reglab/statecodes huggingface dataset:
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 216 - Extension or Amendment of Restrictions in Certain Older Subdivisions › Section 216.011. Applicability of Extension or Amendment

Sec. 216.011.  APPLICABILITY OF EXTENSION OR AMENDMENT.  (a)  An extension or amendment of a restriction under this chapter is binding on a lot, parcel, or tract in the subdivision as provided by the restriction, regardless of whether the owner or owners of the lot, parcel, or tract consented to the extension or amendment.
(b)  Notwithstanding any other law, an owner may not opt out of the applicability to the owner's property of a restriction that is extended or amended under this chapter.
(c)  An extension or amendment of a restriction under this chapter is binding on a lienholder or a person who acquires title to property at a foreclosure sale or by deed from a foreclosing lienholder.
Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 216 - Extension or Amendment of Restrictions in Certain Older Subdivisions › Section 216.012. Unconstitutional Restrictions Not Extended

Sec. 216.012.  UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED.  If a provision in restrictions extended under this chapter is void and unenforceable under the United States Constitution or Section 5.026, the restrictions are considered as if the void and unenforceable provision was never contained in the restrictions.
Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.
Sec. 216.013.  PROCEDURES CUMULATIVE.  The procedure provided by this chapter for the extension or amendment of restrictions is cumulative of and not in lieu of any other method by which restrictions of a subdivision to which this chapter applies may be extended or amended.
Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.
2023 Texas Statutes › Property Code › Title 11 - Restrictive Covenants › Chapter 216 - Extension or Amendment of Restrictions in Certain Older Subdivisions › Section 216.014. Construction of Chapter and Restrictions

Sec. 216.014.  CONSTRUCTION OF CHAPTER AND RESTRICTIONS.  (a)  This chapter and any petition or ballot made or action taken in connection with an attempt to comply with this chapter shall be liberally construed to effectuate the intent of this chapter and the petition, ballot, or action.
(b)  A restriction that is extended or amended under this chapter shall be liberally construed to give effect to the restriction's purposes and intent.
Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter A. General Provisions › Section 221.001. Short Title

Sec. 221.001.  SHORT TITLE.  This chapter shall be known and may be cited as the Texas Timeshare Act.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.001 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter A. General Provisions › Section 221.003. Applicability

Sec. 221.003.  APPLICABILITY.  (a)  This chapter applies to all timeshare properties that are located in this state or offered for sale in this state.
(b)  Timeshare properties located outside this state are subject only to Subchapters C through H and J.
(c)  This chapter applies to any timeshare property in existence on or after August 26, 1985, but does not affect a timeshare contract in existence before that date.
(d)  A timeshare property subject to this chapter is not subject to:
(1)  Section 5.008 or 5.012;
(2)  Chapter 202;
(3)  Chapter 207; or
(4)  Chapter 209, unless an individual timeshare owner continuously occupies a single timeshare property as the owner's primary residence 12 months of the year.
(e)  If a person with a specific program that might otherwise be subject to this chapter received from the commission, before January 31, 2005, a written determination that the program is exempt from this chapter as the chapter existed when the determination was made, the program remains exempt from this chapter if:
(1)  the program does not vary materially from the terms on which the exemption was granted; or
(2)  the program varies materially from the terms on which the exemption was granted, but the person receives from the commission a new written determination that the program is exempt from this chapter.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.003 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 2, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 4, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter A. General Provisions › Section 221.004. Conflicts of Law

Sec. 221.004.  CONFLICTS OF LAW.  (a)  The provisions of this chapter prevail over a conflicting or inconsistent provision of law applicable to timeshare owners' associations.
(b)  Provisions of this code relating to property owners' associations do not apply to an association subject to this chapter.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 5, eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter B. Creation of Timeshare Regime › Section 221.011. Declaration

