2006 Louisiana Laws - RS 9:1131.9.2 — Public offering statement

§1131.9.2.  Public offering statement

A.(1)  Prior to offering any timeshare interest, the developer shall file a public offering statement with the Louisiana Real Estate Commission for approval.  The developer shall fully and accurately disclose those facts concerning the developer and the timeshare plan as hereinafter provided prior to the initial sale of a timeshare interest, and the developer shall furnish each purchaser with a copy of the approved public offering statement.  The public offering statement shall be delivered to each prospective purchaser in written format.  Written format includes but is not limited to documents delivered on CD-ROM or by other electronic means as approved by the Louisiana Real Estate Commission.  The public offering statement shall be dated and shall require the purchaser to certify in writing the receipt thereof.  Until the Louisiana Real Estate Commission approves such filing, any contract regarding the sale of the timeshare plan which is subject to the public offering statement is voidable by the purchaser unless otherwise provided by this Section.

(2)  The Louisiana Real Estate Commission shall, upon receiving a public offering statement from a developer, mail to the developer an acknowledgment of receipt.  The failure of the Louisiana Real Estate Commission to send such acknowledgment will not, however, relieve the developer from the duty of complying with this Section.  An applicant for registration under this Act shall submit the necessary information to complete the application, as required by the Louisiana Real Estate Commission, within six months from the date the initial registration application and its supplements were received by the Louisiana Real Estate Commission.  If the applicant fails to submit the information necessary to complete the application as required by the Louisiana Real Estate Commission within the six-month period, said application may be voided and a new registration application with applicable fees may be required to be submitted.

(3)  All registrations required to be filed with the Louisiana Real Estate Commission under this Act shall be reviewed, and registration shall be effective upon the issuance of a certificate of registration by the Louisiana Real Estate Commission which, in the ordinary course of business, should occur no more than forty-five calendar days after actual receipt by the  Louisiana Real Estate Commission of the properly completed application.  The  Louisiana Real Estate Commission shall provide a list of deficiencies in such application, if any, within thirty calendar days after receipt.  If the Louisiana Real Estate Commission fails to either issue a certificate of registration or provide a list of deficiencies within forty-five calendar days after receipt, the registration shall be deemed effective.

(4)  Any material change to an approved filing shall be filed with the Louisiana Real Estate Commission for approval as an amendment prior to the changes becoming effective.  The Louisiana Real Estate Commission shall have twenty days to approve or cite deficiencies in the proposed amendment.  If the Louisiana Real Estate Commission fails to act within twenty days, the amendment will be deemed approved.  If the developer fails to file corrections to any deficiency citation within thirty days, the Louisiana Real Estate Commission may reject the amendment.

(5)  Upon the filing of a public offering statement, the developer shall pay to the Louisiana Real Estate Commission a filing fee of five hundred dollars or ten dollars for each timeshare unit which is to be part of the proposed timeshare plan, whichever is greater.  A developer who files an amendment to a public offering statement already on file with the Louisiana Real Estate Commission shall pay a filing fee of two hundred fifty dollars.

B.  Every public offering statement shall contain and accurately disclose the following:

(1)  The name of the developer and the principal address of the developer and the name and address of the timeshare plan in which interests are being offered.

(2)  A description of the type of timeshare interests being offered.

(3)  A general description of the existing and proposed accommodations and amenities of the timeshare plan, including their type and number, personal property furnishing the accommodations, any use restrictions, and any required fees for use.

(4)  A description of any accommodations and amenities that are committed to be built, including without limitation:

(a)  The developer's schedule of commencement and completion of all accommodations and amenities.

(b)  The estimated number of accommodations per site that may become subject to the timeshare plan.

(5)  A brief description of the duration, phases, and operation of the timeshare plan.

(6)  The current annual budget, if available, or the projected annual budget for the timeshare plan.  The budget shall include without limitation:

(a)  A statement of the amount included in the budget as a reserve for repairs and replacement.

(b)  The projected common expense liability, if any, by category of expenditures for the timeshare plan.

(c)  A statement of any services or expenses not reflected in the budget that the developer provides or pays.

(7)  Any initial or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee.

(8)  A description of any liens, defects, or encumbrances on or affecting the title to the timeshare interests.

(9)  A general description of any purchaser financing offered by or available through the developer.

(10)  A statement that within seven calendar days after receipt of the public offering statement or after purchase contract execution, whichever is later, a purchaser may cancel any purchase contract for the purchase of a timeshare interest from a developer, together with a statement providing the name and address to which the purchaser should mail any notice of cancellation.  However, 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 calendar days, then a statement that the cancellation of the purchase contract is allowed for that period of time exceeding seven calendar days.

(11)  A statement of any pending suits, adjudications, or disciplinary proceedings material to the timeshare plan of which a developer has knowledge.

(12)  Any restrictions on alienation of any number or portion of any timeshare interests.

(13)  A statement describing liability and casualty insurance for the timeshare property.

(14)  Any current or expected fees or charges to be paid by timeshare purchasers for the use of any amenities related to the timeshare property, including but not limited to all assessments for such use or maintenance.

(15)  The extent to which financial arrangements have been provided for completion of all promised improvements.

(16)  The developer or managing entity must notify the Louisiana Real Estate Commission of the extent to which an accommodation may become subject to a tax or other lien arising out of claims against other purchasers in the same timeshare plan.  The Louisiana Real Estate Commission may require the developer or managing entity to notify a prospective purchaser of any such potential tax or lien which would materially and adversely affect the prospective purchaser.

(17)  A statement indicating that the developer and timeshare plan are registered with the Louisiana Real Estate Commission.

(18)  Copies of the following documents and plans, to the extent they are applicable, shall be included as exhibits:

(a)  A declaration of servitude of properties serving the timeshare accommodations or facilities but not owned by purchasers or leased to them or the association.

(b)  A statement of condition of the existing building or buildings, if the offering is of timeshare periods in an existing facility being converted to condominium ownership.

(c)  A statement of inspection for termite damage and treatment of the existing improvements, if the timeshare property is a condominium conversion.

(d)  The form of agreement for sale of timeshare interests.

(e)  The executed agreement for escrow of payments made to the developer prior to closing.

(f)  Any documents containing any restrictions on use of the property.

(19)  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.

(20)  Such other information reasonably required by the Louisiana Real Estate Commission and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans.

(21)  Any other information that the developer, with the approval of the Louisiana Real Estate Commission, desires to include in the public offering statement text.

C.  A developer offering a multisite timeshare plan shall also fully and accurately disclose the following information, which information may be disclosed in a written, graphic, or tabular form:

(1)  A description of each component site including the name and address of each component site.

(2)  The number of accommodations and timeshare periods, expressed in periods of seven-day use availability, committed to the multisite timeshare plan and available for use by purchasers.

(3)  Each type of accommodation in terms of the number of bedrooms, bathrooms, sleeping capacity, and whether or not the accommodation contains a full kitchen.  For purposes of this description, a full kitchen shall mean a kitchen having a minimum of a dishwasher, range, sink, oven, and refrigerator.

(4)  A description of amenities available for use by the purchaser at each component site.

(5)  A description of the reservation system, which description shall include the following:

(a)  The entity responsible for operating the reservation system.

(b)  A summary of the rules and regulations governing access to and use of the reservation system.

(c)  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.

(6)  A description of any right to make any additions, substitutions, or deletions of accommodations or amenities and a description of the basis upon which accommodations and amenities may be added, substituted, or deleted from the multisite timeshare plan.

(7)  A description of the purchaser's liability for any fees associated with the multisite timeshare plan.

(8)  The location and the anticipated relative use demand of each component site in a multisite timeshare plan as well as any periodic adjustment or amendment to the reservation system which 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 multisite timeshare plan.

(9)  Such other information reasonably required by the Louisiana Real Estate Commission and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans.

(10)  Any other information that the developer, with the approval of the Louisiana Real Estate Commission, desires to include in the public offering statement text.

D.  If a developer offers a nonspecific timeshare interest in a multisite timeshare plan, the developer shall disclose the information set forth in Subsection B of this Section as to each component site.

E.  A developer shall promptly amend the public offering statement to report any material change in the information required by this Section.  In the event amendments are made to a public offering statement provided to a purchaser whose transaction has not closed that materially alter or modify the offering in a material and adverse manner to a purchaser, the amendment shall be provided to the purchaser together with a notice containing a statement in conspicuous type in substantially the following form:

"The public offering statement previously delivered to you, together with the enclosed revisions, has been approved by the Louisiana Real Estate Commission.  Accordingly, your cancellation right expires seven calendar days after you sign your purchase contract or seven calendar days after you receive these revisions, whichever is later."

F.  A purchaser who does not receive a public offering statement prior to or at the time of the act of sale for a timeshare interest may cancel the act of sale for the timeshare interest within one year after the date of the receipt of the public offering statement without penalty or cost of any kind.

Acts 2003, No. 978, §1.