The Florida Senate

721.01  Short title.

721.02  Purposes.

721.03  Scope of chapter.

721.04  Saving clause.

721.05  Definitions.

721.056  Supervisory duties of developer.

721.06  Contracts for purchase of timeshare periods.

721.065  Resale purchase agreements.

721.07  Public offering statement.

721.071  Trade secrets.

721.075  Incidental benefits.

721.08  Escrow accounts; nondisturbance instruments; alternate security arrangements.

721.09  Reservation agreements; escrows.

721.10  Cancellation.

721.11  Advertising materials; oral statements.

721.111  Prize and gift promotional offers.

721.12  Recordkeeping by seller.

721.13  Management.

721.14  Discharge of managing entity.

721.15  Assessments for common expenses.

721.16  Liens for overdue assessments; liens for labor performed on, or materials furnished to, a unit.

721.165  Insurance.

721.17  Transfer of interest.

721.18  Exchange programs; filing of information and other materials; filing fees; unlawful acts in connection with an exchange program.

721.19  Provisions requiring purchase or lease of timeshare property by owners' association or unit owners; validity.

721.20  Licensing requirements; suspension or revocation of license; exceptions to applicability; collection of advance fees for listings unlawful.

721.21  Purchasers' remedies.

721.22  Partition.

721.23  Securities.

721.24  Firesafety.

721.25  Zoning and building.

721.26  Regulation by division.

721.265  Service of process.

721.27  Annual fee for each timeshare period in plan.

721.28  Division of Florida Land Sales, Condominiums, and Mobile Homes Trust Fund.

721.301  Florida Timesharing, Vacation Club, and Hospitality Program.

721.01  Short title.--This chapter shall be known and may be cited as the "Florida Vacation Plan and Timesharing Act."

History.--s. 1, ch. 81-172; s. 2, ch. 91-236.

721.02  Purposes.--The purposes of this chapter are to:

(1)  Give statutory recognition to real property timesharing and personal property timesharing in the state.

(2)  Establish procedures for the creation, sale, exchange, promotion, and operation of timeshare plans.

(3)  Provide full and fair disclosure to the purchasers and prospective purchasers of timeshare plans.

(4)  Require every timeshare plan offered for sale or created and existing in this state to be subjected to the provisions of this chapter.

(5)  Recognize that the tourism industry in this state is a vital part of the state's economy; that the sale, promotion, and use of timeshare plans is an emerging, dynamic segment of the tourism industry; that this segment of the tourism industry continues to grow, both in volume of sales and in complexity and variety of product structure; and that a uniform and consistent method of regulation is necessary in order to safeguard Florida's tourism industry and the state's economic well-being. In order to protect the quality of Florida timeshare plans and the consumers who purchase them, it is the intent of the Legislature that this chapter be interpreted broadly in order to encompass all forms of timeshare plans with a duration of at least 3 years that are created with respect to accommodations and facilities that are located in the state or that are offered for sale in the state as provided herein, including, but not limited to, condominiums, cooperatives, undivided interest campgrounds, vacation clubs, multisite vacation plans, and multiyear vacation and lodging certificates.

History.--s. 1, ch. 81-172; s. 1, ch. 83-264; s. 47, ch. 85-62; s. 3, ch. 91-236.

721.03  Scope of chapter.--

(1)  This chapter applies to all timeshare plans consisting of more than seven timeshare periods over a period of at least 3 years in which the accommodations or facilities are located within this state; provided that:

(a)  With respect to timeshare plans containing accommodations or facilities located in this state which are offered for sale in other jurisdictions within the jurisdictional limits of the United States that regulate the offering of timeshare plans, such offers shall not be subject to the provisions of ss. 721.06, 721.08-721.12, and 721.20 to the extent that such activity is regulated in the other United States jurisdictions, but only after the division has received and accepted satisfactory evidence that the timeshare plan has been filed and accepted by the appropriate agency in the other jurisdictions. The director of the division shall also have the discretion to require all or a portion of the disclosures required by s. 721.07 or s. 721.55 to be made in connection with offers made in the other United States jurisdictions.

(b)  With respect to timeshare plans containing accommodations or facilities located in this state which are offered for sale outside the jurisdictional limits of the United States, such offers shall be exempt from the requirements of this chapter so long as the seller files the information required by s. 721.07 or s. 721.55 with, and obtains the approval of, the division. This exemption becomes effective upon the filing of such information with the division, if approval is obtained within 6 months after the initial filing at which time the exemption will expire unless the division stipulates otherwise or approves the filing. The fees set forth in s. 721.07(4) apply to all filings made hereunder. Each purchase contract utilized in any offer of a timeshare plan that occurs outside the jurisdictional limits of the United States shall contain the following disclosure in conspicuous type immediately above the space provided for the purchaser's signature:


The offering of this timeshare plan outside the jurisdictional limits of the United States of America is exempt from regulation under Florida law, and any such purchase is not protected by the State of Florida. However, the management and operation of any accommodations or facilities located in Florida is subject to Florida law and may give rise to enforcement action regardless of the location of any offer.


Purchaser should note that  (name of developer or other person or entity)  at  (address)  has a  (describe developer's or other person's or entity's actual interest)  in the accommodations and facilities of the timeshare plan.

(c)  The exemption provided in paragraph (a) shall not apply unless and until a claim of exemption from regulation containing the information required by paragraph (a) and s. 721.51(3)(b) and accompanied by the fee required by s. 721.51(3)(b) is filed with and approved by the division. The division may adopt rules designating those provisions of ss. 721.07 and 721.55 which need not be addressed in the filings required in paragraph (b).

(2)  All timeshare accommodations or facilities which are located outside the state but offered for sale in this state are subject only to the provisions of ss. 721.01-721.12, 721.18, 721.20, 721.21, 721.26, and 721.28. All timeshare accommodations or facilities which are located outside the state but offered for sale in this state as part of a vacation club are also subject to the provisions of part II.

(3)  When a timeshare plan is subject to both the provisions of this chapter and the provisions of chapter 718 or chapter 719, the plan shall meet the requirements of both chapters unless exempted as provided in this section. The division shall have the authority to adopt rules differentiating between timeshare condominiums and nontimeshare condominiums, and between timeshare cooperatives and nontimeshare cooperatives, in the interpretation and implementation of chapters 718 and 719, respectively. In the event of a conflict between the provisions of this chapter and the provisions of chapter 718 or chapter 719, the provisions of this chapter shall prevail.

(4)  A timeshare plan which is subject to the provisions of chapter 718 or chapter 719, if fully in compliance with the provisions of this chapter, is exempt from the following:

(a)  Sections 718.202 and 719.202, relating to sales or reservation deposits prior to closing.

(b)  Sections 718.502 and 719.502, relating to filing prior to sale or lease.

(c)  Sections 718.503 and 719.503, relating to disclosure prior to sale.

(d)  Sections 718.504 and 719.504, relating to prospectus or offering circular.

(5)  The treatment of timeshare estates for ad valorem tax purposes and special assessments shall be as prescribed in chapters 192 through 200.

(6)  Membership camping plans shall be subject to the provisions of ss. 509.501-509.512 and not to the provisions of this chapter.

(7)  Unless otherwise provided herein, this chapter shall not apply to the offering of any timeshare plan under which the prospective purchaser's total financial obligation will be $1,500 or less during the entire term of the plan.

(8)  Every escrow agent or trustee required under this chapter, or under chapter 192 as it relates to timeshare plans, must be independent.

(9)  With respect to any accommodation or facility of a timeshare plan which is situated upon personal property, the division shall have the authority to adopt rules interpreting and implementing the provisions of this chapter as they apply to such accommodation or facility, or as they apply to any other laws of this state, of the several states, or of the United States with respect to such accommodation or facility.

History.--s. 1, ch. 81-172; s. 60, ch. 82-226; s. 2, ch. 83-264; s. 4, ch. 91-236; s. 1, ch. 93-58; s. 1, ch. 95-274; s. 1, ch. 98-36.

721.04  Saving clause.--All timeshare plans filed pursuant to chapter 2-23, Florida Administrative Code, prior to July 1, 1981, shall be deemed to be in compliance with the filing requirements of chapter 81-172, Laws of Florida.

History.--s. 1, ch. 81-172; s. 4, ch. 83-264.

721.05  Definitions.--As used in this chapter, the term:

(1)  "Accommodation" means any apartment, condominium or cooperative unit, cabin, lodge, hotel or motel room, campground, or other private or commercial structure which is situated on real or personal property and designed for occupancy or use by one or more individuals. The term does not include an incidental benefit as defined in this section.

(2)  "Agreement for deed" means any written contract utilized in the sale of timeshare estates which provides that legal title will not be conveyed to the purchaser until the contract price has been paid in full and the terms of payment of which extend for a period in excess of 180 days after either the date of execution of the contract or completion of construction, whichever occurs later.

(3)  "Assessment" means the share of funds required for the payment of common expenses which is assessed from time to time against each purchaser by the managing entity.

(4)  "Closing" means:

(a)  For any plan selling timeshare estates, conveyance of the legal title to a timeshare period as evidenced by the delivery of a deed to the purchaser or to the clerk of the court for recording or conveyance of the equitable title to a timeshare period as evidenced by the irretrievable delivery of an agreement for deed to the clerk of the court for recording.

(b)  For any plan selling timeshare licenses, the final execution and delivery by all parties of the last document necessary for vesting in the purchaser the full rights available under the plan.

(5)  "Common expenses" means:

(a)  Those expenses properly incurred for the maintenance, operation, and repair of the accommodations or facilities, or both, constituting the timeshare plan.

(b)  Any other expenses designated as common expenses in a timeshare instrument.

(6)  "Completion of construction" means:

(a)1.  That a certificate of occupancy has been issued for the entire building in which the timeshare unit being sold is located, or for the improvement, or that the equivalent authorization has been issued, by the governmental body having jurisdiction; or

2.  In a jurisdiction in which no certificate of occupancy or equivalent authorization is issued, that the construction, finishing, and equipping of the building or improvements according to the plans and specifications have been substantially completed; and

(b)  That all accommodations and facilities of the timeshare plan are available for use in a manner identical in all material respects to the manner portrayed by the promotional material, advertising, and public offering statements filed with the division.

(c)  Notwithstanding the provisions of paragraph (b), a seller of a timeshare plan that is not a multisite timeshare plan may portray possible accommodations or facilities to prospective purchasers in advertising material or a public offering statement filed with the division without such accommodations or facilities being available for use by purchasers so long as the advertising material or public offering statement complies with the provisions of s. 721.11(4).

(d)  Notwithstanding the provisions of paragraph (b), a developer of a timeshare plan that is not a multisite timeshare plan may portray the general geographic location of possible accommodations or facilities to prospective purchasers by disseminating oral or written statements regarding same to broadcast or print media with no obligation on the developer's part to actually construct such accommodations or facilities or to file such accommodations and facilities with the division, but only so long as such oral or written statements are not considered advertising material pursuant to s. 721.11(3)(e). For purposes of this paragraph, the term "general geographic location" means the boundaries of a state or country.

(e)  Notwithstanding the provisions of paragraph (b), a seller of a multisite timeshare plan may portray possible component sites to purchasers pursuant to s. 721.553.

(7)  "Conspicuous type" means:

(a)  Type in upper and lower case letters two point sizes larger than the largest nonconspicuous type, exclusive of headings, on the page on which it appears but in at least 10-point type; or

(b)  Where the use of 10-point type would be impractical or impossible with respect to a particular piece of written advertising material, then the division may approve the use of a different style of type or print, so long as the print remains conspicuous under the circumstances.

Where conspicuous type is required, it must be separated on all sides from other type and print. Conspicuous type may be utilized in contracts for purchase or public offering statements only where required by law or as authorized by the division.

(8)  "Contract" means any agreement conferring the rights and obligations of a timeshare plan on the purchaser.

(9)  "Developer" includes:

(a)  A "creating developer," which means any person who creates the timeshare plan;

(b)  A "successor developer," which means any person who succeeds to the interest of the persons in this subsection by sale, lease, assignment, mortgage, or other transfer, but the term includes only those persons who offer timeshare periods in the ordinary course of business; and

(c)  A "concurrent developer," which means any person acting concurrently with the persons in this subsection with the purpose of offering timeshare periods in the ordinary course of business.

(d)  The term "developer" does not include:

1.  An owner of a timeshare period who has acquired the timeshare period for his or her own use and occupancy and who later offers it for resale; provided that a rebuttable presumption shall exist that an owner who has acquired more than seven timeshare periods did not acquire them for his or her own use and occupancy;

2.  A managing entity that is not otherwise a developer of a timeshare plan in its own right and that offers timeshare periods for its own account in a timeshare plan which it manages to existing purchasers of that timeshare plan, or a managing entity which complies with the provisions of s. 721.065; or

3.  A person who is conveyed, assigned, or transferred more than seven timeshare periods from a developer in a single voluntary or involuntary transaction and who subsequently conveys, assigns, or transfers all of the timeshare periods received from the developer to a single purchaser in a single transaction.

