California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 12.2 - Time-Share Project › Section 2809.3 - Properly Completed Application-Nonspecific Time-Share Interest Multi-Site Time-Share Plan

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An application for a final public report for nonspecific
				  time-share interest multi-site time-share plan is "properly completed" within
				  the meaning of Section
				  11231 of the Code if it contains
				  the documents and information enumerated below:
(a) For every nonspecific time-share interest
				multi-site time-share plan:
(1) The
				developer's legal name, any assumed names used by the developer, principal
				office street address, mailing address, primary contact person, and telephone
				number.
(2) The name of the
				developer's authorized or registered agent in the state upon whom claims can be
				served or service of process be had, the agent's street address in California,
				and telephone number.
(3) The name,
				street address, mailing address, and telephone number of any managing entity of
				the multi-site time-share plan.
(4)
				Consent to service of process upon the Bureau of Real Estate if applicant is a
				nonresident of California.
(5) A
				description of the inventory control system that will ensure compliance with
				Section 11250 of the Code.
(6) Evidence that the accommodation is
				presently suitable for human occupancy or that financial arrangements have been
				made to complete construction or renovation of the accommodation to make it
				suitable for human occupancy on or before the first date for occupancy by a
				time-share interest owner.
(7)
				Evidence that the accommodations are owned or leased by the developer of the
				time-share plan or is the subject of an enforceable option or contract under
				which the developer will build, purchase, or lease the
				accommodations.
(8) If an
				accommodation in a time-share plan is located within a local governmental
				jurisdiction or subdivision of real property in which the dedication of
				accommodations to time-sharing is expressly prohibited by ordinance or recorded
				restriction, either absolutely or without a permit or other entitlement from
				the governing body, the applicant for a public report shall present evidence of
				a permit or other entitlement by the appropriate authority for the local
				government or the subdivision.
(9)
				A description of the type of interest and usage rights the purchaser will
				receive.
(10) A description of the
				duration and operation of the time-share plan.
(11) A description of the type of insurance
				coverage provided for each component site.
(12) An explanation of who holds title to the
				accommodations of each component site.
(13) A description of each component site,
				including the name and address of each component site.
(14) The number of accommodations and
				time-share interests, expressed in periods of seven-day use availability or
				other time increments applicable to the multi-site time-share plan for each
				component site committed to the multi-site time-share plan and available for
				use by purchasers and a representation about the percentage of useable time
				authorized for sale, and if that percentage is 100%, then a statement
				describing how adequate periods of time for maintenance and repair will be
				provided.
(15) A description of
				each type of accommodation in terms of the number of bedrooms, bathrooms, and
				sleeping capacity, and a statement of whether or not the accommodation contains
				a full kitchen. For purposes of this description, a "full kitchen" means a
				kitchen having a minimum of a dishwasher, range, sink, oven, and
				refrigerator.
(16) A description of
				amenities available for use by the purchaser at each component site.
(17) A description of any incomplete
				amenities at any of the component sites along with a statement as to any
				assurance for completion pursuant to Section
				11230 and the estimated date the
				amenities will be available.
(18)
				The historical occupancy of each component site for the prior 12-month period,
				if the component site was part of the multi-site time-share plan during such
				12-month time period, as well as any periodic adjustment or amendment to the
				reservation system that may be needed in order to respond to actual purchaser
				use patterns and changes in purchaser use demand for the accommodations
				existing at that time within the multi-site time-share plan.
(19) A description of any right to make any
				additions, substitutions, or deletions of accommodations, amenities, or
				component sites, and a description of the basis upon which accommodations,
				amenities, or component sites may be added to, substituted in, or deleted from
				the multi-site time-share plan.
(20) A description of the reservation system
				that shall include all of the following:
(A)
				The entity responsible for operating the reservation system, its relationship
				to the developer, and the duration of any agreement for operation of the
				reservation system.
(B) A summary
				of the rules and regulations governing access to and use of the reservation
				system.
(C) The existence of and an
				explanation regarding any priority reservation features that affect a
				purchaser's ability to make reservations for the use of a given accommodation
				on a first-come, first-served basis.
(21) A description of any liens, defects, or
				encumbrances that materially affect the purchaser's use rights.
(22) A description of the relationship
				between a multi-site time-share plan managing entity and the managing entity of
				the component sites of a multi-site time-share plan, if different from the
				multi-site time-share plan managing entity.
(23) Copy of the budget meeting the
				requirements of Section
				11240, along with the budget
				certification or request that the budget be certified by the Budget Review
				Section of the Bureau of Real Estate and a description of the method for
				calculating and apportioning the assessments among purchasers.