Sec. 221.011.  DECLARATION.  (a)  The developer of a timeshare plan any part of which is located in this state must record the timeshare instrument in this state.  When a person expressly declares an intent to subject the property to a timeshare plan through the recordation of a timeshare instrument that sets forth the information provided in Subsection (b), that property shall be established thenceforth as a timeshare plan.
(b)  The declaration made in a timeshare instrument recorded under this section must include:
(1)  a legal description of the timeshare property, including a ground plan indicating the location of each existing or proposed building included in the timeshare plan;
(2)  a description of each existing or proposed accommodation, including the location and square footage of each unit and an interior floor plan of each existing or proposed building;
(3)  a description of any amenities furnished or to be furnished to the purchaser;
(4)  a statement of the fractional or percentage part that each timeshare interest bears to the entire timeshare plan;
(5)  if applicable, a statement that the timeshare property is part of a multisite timeshare plan;
(6)  any additional provisions that are consistent with this section; and
(7)  the provisions required by Subchapter I to be included in a project instrument unless the provisions are included in one or more other project instruments.
(c)  Any timeshare interest created under this section is subject to Section 1101.002(5), Occupations Code, but Sections 1101.351(a)(1) and (c), Occupations Code, do not apply to the acts of an exchange company in exchanging timeshare periods.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.011 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.  Amended by Acts 1993, 73rd Leg., ch. 443, Sec. 2, eff. Sept. 1, 1993;  Acts 2003, 78th Leg., ch. 1276, Sec. 14A.809, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 6, eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter B. Creation of Timeshare Regime › Section 221.012. Conveyance and Encumbrance

Sec. 221.012.  CONVEYANCE AND ENCUMBRANCE.  Once the property is established as a timeshare plan, each timeshare interest may be individually conveyed or encumbered and shall be entirely independent of all other timeshare interests in the same timeshare property.  Any title or interest in a timeshare interest may be recorded.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.012 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter B. Creation of Timeshare Regime › Section 221.013. Common Ownership

Sec. 221.013.  COMMON OWNERSHIP.  (a)  Any timeshare interest may be jointly or commonly owned by more than one person.
(b)  A timeshare estate may be jointly or commonly owned in the same manner as any other real property interest in this state.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.013 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b) eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter B. Creation of Timeshare Regime › Section 221.014. Partition

Sec. 221.014.  PARTITION.  An action for partition of a timeshare interest may not be maintained during the term of a timeshare plan.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.014 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.023. Amendment of Registration

Sec. 221.023.  AMENDMENT OF REGISTRATION.  The developer shall file amendments to the registration reporting to the commission any materially adverse change in any document contained in the registration not later than the 30th day after the date the developer knows or reasonably should know of the change.  The developer may continue to offer and dispose of timeshare interests under the existing registration pending review of the amendments by the commission if the materially adverse change is disclosed to prospective purchasers.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.023 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.024. Powers of Commission

Sec. 221.024.  POWERS OF COMMISSION.  (a)  The commission may prescribe and publish forms and adopt rules necessary to carry out the provisions of this chapter and may suspend or revoke the registration of any developer, place on probation the registration of a developer that has been suspended or revoked, reprimand a developer, impose an administrative penalty of not more than $10,000, or take any other disciplinary action authorized by this chapter if, after notice and hearing, the commission determines that a developer has materially violated this chapter, the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code), or the Contest and Gift Giveaway Act (Chapter 621, Business & Commerce Code).
(b)  The commission:
(1)  shall authorize the State Office of Administrative Hearings to conduct hearings in contested cases; and
(2)  may establish reasonable fees for forms and documents it provides to the public and for the filing or registration of documents required by this chapter.
(c)  If the commission initiates a disciplinary proceeding under this chapter, the person is entitled to a hearing before the State Office of Administrative Hearings.  The commission by rule shall adopt procedures to permit an appeal to the commission from a determination made by the State Office of Administrative Hearings in a disciplinary action.
(d)  The commission shall set the time and place of the hearing.
(e)  A disciplinary procedure under this chapter is governed by the contested case procedures of Chapter 2001, Government Code.
(f)  The commission may file a suit in a district court of Travis County to prevent a violation of this chapter or for any other appropriate relief.
(g)  Judicial review of a commission order imposing an administrative penalty is:
(1)  instituted by filing a petition as provided by Subchapter G, Chapter 2001, Government Code; and
(2)  by trial de novo.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.024 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.  Amended by Acts 1989, 71st Leg., ch. 381, Sec. 1, eff. June 14, 1989;  Acts 1999, 76th Leg., ch. 62, Sec. 7.87, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.34, eff. April 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 23 (S.B. 862), Sec. 8, eff. May 12, 2009.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.0245. Complaint Investigation

Sec. 221.0245.  COMPLAINT INVESTIGATION.  If the commission determines at any time that an allegation made or formal complaint submitted by a person is inappropriate or without merit, the commission shall dismiss the complaint and no further action may be taken.  The commission may delegate to commission staff the duty to dismiss complaints under this section.
Added by Acts 2019, 86th Leg., R.S., Ch. 334 (S.B. 624), Sec. 43, eff. September 1, 2019.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.025. Effect of Registration on Other Laws: Exemption From Certain Laws

Sec. 221.025.  EFFECT OF REGISTRATION ON OTHER LAWS:  EXEMPTION FROM CERTAIN LAWS.  (a)  A developer's compliance with this chapter exempts the developer's offer and disposition of timeshare interests subject to this chapter from securities and dealer registration under The Securities Act (Title 12, Government Code).
(b)  A timeshare plan created as a condominium regime before January 1, 1994, that complies with this chapter is exempt from the requirements of Section 81.112 relating to club membership.
(c)  A timeshare plan subject to Chapter 82 that complies with this chapter is exempt from the requirements of:
(1)  Section 82.0675 relating to club membership; and
(2)  Sections 82.103(c)-(e) relating to declarant control.
(c-1)  The exemption provided by Subsection (c)(2) applies to a timeshare plan created before September 1, 2013, and to the project instrument governing the timeshare property subject to the timeshare plan only if the developer and the association agree to the application of the exemption in writing and the project instrument is amended to provide for the application of the exemption.  If the conditions provided by this subsection are not satisfied, a timeshare plan created before September 1, 2013, and the timeshare property subject to the timeshare plan are governed by any developer control provisions provided in the project instrument, notwithstanding any other law.
(d)  A developer's compliance with this chapter as to any timeshare plan exempts any company, as defined by Chapter 181, Finance Code (Texas Trust Company Act), that holds title to the timeshare interests in the timeshare plan from compliance with the Texas Trust Company Act as to the company's activities relating to the holding of that title.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.025 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 7, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.39, eff. January 1, 2022.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.026. Issuance and Renewal of Registration

Sec. 221.026.  ISSUANCE AND RENEWAL OF REGISTRATION.  (a)  The commission by rule shall adopt requirements for the issuance and renewal of a developer's registration under this chapter, including:
(1)  the form required for application for registration or a renewal of registration; and
(2)  any supporting documentation required for registration or renewal of registration.
(b)  The commission shall issue or renew a registration under this chapter for a period not to exceed 24 months.
(c)  The commission may assess and collect a fee for the issuance or renewal of a registration under this chapter.
(d)  The commission may assess and collect a late fee if the commission has not received the fee or any supporting documentation required before the 61st day after the date a registration is issued or renewed under this section.
(e)  Failure to pay a renewal fee or late fee is a violation of this chapter.
Added by Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.027. Temporary Suspension

Sec. 221.027.  TEMPORARY SUSPENSION.  (a)  The presiding officer of the commission shall appoint a disciplinary panel consisting of three commission members to determine whether the registration for a timeshare plan under this chapter should be temporarily suspended.
(b)  If the disciplinary panel determines from the information presented to the panel that a timeshare plan registered under this chapter would, by the continued disposition of the timeshare property, constitute a continuing threat to the public welfare, the panel shall temporarily suspend the registration of the timeshare plan.
(c)  A registration may be suspended under this section without notice or hearing on the complaint if:
(1)  institution of proceedings for a hearing before the State Office of Administrative Hearings is initiated simultaneously with the temporary suspension; and
(2)  a hearing is held under Chapter 2001, Government Code, and this chapter as soon as possible.
(d)  Notwithstanding Chapter 551, Government Code, the disciplinary panel may hold a meeting by telephone conference call if immediate action is required and convening the panel at one location is inconvenient for any member of the panel.
Added by Acts 2007, 80th Leg., R.S., Ch. 1411 (S.B. 914), Sec. 58, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 23 (S.B. 862), Sec. 9, eff. May 12, 2009.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter C. Registration › Section 221.028. Denial of Registration Renewal

Sec. 221.028.  DENIAL OF REGISTRATION RENEWAL.  (a)  The commission may deny the renewal of a registration under this chapter if the developer is in violation of a commission order.
(b)  The denial of a registration renewal under this section is subject to the same provisions as are applicable under Section 1101.364, Occupations Code, to the denial of a license.
Added by Acts 2019, 86th Leg., R.S., Ch. 334 (S.B. 624), Sec. 44, eff. September 1, 2019.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter D. Disclosure › Section 221.031. Advertisements and Promotions

Sec. 221.031.  ADVERTISEMENTS AND PROMOTIONS.  (a)  At any time, the commission may request a developer to file for review by the commission any advertisement used in this state by the developer in connection with offering a timeshare interest.  The developer shall provide the advertisement not later than the 15th day after the date the commission makes the request.  If the commission determines that the advertisement violates this chapter or Chapter 621, Business & Commerce Code, the commission shall notify the developer in writing, stating the specific grounds for the commission's determination not later than the 15th day after the date the commission makes its determination.  The commission may grant the developer provisional approval for the advertisement if the developer agrees to correct the deficiencies identified by the commission.  A developer, on its own initiative, may submit any proposed advertisement to the commission for review and approval by the commission.
(b)  Any advertisement that contains a promotion in connection with the offering of a timeshare interest must comply with Chapter 621, Business & Commerce Code.
(c)  As provided by Subsections (d) and (e), an advertisement that contains a promotion in connection with the offering of a timeshare interest must include, in addition to any disclosures required under Chapter 621, Business & Commerce Code, the following:
(1)  a statement to the effect that the promotion is intended to solicit purchasers of timeshare interests;
(2)  if applicable, a statement to the effect that any person whose name is obtained during the promotion may be solicited to purchase a timeshare interest;
(3)  the full name of the developer of the timeshare property; and
(4)  if applicable, the full name and address of any marketing company involved in the promotion of the timeshare property, excluding the developer or an affiliate or subsidiary of the developer.
(d)  An advertisement containing the disclosures required by Chapter 621, Business & Commerce Code, and Subsection (c) must be provided in writing or electronically:
(1)  at least once before a scheduled sales presentation; and
(2)  in a reasonable period before the scheduled sales presentation to ensure that the recipient receives the disclosures before leaving to attend the sales presentation.
(e)  The developer is not required to provide the disclosures required by this section in every advertisement or other written, oral, or electronic communication provided or made to a recipient before a scheduled sales presentation.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.031 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.  Amended by Acts 1989, 71st Leg., ch. 381, Sec. 2, eff. June 14, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 5, eff. January 15, 2006.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.35, eff. April 1, 2009.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter D. Disclosure › Section 221.033. Exchange Disclosure Statement