(10)  "Division" means the Division of Florida Land Sales, Condominiums, and Mobile Homes of the Department of Business and Professional Regulation.

(11)  "Enrolled" means paid membership in an exchange program or membership in an exchange program evidenced by written acceptance or confirmation of membership.

(12)  "Escrow account" means an account established solely for the purposes set forth in this chapter with a financial institution located within this state.

(13)  "Escrow agent" includes only:

(a)  A savings and loan association, bank, trust company, or other financial institution, any of which must be located in this state and any of which must have a net worth in excess of $5 million;

(b)  An attorney who is a member of The Florida Bar or his or her law firm, so long as the attorney or firm has posted a fidelity bond issued by a company authorized and licensed to do business in this state as surety in the amount of $50,000;

(c)  A real estate broker who is licensed pursuant to chapter 475 or his or her brokerage firm, so long as the broker or firm has posted a fidelity bond issued by a company authorized and licensed to do business in this state as surety in the amount of $50,000; or

(d)  A title insurance agent that is licensed pursuant to s. 626.8417 or a title insurance agency that is licensed pursuant to s. 626.8418, so long as the agent or agency has posted a fidelity bond issued by a company authorized and licensed to do business in this state as surety in the amount of $50,000.

If an escrow agent is required to post a $50,000 fidelity bond pursuant to this subsection, the escrow agent shall only be required to post and maintain one such bond, regardless of the number of escrow accounts maintained by that agent for any number of developers, managing entities, or timeshare plans at any given time.

(14)  "Exchange company" means any person owning or operating, or owning and operating, an exchange program.

(15)  "Exchange program" means any method, arrangement, or procedure for the voluntary exchange of the right to use and occupy accommodations and facilities among purchasers. The term does not include the assignment of the right to use and occupy accommodations and facilities to purchasers pursuant to a particular multisite timeshare plan's reservation system. Any method, arrangement, or procedure that otherwise meets this definition, wherein the purchaser's total contractual financial obligation exceeds $3,000 per any individual, recurring timeshare period, shall be regulated as a multisite timeshare plan in accordance with part II.

(16)  "Facility" means any amenity, including any structure, furnishing, fixture, equipment, service, improvement, or real or personal property, improved or unimproved, other than the accommodation of the timeshare plan, which is made available to the purchasers of a timeshare plan. The term does not include an incidental benefit as defined in this section.

(17)  "Incidental benefit" means an accommodation, product, service, discount, or other benefit which is offered to a prospective purchaser of a timeshare plan or to a purchaser of a timeshare plan prior to the expiration of his or her initial 10-day voidability period pursuant to s. 721.10; which is not an exchange program as defined in subsection (15); and which complies with the provisions of s. 721.075. The term shall not include an offer of the use of the accommodations and facilities of the timeshare plan on a free or discounted one-time basis.

(18)  "Independent," for purposes of determining eligibility of escrow agents and trustees pursuant to s. 721.03(8), means that:

(a)  The escrow agent or trustee is not a relative, as described in s. 112.3135(1)(d), or an employee of the developer, seller, or managing entity, or of any officer, director, affiliate, or subsidiary thereof.

(b)  There is no financial relationship, other than the payment of fiduciary fees or as otherwise provided in this subsection, between the escrow agent or trustee and the developer, seller, or managing entity, or any officer, director, affiliate, or subsidiary thereof.

(c)  Compensation paid by the developer to an escrow agent or trustee for services rendered shall not be paid from funds in the escrow or trust account unless and until the developer is otherwise entitled to receive the disbursement of such funds from the escrow or trust account pursuant to this chapter.

(d)  A person shall not be disqualified to serve as an escrow agent or a trustee solely because of the following:

1.  A nonemployee, attorney-client relationship exists between the developer and the escrow agent or trustee;

2.  The escrow agent or trustee provides brokerage services as defined by chapter 475 for the developer;

3.  The escrow agent or trustee provides the developer with routine banking services which do not include construction or receivables financing or any other lending activities; or

4.  The escrow agent or trustee performs closings for the developer or seller or issues owner's or lender's title insurance commitments or policies in connection with such closings.

(19)  "Interestholder" means a developer, an 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 accommodations or facilities of the timeshare plan.

(20)  "Managing entity" means the person who operates or maintains the timeshare plan pursuant to s. 721.13(1).

(21)  "Memorandum of agreement" means a written document, in recordable form, which includes the names of the purchaser and seller, a legal description of the timeshare property and timeshare period, and a description of the type of timeshare license sold by the seller.

(22)  "Offer to sell," "offer for sale," "offered for sale," or "offer" means the solicitation, advertisement, or inducement, or any other method or attempt, to encourage any person to acquire the opportunity to participate in a timeshare plan.

(23)  "One-to-one purchaser to accommodation ratio" means the ratio of the number of purchasers eligible to use the accommodations of a timeshare plan on a given day to the number of accommodations available for use within the plan on that day, such that the total number of purchasers eligible to use the accommodations of the timeshare plan during a given calendar year never exceeds the total number of accommodations available for use in the timeshare plan during that year. For purposes of calculation under this subsection, each purchaser must be counted at least once, and no individual timeshare unit may be counted more than 365 times per calendar year (or more than 366 times per leap year). A purchaser who is delinquent in the payment of timeshare plan assessments shall continue to be considered eligible to use the accommodations of the timeshare plan for purposes of this subsection notwithstanding any application of s. 721.13(6).

(24)  "Owner of the underlying fee" means any person having an interest in the real property underlying the accommodations or facilities of the timeshare plan at or subsequent to the time of creation of the timeshare plan or any person who purchases 15 or more timeshare periods for resale in the ordinary course of business.

(25)  "Owners' association" means the association made up of all purchasers of a timeshare plan who have purchased timeshare estates.

(26)  "Purchaser" means any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a timeshare plan other than as security for an obligation.

(27)  "Regulated short-term product" means a contractual right, offered by the seller, to use accommodations of a timeshare plan, provided that:

(a)  The agreement to purchase the short-term right to use is executed in this state on the same day that the prospective purchaser receives an offer to acquire an interest in a timeshare plan and does not execute a purchase contract, after attending a sales presentation; and

(b)  The acquisition of the right to use includes an agreement that all or a portion of the consideration paid by the prospective purchaser for the right to use will be applied to or credited against the price of a future purchase of a timeshare interest, or that the cost of a future purchase of a timeshare interest will be fixed or locked in at a specified price.

(28)  "Seller" means any developer or any other person, or any agent or employee thereof, who offers timeshare periods in the ordinary course of business. The term "seller" does not include:

(a)  An owner of a timeshare period who has acquired the timeshare period for his or her own use and occupancy and who later offers it for resale; provided that a rebuttable presumption shall exist that an owner who has acquired more than seven timeshare periods did not acquire them for his or her own use and occupancy;

(b)  A managing entity that is not otherwise a seller of a timeshare plan in its own right and that offers timeshare periods for its own account in a timeshare plan which it manages to existing purchasers of that timeshare plan, or a managing entity which complies with the provisions of s. 721.065; or

(c)  A person who is conveyed, assigned, or transferred more than seven timeshare periods from a developer in a single voluntary or involuntary transaction and who subsequently conveys, assigns, or transfers all of the timeshare periods received from the developer to a single purchaser in a single transaction.

(29)  "Timeshare estate" means a right to occupy a timeshare unit, coupled with a freehold estate or an estate for years with a future interest in a timeshare property or a specified portion thereof. The term shall also mean an interest in a condominium unit pursuant to s. 718.103.

(30)  "Timeshare instrument" means one or more documents, by whatever name denominated, creating or governing the operation of a timeshare plan.

(31)  "Timeshare license" means a right to occupy a timeshare unit, which right is neither coupled with a freehold interest, nor coupled with an estate for years with a future interest, in a timeshare property.

(32)  "Timeshare period" means the period or periods of time when a purchaser of a timeshare plan is afforded the opportunity to use the accommodations or facilities, or both, of a timeshare plan.

(33)  "Timeshare plan" means any arrangement, plan, scheme, or similar device, other than an exchange program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, or right-to-use agreement or by any other means, whereby a purchaser, for consideration, receives ownership rights in or a right to use accommodations, and facilities, if any, for a period of time less than a full year during any given year, but not necessarily for consecutive years.

(34)  "Timeshare property" means one or more timeshare units subject to the same timeshare instrument, together with any other property or rights to property appurtenant to those units.

(35)  "Timeshare unit" means an accommodation of a timeshare plan which is divided into timeshare periods.

(36)  "Vacation ownership plan" means any timeshare plan consisting exclusively of timeshare estates.

(37)  "Vacation plan" or "vacation membership plan" means any timeshare plan consisting exclusively of timeshare licenses or consisting of a combination of timeshare licenses and timeshare estates.

History.--s. 1, ch. 81-172; s. 3, ch. 83-264; ss. 1, 2, ch. 84-256; s. 17, ch. 85-60; s. 25, ch. 91-103; s. 5, ch. 91-236; s. 5, ch. 91-426; s. 2, ch. 93-58; s. 240, ch. 94-218; s. 2, ch. 95-274; s. 891, ch. 97-102; s. 2, ch. 98-36; s. 17, ch. 98-322.

721.056  Supervisory duties of developer.--Notwithstanding obligations placed upon any other persons by this chapter, it is the duty of the developer to supervise, manage, and control all aspects of the offering of a timeshare plan, including, but not limited to, promotion, advertising, contracting, and closing. Any violation of this section which occurs during such offering activities shall be deemed to be a violation by the developer as well as by the person actually committing such violation.

History.--s. 17, ch. 83-264.

721.06  Contracts for purchase of timeshare periods.--

(1)  Each seller shall utilize, and furnish each purchaser a fully completed and executed copy of, a contract pertaining to the sale, which contract shall include the following information:

(a)  The actual date the contract is executed by each party.

(b)  The names and addresses of the developer, any owner of the underlying fee, and the timeshare plan.

(c)  The total financial obligation of the purchaser, including the initial purchase price and any additional charges to which the purchaser may be subject, such as financing, reservation, maintenance, management, and recreation charges.

(d)  The estimated date of completion of construction of each accommodation or facility which is not completed at the time the contract is executed and the estimated date of closing.

(e)  A description of the nature and duration of the timeshare period being sold, including whether any interest in real property is being conveyed and the specific number of years constituting the term of the timeshare plan.

¹(f)  Immediately prior to the space reserved in the contract for the signature of the purchaser, in conspicuous type, substantially the following statements:

You may cancel this contract without any penalty or obligation within 10 calendar days after the date you sign this contract, and within 10 calendar days after the date you receive the approved public offering statement, whichever is later.

If you decide to cancel this contract, you must notify the developer in writing of your intent to cancel. Your notice of cancellation shall be effective upon the date sent and shall be sent to  (Name of Developer)  at  (Address of Developer) . Any attempt to obtain a waiver of your cancellation right is unlawful. While you may execute all closing documents in advance, the closing, as evidenced by delivery of the deed or other document, before expiration of your 10-day cancellation period, is prohibited.

(g)  If a timeshare license is being conveyed, the following statement in conspicuous type:

You may also cancel this contract at any time after the accommodations or facilities are no longer available as provided in this contract and the public offering statement.

(h)  If a timeshare estate is being conveyed, the following statement in conspicuous type:

For the purpose of ad valorem assessment, taxation and special assessments, the managing entity will be considered the taxpayer as your agent pursuant to section 192.037, Florida Statutes.

(i)  A statement that, in the event the purchaser cancels the contract during a 10-day cancellation period, the developer will refund to the purchaser the total amount of all payments made by the purchaser under the contract, reduced by the proportion of any contract benefits the purchaser has actually received under the contract prior to the effective date of the cancellation. The statement shall further provide that the refund will be made within 20 days after receipt of notice of cancellation or within 5 days after receipt of funds from the purchaser's cleared check, whichever is later. A seller and a purchaser shall agree in writing on a specific value for each contract benefit received by the purchaser for purposes of this paragraph. The term "contract benefit" shall not include public offering statements or other documentation or materials that must be furnished to a purchaser pursuant to statute or rule.

(j)  If the timeshare period is being sold pursuant to an agreement for deed, a statement that the signing of the agreement for deed does not entitle the purchaser to receive a deed until all payments under the agreement have been made.

(k)  Unless the developer is at the time of offering the plan the owner in fee simple absolute of the accommodations and facilities of the timeshare plan, free and clear of all liens and encumbrances, a statement that the developer is not the sole owner of the underlying fee of the accommodations or facilities without liens or encumbrances, which statement shall include:

1.  The names and addresses of all persons or entities having an ownership interest or other interest in the accommodations or facilities; and

2.  The actual interest of the developer in the accommodations or facilities.

(l)  If the contract is for the sale or transfer of a timeshare period in which the accommodations or facilities are subject to a lease, the following statement within the text in conspicuous type: This timeshare period is subject to a lease (or sublease). A copy of the executed lease shall be attached as an exhibit.

