole owner of the underlying fee of the
accommodations or facilities without liens or encumbrances, which statement
shall include:
1. The names and addresses of all persons or entities having an
ownership interest or other interest in the accommodations or facilities;
and
2. The actual interest of the developer in the accommodations or
facilities.
(l) If the contract is for the sale or transfer of a timeshare period
in which the accommodations or facilities are subject to a lease, the
following statement within the text in conspicuous type: This timeshare
period is subject to a lease (or sublease). A copy of the executed lease
shall be attached as an exhibit.
(m) If the purchaser will receive an interest in a multisite
timeshare plan pursuant to part II, the following statement shall be provided
in conspicuous type:
The developer is required to provide the managing entity of the
multisite timeshare plan (or multisite vacation ownership plan or multisite
vacation plan or vacation club) with a copy of the approved public offering
statement text and exhibits filed with the division and any approved
amendments thereto, and any other component site documents as described in
section 721.07 not filed with the division, to be maintained by the managing
entity for inspection as part of the books and records of the plan.
(n) The following statement in conspicuous type:
Any resale of this timeshare interest must be accompanied by certain
disclosures in accordance with section 721.065, Florida Statutes.
(2) An agreement for deed shall be recorded by the developer
within 30 days after the day it is executed by the purchaser. The developer
shall pay all recording costs associated therewith.
(3) The escrow agent shall provide the developer with a receipt
for all purchaser funds or other property received by the escrow agent from a
seller.
(4) A developer may not offer any number of timeshare estates or
timeshare licenses that would cause the total number of estates or licenses
offered to exceed a one-to-one purchaser to accommodation
ratio.
History: s. 1, ch. 81-172; s. 61, ch. 82-226; s. 5, ch. 83-264; s. 3, ch. 93-58;
s. 3, ch. 95-274.