Sec. 221.033.  EXCHANGE DISCLOSURE STATEMENT.  (a)  Before the signing of any agreement to purchase a timeshare interest in which a prospective purchaser is also offered participation in any exchange program, the developer shall also deliver to the prospective purchaser the exchange disclosure statement of any exchange company whose service is advertised or offered by the developer or other person in connection with the disposition.
(b)  If participation in an exchange program is offered for the first time after a disposition has occurred, any person offering that participation shall also deliver an exchange disclosure statement to the purchaser before the execution by the purchaser of any instrument relating to participation in the exchange program.
(c)  In all cases, the person offering participation in the exchange program shall obtain from the purchaser a written acknowledgement of receipt of the exchange disclosure statement.
(d)  The exchange disclosure statement must include the following information:
(1)  the name and address of the exchange company;
(2)  if the exchange company is not the developer, a statement describing the legal relationship, if any, between the exchange company and the developer;
(3)  a statement indicating the conditions under which the exchange program might terminate or become unavailable;
(4)  whether membership or participation or both in the exchange program is voluntary or mandatory;
(5)  a complete description of the required procedure for executing an exchange of timeshare periods;
(6)  the fee required for membership or participation or both in the program and whether the fee is subject to change;
(7)  a statement to the effect that participation in the exchange program is conditioned on compliance with the terms of a contract between the exchange company and the purchaser;
(8)  a statement in conspicuous and bold-faced print to the effect that all exchanges are arranged on a space-available basis and that neither the developer nor the exchange company guarantees that a particular timeshare period can be exchanged;  and
(9)  a description of seasonal demand and unit occupancy restrictions employed in the exchange program.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.033 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 6, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter D. Disclosure › Section 221.035. Supervisory Duties of Developer

Sec. 221.035.  SUPERVISORY DUTIES OF DEVELOPER.  Notwithstanding obligations placed upon any other persons by this chapter, the developer shall supervise, manage, and control all aspects of the offering of a timeshare interest, including but not limited to promotion, advertising, contracting, and closing.  Any violation of this chapter which occurs during such offering activities is considered to be a violation by the developer as well as by the person actually committing the violation.
Added by Acts 1989, 71st Leg., ch. 381, Sec. 3, eff. June 14, 1989.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter D. Disclosure › Section 221.036. Developer Preparation and Completion of Documents

Sec. 221.036.  DEVELOPER PREPARATION AND COMPLETION OF DOCUMENTS.  (a)  A developer may charge a reasonable fee for completion of a contract form, closing document, or disclosure document required for the sale, exchange, option, lease, or rental of a timeshare interest.
(b)  The action of a developer under Subsection (a) does not constitute the unauthorized or illegal practice of law in this state if the contract or document has been:
(1)  accepted by the commission for use in the particular type of transaction involved;  or
(2)  prepared by an attorney licensed to practice law in this state for use in the particular type of transaction involved.
Added by Acts 2003, 78th Leg., ch. 1244, Sec. 1, eff. June 20, 2003.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter D. Disclosure › Section 221.037. Alternative Terminology or Name

Sec. 221.037.  ALTERNATIVE TERMINOLOGY OR NAME.  (a)  In providing the disclosures required by this chapter, the use of the terms "vacation ownership interest" or "vacation ownership plan" to refer to the timeshare interest or plan offered by the developer, or the use of other terms that are substantially similar and that are regularly used by the developer to denote a timeshare interest or plan, is sufficient and complies with the requirements of this chapter.
(b)  In providing the full name of a developer or a marketing company as required by this chapter, the disclosure of an assumed name of the developer or the marketing company, if the entity has complied with the requirements of the applicable assumed business names statutes or other laws regarding the use of the assumed name, is sufficient and complies with this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 279 (S.B. 1036), Sec. 3, eff. September 1, 2009.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter E. Cancellation of Purchase Contract › Section 221.041. Purchaser's Right to Cancel

Sec. 221.041.  PURCHASER'S RIGHT TO CANCEL.  (a)  A purchaser may cancel a purchase contract before the sixth day after the date the purchaser signs and receives a copy of the purchase contract or receives the required timeshare disclosure statement, whichever is later.
(b)   A purchaser may not waive the right of cancellation under this section.  A contract containing a waiver is voidable by the purchaser.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.041 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.  Amended by Acts 1989, 71st Leg., ch. 381, Sec. 4, eff. June 14, 1989;  Acts 1993, 73rd Leg., ch. 443, Sec. 4, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 8, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter E. Cancellation of Purchase Contract › Section 221.042. Notice; Refund

Sec. 221.042.  NOTICE; REFUND.  (a)  If a purchaser elects to cancel a purchase contract under Section 221.041, the purchaser may do so by hand-delivering notice of cancellation to the developer, by mailing notice by prepaid United States mail to the developer or to the developer's agent for service of process, or by providing notice by overnight common carrier delivery service to the developer or the developer's agent for service of process.
(b)  Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded on or before the 30th day after the date on which the developer receives a timely notice of cancellation or on or before the fifth day after the date the developer receives good funds from the purchaser, whichever is later.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.042 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 8, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter F. Exchange Program › Section 221.051. Operation Requirement