(m)  If the purchaser will receive an interest in a multisite timeshare plan pursuant to part II, the following statement shall be provided in conspicuous type:

The developer is required to provide the managing entity of the multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club) with a copy of the approved public offering statement text and exhibits filed with the division and any approved amendments thereto, and any other component site documents as described in section 721.07 not filed with the division, to be maintained by the managing entity for inspection as part of the books and records of the plan.

(n)  The following statement in conspicuous type:

Any resale of this timeshare interest must be accompanied by certain disclosures in accordance with section 721.065, Florida Statutes.

(2)  An agreement for deed shall be recorded by the developer within 30 days after the day it is executed by the purchaser. The developer shall pay all recording costs associated therewith.

(3)  The escrow agent shall provide the developer with a receipt for all purchaser funds or other property received by the escrow agent from a seller.

(4)  A developer may not offer any number of timeshare estates or timeshare licenses that would cause the total number of estates or licenses offered to exceed a one-to-one purchaser to accommodation ratio.

History.--s. 1, ch. 81-172; s. 61, ch. 82-226; s. 5, ch. 83-264; s. 3, ch. 93-58; s. 3, ch. 95-274; s. 3, ch. 98-36.

¹Note.--Section 15, ch. 98-36, provides that "[t]his act shall take effect [April 30, 1998]; however, with respect to any timeshare plan filing approved by the division prior to [April 30, 1998], the amendment to s. 721.06(1)(f), Florida Statutes, shall not apply to such filing until January 1, 1999, unless and only to the extent that the developer otherwise voluntarily agrees to comply with all or a portion of such provisions."

721.065  Resale purchase agreements.--

(1)  An owner who acquires a timeshare period for her or his own use and occupancy and later offers it for resale, or any agent of such person, must utilize a resale purchase agreement which complies with the provisions of subsection (2) to effectuate any resale of the timeshare period. A managing entity which, for its own account, offers fewer than 20 timeshare periods in the timeshare plan which it manages in a given calendar year to persons who are not existing purchasers of that timeshare plan may also use a resale purchase agreement which complies with subsection (2) in lieu of complying with the provisions of ss. 721.06-721.12 and 721.20. For purposes of this subsection, a rebuttable presumption shall exist that an owner who has acquired more than seven timeshare periods did not acquire them for her or his own use and occupancy.

(2)  Any resale purchase agreement utilized by a person described in subsection (1) must contain all of the following:

(a)  The name and address of the timeshare plan and of the managing entity of the timeshare plan.

(b)  The following statements in conspicuous type located immediately prior to the disclosure required by paragraph (c):


The current year's assessment for common expenses allocable to the timeshare period you are purchasing is $_____. This assessment, which may be increased from time to time by the managing entity of the timeshare plan, is payable in full each year on or before __________. This assessment (includes/does not include) yearly ad valorem real estate taxes, which (are/are not) billed and collected separately. (If ad valorem real property taxes are not included in the current year's assessment for common expenses, the following statement must be included: The most recent annual assessment for ad valorem real estate taxes for the timeshare period you are purchasing is $_____.) (If there are any delinquent assessments for common expenses or ad valorem taxes outstanding with respect to the timeshare period in question, the following statement must be included: A delinquency in the amount of $_____ for unpaid common expenses or ad valorem taxes currently exists with respect to the timeshare period you are purchasing, together with a per diem charge of $_____ for interest and late charges.) For the purpose of ad valorem assessment, taxation, and special assessments, the managing entity will be considered the taxpayer as your agent pursuant to section 192.037, Florida Statutes. Each owner is personally liable for the payment of her or his assessments for common expenses, and failure to timely pay these assessments may result in restriction or loss of your use and/or ownership rights.


There are many important documents relating to the timeshare plan which you should review prior to purchasing a timeshare period, including the declaration of condominium or covenants and restrictions; the association articles and bylaws; the current year's operating and reserve budgets; and any rules and regulations affecting the use of timeshare plan accommodations and facilities.

(c)  The following statement in conspicuous type located immediately prior to the space in the contract reserved for the signature of the purchaser:


You may cancel this contract without any penalty or obligation within 10 days after the date you sign this contract. If you decide to cancel this contract, you must notify the seller in writing of your intent to cancel. Your notice of cancellation shall be effective upon the date sent and shall be sent to the seller at  (address) . Any attempt to obtain a waiver of your cancellation right is void and of no effect. While you may execute all closing documents in advance, the closing, as evidenced by delivery of the deed or other document, before expiration of your 10-day cancellation period, is prohibited.

(3)  If a resale purchase agreement utilized by a person described in subsection (1) does not comply with the provisions of subsection (2), the contract shall be voidable at the option of the purchaser for a period of 1 year after the date of closing.

History.--s. 4, ch. 95-274; s. 892, ch. 97-102.

721.07  Public offering statement.--Prior to offering any timeshare plan, the developer must file a public offering statement with the division for approval as prescribed by s. 721.03, s. 721.55, or this section. Until the division approves such filing, any contract regarding the sale of the timeshare plan which is the subject of the public offering statement is voidable by the purchaser.

(1)  The division shall, upon receiving a public offering statement from a developer, mail to the developer an acknowledgment of receipt. The failure of the division to send such acknowledgment will not, however, relieve the developer from the duty of complying with this section.

(2)(a)  Within 45 days after receipt of a public offering statement which is subject only to this part and is submitted in proper form as prescribed by rule, or within 120 days after receipt of a public offering statement which is subject to part II and is submitted in proper form as prescribed by rule, the division shall determine whether the proposed public offering statement is adequate to meet the requirements of this section and shall notify the developer by mail that the division has either approved the statement or found specified deficiencies in the statement. If the division fails to approve the statement or specify deficiencies in the statement within the period specified in this paragraph, the filing will be deemed approved.

(b)  If the developer fails to respond to any cited deficiencies within 20 days after receipt of the division's deficiency notice, the division may reject the filing. Subsequent to such rejection, a new filing fee pursuant to subsection (4) and a new division initial review period pursuant to paragraph (a) shall apply to any refiling or further review of the rejected filing.

(c)  Within 20 days after receipt of the developer's timely and complete response to any deficiency notice, the division shall notify the developer by mail that the division has either approved the filing, found additional specified deficiencies in it, or determined that any previously specified deficiency has not been corrected. If the division fails to approve or specify additional deficiencies within 20 days after receipt of the developer's timely and complete response, the filing will be deemed approved.

(d)  The division is authorized to enter into an agreement with another state for the purpose of facilitating the processing of out-of-state timeshare instruments or other component site documents pursuant to subsection (5) or part II and for the purpose of facilitating the referral of consumer complaints to the appropriate state.

(e)  The division shall have no authority to determine whether any person has complied with another state's laws or to disapprove any filing, or out-of-state timeshare instrument or component site document, based solely upon the lack or degree of timeshare regulation in another state. The division may require a developer to obtain and provide to the division existing documentation certified by another state relating to an out-of-state filing, timeshare instrument, or component site document and attesting to the compliance of same with the laws of that state. The division may accept evidence of the approval or acceptance of any out-of-state filing, timeshare instrument, or component site document by another state in lieu of requiring a developer to file the out-of-state filing, timeshare instrument, or component site document with the division pursuant to this section. The division may refuse to approve the inclusion of any out-of-state filing, timeshare instrument, or component site document as part of a public offering statement based upon the inability of the developer to establish the compliance of same with the laws of another state.

(3)(a)1.  Any change to an approved filing shall be filed with the division for approval as an amendment prior to becoming effective. The division shall have 20 days after receipt of a proposed amendment to approve or cite deficiencies in the proposed amendment. If the division fails to act within 20 days, the amendment will be deemed approved. If the proposed amendment adds a new component site to an approved multisite timeshare plan, the division's initial period in which to approve or cite deficiencies is 45 days. If the developer fails to adequately respond to any deficiency notice within 30 days, the division may reject the amendment. Subsequent to such rejection, a new filing fee pursuant to subsection (4) and a new division initial review period pursuant to this paragraph shall apply to any refiling or further review of the rejected amendment.

2.  For filings only subject to this part, each approved amendment, other than an amendment made only for the purpose of the addition of a phase or phases to the timeshare plan in the manner described in the timeshare instrument, shall be delivered to a purchaser no later than 10 days prior to closing. For filings made under part II, each approved amendment to the multisite timeshare plan public offering statement, other than an amendment made only for the purpose of the addition, substitution, or deletion of a component site pursuant to part II or the addition of a phase or phases to a component site of a multisite timeshare plan in the manner described in the timeshare instrument, shall be delivered to a purchaser no later than 10 days prior to closing.

3.  Amendments made to a timeshare instrument for a component site located in this state shall only be delivered to those purchasers who will receive a timeshare estate or a specific timeshare license in that component site. Amendments made to a timeshare instrument for a component site not located in this state are not required to be delivered to purchasers.

(b)  At the time amendments, as provided in paragraph (a), are delivered to purchasers, the developer shall provide to those purchasers who have not closed a written statement that if any of such amendments materially alter or modify the offering in a manner which is adverse to the purchaser, the purchaser or lessee will have a 10-day voidability period.

(4)(a)  Upon the filing of a public offering statement, the developer shall pay a filing fee of $2 for each 7 days of annual use availability in each timeshare unit that may be offered as a part of the proposed timeshare plan pursuant to the filing. Commencing January 1, 1995, the division may by rule increase the filing fee up to a maximum of $3 for each 7 days of annual use availability in each timeshare unit that is offered as a part of the proposed timeshare plan.

(b)  Upon the filing of an amendment to an approved public offering statement, other than an amendment adding a phase to the timeshare plan, the developer shall pay a filing fee of $100.

(5)  Every public offering statement filed with the division for a timeshare plan which is not a multistate timeshare plan shall contain the information required by this subsection. The division is authorized to provide by rule the method by which a developer must provide such information to the division.

(a)  A cover page stating only:

1.  The name of the timeshare plan; and

2.  The following statement, in conspicuous type: This public offering statement contains important matters to be considered in acquiring a timeshare period. The statements contained herein are only summary in nature. A prospective purchaser should refer to all references, exhibits hereto, contract documents, and sales materials. You should not rely upon oral representations as being correct. Refer to this document and accompanying exhibits for correct representations. The seller is prohibited from making any representations other than those contained in the contract and this public offering statement.

(b)  A listing of all statements required to be in conspicuous type in the offering statements and in all exhibits thereto.

(c)  A separate index of the contents and exhibits of the public offering statement.

(d)  A text, which shall include, where applicable, the disclosures set forth in paragraphs (e)-(hh) and cross-references to the location in the public offering statement of each exhibit.

(e)  A description of the timeshare plan, including, but not limited to:

1.  Its name and location.

2.  An explanation of the form of timeshare ownership that is being offered, including a statement as to whether any interest in the underlying real property will be conveyed to the purchaser. If the plan is being created or being sold on a leasehold, the location of the lease in the exhibits to the public offering statement shall be stated.

3.  An explanation of the manner in which the apportionment of common expenses and ownership of the common elements has been determined.

(f)  A description of the accommodations and facilities, including, but not limited to:

1.  The number of buildings, the number of units in each building, the number of timeshare periods in each unit, the total number of timeshare periods being offered, the number of bathrooms and bedrooms in each unit, and the total number of units and unit weeks.

2.  The latest date estimated for completion of constructing, finishing, and equipping.

3.  The maximum number of units and timeshare periods that will use the accommodations and facilities. If the maximum number of units or timeshare periods will vary, a description of the basis for variation and the minimum amount of dollars per timeshare period to be spent for additional recreational facilities or for enlargement of such facilities. If the addition or enlargement of facilities will result in a material increase of a purchaser's maintenance expense or rental expense, the maximum increase and limitations thereon shall be stated.

4.  A statement of whether the developer intends to offer whole units in addition to timeshare units.

5.  The duration, in years, of the timeshare plan.

(g)  A description of the recreational and other commonly used facilities that will be used only by purchasers of the plan, including, but not limited to:

1.  Each room and its intended purposes, location, approximate floor area, and capacity in numbers of people.

2.  Each swimming pool and its general location, approximate size, depths, and capacity; its approximate deck size and capacity; and whether the pool is heated.

3.  Each additional facility; the number of each such facility; and its approximate location, approximate size, and approximate capacity.

4.  A general description of the items of personal property and the approximate numbers of each item of personal property that the developer is committing to furnish for each room or other facility or, in the alternative, a representation as to the minimum amount of expenditure that will be made to purchase the personal property for the facility.

5.  The estimated date when each room or other facility will be available for use by the purchaser.

6.  An identification of each room, accommodation, or other facility to be used by purchasers that will not be owned by the purchasers or the association.

7.  A reference to the location in the disclosure materials of the lease or other agreements providing for the use of those facilities.

8.  A description of the terms of the lease or other agreement, including the length of its term; the rent payable, directly or indirectly, by each purchaser; and the total rent payable to the lessor, stated in weekly, monthly, and annual amounts for the entire term of the lease; and a description of any option to purchase the property under any such lease, including the time the option may be exercised, the purchase price or how it is to be determined, the manner of payment, and whether the option may be exercised for a purchaser's share or only as to the entire leased property.

