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2005 Illinois Code - 765 ILCS 101/      Real Estate Timeshare Act of 1999. Article 10 - Business Practices


      (765 ILCS 101/Art. 10 heading)
Article 10. Business Practices

    (765 ILCS 101/10‑5)
    Sec. 10‑5. Management and operation provisions.
    (a) Before the first sale of a timeshare interest, the developer shall create or provide for a managing entity, which shall be either the developer, a separate manager or management firm, the board of directors of an owners' association, or some combination thereof.
    (b) The duties of the managing entity include, but are not limited to:
        (1) Management and maintenance of all accommodations
    
constituting the timeshare plan.
        (2) Collection of all assessments as provided in
    
the timeshare instrument.
        (3) Providing to all purchasers each year an
    
itemized annual budget, which shall include all estimated revenues and expenses.
        (4) Maintenance of all books and records concerning
    
the timeshare plan.
        (5) Scheduling occupancy of accommodations, when
    
purchasers are not entitled to use specific timeshare periods, so that all purchasers will be provided the opportunity to use and possession of the accommodations of the timeshare plan which they have purchased.
        (6) Performing any other functions and duties that
    
are necessary and proper to maintain the accommodations or that are required by the timeshare instrument.
    (c) In the event a developer, managing entity, or association files a complaint in a foreclosure proceeding involving timeshare interests, the developer, managing entity, or association may join in the same action multiple defendant obligors and junior interest holders of separate timeshare interests, provided:
        (1) the foreclosure proceeding involves a single
    
timeshare plan;
        (2) the foreclosure proceeding is filed by a single
    
plaintiff;
        (3) the default and remedy provisions in the written
    
instruments on which the foreclosure proceeding is based are substantially the same for each defendant; and
        (4) the nature of the defaults alleged is the same
    
for each defendant.
    (d) In any foreclosure proceeding involving multiple defendants filed under subsection (c), the court shall sever for separate trial any count of the complaint in which a defense or counterclaim is timely raised by a defendant.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑10)
    Sec. 10‑10. Cancellation of purchase contract. Any purchase contract entered into by a purchaser of a time share interest under this Act shall be voidable by the purchaser, without penalty, within 5 calendar days after the receipt of the public offering statement or the execution of the purchase contract, whichever is later. The purchase contract shall provide notice of the 5‑day cancellation period, together with the name and mailing address to which any notice of cancellation shall be delivered. Notice of cancellation shall be deemed timely if the notice is deposited with the United States Postal Service not later than midnight of the fifth calendar day.
    Upon such cancellation, the developer or resale agent shall refund to the purchaser all payments made by the purchaser, less the amount of any benefits actually received pursuant to the purchase contract. The refund shall be made within 20 calendar days after the receipt of the notice of cancellation, or receipt of funds from the purchaser's cleared check, whichever occurs later.
    If a purchaser elects to cancel a purchase contract pursuant to this Section, the purchaser may do so by hand delivering a written notice of cancellation or by mailing a notice of cancellation by certified mail, return receipt requested, to the developer or resale ent, as applicable, at an address set forth in the purchase contract.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑15)
    Sec. 10‑15. Interests, liens, and encumbrances; alternative assurances.
    (a) Excluding any encumbrance placed against the purchaser's timeshare interest securing the purchaser's payment of purchase‑money financing for such purchase, the developer shall not be entitled to the release of any funds escrowed under subsection (c) of Section 5‑15 with respect to each timeshare interest and any other property or rights to property appurtenant to the timeshare interest, including any amenities represented to the purchaser as being part of the timeshare plan, until the developer has provided satisfactory evidence to the Office of Banks and Real Estate of one of the following:
        (1) The timeshare interest together with any other
    
property or rights to property appurtenant to the timeshare interest, including any amenities represented to the purchaser as being part of the timeshare plan, are free and clear of any of the claims of the developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lienor, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights.
        (2) The developer, any owner of the underlying fee,
    
a mortgagee, judgment creditor, or other lienor, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights, including any amenities represented to the purchaser as being part of the timeshare plan, has recorded a subordination and notice to creditors document in the appropriate public records of the jurisdiction in which the timeshare interest is located. The subordination document shall expressly and effectively provide that the interest holder's right, lien, or encumbrance shall not adversely affect, and shall be subordinate to, the rights of the owners of the timeshare interests in the timeshare plan regardless of the date of purchase, from and after the effective date of the subordination document.
        (3) The developer, any owner of the underlying fee,
    
