Document ID: chunk:federal_register_of_legislation:F2021C00174:reg:3:p6
Version: federal_register_of_legislation:F2021C00174
Segment Type: reg
Provision Reference: reg 3 (pt 6/29)
Character Range: 61709–64540

in a managed investment scheme for recreational use [insert if applicable— and not buying real property].

           (4)          The statement set out below is the verbal consumer warning notice referred to in subsection 912AJ(5).

Timeshares are not appropriate for everyone. You should take time to consider whether buying this timeshare is right for you before you sign the application form.

       It is important to understand:

           1. Timeshares are generally very long term. The term of this timeshare is [state period of this scheme in years or different years of the PAYG memberships]. You will generally be required to pay ongoing costs for as long as you own the timeshare, regardless of whether or not you use the timeshare. [Include if applicable— This includes any costs of financing the purchase.]

           2. [Include if applicable— You are not guaranteed the type of accommodation or location you want at the time you want.]

           3. After the cooling-off period has ended, [include if applicable— and you have not withdrawn your application under any subject to finance rights], there are limitations on your ability to get out of this timeshare and there is no guarantee that you will be able to sell it to another person or get any money back.

           4. Timeshares are not an investment and you should not expect any financial return from a timeshare. You are buying an interest in a managed investment scheme for recreational use [include if applicable— and not buying real property].".

8C Disclosure of fees and costs
Part 7.9 of the Regulations applies in relation to interests in a registered time-sharing scheme as if the provisions of that Part were modified or varied as follows:
           (1) omit subregulation 7.9.16N(2) of the Regulations, substitute:
              "(2) Subject to subregulation (3), the fees section of a Product Disclosure Statement for an interest in a registered time-sharing scheme must include:
                  (a) the applicable Purchase Price and Upfront Fees and Costs Summary set out in Division 1 of Part 2 of Schedule 10;
                  (b) the Fees and Costs Summary set out in Division 3 of Part 2 of Schedule 10;
                  (c) the Example of Annual Fees and Costs set out in Division 5 of Part 2 of Schedule 10;
                  (d) the applicable Cost of Product Information set out in Division 6A of Part 2 of Schedule 10;
                  (e) the boxed Consumer Advisory Warning set out in Division 7A of Part 2 of Schedule 10; and
                  (f) the Additional Explanation of Fees and Costs set out in Division 8 of Part 2 of Schedule 10.
              (3) The responsible entity for the scheme may replace any of the following defined words or expressions used in Part 2 of Schedule 10 with a corresponding word or