9.  A statement as to whether the developer may provide additional facilities not described above; the general locations and types of such facilities; improvements or changes that may be made; the approximate dollar amounts to be expended; and the estimated maximum additional common expense or cost to the individual purchaser that may be charged during the first annual period of operation of the modified or added facilities.

(h)  A description of the recreational and other commonly used facilities which will not be used exclusively by purchasers of the timeshare plan and which require the payment of any portion of the maintenance and expenses of such facilities, either directly or indirectly, by the purchasers. The description shall include, but not be limited to, the following:

1.  Each building or facility committed to be built.

2.  Facilities not committed to be built except under certain conditions, and a statement of those conditions or contingencies.

3.  As to each facility committed to be built, or which will be committed to be built upon the happening of one of the conditions in subparagraph 2., a statement as to whether it will be owned by the purchasers having the use thereof or by an association or other entity which will be controlled by the purchasers, or others, and the location in the exhibits of the lease or other document providing for use of those facilities.

4.  The year in which each facility will be available for use by the purchasers or, in the alternative, the maximum number of purchasers in the project at the time each of the facilities is committed to be completed.

5.  A general description of the items of personal property and the approximate numbers of each item of personal property that the developer is committing to furnish for each room or other facility or, in the alternative, a representation as to the minimum amount of expenditure that will be made to purchase the personal property for the facility.

6.  If there are leases, descriptions thereof, including the length of their terms, the rents payable, and descriptions of any options to purchase.

(i)1.  If any recreational facilities or other facilities offered by the developer for use by purchasers are to be leased or have club membership associated with them, one of the following statements in conspicuous type: There is a recreational facilities lease associated with this timeshare plan; or, There is a club membership associated with this timeshare plan. There shall be a reference to the location in the disclosure materials where the recreation lease or club membership is described in detail.

2.  If it is mandatory that unit owners pay fees, rent, dues, or other charges under a recreational facilities lease or club membership for the use of the facilities, the applicable statement in conspicuous type:

a.  Membership in the recreational facilities club is mandatory for purchasers;

b.  Purchasers are required, as a condition of ownership, to be lessees under the recreational facilities lease;

c.  Purchasers are required to pay their share of the costs and expenses of maintenance, management, upkeep, replacement, rent, and fees under the recreational facilities lease (or the other instruments providing the facilities); or

d.  A similar statement of the nature of the organization or the manner in which the use rights are created, and that purchasers are required to pay.

Immediately following the applicable statement, the location in the disclosure materials where the development is described in detail shall be stated.

3.  If the developer, or any other person other than the purchasers and other persons having use rights in the facilities, reserves, or is entitled to receive, any rent, fee, or other payment for the use of the facilities, the following statement in conspicuous type: The purchasers or the association(s) must pay rent or land use fees for recreational or other commonly used facilities. Immediately following this statement, the location in the disclosure materials where the rent or land use fees are described in detail shall be stated.

4.  If, in any recreation format, whether leasehold, club, or other, any person other than the association has the right to a lien on the timeshare periods to secure the payment of assessments, rent, or other exactions, a statement in conspicuous type in substantially the following form:

a.  There is a lien or lien right against each timeshare period to secure the payment of rent and other exactions under the recreation lease. A purchaser's failure to make these payments may result in foreclosure of the lien; or

b.  There is a lien or lien right against each timeshare period to secure the payment of assessments or other exactions coming due for the use, maintenance, upkeep, or repair of the recreational or commonly used facilities. A purchaser's failure to make these payments may result in foreclosure of the lien.

Immediately following the applicable statement, the location in the disclosure materials where the lien or lien right is described in detail shall be stated.

(j)  If the developer or any other person has the right to increase or add to the recreational facilities at any time after the establishment of the timeshare plan, without the consent of the purchasers or association being required, a statement in conspicuous type in substantially the following form: Recreational facilities may be expanded or added without consent of the purchasers or the association(s). Immediately following this statement, the location in the disclosure materials where such reserved rights are described shall be stated.

(k)  An explanation of the status of the title to the real property underlying the timeshare plan, including a statement of the existence of any lien, defect, judgment, mortgage, or other encumbrance affecting the title to the property, and how such lien, defect, judgment, mortgage, or other encumbrance will be removed or satisfied prior to closing.

(l)  A description of any judgment against the developer, the managing entity, or owner of the underlying fee, which judgment is material to the timeshare plan; the status of any pending suit to which the developer, the managing entity, or owner of the underlying fee is a party, which suit is material to the timeshare plan; and any other suit which is material to the timeshare plan of which the developer, managing entity, or owner of the underlying fee has actual knowledge. If no judgments or pending suits exist, there shall be a statement of such fact.

(m)  A description of all unusual and material circumstances, features, and characteristics of the real property.

(n)  A description of any financing to be offered to purchasers by the developer or any person or entity in which the developer has a financial interest, together with a disclosure that the description of such financing may be changed by the developer and that any change in the financing offered to prospective purchasers will not be deemed to be a material change.

(o)  A detailed explanation of any financial arrangements which have been provided for completion of all promised improvements.

(p)  A statement as to whether the plan of the developer includes a program of leasing units or timeshare periods rather than selling them, or leasing and selling them subject to such leases. If so, there shall be a description of the plan, including the number and identification of the units and the provisions and term of the proposed leases, and a statement in conspicuous type that: The units (or timeshare periods) may be transferred subject to a lease.

(q)  The name and address of the managing entity; a statement whether the seller may change the managing entity or its control and, if so, the manner by which the seller may change the managing entity; a statement of the arrangements for management, maintenance, and operation of the accommodations and facilities and of other property that will serve the purchasers; and a description of the management arrangement and any contracts for these purposes having a term in excess of 1 year, including the names of the contracting parties, the term of the contract, the nature of the services included, and the compensation, stated for a month and for a year, and provisions for increases in the compensation. Copies of all described contracts shall be attached as exhibits.

(r)  If the developer, or any person other than the purchaser, has the right to retain control of the board of administration of the association for a period of time which may exceed 1 year after the closing of the sale of a majority of the units in that timeshare plan to persons other than successors or concurrent developers and the plan is one in which all purchasers automatically become members of the association, a statement in conspicuous type in substantially the following form: The developer (or other person) has the right to retain control of the association after a majority of the units have been sold. Immediately following this statement, the location in the disclosure materials where this right to control is described in detail shall be stated.

(s)1.  If there are any restrictions upon the sale, transfer, conveyance, or leasing of a timeshare period, a statement in conspicuous type in substantially the following form: The sale, lease, or transfer of timeshare periods is restricted or controlled. Immediately following this statement, the location in the disclosure materials where the restriction, limitation, or control on the sale, lease, or transfer of timeshare periods is described in detail shall be stated.

2.  The following statement in conspicuous type in substantially the following form: The purchase of a timeshare period should be based upon its value as a vacation experience or for spending leisure time, and not considered for purposes of acquiring an appreciating investment or with an expectation that the timeshare period may be resold.

(t)  If the timeshare plan is part of a phase project, a statement to that effect and a complete description of the phasing. Notwithstanding any provisions of s. 718.110, a developer may develop a timeshare condominium in phases if the original declaration of condominium submitting the initial phase to condominium ownership or an amendment to the declaration which has been approved by all of the unit owners and unit mortgagees provides for phasing. Notwithstanding any provisions of s. 718.403 to the contrary, the original declaration of condominium, or an amendment to the declaration adopted pursuant to this subsection, need only generally describe the developer's phasing plan and the land which may become part of the condominium, and, in conjunction therewith, the developer may also reserve all rights to vary his or her phasing plan as to phase boundaries, plot plans and floor plans, unit types, unit sizes and unit type mixes, numbers of units, and recreational areas and facilities with respect to each subsequent phase. There shall be no time limit during which a developer of a timeshare condominium must complete his or her phasing plan, and the developer shall not be required to notify owners of existing timeshare estates of his or her decision not to add one or more proposed phases.

(u)  A description of the restrictions, if any, to be imposed on timeshare periods concerning the use of any of the accommodations or facilities, including statements as to whether there are restrictions upon children and pets, and references to the volumes and pages of the timeshare plan documents where such restrictions are found; or, if such restrictions are contained elsewhere, then a copy of the documents containing the restrictions shall be attached as an exhibit. If there are no restrictions, there shall be a statement of such fact.

(v)  If there is any land that is offered by the developer for use by the purchasers and which is neither owned by them nor leased to them, the association, or any entity controlled by the purchasers, a statement describing the land, how it will serve the timeshare plan, and the nature and term of service. Immediately following this statement, the location in the disclosure materials where the declaration or other instrument creating such servitude is found shall be stated.

(w)  A description of the manner in which utility and other services, including, but not limited to, sewage and waste disposal, water supply, and storm drainage, will be provided and the names of the persons or entities furnishing them.

(x)  An estimated operating budget for the timeshare plan and a schedule of the purchaser's expense shall be attached as an exhibit and shall contain the following information:

1.  The estimated annual expenses of the timeshare plan collectible from purchasers by assessments. The estimated payments by the purchaser for assessments shall also be stated in the estimated amounts for the times when they will be due. Expenses shall also be shown for the shortest timeshare period offered for sale by the developer. If the timeshare plan provides for the offer and sale of units to be used on a nontimeshare basis, the estimated monthly and annual expenses shall be set forth in a separate schedule.

2.  The estimated weekly, monthly, and annual expenses of the purchaser of each timeshare period, other than assessments payable to the managing entity. Expenses which are personal to purchasers that are not uniformly incurred by all purchasers or that are not provided for or contemplated by the timeshare plan documents may be excluded from this estimate.

3.  The estimated items of expenses of the timeshare plan and the managing entity, except as excluded under subparagraph 2., including, but not limited to, the following items, which shall be stated either as management expenses collectible by assessments or as expenses of the purchaser payable to persons other than the managing entity:

a.  Expenses for the managing entity:

(I)  Administration of the managing entity.

(II)  Management fees.

(III)  Maintenance.

(IV)  Rent for recreational and other commonly used facilities.

(V)  Taxes upon timeshare property.

(VI)  Taxes upon leased areas.

(VII)  Insurance.

(VIII)  Security provisions.

(IX)  Other expenses.

(X)  Operating capital.

(XI)  Reserves for deferred maintenance and reserves for capital expenditures. All reserves shall be calculated by a formula which is based upon estimated life and replacement cost of each reserve item. Reserves for deferred maintenance shall include accounts for roof replacement, building painting, pavement resurfacing, replacement of unit furnishings and equipment, and any other component the useful life of which is less than the useful life of the overall structure.

(XII)  Fees payable to the division.

b.  Expenses for a purchaser:

(I)  Rent for the unit, if subject to a lease.

(II)  Rent payable by the purchaser directly to the lessor or agent under any recreational lease or lease for the use of commonly used facilities, which use and payment is a mandatory condition of ownership and is not included in the common expense or assessments for common maintenance paid by the purchasers to the association.

4.  The estimated amounts shall be stated for a period of at least 12 months and may distinguish between the period prior to the time that purchasers elect a majority of the board of administration and the period after that date.

5.  If the developer intends to guarantee the level of assessments, such guarantee must be based upon a good faith estimate of the revenues and expenses of the timeshare plan. The guarantee must include a description of the following:

a.  The specific time period measured in one or more calendar or fiscal years during which the guarantee will be in effect.

b.  A statement that the developer will pay all common expenses incurred in excess of the total revenues of the timeshare plan pursuant to s. 721.15(2) if the developer has excused himself or herself from the payment of assessments during the guarantee period.

c.  The level, expressed in total dollars, at which the developer guarantees the budget. If the developer has reserved the right to extend or increase the guarantee level pursuant to s. 721.15(2), a disclosure must be included to that effect.

6.  If the developer intends to provide a trust fund to defer or reduce the payment of annual assessments, a copy of the trust instrument shall be attached as an exhibit and shall include a description of such arrangement, including, but not limited to:

a.  The specific amount of such trust funds and the source of the funds.

b.  The name and address of the trustee.

c.  The investment methods permitted by the trust agreement.

d.  A statement in conspicuous type that the funds from the trust account may not cover all assessments and that there is no guarantee that purchasers will not have to pay assessments in the future.

(y)  A schedule of estimated closing expenses to be paid by a purchaser or lessee of a timeshare period and a statement as to whether a title opinion or title insurance policy is available to the purchaser and, if so, at whose expense.

(z)  The identity of the developer and the chief operating officer or principal directing the creation and sale of the timeshare plan and a statement of the experience of each in this field or, if no experience, a statement of that fact.

(aa)  A statement of any service, maintenance, or recreation contracts or leases that may be canceled by the purchasers.

(bb)  A statement of the total financial obligation of the purchaser, including the purchase price and any additional charges to which the purchaser may be subject.

(cc)  The name of any person who will or may have the right to alter, amend, or add to the charges to which the purchaser may be subject and the terms and conditions under which such alterations, amendments, or additions may be imposed.

(dd)  An explanation of the purchaser's right of cancellation.

(ee)  A description of the insurance coverage provided for the benefit of the purchasers.

(ff)  A statement as to whether the timeshare plan is participating in an exchange program and, if so, the name and address of the exchange company offering the exchange program.