(24) Any current fees or charges to be paid
				by time-share purchasers for the use of any amenities related to the time-share
				plan and a statement that the fees or charges are subject to change.
(25) Any initial or special fee due from the
				purchaser at closing with a description of the purpose and the method of
				calculating the fee.
(26) A
				description of any financing offered by or available through the
				developer.
(27) A description of
				any bankruptcies, pending civil or criminal suits, adjudications, or
				disciplinary actions of which the developer has knowledge, which would have a
				material effect on the developer's ability to perform its
				obligations.
(28) A statement
				disclosing any right of first refusal or other restraint on the transfer of all
				or any portion of a time-share interest.
(29) A copy of instructions to escrow
				depository for compliance with Section
				11241 including the following:
(A) Name and address of escrow
				depository.
(B) A description of
				the nature of the transaction.
(C)
				Conditions that must be satisfied before escrow can be closed.
(D) Provision for the return to a prospective
				purchaser of funds deposited toward the purchase of a time-share interest if
				the escrow for the transaction has not closed on or before a given
				date.
(30) Evidence of
				financial arrangements to assure fulfillment of developer obligation to pay
				assessments for unsold time-share interests pursuant to Section
				11241.
(31) Copy of the contract utilized between
				the exchange company and a purchaser of a time-share interest and all
				promotional and informational material delivered to purchasers pertaining to
				any offered exchange program.
(32)
				Filing fee including fee for preliminary public report if applicable.
(33) Certificate of qualification from
				Secretary of State if applicant is a foreign corporation.
(34) Preliminary title report for all
				accommodations comprising the time-share plan, dated not more than 90 days
				prior to the date of submission of the application or, if the preliminary title
				report is dated more than 90 days earlier, with an accompanying letter from the
				title officer, dated not more than 90 days prior to submission of the
				application, indicating that state of title has not changed from that set forth
				in the submitted preliminary title report.
(35) If the offering is a security subject to
				the jurisdiction of the Department of Business Oversight, a Department of
				Business Oversight permit or interpretive opinion or copy of application for
				permit or request for interpretive opinion submitted to Department of Business
				Oversight.
(36) State or local
				assessment and improvement bond information if applicable to accommodations in
				the project.
(37) Copies of all
				contracts, deeds, fact sheets and other instruments to be used in marketing,
				financing and conveyancing of time-share interests.
(38) Copy of the covenants for component
				sites of the multi-site time-share plan in accordance with Section
				11251 of the Code.
(39) Copy of trust agreement for the
				multi-site time-share plan if applicable.
(40) Copy of proposed or existing agreements
				for management of the multi-site time-share plan.
(41) Format of fidelity insurance or bond to
				be obtained for the managing agent of the multi-site time-share plan and other
				employees who will have custody or control of funds of the multi-site
				time-share plan association.
(42)
				Copy of letter or other evidence giving notice of the proposed dedication of
				the timeshare project to local governments in which accommodations of the
				multi-site time-share plan will be located. For time-share projects located
				outside this state, evidence of approval or compliance of the time-share
				project in the state in which the time-share project is located is sufficient
				to satisfy this requirement.
(43)
				Completed documents for reservations and reservation deposits if a preliminary
				public report is requested.
(44)
				Evidence of financial arrangements for any repurchase guarantee included in the
				offering.
(45) Description of the
				furnishings and other personal property to be included in the time-share
				offering.
(46) In a time-share plan
				which comprises less than all of the accommodations in a hotel, motel or
				similar commercial lodging establishment and in which the accommodations not
				part of the time-share plan are concurrently used for transient accommodations,
				a copy of the proposed contract for the following:
(A) Arrangements for temporary use for
				transient occupancy of accommodations comprising the time-share plan and
				temporary use by the time-share plan of accommodations regularly used for
				transient occupancy.
(B)
				Apportionment of the costs of operation of the hotel/motel that are for the
				joint benefit of accommodations in the time-share plan and accommodations for
				transient occupancy.
(47)
				Agreement of developer to subsidize maintenance and operation of the multi-site
				time-share plan where applicable.
(48) Description of each incidental benefit
				pursuant to Section
				11237(b).
(49) If applicable, information as required
				by Section
				11233.
(50) If applicable, a certification meeting
				requirements of Section
				11246.
(51) Audited financial statements of the
				multi-site time-share plan association, if applicable.
(52) For every component involving
				newly-built or as yet unbuilt accommodations, or accommodations which will be
				renovated or reconstructed prior to occupancy, evidence of availability of
				domestic utilities and services to the component site.
(53) If the time-share plan is located
				outside this state, a public report or other disclosure document meeting the
				requirements of Section
				11226(c)(5).
(54) A draft public
				report.