a mortgagee, judgment creditor, or other lienor, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights, including any amenities represented to the purchaser as being part of the timeshare plan, has transferred the subject accommodations or amenities or all use rights therein to a nonprofit organization or owners' association to be held for the use and benefit of the owners of the timeshare plan, which entity shall act as a fiduciary to the purchasers, provided that the developer has transferred control of such entity to the owners or does not exercise its voting rights in such entity with respect to the subject accommodations or amenities. Prior to the transfer, any lien or other encumbrance against the accommodation or facility shall be made subject to a subordination and notice to creditors instrument pursuant to paragraph (2).
        (4) Alternative arrangements have been made which
    
are adequate to protect the rights of the purchasers of the timeshare interests and approved by the Office of Banks and Real Estate.
    (b) Nothing in this Section shall prevent a developer from accessing any escrow funds if the developer has complied with subsection (c) of Section 5‑15.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑20)
    Sec. 10‑20. Licenses. Any sales or resale agent shall comply with the provisions of the Real Estate License Act of 1983, or its successor Act and the rules adopted pursuant to that Act, including licensure, unless otherwise exempt under the Real Estate License Act of 1983, or its successor Act and the rules adopted pursuant to that Act.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑25)
    Sec. 10‑25. Liability; material misrepresentation.
    (a) A developer or other person offering a timeshare plan may not do any of the following:
        (1) Misrepresent a fact material to a purchaser's
    
decision to buy a timeshare interest.
        (2) Predict specific or immediate increases in the
    
value of a timeshare interest represented over a period of time, excluding bona fide pending price increases by the developer.
        (3) Materially misrepresent the qualities or
    
characteristics of accommodations or the amenities available to the occupant of those accommodations.
        (4) Misrepresent the length of time accommodations
    
or amenities will be available to the purchaser of a timeshare interest.
        (5) Misrepresent the conditions under which a
    
purchaser of a timeshare interest may exchange the right of his or her occupancy for the right to occupy other accommodations.
    (b) A developer or other person using a promotion in connection with the offering of a timeshare interest shall clearly disclose all of the following:
        (1) That the purpose of the promotion is to sell
    
timeshare interests, which shall appear in bold face or other conspicuous type.
        (2) That any person whose name or address is
    
obtained during the promotion may be solicited to purchase a timeshare interest.
        (3) The name of each developer or other person
    
trying to sell a timeshare interest through the promotion, and the name of each person paying for the promotion.
        (4) The complete rules of the promotion.
        (5) The method of awarding prizes, gifts,
    
vacations, discount vacations, or other benefits under the promotion; a complete and fully detailed description, including approximate retail value, of all prizes, gifts, or benefits under the promotion; the quantity of each prize, gift, or benefit to be awarded or conferred; and the date by which each prize, gift, or benefit will be awarded or conferred.
        (6) Any other disclosures provided by rule.
    (c) If a person represents that a prize, gift, or benefit will be awarded in connection with a promotion, the prize, gift, or benefit must be awarded or conferred in the manner represented, and on or before the date represented.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑30)
    Sec. 10‑30. Records. The managing entity shall keep detailed financial records directly related to the operation of the association. All financial and other records shall be made reasonably available for examination by any purchaser, or the authorized agent of the purchaser, and the Office of Banks and Real Estate. For purposes of this Section, the books and records of the timeshare plan shall be considered "reasonably available" if copies of the requested portions are delivered to the purchaser or the purchaser's agent or the Office of Banks and Real Estate within 7 days of the date the managing entity receives a written request for the records signed by the purchaser or the Office of Banks and Real Estate. The managing entity may charge the purchaser a reasonable fee for copying the requested information.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑35)
    Sec. 10‑35. Maintenance of records. Every developer, exchange company, or resale agent shall maintain, for a period of 2 years, records of any individuals employed by the developer, exchange company, or resale agent, including the last known address of each of those individuals.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

    (765 ILCS 101/10‑40)
    Sec. 10‑40. Partition. No action for partition of a timeshare interest may be initiated except as permitted by the timeshare instrument.
(Source: P.A. 91‑585, eff. 1‑1‑00.)

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