(gg)  Any other information that the seller, with the approval of the division, desires to include in the public offering statement.

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

1.  The declaration of condominium, or the proposed declaration if the declaration has not been recorded.

2.  The cooperative documents, or the proposed cooperative documents if the documents have not been recorded.

3.  The declaration of covenants and restrictions, or proposed declaration if the declaration has not been recorded.

4.  The articles of incorporation creating the association.

5.  The bylaws of the association.

6.  The ground lease or other underlying lease of the real property on which the timeshare plan is situated.

7.  The management agreement and all maintenance and other contracts regarding the management and operation of the timeshare property which have terms in excess of 1 year.

8.  The estimated operating budget for the timeshare plan and the required schedule of purchasers' expenses.

9.  The floor plan of each type of accommodation and the plot plan showing the location of all accommodations and facilities of the timeshare plan.

10.  The lease of recreational facilities and other facilities which will be used only by purchasers of the timeshare plan.

11.  The lease of facilities used by purchasers and others.

12.  The form of timeshare period lease, if the offer is of a leasehold.

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

14.  The statement of condition of the existing building or buildings, if the offering is of timeshare periods in an operation being converted to condominium or cooperative ownership.

15.  The statement of inspection for termite damage and treatment of the existing improvements, if the timeshare property is a conversion.

16.  The form of agreement for sale or lease of timeshare periods.

17.  The executed agreement for escrow of payments made to the developer prior to closing.

18.  The documents containing any restrictions on use of the property required by paragraph (u).

19.  Any other documents or instruments creating the timeshare plan.

20.  Any contract or lease to be signed by the purchasers.

(ii)  Such other information as is necessary to fairly, meaningfully, and effectively disclose all aspects of the timeshare plan, including, but not limited to, any disclosures made necessary by the operation of s. 721.03(9). However, if a developer has, in good faith, attempted to comply with the requirements of this section, and if, in fact, he or she has substantially complied with the disclosure requirements of this chapter, nonmaterial errors or omissions shall not be actionable.

(jj)  Notwithstanding the provisions of this subsection, the public offering statement for a component site of a multisite timeshare plan filed pursuant to this subsection may contain cross-references to information contained in the related multisite timeshare plan public offering statement filed pursuant to s. 721.55 in lieu of repeating such information.

(6)  The division is authorized to prescribe by rule the form of the approved public offering statement that must be furnished by the developer to each purchaser. The form of the public offering statement that is furnished to purchasers must provide fair, meaningful, and effective disclosure of all aspects of the timeshare plan. For timeshare plans filed pursuant to this part, the developer shall furnish each purchaser with the following:

(a)  A copy of the public offering statement text in the form approved by the division for delivery to purchasers.

(b)  Copies of the exhibits required to be filed with the division pursuant to subparagraphs (5)(hh)1., 2., 4., 5., 8., and 19.

(c)  A receipt for timeshare plan documents and a list describing any exhibit to the public offering statement filed with the division which is not delivered to the purchaser. The division is authorized to prescribe by rule the form of the receipt for timeshare plan documents and the description of exhibits list that must be furnished to the purchaser. The description of documents list utilized by a developer shall be filed with the division for review as part of the public offering statement filing pursuant to this section. The developer shall be required to provide the managing entity with a copy of the approved public offering statement text and exhibits filed with the division and any approved amendments thereto to be maintained by the managing entity as part of the books and records of the timeshare plan pursuant to s. 721.13(3)(d).

(d)  Any other exhibit which the developer includes as part of the public offering statement, provided that the developer first files the exhibit with the division.

(e)  An executed copy of any document which the purchaser signs.

(7)  For purposes of this section, descriptions shall include locations, areas, capacities, numbers, volumes, or sizes and may be stated as approximations or minimums.

History.--s. 1, ch. 81-172; s. 156, ch. 83-216; s. 6, ch. 83-264; s. 3, ch. 84-256; s. 48, ch. 85-62; s. 53, ch. 90-339; s. 6, ch. 91-236; s. 4, ch. 93-58; s. 5, ch. 95-274; s. 893, ch. 97-102; s. 4, ch. 98-36.

721.071  Trade secrets.--

(1)  If a developer or any other person filing material with the division pursuant to this chapter expects the division to keep the material confidential on grounds that the material constitutes a trade secret, as that term is defined in s. 812.081, the developer or other person shall file the material together with an affidavit of confidentiality. "Filed material" for purposes of this section shall mean material that is filed with the division with the expectation that the material will be kept confidential and that is accompanied by an affidavit of confidentiality. Filed material that is trade secret information includes, but is not limited to, service contracts relating to the operation of reservation systems and those items and matters described in s. 815.04(3)(a).

(2)  The affidavit that must accompany filed material pursuant to subsection (1) shall contain a general claim of confidentiality; describe the filed materials; identify the basis upon which the claim of confidentiality is made; and contain supporting argument, precedent, legal citation, or other supporting documentation to enable the division to satisfy itself that the claim of confidentiality is not merely specious. The division shall have no duty to inquire into the legal or technical sufficiency of a claim of confidentiality that meets the minimum requirements of this subsection.

(3)  In the event that the division is satisfied as to the facial validity of the claim of confidentiality, the division shall keep confidential the affidavit and supporting documentation as well as the filed material and shall not disclose such affidavit, documentation, or filed material to any third party except upon administrative order pursuant to chapter 120 or upon circuit court order.

(4)  In the event of any administrative or circuit court proceeding relating to any third party attempt to compel disclosure of filed material or to challenge the confidentiality thereof, the developer or other person who filed the material shall be granted leave to appear as amicus curiae before the administrative law judge or the court. The prevailing party in any such attempt to compel disclosure shall be entitled to recover his or her reasonable attorney's fees and costs from the losing party.

(5)  In the event that an administrative law judge or court determines that the filed material is not trade secret information, this subsequent disclosure by the division of the filed material pursuant to s. 119.07(1) shall not be construed as a commission of an offense against intellectual property within the meaning of s. 815.04, nor shall the prior refusal of the division to disclose the filed material subject the division to penalty or attorney's fees under chapter 119.

History.--s. 6, ch. 95-274; s. 301, ch. 96-410; s. 1777, ch. 97-102.

721.075  Incidental benefits.--Incidental benefits shall be offered only as provided in this section.

(1)  Accommodations, facilities, products, services, discounts, or other benefits which satisfy the requirements of this subsection shall be subject to the provisions of this section and exempt from the other provisions of this part which would otherwise apply to accommodations and facilities if and only if:

(a)  The use of or participation in the incidental benefit by the prospective purchaser is completely voluntary, and payment of any fee or other cost associated with the incidental benefit is required only upon such use or participation.

(b)  No costs of acquisition, operation, maintenance, or repair of the incidental benefit are passed on to purchasers of the timeshare plan as common expenses of the timeshare plan or as common expenses of a component site of a multisite timeshare plan.

(c)  The continued availability of the incidental benefit is not necessary in order for any accommodation or facility of the timeshare plan to be available for use by purchasers of the timeshare plan in a manner consistent in all material respects with the manner portrayed by any promotional material, advertising, or public offering statement.

(d)  The continued availability to purchasers of timeshare plan accommodations on no greater than a one-to-one purchaser to accommodation ratio is not dependent upon continued availability of the incidental benefit.

(e)  The incidental benefit will continue to be available in the manner represented to prospective purchasers for no less than 6 months but less than 3 years after the first date that the timeshare plan is available for use by the purchaser. The developer shall not be required to make the incidental benefit available for longer than 18 months after the date of purchase. Nothing herein shall prevent the renewal or extension of the availability of an incidental benefit.

(f)  The aggregate represented value of all incidental benefits offered by a developer to a purchaser may not exceed 15 percent of the purchase price paid by the purchaser for his or her timeshare period.

(g)  The incidental benefit is filed with the division in conjunction with the filing of a timeshare plan or in connection with a previously filed timeshare plan.

(2)  Each purchaser shall execute a separate acknowledgment and disclosure statement with respect to all incidental benefits, which statement shall include the following information:

(a)  A fair description of the incidental benefit, including, but not limited to, the represented value of the benefit; any user fees or costs associated therewith; and any restrictions upon use or availability.

(b)  A statement that use of or participation in the incidental benefit by the prospective purchaser is completely voluntary, and that payment of any fee or other cost associated with the incidental benefit is required only upon such use or participation.

(c)  A statement that the incidental benefit is not assignable or otherwise transferable by the prospective purchaser or purchaser.

(d)  The following disclosure in conspicuous type immediately above the space for the purchaser's signature:

[Describe incidental benefit] is an incidental benefit offered to prospective purchasers of the timeshare plan [or other permitted reference pursuant to s. 721.11(5)(a)]. This benefit is available for your use for a [minimum of 6 months but less than 3 years] after the first date that the timeshare plan is available for your use. The availability of the incidental benefit may or may not be renewed or extended. You should not purchase an interest in the timeshare plan in reliance upon the continued availability or renewal or extension of this benefit.


The acknowledgment and disclosure statement for each incidental benefit shall be filed with the division prior to use. Each purchaser shall receive a copy of his or her executed acknowledgment and disclosure statement as a document required to be provided to him or her pursuant to s. 721.10(1)(b).

(3)(a)  In the event that an incidental benefit becomes unavailable to purchasers in the manner represented by the developer in the acknowledgment and disclosure statement, the developer shall pay the purchaser the greater of twice the verifiable retail value or twice the represented value of the unavailable incidental benefit in cash within 30 days of the date that the unavailability of the incidental benefit was made known to the developer unless the developer has reserved a substitution right pursuant to paragraph (b) by making the required disclosure in the acknowledgment and disclosure statement and timely makes the substitution as required by paragraph (b). The developer shall promptly notify the division upon learning of the unavailability of any incidental benefit.

(b)  If an incidental benefit becomes unavailable as a result of events beyond the control of the developer, the developer may reserve the right to substitute a replacement incidental benefit of a type, quality, value, and term reasonably similar to the unavailable incidental benefit by including the following language in the disclosure required by paragraph (2)(d):

In the event [describe incidental benefit] becomes unavailable as a result of events beyond the control of the developer, the developer reserves the right to substitute a replacement incidental benefit of a type, quality, value, and term reasonably similar to the unavailable incidental benefit.

The substituted incidental benefit shall be delivered to the purchaser within 30 days after the date that the unavailability of the incidental benefit was made known to the developer.

(4)  All purchaser remedies pursuant to s. 721.21 shall be available for any violation of the provisions of this section.

History.--s. 5, ch. 93-58; s. 7, ch. 95-274; s. 894, ch. 97-102; s. 5, ch. 98-36.

721.08  Escrow accounts; nondisturbance instruments; alternate security arrangements.--

(1)  Prior to the filing of a public offering statement with the division, all developers shall establish an escrow account with an escrow agent for the purpose of protecting the funds or other property of purchasers required to be escrowed by this section. An escrow agent shall maintain the accounts called for in this section only in such a manner as to be under the direct supervision and control of the escrow agent. The escrow agent shall have a fiduciary duty to each purchaser to maintain the escrow accounts in accordance with good accounting practices and to release the purchaser's funds or other property from escrow only in accordance with this chapter. The escrow agent shall retain all affidavits received pursuant to this section for a period of 5 years. Should the escrow agent receive conflicting demands for funds or property held in escrow, the escrow agent shall immediately notify the division of the dispute and either promptly submit the matter to arbitration or, by interpleader or otherwise, seek an adjudication of the matter by court.

(2)  One hundred percent of all funds or other property which is received from or on behalf of purchasers of the timeshare plan or timeshare period prior to the occurrence of events required in this subsection shall be deposited pursuant to an escrow agreement approved by the division. The escrow agreement shall provide that the funds or property may be released from escrow only as follows:

(a)  Cancellation.--In the event a purchaser gives a valid notice of cancellation pursuant to s. 721.10 or is otherwise entitled to cancel the sale, the funds or property received from or on behalf of the purchaser, or the proceeds thereof, shall be returned to the purchaser. Such refund shall be made within 20 days of demand therefor by the purchaser or within 5 days after receipt of funds from the purchaser's cleared check, whichever is later. If the purchaser has received benefits under the contract prior to the effective date of the cancellation, the funds or property to be returned to the purchaser may be reduced by the proportion of contract benefits actually received.

(b)  Purchaser's default.--Following expiration of the 10-day cancellation period, if the purchaser defaults in the performance of her or his obligations under the terms of the contract to purchase or such other agreement by which the seller sells the timeshare period, the developer shall provide an affidavit to the escrow agent requesting release of the escrowed funds or property and shall provide a copy of such affidavit to the purchaser who has defaulted. The developer's affidavit, as required herein, shall include:

1.  A statement that the purchaser has defaulted and that the developer has not defaulted;

2.  A brief explanation of the nature of the default and the date of its occurrence;

3.  A statement that pursuant to the terms of the contract the developer is entitled to the funds held by the escrow agent; and

4.  A statement that the developer has not received from the purchaser any written notice of a dispute between the purchaser and developer or a claim by the purchaser to the escrow.