Sec. 221.051.  OPERATION REQUIREMENT.  An exchange company shall employ seasonal demand and unit occupancy restrictions in the operation of its exchange program.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.051 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter F. Exchange Program › Section 221.052. Liability of Developer and Exchange Company

Sec. 221.052.  LIABILITY OF DEVELOPER AND EXCHANGE COMPANY.  (a)  A developer does not incur any liability arising out of the use, delivery, or publication to a purchaser of written information or audio-visual materials provided to it by the exchange company in accordance with Subchapter D, unless the developer knows or has reason to know that the materials are inaccurate or false.
(b)  No exchange company shall have any liability with respect to any violation under this chapter arising out of the use by a developer of information relating to an exchange program other than that provided to the developer by the exchange company.
(c)  An exchange company that denies exchange privileges to an owner whose use of accommodations in the owner's timeshare plan is denied is not liable to any member of the exchange company or exchange program or any third party because of the denial of the owner's exchange privileges.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.052 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 9, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter F. Exchange Program › Section 221.053. Exchange Company Liability

Sec. 221.053.  EXCHANGE COMPANY LIABILITY.  Except for written information or audio-visual materials provided to a developer by an exchange company, an exchange company does not incur liability as a result of:
(1)  a representation made by a developer that relates to any exchange program or exchange company;  or
(2)  the use, delivery, or publication by a developer of information that relates to an exchange program or exchange company.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.053 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter G. Escrow Deposits › Section 221.061. Escrow or Trust Account Required

Sec. 221.061.  ESCROW OR TRUST ACCOUNT REQUIRED.  (a)  A developer or escrow agent of a timeshare plan shall deposit in an escrow or trust account in a federally insured depository 100 percent of all funds received during the purchaser's cancellation period.
(b)  An escrow agent owes the purchaser a fiduciary duty.
(c)  The escrow agent and the developer shall execute an agreement that includes a statement providing that:
(1)  funds may be disbursed to the developer from the escrow or trust account by the agent only:
(A)  after the purchaser's cancellation period has expired; and
(B)  as provided by the purchase contract, subject to this subchapter; and
(2)  if the purchaser cancels the purchase contract as provided by the contract, the funds must be paid to:
(A)  the purchaser; or
(B)  the developer if the purchaser's funds have been refunded previously by the developer.
(d)  If a developer contracts to sell a timeshare interest and the construction of the building in which the timeshare interest is located has not been completed when the cancellation period expires, the developer shall continue to maintain all funds received from the purchaser under the purchase agreement in the escrow or trust account until construction of the building is completed.  The documentation required for evidence of completion of construction includes:
(1)  a certificate of occupancy;
(2)  a certificate of substantial completion;
(3)  evidence of a public safety inspection equivalent to Subdivision (1) or (2) from a government agency in the applicable jurisdiction; or
(4)  any other evidence acceptable to the commission.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.061 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter G. Escrow Deposits › Section 221.063. Alternative to Escrow or Trust Account: Financial Assurance

Sec. 221.063.  ALTERNATIVE TO ESCROW OR TRUST ACCOUNT:  FINANCIAL ASSURANCE.  (a)  Instead of the deposit of funds in an escrow or trust account as provided by Section 221.061, the commission may accept from the developer a surety bond, irrevocable letter of credit, or other form of financial assurance, including financial assurance posted in another state or jurisdiction.
(b)  The amount of the financial assurance provided under this section must be an amount equal to or more than the amount of funds that would otherwise be placed in an escrow or trust account under Section 221.061(a).
(c)  The amount of the financial assurance provided under this section for timeshare property under construction as provided by Section 221.061(d) must be the lesser of:
(1)  an amount equal to or more than the amount of funds that would otherwise be placed in an escrow or trust account under that subsection; or
(2)  the amount necessary to assure completion of the building in which the timeshare interest is located.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.063 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter G. Escrow Deposits › Section 221.064. Documentation Required

