Mississippi Administrative Code › Title 30 - Professions and Occupations › Part 1601 - Mississippi Real Estate Commission › Chapter 8 - Time Shares › Rule 30-1601-8.4 - Public Offering Statement

Current through June 25, 2024
A. Public Offering
				Statement Requirements
(1) A developer must
				prepare a public offering statement that shall fully and accurately disclose
				the facts concerning the timeshare developer and timeshare plan as required by
				these rules. The developer shall provide the public offering statement to each
				purchaser of a timeshare interest in any timeshare plan prior to execution of
				the purchase contract. The public offering statement shall be dated and shall
				require the purchaser to certify in writing the receipt thereof. Upon approval
				by the Commission, the developer may also deliver the public offering statement
				on CD ROM or other electronic media.
(2) With regard to timeshare interests
				offered in a single-site timeshare plan or in the specific interest of a
				multi-site timeshare plan, the public offering statement should fully and
				accurately disclose the following:
(a) The
				name of the developer and the principal address of the developer;
(b) Information regarding the developer's
				business and property management experience;
(c) A description of the type of timeshare
				interests being offered;
(d) The
				number of accommodations and timeshare interests, expressed in periods of
				seven-days use availability or other time increments applicable to the
				multi-site timeshare plan for each component site committed to the multi-site
				timeshare plan and available for use by purchasers, purchasers and a
				representation about the percentage of useable time authorized for sale, and if
				that percentage is 100 percent, then a statement describing how adequate
				periods of time for maintenance and repair will be provided. A general
				description of the existing and proposed accommodations and amenities of the
				timeshare plan, including their type and number personal property furnishing
				the accommodation, any use restrictions, and any required fees for
				use;
(e) A description of any
				accommodations and amenities that are committed to be built, including, without
				limitation:
(i) the developer's schedule of
				commencement and completion of all accommodations and amenities;
(ii) the estimated number of accommodations
				per site that may become subject to the timeshare plan;
(iii) a brief description of the duration,
				phases, and operation of the timeshare plan; and
(iv) the extent to which financial
				arrangements have been provided for completion of all promised
				improvements.
(f) If the
				timeshare plan requires the use of a reservation system, include a description
				of the reservation system which shall include the following:
(i) 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.
(ii) A summary of the rules and regulations
				governing access to and use of the reservation system.
(iii) 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-serve basis.
(iv) An
				explanation of any demand-balancing standard utilized to assure equitable use
				of the accommodations among participants.
(g) The current annual budget, if available,
				or the projected annual budget for the timeshare plan. The budget must include,
				without limitations:
(i) a statement of the
				amount included in the budget as a reserve for repairs and
				replacement;
(ii) the projected
				common expense liability, if any, by category of expenditures for the timeshare
				plan; and
(iii) a statement of any
				services or expenses not reflected in the budget that the developer provides or
				pays.
(h) Information
				regarding all fees that the purchaser is required to pay in conjunction with
				the purchase and ownership including, but not limited to, closing cost and
				annual assessments;
(i) A
				description of any liens, defects or encumbrances on or affecting the title to
				the timeshare interests;
(j) A
				description of any financing offered by or available through the
				developer;
(k) A statement that
				within seven (7) calendar days after receipt of the public offering statement
				or after execution of the purchase contract, whichever is later, a purchaser
				may cancel any purchase contract for a timeshare interest from a developer
				together with a statement providing the name and street address to which the
				purchaser shall mail any notice of cancellation. If by agreement of the parties
				by and through the purchase contract, the purchase contract allows for
				cancellation of the purchase contract for a period of time exceeding seven (7)
				calendar days, then the public offering statement shall include a statement
				that the cancellation of the purchase contract is allowing for that period of
				time exceeding seven (7) calendar days;
(l) 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.
(m) Any restrictions on alienation of any
				number or portion of any timeshare interests;
(n) A statement describing liability and
				casualty insurance for the timeshare property;
(o) Any current or expected fees or charges
				to be paid by timeshare purchasers for the use of any amenities related to the
				timeshare plan;
(p) A statement
				disclosing any right of first refusal or other restraint on the transfer of all
				or any portion of a timeshare interest.
(q) A statement of disclosing that any
				deposit made in connection which the purchase of a timeshare interest shall be
				held by an escrow agent until expiration of any right to cancel the contract
				and that any deposit shall be returned to the purchaser if he or she elects to
				exercise his or her right of cancellation. Alternatively, if the Commission has
				accepted from the developer a surety bond, irrevocable letter of credit, or
				other financial assurance in lieu of placing deposits in an escrow account,
				account:
(i) a statement disclosing that the
				developer has provided a surety bond, irrevocable letter of credit, or other
				financial assurance in an amount equal to or in excess of the funds that would
				otherwise be placed in an escrow account and,
(ii) a description of the type of financial
				assurance that has been arranged,
(iii) a statement that if the purchaser
				elects to exercise his or her right of cancellation as provided in the
				contract, the developer shall return the deposit, and
(iv) a description of the person or entity to
				whom the purchaser shall apply for payment.
(r) If the timeshare plan provides purchasers
				with the opportunity to participate in an exchange program, a description of
				the name and address of the exchange company and the method by which a
				purchaser accesses the exchange program;
(s) Such other information reasonable
				required by the state agency and established by administrative rule necessary
				for the protection of purchasers of timeshare interests in timeshare plans;
				and
(t) Any other information that
				the developer, with the approval of the Commission, desires to include in the
				public offering statement.
(3) Public offering statements for specific
				timeshare interest and multi-site timeshare plans shall include the following
				disclosures in addition to those required in (b) above:
(a) A description of each component site,
				including the name and address of each Component site.