(c)  Compliance with conditions.--

1.  If the timeshare plan is one in which timeshare licenses are to be sold and no cancellation or default has occurred, the escrow agent may release the escrowed funds or property upon presentation of:

a.  An affidavit by the developer that all of the following conditions have been met:

(I)  Expiration of the cancellation period.

(II)  Completion of construction.

(III)  Closing.

(IV)  Execution and recordation of the nondisturbance and notice to creditors instrument, as described in this section.

b.  A certified copy of the recorded nondisturbance and notice to creditors instrument that complies with subsection (3).

c.  A copy of a memorandum of agreement, as defined in s. 721.05(21), together with satisfactory evidence that the original memorandum of agreement has been irretrievably delivered for recording to the appropriate official responsible for maintaining the public records in the county in which the subject accommodations or facilities are located. The original memorandum of agreement must be recorded within 180 days after the date on which the purchaser executed her or his purchase agreement.

2.  If the timeshare plan is one in which timeshare estates are to be sold and no cancellation or default has occurred, the escrow agent may release the escrowed funds or property upon presentation of:

a.  An affidavit by the developer that all of the following conditions have been met:

(I)  Expiration of the cancellation period.

(II)  Completion of construction.

(III)  Closing.

b.  If the timeshare estate is sold by agreement for deed, a certified copy of the recorded nondisturbance and notice to creditors instrument, as described in this section.

c.  Evidence that the timeshare estate is free and clear of the claims of any interestholders, other than the claims of interestholders that, through a recorded instrument, are irrevocably made subject to the timeshare instrument and the use rights of purchasers made available through the timeshare instrument, or that are the subject of a recorded nondisturbance and notice to creditors instrument that complies with subsection (3).

If the developer has previously provided a certified copy of any document required by this section, she or he may for all subsequent disbursements substitute a true and correct copy of the certified copy, provided no changes to the document have been made or are required to be made.

(3)  The nondisturbance and notice to creditors instrument, when required, shall be executed by each interestholder. The instrument shall state that:

(a)  If the party seeking enforcement is not in default of its obligations, the instrument may be enforced by both the seller and any purchaser of the timeshare plan;

(b)  The instrument shall be effective as between the timeshare purchaser and interestholder despite any rejection or cancellation of the contract between the timeshare purchaser and developer as a result of bankruptcy proceedings of the developer; and

(c)  So long as the interestholder has any interest in the accommodations, facilities, or plan, the interestholder will fully honor all the rights of the timeshare purchasers in and to the timeshare plan, will honor the purchasers' right to cancel their contracts and receive appropriate refunds, and will comply with all other requirements of this chapter and rules promulgated hereunder.

The instrument shall contain language sufficient to provide subsequent creditors of the developer and interestholders with notice of the existence of the timeshare plan and of the rights of purchasers and shall serve to protect the interest of the timeshare purchasers from any claims of subsequent creditors. A copy of the recorded nondisturbance and notice to creditors instrument, when required, shall be provided to each timeshare purchaser at the time the purchase contract is executed.

(4)  In lieu of any escrow provisions required by this act, the director of the division shall have the discretion to permit deposit of the funds or other property in an escrow account as required by the jurisdiction in which the sale took place.

(5)(a)  In lieu of any escrows required by this section, the director of the division shall have the discretion to accept other assurances, including, but not limited to, a surety bond issued by a company authorized and licensed to do business in this state as surety or an irrevocable letter of credit in an amount equal to the escrow requirements of this section.

(b)  Notwithstanding anything in chapter 718 or chapter 719 to the contrary, the director of the division shall have the discretion to accept other assurances pursuant to paragraph (a) in lieu of any requirement that completion of construction of one or more accommodations or facilities of a timeshare plan be accomplished prior to closing.

(6)  An escrow agent holding funds escrowed pursuant to this section may invest such escrowed funds in securities of the United States Government, or any agency thereof, or in savings or time deposits in institutions insured by an agency of the United States Government. The right to receive the interest generated by any such investments shall be paid to the party to whom the escrowed funds or property are paid unless otherwise specified by contract.

(7)  Each escrow agent shall maintain separate books and records for each timeshare plan and shall maintain such books and records in accordance with good accounting practices.

(8)  Any developer, seller, or escrow agent who intentionally fails to comply with the provisions of this section concerning the establishment of an escrow account, deposits of funds into escrow, and withdrawal therefrom is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, or the successor thereof. The failure to establish an escrow account or to place funds therein as required in this section is prima facie evidence of an intentional and purposeful violation of this section.

History.--s. 1, ch. 81-172; s. 49, ch. 83-215; s. 7, ch. 83-264; s. 4, ch. 84-256; s. 49, ch. 85-62; s. 1, ch. 87-343; s. 6, ch. 93-58; s. 8, ch. 95-274; s. 895, ch. 97-102.

721.09  Reservation agreements; escrows.--

(1)(a)  Prior to filing the public offering statement with the division, a seller shall not offer a timeshare plan for sale but may accept reservation deposits and advertise the reservation deposit program upon approval by the division of a fully executed escrow agreement and reservation agreement properly filed with the division.

(b)  Reservations shall not be taken on a timeshare plan unless the seller has an ownership interest or leasehold interest, of a duration at least equal to the duration of the proposed timeshare plan, in the land upon which the timeshare plan is to be developed.

(c)  If the timeshare plan subject to the reservation agreement has not been filed with the division under s. 721.07(5) or s. 721.55 within 90 days after the date the division approves the reservation agreement filing, the seller must immediately cancel all outstanding reservation agreements, refund all escrowed funds to prospective purchasers, and discontinue accepting reservation deposits or advertising the availability of reservation agreements.

(d)  A seller who has filed a reservation agreement and an escrow agreement under this section may advertise the reservation agreement program if the advertising material meets the following requirements:

1.  The seller complies with the provisions of s. 721.11 with respect to such advertising material.

2.  The advertising material is limited to a general description of the proposed timeshare plan, including, but not limited to, a general description of the type, number, and size of accommodations and facilities and the name of the proposed timeshare plan.

3.  The advertising material contains a statement that the advertising material is being distributed in connection with an approved reservation agreement filing only and that the seller cannot offer an interest in the timeshare plan for sale until a public offering statement has been filed with the division under this chapter.

(2)  Each executed reservation agreement shall be signed by the developer and shall contain the following:

(a)  A statement that the escrow agent will grant a prospective purchaser an immediate, unqualified refund of the reservation deposit upon the written request of either the purchaser or the seller directed to the escrow agent.

(b)  A statement that the escrow agent may not otherwise release moneys unless a contract is signed by the purchaser, authorizing the transfer of the escrowed reservation deposit as a deposit on the purchase price. Such deposit shall then be subject to the requirements of s. 721.08.

(c)  A statement of the obligation of the developer to file a public offering statement with the division prior to entering into binding contracts.

(d)  A statement of the right of the purchaser to receive the public offering statement required by this chapter.

(e)  The name and address of the escrow agent and a statement that the escrow agent will provide a receipt.

(f)  A statement that the seller assures that the purchase price represented in or pursuant to the reservation agreement will be the price in the contract for the purchase or that the price represented may be exceeded within a stated amount or percentage or a statement that no assurance is given as to the price in the contract for purchase.

(3)(a)  The total amount paid for a reservation shall be deposited into a reservation escrow account.

(b)  An escrow agent shall maintain the accounts called for in this section only in such a manner as to be under the direct supervision and control of the escrow agent.

(c)  The escrow agent may invest the escrowed funds in securities of the United States Government, or any agency thereof, or in savings or time deposits in institutions insured by an agency of the United States Government. The interest generated by any such investments shall be payable to the party entitled to receive the escrowed funds or property.

(d)  The escrowed funds shall at all reasonable times be available for withdrawal in full by the escrow agent.

(e)  Each escrow agent shall maintain separate books and records for each timeshare plan and shall maintain such books and records in accordance with good accounting practices.

(f)  Any seller or escrow agent who intentionally fails to comply with the provisions of this section regarding deposit of funds in escrow and withdrawal therefrom is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, or the successor of any of such sections. The failure to establish an escrow account or to place funds therein as required in this section is prima facie evidence of an intentional and purposeful violation of this section.

History.--s. 1, ch. 81-172; s. 8, ch. 83-264; s. 50, ch. 85-62; s. 6, ch. 98-36.

721.10  Cancellation.--

(1)  A purchaser has the right to cancel the contract until midnight of the 10th calendar day following whichever of the following days occurs later:

(a)  The execution date; or

(b)  The day on which the purchaser received the last of all documents required to be provided to him or her.

This right of cancellation may not be waived by any purchaser or by any other person on behalf of the purchaser. Furthermore, no closing may occur until the cancellation period of the timeshare purchaser has expired. Any attempt to obtain a waiver of the cancellation right of the timeshare purchaser, or to hold a closing prior to the expiration of the cancellation period, is unlawful and such closing is voidable at the option of the purchaser for a period of 1 year after the expiration of the cancellation period. However, nothing in this section precludes the execution of documents in advance of closing for delivery after expiration of the cancellation period.

(2)  Any notice of cancellation shall be considered given on the date postmarked if mailed, or when transmitted from the place of origin if telegraphed, so long as the notice is actually received by the developer or escrow agent. If given by means of a writing transmitted other than by mail or telegraph, the notice of cancellation shall be considered given at the time of delivery at the place of business of the developer.

(3)  In the event of a timely preclosing cancellation, or in the event the plan is one in which timeshare licenses are sold and at any time the accommodations or facilities are no longer available, the developer shall honor the right of any purchaser to cancel the contract which granted the timeshare purchaser rights in and to the plan. Upon such cancellation, the developer shall refund to the purchaser all payments made by the purchaser which exceed the proportionate amount of benefits made available under the plan, using the number of years of the plan as portrayed in the timeshare instrument as the base for plans of specific and limited duration, or using the fair market rental value of such benefits for plans without specific or limited duration. Such refund shall be made within 20 days of demand therefor by the purchaser or within 5 days after receipt of funds from the purchaser's cleared check, whichever is later. For purposes of this subsection, the term "benefits made available under the plan" shall not include public offering statements or other documentation or materials that must be furnished to a purchaser pursuant to statute or rule.

History.--s. 1, ch. 81-172; s. 9, ch. 83-264; s. 65, ch. 87-226; s. 9, ch. 95-274; s. 896, ch. 97-102.

721.11  Advertising materials; oral statements.--

(1)(a)  Any advertising material relating to a timeshare plan, including prize and gift promotional offers, shall be filed with the division by the developer 10 days prior to use. All such advertising materials must be substantially in compliance with this chapter and in full compliance with the mandatory provisions of this chapter. In the event that any such material is not in compliance with this chapter, the division may require the developer to correct the deficiency by notifying the developer of the deficiency; and, if the developer fails to correct the deficiency, the division may file administrative charges against the developer and exact such penalties or remedies as provided in s. 721.26.

(b)  The director of the division shall have the discretion to accept other assurances from the developer to assure the developer will comply with the provisions of this chapter regarding all advertising materials, including prize and gift promotional offers, used by the developer. Such assurances shall include, but not be limited to, a surety bond issued by a company authorized and licensed to do business in this state as surety or an irrevocable letter of credit in the amount of $10,000. Upon the acceptance by the director of such assurances from the developer, the developer shall be entitled to file and use advertising materials, including prize and gift promotional offers, in accordance with paragraph (c). In the event the developer intends to file and use any lodging or vacation certificates as advertising material pursuant to paragraph (c), the director shall have the discretion to increase the assurances to an amount deemed sufficient by the director to fully secure the performance of the certificate promoter, or to provide refunds to certificateholders in the event of nonperformance by the certificate promoter. The purpose of such other assurances, if accepted by the director, shall be to provide the division with a source of funds to secure the developer's promise in any prize and gift promotional offer to deliver the prize or gift represented in such offer to any prospective purchaser not receiving the represented prize or gift.

(c)  A developer from whom other assurances have been accepted by the director of the division pursuant to paragraph (b) shall file all advertising material, including prize and gift promotional offers with the division at the time of use. All such advertising materials must be substantially in compliance with this chapter and in full compliance with the mandatory provisions of this chapter. In the event that any such material is not in compliance with this chapter, the division may require the developer to correct the deficiency by notifying the developer of the deficiency; and, if the developer fails to correct the deficiency after receiving such notice, the division may file administrative charges against the developer and exact such penalties or remedies as provided in s. 721.26. So long as the developer prepares and disseminates the advertising material in good faith, the division shall not penalize the developer for any deficiencies which the division determines to exist in any advertising material which the developer uses prior to receipt of a notice of deficiency from the division regarding the advertising material. For purposes of this section, "good faith" shall mean that the developer has reasonably attempted to comply with the provisions of this chapter relating to advertising material, and that any deficiency determined to exist by the division is not material and adverse to a prospective purchaser.

(2)  The term "advertising material" includes:

(a)  Any promotional brochure, pamphlet, advertisement, or other material to be disseminated to the public in connection with the sale of a timeshare plan.

(b)  A transcript of any radio or television advertisement.

(c)  Any lodging or vacation certificate.

(d)  A transcript of any standard oral sales presentation.

(e)  Any billboard or other sign posted on or off the premises, except that such billboard or sign shall not be required to contain the disclosure set forth in paragraph (5)(a) or paragraph (5)(b), unless it relates to a prize and gift promotional offer. For purposes of this section, a "sign" shall mean advertising which is affixed to real or personal property and which is not disseminated by other than visual means to prospective purchasers.

(f)  Any photograph, drawing, or artist's representation of accommodations or facilities of a timeshare plan which exists or which will or may exist.

(g)  Any paid publication relating to a timeshare plan which exists or which will or may exist.

(h)  Any other promotional device or statement related to a timeshare plan, including any prize and gift promotional offer as described in s. 721.111.

(3)  The term "advertising material" does not include:

(a)  Any stockholder communication such as an annual report or interim financial report, proxy material, registration statement, securities prospectus, registration, property report, or other material required to be delivered to a prospective purchaser by an agency of any other state or the Federal Government.

(b)  Any communication addressed to and relating to the account of any person who has previously executed a contract for the sale and purchase of a timeshare period in the timeshare plan to which the communication relates, except when directed to the sale of additional timeshare periods.

(c)  Any audio, written, or visual publication or material relating to an exchange company or exchange program.

(d)  Any audio, written, or visual publication or material relating to the promotion of the availability of any accommodations or facilities, or both, for transient rental, so long as a mandatory tour of a timeshare plan or attendance at a mandatory sales presentation is not a term or condition of the availability of such accommodations or facilities, or both, and so long as the failure of any transient renter to take a tour of a timeshare plan or attend a sales presentation does not result in any reduction in the level of services which would otherwise be available to such transient renter.

(e)  Any oral or written statement disseminated by a developer to broadcast or print media, other than paid advertising or promotional material, regarding plans for the acquisition or development of timeshare property, including possible accommodations or facilities of a timeshare plan or possible component sites of a multisite timeshare plan pursuant to s. 721.553(1). However, any rebroadcast or any other dissemination of such oral statements to a prospective purchaser by a seller in any manner, or any distribution of copies of newspaper or magazine articles, press releases, or any other dissemination of such written statements to a prospective purchaser by a seller in any manner, shall constitute advertising material.

(4)  No advertising or oral statement made by any seller shall:

(a)  Misrepresent a fact or create a false or misleading impression regarding the timeshare plan or promotion thereof.

(b)  Make a prediction of specific or immediate increases in the price or value of timeshare periods.

(c)  Contain a statement concerning future price increases by the seller which are nonspecific or not bona fide.

(d)  Contain any asterisk or other reference symbol as a means of contradicting or substantially changing any previously made statement or as a means of obscuring a material fact.

(e)  Describe any improvement to the timeshare plan that is not required to be built or that is uncompleted unless the improvement is conspicuously labeled as "NEED NOT BE BUILT," "PROPOSED," or "UNDER CONSTRUCTION" with the date of promised completion clearly indicated.

(f)  Misrepresent the size, nature, extent, qualities, or characteristics of the offered accommodations or facilities.

(g)  Misrepresent the amount or period of time during which the accommodations or facilities will be available to any purchaser.

(h)  Misrepresent the nature or extent of any incidental benefit.

(i)  Make any misleading or deceptive representation with respect to the contents of the public offering statement and the contract or the rights, privileges, benefits, or obligations of the purchaser under the contract or this chapter.

(j)  Misrepresent the conditions under which a purchaser may exchange the right to use accommodations or facilities in one location for the right to use accommodations or facilities in another location.

(k)  Misrepresent the availability of a resale or rental program offered by or on behalf of the developer.

(l)  Contain an offer or inducement to purchase which purports to be limited as to quantity or restricted as to time unless the numerical quantity or time limit applicable to the offer or inducement is clearly stated.

(m)  Imply that a facility is available for the exclusive use of purchasers if the facility will actually be shared by others or by the general public.

(n)  Purport to have resulted from a referral unless the name of the person making the referral can be produced upon demand of the division.

(o)  Misrepresent the source of the advertising or statement by leading a prospective purchaser to believe that the advertising material is mailed by a governmental or official agency, credit bureau, bank, or attorney, if that is not the case.

(p)  Misrepresent the value of any prize, gift, or other item to be awarded in connection with any prize and gift promotional offer, as described in s. 721.111, or any incidental benefit.

(5)(a)  No written advertising material, including any lodging certificate, gift award, premium, discount, or display booth, may be utilized without one of the following disclosures in conspicuous type: This advertising material is being used for the purpose of soliciting sales of timeshare periods; or This advertising material is being used for the purpose of soliciting sales of a vacation (or vacation membership or vacation ownership) plan. If a filing of a timeshare plan containing accommodations and facilities located outside of this state has been approved by the situs jurisdiction and by the division, an alternate disclosure consistent with that required by the situs jurisdiction, or by such other jurisdiction or jurisdictions where the advertising material will be used, may be utilized with the prior approval of the director of the division so long as the alternate disclosure is substantially similar to that required by this paragraph.

(b)  This subsection does not apply to any advertising material which involves a project or development which includes sales of real estate or other commodities or services in addition to timeshare periods, including, but not limited to, lot sales, condominium or home sales, or the rental of resort accommodations. However, if the sale of timeshare periods, as compared with such other sales or rentals, is the primary purpose of the advertising material, a disclosure shall be made in conspicuous type that: This advertising material is being used for the purpose of soliciting the sale of  (Disclosure shall include timeshare periods and may include other types of sales) . Factors which the division may consider in determining whether the primary purpose of the advertising material is the sale of timeshare periods include:

1.  The retail value of the timeshare periods compared to the retail value of the other real estate, commodities, or services being offered in the advertising material.

2.  The amount of space devoted to the timeshare portion of the project in the advertising material compared to the amount of space devoted to other portions of the project, including, but not limited to, printed material, photographs, or drawings.

(6)  Failure to provide cancellation rights or disclosures as required by this subsection in connection with the sale of a regulated short-term product constitutes misrepresentation in accordance with paragraph (4)(a). Any agreement relating to the sale of a regulated short-term product must be regulated as advertising material and is subject to the following:

(a)  A standard form of any agreement relating to the sale of a regulated short-term product must be filed 10 days prior to use with the division as advertising material under this section. Each seller shall furnish each purchaser of a regulated short-term product with a fully completed and executed copy of the agreement at the time of execution.

(b)  A purchaser of a regulated short-term product has the right to cancel the agreement until midnight of the 10th calendar day following the execution date of the agreement. The right of cancellation may not be waived by the prospective purchaser or by any other person on behalf of the prospective purchaser. Notice of cancellation must be given in the same manner prescribed for giving notice of cancellation under s. 721.10(2). If the prospective purchaser gives a valid notice of cancellation or is otherwise entitled to cancel the sale, the funds or property received from or on behalf of the prospective purchaser, or the proceeds thereof, must be returned to the prospective purchaser. Such refund must be made in the same manner prescribed for refunds under s. 721.10.

(c)  An agreement for purchase of a regulated short-term product must contain substantially the following statements, given at the time the agreement is made:

1.  A statement that if the purchaser of a regulated short-term product cancels the agreement during the 10-day cancellation period, the seller will refund to the prospective purchaser the total amount of all payments made by the prospective purchaser under the agreement, reduced by the proportion of any benefits the prospective purchaser has actually received under the agreement prior to the effective date of the cancellation; and

2.  A statement that the specific value for each benefit received by the prospective purchaser under the agreement will be as agreed to between the prospective purchaser and the seller.

(d)  An agreement for purchase of a regulated short-term product must contain substantially the following statements in conspicuous type immediately above the space reserved in the agreement for the signature of the prospective purchaser:

You may cancel this agreement without any penalty or obligation within 10 calendar days [or specify a longer time period represented to the purchaser] after the date you sign this agreement. If you decide to cancel this agreement, you must notify the seller in writing of your intent to cancel. Your notice of cancellation is effective upon the date sent and must be sent to  (Name of Seller)  at  (Address of Seller) . Any attempt to obtain a waiver of your cancellation right is unlawful.

If you execute a purchase contract for a timeshare period, section 721.08, Florida Statutes (escrow accounts), will apply to any funds or other property received from you or on your behalf. Section 721.10, Florida Statutes (cancellation), will apply to the purchase and you will not be entitled to a cancellation refund of the short-term product [or specify an alternate refund policy under these circumstances].

(e)  If the seller provides the purchaser with the right to cancel the purchase of a regulated short-term product at any time up to 7 days prior to the purchaser's reserved use of the accommodations, but in no event less than 10 days, and if the seller refunds the total amount of all payments made by the purchaser reduced by the proportion of any benefits the purchaser has actually received prior to the effective date of the cancellation, the specific value of which has been agreed to between the purchaser and the seller, the short-term product offer shall be exempt from the requirements of paragraphs (b), (c), and (d). An agreement relating to the sale of the regulated short-term product made pursuant to this paragraph must contain a statement setting forth the cancellation and refund rights of the prospective purchaser in a manner that is consistent with this section and s. 721.10, including a description of the length of the cancellation right, a statement that the purchaser's intent to cancel must be in writing and sent to the seller at a specified address, a statement that the notice of cancellation is effective upon the date sent, and a statement that any attempt to waive the cancellation right is unlawful. The right of cancellation provided to the purchaser pursuant to this paragraph may not be waived by the prospective purchaser or by any other person on behalf of the prospective purchaser. Notice of cancellation must be given in the same manner prescribed for giving notice of cancellation pursuant to s. 721.10(2). If the prospective purchaser gives a valid notice of cancellation, or is otherwise entitled to cancel the sale, the funds or property received from or on behalf of the prospective purchaser, or the proceeds thereof, shall be returned to the prospective purchaser. Such refund shall be made in the manner prescribed for refunds under s. 721.10.

History.--s. 1, ch. 81-172; s. 157, ch. 83-216; s. 10, ch. 83-264; s. 2, ch. 87-343; s. 54, ch. 90-339; s. 64, ch. 91-110; s. 7, ch. 91-236; s. 7, ch. 93-58; s. 10, ch. 95-274; s. 7, ch. 98-36.

721.111  Prize and gift promotional offers.--

(1)  As used herein, the term "prize and gift promotional offer" means any advertising material wherein a prospective purchaser may receive goods or services other than the timeshare plan itself, either free or at a discount, including, but not limited to, the use of any prize, gift, award, premium, or lodging or vacation certificate.

(2)  A game promotion, such as a contest of chance, gift enterprise, or sweepstakes, in which the elements of chance and prize are present may not be used in connection with the offering or sale of timeshare periods, except for drawings, as that term is defined in s. 849.0935(1)(a), in which no more than 10 prizes are promoted and in which all promoted prizes are actually awarded. All such drawings must meet all requirements of this chapter and of ss. 849.092 and 849.094(1), (2), and (7).

(3)  Any prize, gift, or other item offered pursuant to a prize and gift promotional offer must be delivered to the prospective purchaser on the day she or he appears to claim it, whether or not she or he purchases a timeshare period.

(4)  A separate filing for each prize and gift promotional offer to be used in the sale of timeshare periods shall be made with the division pursuant to s. 721.11(1). One item of each prize or gift, except cash, must be made available for inspection by the division.

(5)  Each filing of a prize and gift promotional offer with the division shall include, when applicable:

(a)  A copy of all advertising material to be used in connection with the prize and gift promotional offer.

(b)  The name, address, and telephone number (including area code) of the supplier or manufacturer from whom each type or variety of prize, gift, or other item is obtained.

(c)  The manufacturer's model number or other description of such item.

(d)  The information on which the developer relies in determining the verifiable retail value.

(e)  The name, address, and telephone number (including area code) of the promotional entity responsible for overseeing and operating the prize and gift promotional offer.

(f)  The name and address of the registered agent in this state of the promotional entity for service of process purposes.

(g)  The number of anticipated recipients of each item of advertising material related to the prize and gift promotional offer.

(h)  Full disclosure of all pertinent information concerning the use of lodging or vacation certificates, including the terms and conditions of the campaign and the fact and extent of participation in such campaign by the developer. The division may require reasonable assurances that the obligation incurred by a seller or the seller's agent in a lodging certificate program can be met.

(6)  Each developer shall pay to the division a fee of $100 for the filing of each prize and gift promotional offer, at the time of filing. Those developers utilizing game promotions in which the elements of chance and prize are present shall pay an additional $400 fee at the time of filing of the prize and gift promotional offer. No additional fee may be charged for the submission of corrected advertising material related to a prize and gift promotional offer or for the submission of additional material related to a prize and gift promotional offer for which a prior filing has been made.

(7)  All advertising material to be distributed in connection with a prize and gift promotional offer shall contain, in addition to the information required pursuant to the provisions of s. 721.11, the following disclosures:

(a)  A description of the prize, gift, or other item that the prospective purchaser will actually receive, including the manufacturer's suggested retail price or, if none is available, the verifiable retail value.