Sec. 221.064.  DOCUMENTATION REQUIRED.  The escrow or trust account agent or developer shall make documents related to the escrow or trust account or the financial assurance provided available to the commission at the commission's request.
Added by Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter H. Miscellaneous Provisions › Section 221.072. Insurance

Sec. 221.072.  INSURANCE.  Before the disposition of any timeshare interest, the developer or managing entity shall maintain the following insurance with respect to the timeshare property:
(1)  property insurance on the timeshare property and any personal property for use by purchasers, other than personal property separately owned by a purchaser, insuring against all risks of direct physical loss commonly insured against, in a total amount, after application of deductibles, of the full replacement cost of the accommodations and amenities of the timeshare property; and
(2)  liability insurance covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, and maintenance of the timeshare property.
Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987.  Renumbered from Sec. 201.072 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 12, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter H. Miscellaneous Provisions › Section 221.073. Penalty

Sec. 221.073.  PENALTY.  (a)  A developer subject to this chapter commits an offense if the developer offers or disposes of a timeshare interest in a timeshare property which has not been registered with the commission.
(b)  It is not a violation of this section for a developer subject to this chapter to accept reservations and deposits from prospective purchasers in accordance with Section 221.021(b) or (d).
(c)  An offense under this section is a Class A misdemeanor.  A person may not be prosecuted for more than one offense involving the same promotion, even if mailed or distributed to more than one person.
Added by Acts 1989, 71st Leg., ch. 381, Sec. 6, eff. June 14, 1989.  Amended by Acts 1999, 76th Leg., ch. 1382, Sec. 9, eff. June 19, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 13, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter H. Miscellaneous Provisions › Section 221.074. Annual Timeshare Fee and Expense Statement

Sec. 221.074.  ANNUAL TIMESHARE FEE AND EXPENSE STATEMENT.  (a)  Notwithstanding any contrary provision of the required timeshare disclosure statement, project instrument, timeshare instrument, or bylaws adopted pursuant to a timeshare instrument, the managing entity shall make a written annual accounting of the operation of the timeshare properties managed by the managing entity to each purchaser who requests an accounting not later than five months after the last day of each fiscal year.  The statement shall fairly and accurately represent the collection and expenditure of assessments and include:
(1)  a balance sheet;
(2)  an income and expense statement;
(3)  the current budget for the timeshare property, timeshare properties managed by the same managing entity, or multisite timeshare plan required by Section 221.032(b)(12); and
(4)  the name, address, and telephone number of a designated representative of the managing entity.
(b)  On the request of an owner, the managing entity of the timeshare plan shall provide the owner with the name and address of each member of the board of directors of the owners' association, if one exists.
(c)  A developer or managing entity shall have an annual independent audit of the financial statements of the timeshare plan or timeshare properties managed by the managing entity performed by a certified public accountant or an accounting firm.  The audit must be:
(1)  conducted in accordance with generally accepted auditing standards as prescribed by the American Institute of Certified Public Accountants, the Governmental Accounting Standards Board, the United States General Accounting Office, or other professionally recognized entities that prescribe auditing standards; and
(2)  completed not later than five months after the last day of the fiscal year of the timeshare plan or timeshare property.
(d)  Knowingly furnishing false information in the annual timeshare fee and expense statement is a violation of the Deceptive Trade Practices-Consumer Protection Act (Section 17.41 et seq., Business & Commerce Code).
(e)  The managing entity of any accommodation located in this state shall post prominently in the registration area of the accommodations the following notice, with the date of the last day of the current fiscal year and the address of the managing entity inserted where indicated:
"AS A TIMESHARE OWNER YOU HAVE A RIGHT TO REQUEST A WRITTEN ANNUAL TIMESHARE FEE AND EXPENSE STATEMENT. THIS STATEMENT IS PREPARED ANNUALLY BY THE MANAGING ENTITY AND WILL BE AVAILABLE NO LATER THAN FIVE MONTHS FOLLOWING (INSERT THE DATE OF THE LAST DAY OF THE CURRENT FISCAL YEAR). YOU MAY REQUEST THE STATEMENT, BY WRITING TO (INSERT ADDRESS OF THE MANAGING ENTITY)."
Added by Acts 1993, 73rd Leg., ch. 443, Sec. 7, eff. Jan. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 14, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter H. Miscellaneous Provisions › Section 221.075. Civil Penalty for Late Statement; Injunction

Sec. 221.075.  CIVIL PENALTY FOR LATE STATEMENT;  INJUNCTION.  (a)  On receipt of a written request filed with the commission by a managing entity before the date on which the statement required by Section 221.074 must be made available, the commission for good cause shown may grant the managing entity an extension of no more than 30 days in which to provide the statement.
(b)  If the statement required by Section 221.074 is late and an extension has not been granted under Subsection (a), the managing entity required to provide the statement is liable to the state for a civil penalty not to exceed:
(1)  $500 per day for each of the first 10 days that the statement is late;  and
(2)  $1,500 per day for each day after the 10th day, until the managing entity has complied with Section 221.074.
(c)  In no event shall the civil penalties exceed $30,000 for any one statement period.
(d)  A managing entity may not assess against or collect from the purchasers of a timeshare property the amount of a penalty incurred under this section.
(e)  If it appears that a managing entity has violated Section 221.074, the attorney general may institute an action for injunctive relief, a civil penalty, or both.
Added by Acts 1993, 73rd Leg., ch. 443, Sec. 7, eff. Jan. 1, 1995.  Amended by Acts 1999, 76th Leg., ch. 1382, Sec. 10, eff. June 19, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 15, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter H. Miscellaneous Provisions › Section 221.076. Managing Entities That Manage More Than One Timeshare Property

Sec. 221.076.  MANAGING ENTITIES THAT MANAGE MORE THAN ONE TIMESHARE PROPERTY.  (a)  A managing entity that manages two or more single-site timeshare plans may commingle the assessments collected from purchasers of one timeshare plan with the assessments collected from purchasers of any other single-site plan for which it is the managing entity only if the practice is disclosed in the timeshare disclosure statement for each timeshare property and the appropriate statement is included in the declaration for each timeshare property as required by Subchapter B.
(b)   A managing entity which manages a multisite timeshare plan may deposit assessments collected from purchasers of one timeshare property into a common account with assessments collected from purchasers of other timeshare properties participating in the same multisite timeshare plan only if the practice is disclosed in the timeshare disclosure statement for each timeshare property in the multisite timeshare plan and the appropriate statement is included in the declaration for each timeshare plan as required by Subchapter B.
(c)  Nothing in this section shall be construed to allow a managing entity to commingle assessments of a multisite timeshare plan with the assessments of a separate multisite timeshare plan or a timeshare plan that is not a part of the multisite timeshare plan.
Added by Acts 1993, 73rd Leg., ch. 443, Sec. 8, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 16, eff. January 15, 2006.
2023 Texas Statutes › Property Code › Title 12 - Miscellaneous Shared Real Property Interests › Chapter 221 - Texas Timeshare Act › Subchapter H. Miscellaneous Provisions › Section 221.077. Availability of Books and Records; Records Retention

Sec. 221.077.  AVAILABILITY OF BOOKS AND RECORDS; RECORDS RETENTION.  (a)  A developer or managing entity, on written request of an owner, shall make available for examination at its registered office or principal place of business and at any reasonable time or times the relevant books and records relating to the collection and expenditure of assessments.
(b)  A developer or managing entity shall maintain in its records a copy of each purchase contract for an accommodation sold by the developer for a timeshare period unless the contract has been canceled.  If a sale of the timeshare estate is pending, the developer shall retain a copy of the contract until a deed of conveyance, agreement for deed, or lease is recorded in the real property records of the county in which the timeshare property is located.
Added by Acts 1993, 73rd Leg., ch. 443, Sec. 8, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 16, eff. January 15, 2006.