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-40-00-4.4 - Administration and Registration

Current through June 14, 2024
4.4.1
Registration Required
Registration of the following information is required under these regulations. This requirement is necessary to ensure the ability to enforce and effectively carry out the consumer protection measures these regulations are intended to implement. A developer may not offer or transfer a time share unless the time share is registered with the Department of Business Regulations (hereinafter "the Agency"), but an offering by a developer of time shares in no more than one time-share unit at any one time is exempted from the requirement of the regulations.
4.4.2
Application for Registration: Approval of Uncompleted Units
A. For the purposes of this section, "substantially completed" means that all structural components and mechanical systems of all buildings constituting or containing any time share units or portions thereof are finished in accordance with the plans, as evidenced by a recorded certification of completion executed by an independent registered engineer, surveyor, or architect.
B. An application for registration must contain the required information and be accompanied by any reasonable fees required by the agency. A developer shall promptly file amendments to report any actual or expected material change in any document or information contained in his application.
C. If a developer files with the agency the time share instrument or proposed time share instrument, or an amendment or proposed amendment to the time share instrument, describing time share units consisting in whole or in part of buildings or portions of buildings that have not been substantially completed, the developer shall also file with the agency:
1. a verified statement showing all costs involved in completing the time share property;
2. a verified estimate of the time of completion of construction of the time share property;
3. satisfactory evidence that he has sufficient funds to cover all costs to complete the time share property;
4. a copy of the executed construction contract and any other contracts for the completion of the time share property;
5. a one hundred percent (100%) payment and performance bond covering the entire cost of construction of the time share property;
6. if purchasers' funds are to be utilized for the construction of the time share property, an executed copy of the escrow agreement with an escrow company or financial institution authorized to do business within the state which provides:
a. that disbursements of purchasers' funds may be made from time to time to pay for construction of the time share property, architectural, engineering, finance, and legal fees, and other costs for the completion of the time share property in proportion to the value of the work completed by the contractor as certified by an independent registered architect or engineer, on bills submitted and approved by the lender of construction funds or the escrow agent;
b. that disbursement of the balance of purchasers' funds remaining after completion of the time share property may be made only after the escrow agent or lender receives satisfactory evidence that the period for filing mechanics'' and materialmen's lien has expired, the right to claim those liens has been waived, or adequate provision has been made for satisfaction of any claimed mechanics' or materialmen's lien; and
7. any other materials or information the agency may reasonably require.