(b) The number of accommodations and
				timeshare interest, expressed in periods of seven-day use availability or other
				time increments applicable to each component site of the timeshare plan,
				committed to the multi-site timeshare 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 percent, then a statement describing how adequate
				periods of time for maintenance and repair will be provided.
(c) 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.
(d) A description of amenities available for
				use by the purchaser at each component site.
(e) A description of the reservation system,
				which shall include the following:
(i) The
				entity responsible for operating the reservation systems, its relationship to
				the developer, and the duration of any agreement for operation of the
				reservation system.
(ii) A summary
				of the rules and regulations governing access to and use of the reservation
				system.
(iii) The existence of and
				an explanation regarding any priority reservations for the use of a given
				accommodation on a first-come, first-served basis.
(iv) An explanation of any demand-balancing
				standard utilized to assure equitable use of the accommodations among
				participants.
(v) A description of
				any method utilized to permit additions, substitutions, or deletions of
				accommodations.
(vi) A description
				of any criteria utilized in the use and operation of the reservation system
				(such as historical occupancy levels by season, location, demand,
				etc.)
(f) The name and
				principal address of the managing entity of the multi-site timeshare plan and
				description of the procedures, if any, for altering the powers and
				responsibilities of the managing entity and for removing or replacing
				it.
(g) A description of any right
				to make any addition, substitutions, or deletion 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 timeshare plan.
(h)
				A description of the purchaser's liability for any fees associated with the
				multi-site timeshare plan.
(i) The
				location of each component site of the multi-site timeshare plan, the
				historical occupancy of each component site for the prior 12-month period, if
				the component site was part of the multi-site timeshare plan during the
				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 timeshare plan.
(j) Any other information that the developer,
				with the approval of the Commission, desires to include in the timeshare
				disclosure statement.
(4) Public offering statements for
				nonspecific timeshare multi-site timeshare plans shall include the following:
(a) The name and address of the
				developer.
(b) A description of the
				type of interest and usage rights the purchaser will receive.
(c) A description of the duration and
				operation of the timeshare plan.
(d) A description of the type of insurance
				coverage provided for each component site.
(e) An explanation of who holds title to the
				accommodations of each component site.
(f) A description of each component site,
				including the name and address of each component site.
(g) The number of accommodations and
				timeshare interest, expressed in periods of seven-day use availability or other
				time increments applicable to the multi-site timeshare plan for each component
				site committed to the multi-site timeshare plan and available for use by
				purchasers. purchasers and a representation about the percentage of useable
				time authorized for sale, and if that percentage is 100 percent, then a
				statement describing how adequate periods of time for maintenance and repair
				will be provided.
(h) 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.
(i) A description of
				amenities available for use by the purchaser at each component site.
(j) A description of any incomplete amenities
				at any of the component sites along with a statement as to any assurance for
				completion and the estimated date the amenities will be available.
(k) The location of each component site of
				the multi-site timeshare plan, the historical occupancy of each component site
				for the prior 12-month period, if the component site was part of the multi-site
				timeshare plan during such 12-month time period, as well as any periodic
				adjustment or amendments 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 timeshare
				plan.
(l) A description of any
				rights 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 form the multi-site timeshare plan.
(m) A description of the reservation system
				that shall included all of the following:
(i)
				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.
(ii) A summary
				of the rules and regulations governing access to and use of the reservation
				system.
(iii) 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.
(n) The name and principal address of the
				managing entity for the multi-site timeshare plan and a description of the
				procedures, if any, for altering the powers and responsibilities of the
				managing entity and for removing or replacing it, and a description of the
				relationship between a multi-site timeshare plan managing entity and the
				managing entity of the component sites of a multi-site timeshare plan, if
				different from the multi-site timeshare plan managing entity.
(o) The current annual budget as provided in
				Section L. of these rules, along with the projected assessments and a
				description of the method of calculation and apportioning the assessments among
				purchasers, all of which shall be attached as an exhibit to the public offering
				statement.
(p) Any current fees or
				charges to be paid by timeshare purchasers for the use of any amenities related
				to the timeshare plan and statement that the fees or charges are subject to
				change.
(q) Any initial or special
				fee due from the purchaser at closing, together with a description of the
				purpose and method of calculating the fee.
(r) A description of any financing offered by
				or available through the developer.
(s) 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.
(t) A statement disclosing any right of first
				refusal or other restraint on the transfer of all or any portion of a timeshare
				interest.
(u) A statement
				disclosing that any deposit made in connection with the purchase of a timeshare
				interest shall be held by an escrow agent until expiration of any right to
				cancel the contract and that any deposit shall be returned to the purchaser if
				he or she elects to exercise his or her right of cancellation. Alternatively,
				if the Commission has accepted from the developer a surety bond, irrevocable
				letter of credit, or other financial assurance in lieu of placing deposits in
				an escrow account, account: (i) a statement disclosing that the developer has
				provided a surety bond, irrevocable letter of credit, or other financial
				assurance in an amount equal to or in excess of the funds that would otherwise
				be placed in an escrow account and, (ii) a description of the type of financial
				assurance that has been arranged, (iii) a statement that if the purchaser
				elects to exercise his or her right of cancellation as provided in the
				contract, the developer shall return the deposit, and (iv) a description of the
				person or entity to whom the purchaser should apply for payment.
(v) If the timeshare plan provides purchasers
				with the opportunity to participate in an exchange program, a description of
				the name and address of the exchange company and the method by which a
				purchaser accesses the exchange program.
(w) Any other information that the developer,
				with the approval of the Commission, desires to include in the timeshare
				disclosure statement.