Rhode Island Code of Regulations › Title 110 - Attorney General › Chapter 40 - Consumer Protection Unit › Subchapter 00 - N/A › Part 4 - Rules and Regulations for Real Estate Time Share/Interval Ownership Sales and Practices › Section 110-RICR-40-00-4.2 - Definitions

Current through June 14, 2024
A. As used in these Rules and Regulations, the following words shall have the following meanings:
1. "Act" or "Practice" - an act or practice shall include any threat or attempt to perform such act or practice.
2. "Advertisement," "Advertising," or "Advertise" means a commercial message in any newspaper, magazine, leaflet, flyer, or catalog, on radio, television, public address system, or made in person, in direct mail literature or other printed material, or any point of transaction literature or price tag which is delivered or made available to a customer or prospective customer in any manner whatsoever.
3. "Affiliate of a developer" means any person who controls, is controlled by, or is under common control with a developer.
a. A person "controls" a developer if the person:
(1) is a general partner, officer, director, or employer of the developer,
(2) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, own, controls, holds with power to vote, or holds proxies representing, more than twenty percent,
(3) controls in any manner the election of a majority of the directors of the developer, or
(4) has contributed more than twenty percent (20%) of the capital of the developer.
b. A person "is controlled by" a developer if the developer:
(1) is a general partner, officer, director, or employer of the person,
(2) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or hold proxies representing, more than twenty percent (20%) of the voting interest in the person,
(3) controls in any manner the election of a majority of the directors of the person, or
(4) has contributed more than twenty percent (20%) of the capital of the person. Control does not exist if the powers described in this paragraph are held solely as security for an obligation and are not exercised.
4. "Conspicuous" - A term is conspicuous when it is so written that person against whom it is to operate ought to have noticed it. Language in the body of a form is "conspicuous" if it is in larger or contrasting type or color.
5. "Conversion building" means a building that at any time before the disposition of any time share was occupied wholly or partially by persons other than purchasers and person who occupied with the consent of purchasers.
6. "Deceptive warranty" - For the purposes of this chapter a "deceptive warranty" is:
a. A guarantee or warranty that contains an affirmation, promise, description, or representation that is either false, fraudulent, or that, in the light of all the circumstances, would mislead the consuming public; or fails to contain the necessary information to avoid misleading the consuming public; or,
b. A guarantee or warranty created by the use of such terms as "guarantee" or "warranty" if the terms and conditions of such guarantee or warranty so limit its scope and application as to render the representation illusory, as where any costs or charges to the consumer attendant upon such work are prohibitive or approach the costs for the repairs absent any warranty or guarantee.
7. "Developer" means any person who
a. offers to dispose of or disposes of his interest in a time share not previously disposed of, or succeeds to any special developer right, or
b. applies for registration of the time share under these regulations.
8. "Dispose" or "Disposition" means a voluntary transfer of any legal or equitable interest in a time share, but does not include the transfer or release of a security interest.
9. "Dwelling unit" means any building or structure, or any unit therein or part thereof, and all the common areas inside and outside such building or structure, occupied or intended for occupancy as a residence by one or more individuals; including a mobile home or a lot therefor.
10. "Managing entity" means the manager or, if there is no manager, the association.
11. "Offering" means any advertisement, inducement, solicitation, or attempt to encourage any person to acquire a time share, other than as security for an obligation. An advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of a time share in a unit not located in this State, is not an offering if the advertisement states that an offering may be made only in compliance with the law of the jurisdiction in which the unit or units are located; such offering shall contain the following language in bold-faced print "THIS IS NOT AN OFFERING PROTECTED BY THE RULES AND REGULATIONS FOR REAL ESTATE TIME SHARE SALES AND PRACTICES;" provided, however, if the subject time-share property is registered pursuant to §
											4.3     of this Part, such language need not be printed on the offering.
12. "Owner" means any person who holds title to one or more dwelling units in any manner including but not limited to a partnership, corporation or trust. For purposes of these regulations the term "owner" shall include one who manages, controls, and/or customarily accepts rent on behalf of the owner.
13. "Person" means a natural person, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, joint venture, or other legal or commercial entity. (In the case of a land trust, however, "person" means the beneficiary of the trust rather than the trust or the trustee.)
14. "Place of business" means the main or permanent branch office or fixed location for doing business of a seller. A booth at a fair or other temporary, stationary or mobile selling point does not constitute a place of business for the purpose of these regulations.
15. "Purchaser" means any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a time share other than as security for an obligation.
16. "Time share" means, whenever referred to herein, a time share estate or a time share license or any form of interval ownership in real estate.
17. "Time share estate/interval ownership" means a right to occupy a unit or any of several units during five (5) or more separated time periods over a period of at least five (5) years, including renewal options, coupled with a freehold estate or an estate for years in a time share property or a specified portion thereof.
18. "Time share expenses" means expenditures, fees, charges, or liabilities:
a. incurred with respect to the time shares by or on behalf of all time share owners in one time share property, and
b. imposed on the time share units by the entity governing a project of which the time share property is a part, together with any allocations to reserves, but excluding purchase money payable for time shares.
19. "Time share instrument" means one or more documents, by whatever name denominated, creating or regulating time shares.
20. "Time share license" means a right to occupy a unit or any of several units during five (5) or more separated time periods over a period of at least five (5) years, including renewal options, not coupled with a freehold estate or an estate for years.
21. "Time share owner" means a person who is an owner or co-owner of a time share other than as security for an obligation.
22. "Time share property" means one or more time share units subject to the same time share instrument, together with any other real estate or rights therein appurtenant to those units.
23. "Time share unit" means a unit in which time shares exist.
24. "Unfair methods of competition and unfair or deceptive acts or practices" means any activity as defined in R.I. Gen. Laws §
											6-13.1-1(6)(i)-(xx)  and amendments thereto.
25. "Unit" means real property, or a portion thereof, designated for separate use.
26. "Warranty" or "guarantee" - The terms "warranty" or "guarantee" or any term connoting a warranty or guarantee as used in these regulations are synonymous. The terms apply also to purported warranties and guarantees and to any promise or representation in the nature of a warranty or guarantee. A warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind.