ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: RA DP 7-0-0-0

HB 2627: timeshares; public reports; purchase contracts

Sponsor: Representative Bolick, LD 20

Caucus & COW

Overview

Changes the amount of time a prospective buyer or seller has to cancel a time share purchase agreement or enter into a contract for purchase of a timeshare interest, from seven business days to ten business days. States where a timeshare interest reservation statement must be.

History

Statute requires the Real Estate Commissioner (Commissioner) to approve a public report (Report) for use by the developer, unless there are grounds for denial, authorizing the sale or lease of timeshare interests within a timeshare plan. The developer must provide each prospective customer with a copy. The Report must include a statement informing the purchaser that by midnight of the seventh calendar day after execution of the purchase agreement, the purchaser may cancel any purchaser agreement. If the purchaser agreement allows for a cancellation period longer than seven days, the developer must include a corresponding statement on the Report (A.R.S. § 32-2197.08).

The approval for use of a Report is not required for any party to enter into a timeshare interest reservation (Reservation). Before the approval for use of a Report for a timeshare plan, a deposit may be accepted from a prospective buyer for a Reservation, provided that within fifteen calendar days from receiving the approved Report, the prospective seller provides the prospective buyer with a copy of the Report and of the purchase agreement. The prospective buyer and seller have seven business days after receipt of the Report and the purchase agreement to enter into a purchasing contract. If the prospective buyer and seller do not enter into a contract for the purchase within seven business days, the Reservation automatically terminates (A.R.S. § 32-2197.10).

Each Reservation form must contain a conspicuous statement, communicating that the Arizona Department of Real Estate has not inspected or approved the timeshare property, no Report has been issued and that without issuance of a Report or pre-sale authorization for the timeshare plan, no offer to sell or purchase may be made (A.R.S. § 32-2197.10).

Provisions

1. Changes the required Report statement to inform a purchaser that they may cancel any purchase agreement for a timeshare interest by midnight of the tenth calendar day, rather than the seventh calendar day, after execution of the purchase agreement. (Sec. 1)

2. States that If the purchaser agreement allows for a cancellation period longer than ten calendar days, rather than seven calendar days, the developer must include a corresponding statement on the Report. (Sec. 1)

3. Extends the amount of time a prospective buyer and prospective seller have to enter into a contract for the purchase of a time share interest before the Reservation automatically terminates, from seven business days to ten business days. (Sec. 2)

4. Specifies that the conspicuous Reservation statement must appear above the purchaser's signature line. (Sec. 2)

5. Makes technical changes. (Sec. 2)

8. ---------- DOCUMENT FOOTER ---------

9. Initials JR/LB Caucus & COW

10.

11. ---------- DOCUMENT FOOTER ---------