(b)  All rules, terms, requirements, and preconditions which must be fulfilled or met before a prospective purchaser may claim any prize, gift, or other item involved in the prize and gift promotional plan, including whether the prospective purchaser is required to attend a sales presentation in order to receive the prize, gift, or other item.

(c)  The date upon which the offer expires.

(d)  If the number of prizes, gifts, or other items to be awarded is limited, a statement of the number of items that will be awarded.

(e)  The method by which prizes, gifts, or other items are to be awarded.

(8)  All developers shall file with the division by March 1st of each year the following information regarding each prize and gift promotional offer used during the prior calendar year:

(a)  The total number of each prize, gift, or other item actually awarded or given away.

(b)  The name and address of each person who actually received a prize, gift, or other item which had a verifiable retail value or manufacturer's suggested retail price in excess of $200. This regulation does not apply to recipients of lodging or vacation certificates.

(9)  All prizes, gifts, or other items represented by the developer to be awarded in connection with any prize and gift promotional offer shall be awarded by the date referenced in the advertising material used in connection with such offer.

History.--s. 11, ch. 83-264; s. 3, ch. 87-343; s. 8, ch. 91-236; s. 897, ch. 97-102.

721.12  Recordkeeping by seller.--Each seller of a timeshare plan shall maintain among its business records the following:

(1)  A copy of each contract for the sale of a timeshare period, which contract has not been canceled. If a timeshare estate is being sold, the seller is required to retain a copy of the contract only until a deed of conveyance, agreement for deed, or lease is recorded in the office of the clerk of the circuit court in the county wherein the plan is located.

(2)  A list of all salespersons of the seller and their last known addresses. The names and addresses of such salespersons whose employments terminate shall be retained for 3 years after termination of employment. If the seller has a contract with any entity not owned or controlled by the seller for the sale of the timeshare plan, that entity shall be responsible for maintaining a record of current employees involved in the sale of the timeshare plan and a record of any former employees involved in the sale of such plan within the previous 3 years.

History.--s. 1, ch. 81-172; s. 12, ch. 83-264; s. 51, ch. 85-62.

721.13  Management.--

(1)(a)  Before the first sale of a timeshare period, 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 administration of an owners' association, or some combination thereof.

(b)  With respect to a timeshare plan which is also regulated under chapter 718 or chapter 719, or which contains a mandatory owners' association, the board of administration of the association shall be considered the managing entity of the timeshare plan. During any period of time in which such association has entered into a contract with a manager or management firm to provide some or all of the management services to the timeshare plan, both the board of administration and the manager or management firm shall be considered the managing entity of the timeshare plan and shall be jointly and severally responsible for the faithful discharge of the duties of the managing entity.

(c)  With respect to any timeshare plan other than one described in paragraph (b), any developer shall be considered the managing entity of the timeshare plan unless and until such developer clearly provides in the timeshare instrument that a different party will serve as managing entity, which party has acknowledged in writing that it has accepted the duties and obligations of serving as managing entity. In the event such other party subsequently resigns or otherwise ceases to perform its duties as managing entity, any developer shall again be considered the managing entity until the developer arranges for a new managing entity pursuant to this paragraph.

(d)  In the event no one described in paragraph (b) or paragraph (c) is operating and maintaining the timeshare plan, anyone who operates or maintains the timeshare plan shall be considered the managing entity of the timeshare plan.

(e)  Any managing entity performing community association management must comply with part VIII of chapter 468.

(2)(a)  The managing entity shall act in the capacity of a fiduciary to the purchasers of the timeshare plan. No penalty imposed by the division pursuant to s. 721.26 against any managing entity for breach of fiduciary duty shall be assessed as a common expense of any timeshare plan.

(b)  The managing entity shall invest the operating and reserve funds of the timeshare plan in accordance with s. 518.11(1); however, the managing entity shall give safety of capital greater weight than production of income. In no event shall the managing entity invest timeshare plan funds with a developer or with any entity that is not independent of any developer or any managing entity within the meaning of s. 721.05(18), and in no event shall the managing entity invest timeshare plan funds in notes and mortgages related in any way to the timeshare plan.

(3)  The duties of the managing entity include, but are not limited to:

(a)  Management and maintenance of all accommodations and facilities constituting the timeshare plan.

(b)  Collection of all assessments for common expenses.

(c)1.  Providing each year to all purchasers an itemized annual budget which shall include all estimated revenues and expenses. The budget shall be in the form required by s. 721.07(5)(x) and shall be the final budget adopted by the managing entity for the current fiscal year. The budget shall contain, as a footnote or otherwise, any related party transaction disclosures or notes which appear in the audited financial statements of the managing entity for the previous budget year as required by paragraph (e). A copy of the final budget shall be filed with the division within 30 days after its adoption by the managing entity together with a statement of the number of periods of 7-day annual use availability that exist within the timeshare plan, including those periods filed for sale by the developer but not yet committed to the timeshare plan, for which annual fees are required to be paid to the division under s. 721.27.

2.  Notwithstanding anything contained in chapter 718 or chapter 719 to the contrary, the board of administration of an owners' association which serves as managing entity may from time to time reallocate reserves for deferred maintenance and capital expenditures required by s. 721.07(5)(x)3.a.(XI) from any deferred maintenance or capital expenditure reserve account to any other deferred maintenance or capital expenditure reserve account or accounts in its discretion without the consent of purchasers of the timeshare plan. Funds in any deferred maintenance or capital expenditure reserve account may not be transferred to any operating account without the consent of a majority of the purchasers of the timeshare plan.

(d)1.  Maintenance of all books and records concerning the timeshare plan so that all such books and records are reasonably available for inspection by any purchaser or the authorized agent of such purchaser. For purposes of this subparagraph, 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 within 7 days of the date the managing entity receives a written request for the records signed by the purchaser. The managing entity may charge the purchaser a reasonable fee for copying the requested information not to exceed 25 cents per page. However, any purchaser or agent of such purchaser shall be permitted to personally inspect and examine the books and records wherever located at any reasonable time, under reasonable conditions, and under the supervision of the custodian of those records. The custodian shall supply copies of the records where requested and upon payment of the copying fee. No fees other than those set forth in this section may be charged for the providing of, inspection, or examination of books and records. All books and financial records of the timeshare plan must be maintained in accordance with generally accepted accounting practices.

2.  If the books and records of the timeshare plan are not maintained on the premises of the accommodations and facilities of the timeshare plan, the managing entity shall inform the division in writing of the location of the books and records and the name and address of the person who acts as custodian of the books and records at that location. In the event that the location of the books and records changes, the managing entity shall notify the division of the change in location and the name and address of the new custodian within 30 days of the date the books and records are moved. The purchasers shall be notified of the location of the books and records and the name and address of the custodian in the copy of the annual budget provided to them pursuant to paragraph (c).

3.  The division is authorized to adopt rules which specify those items and matters that shall be included in the books and records of the timeshare plan and which specify procedures to be followed in requesting and delivering copies of the books and records.

4.  Notwithstanding any provision of chapter 718 or chapter 719 to the contrary, the managing entity may not furnish the name or address of any purchaser to any other purchaser or authorized agent thereof unless the purchaser whose name and address are requested first approves the disclosure in writing.

(e)  Arranging for an annual audit of the financial statements of the timeshare plan by a certified public accountant licensed by the Board of Accountancy of the Department of Business and Professional Regulation, in accordance with generally accepted auditing standards as defined by the rules of the Board of Accountancy of the Department of Business and Professional Regulation. The financial statements required by this section must be prepared on an accrual basis using fund accounting, and must be presented in accordance with generally accepted accounting principles. A copy of the audited financial statements must be filed with the division and forwarded to the board of directors and officers of the owners' association, if one exists, no later than 5 calendar months after the end of the timeshare plan's fiscal year. If no owners' association exists, each purchaser must be notified, no later than 5 months after the end of the timeshare plan's fiscal year, that a copy of the audited financial statements is available upon request to the managing entity. Notwithstanding any requirement of s. 718.111(13) or (14), the audited financial statements required by this section are the only annual financial reporting requirements for timeshare condominiums.

(f)  Making available for inspection by the division any books and records of the timeshare plan upon the request of the division. The division may enforce this paragraph by making direct application to the circuit court.

(g)  Scheduling occupancy of the timeshare units, when purchasers are not entitled to use specific timeshare periods, so that all purchasers will be provided the use and possession of the accommodations and facilities of the timeshare plan which they have purchased.

(h)  Performing any other functions and duties which are necessary and proper to maintain the accommodations or facilities as provided in the contract and as advertised.

(i)  Submitting to the division the statement of receipts and disbursements regarding the ad valorem tax escrow account as required by s. 192.037(6)(e). The statement of receipts and disbursements must also include a statement disclosing that all ad valorem taxes have been paid in full to the tax collector through the current assessment year, or, if all such ad valorem taxes have not been paid in full to the tax collector, a statement disclosing those assessment years for which there are outstanding ad valorem taxes due and the total amount of all delinquent taxes, interest, and penalties for each such assessment year as of the date of the statement of receipts and disbursements.

(j)  Notwithstanding anything contained in chapter 718 or chapter 719 to the contrary, purchasers shall not have the power to cancel contracts entered into by the managing entity relating to a master or community antenna television system, a franchised cable television service, or any similar paid television programming service or bulk rate services agreement.

(4)  The managing entity shall maintain among its records and provide to the division upon request a complete list of the names and addresses of all purchasers and owners of timeshare units in the timeshare plan. The managing entity shall update this list no less frequently than quarterly. Pursuant to paragraph (3)(d), the managing entity may not publish this owner's list or provide a copy of it to any purchaser or to any third party other than the division. However, the managing entity shall initiate a mailing to those persons listed on the owner's list upon the written request of any purchaser if the purpose of the mailing is to advance legitimate association business, such as a proxy solicitation for any purpose, including the recall of one or more board members or the discharge of the manager or management firm. The use of any proxies solicited in this manner must comply with the provisions of the timeshare instrument and this chapter. The board of administration of the association shall be responsible for determining the appropriateness of any mailing requested pursuant to this subsection, and it shall be a violation of this chapter and of part VIII of chapter 468 for the board of administration and/or the manager or management firm to refuse to initiate any mailing requested for the purpose of advancing legitimate association business. The purchaser who requests the mailing must reimburse the association in advance for the association's actual costs in performing the mailing.

(5)  Any managing entity, or individual officer, director, employee, or agent thereof, who willfully misappropriates the property or funds of a timeshare plan commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, or the successor thereof.

(6)(a)  The managing entity of any timeshare plan located in this state, including, but not limited to, those plans created with respect to a condominium pursuant to chapter 718 or a cooperative pursuant to chapter 719, may deny the use of the accommodations and facilities of the timeshare plan to any purchaser who is delinquent in the payment of any assessments made by the managing entity against such purchaser for common expenses or for ad valorem real estate taxes pursuant to this chapter or pursuant to s. 192.037. Such denial of use shall also extend to those parties claiming under the delinquent purchaser described in paragraphs (b) and (c). For purposes of this subsection, a purchaser shall be considered delinquent in the payment of a given assessment only upon the expiration of 60 days after the date the assessment is billed to the purchaser or upon the expiration of 60 days after the date the assessment is due, whichever is later. For purposes of this subsection, an affiliated exchange program shall be any exchange program which has a contractual relationship with the creating developer or the managing entity of the timeshare plan, or any exchange program that notifies the managing entity in writing that it has members that are purchasers of the timeshare plan, and the exchange companies operating such affiliated exchange programs shall be affiliated exchange companies. Any denial of use shall be implemented only pursuant to this subsection.

(b)  A managing entity desiring to deny the use of the accommodations and facilities of the timeshare plan to a delinquent purchaser and to those claiming under the purchaser, including his or her guests, lessees, and third parties receiving use rights in the timeshare period in question through a nonaffiliated exchange program, shall, no less than 30 days prior to the first day of the purchaser's use period, notify the purchaser in writing of the total amount of any delinquency which then exists or which will exist as of the first day of such use period, including any accrued interest and late charges permitted to be imposed under the terms of the public offering statement for the timeshare plan or by law and including a per diem amount, if any, to account for further accrual of interest and late charges between the stated effective date of the notice and the first date of use. The notice shall also clearly state that the purchaser will not be permitted to use his or her timeshare period until the total amount of such delinquency is satisfied in full or until the purchaser produces satisfactory evidence that the delinquency does not exist. The notice shall be mailed to the purchaser at his or her last known address as recorded in the books and records of the timeshare plan, and the notice shall be effective to bar the use of the purchaser and those claiming use rights under the purchaser, including his or her guests, lessees, and third parties receiving use rights in the timeshare period in question through a nonaffiliated exchange program, until such time as the purchaser is no longer delinquent. The notice shall not be effective to bar the use of third parties receiving use rights in the timeshare period in question through an affiliated exchange program without the additional notice to the affiliated exchange program required by paragraph (c).

(c)  In addition to giving notice to the delinquent purchaser as required by paragraph (b), a managing entity desiring to deny the use of the accommodations and facilities of the timeshare plan to third parties receiving use rights in the delinquent purchaser's timeshare period through any affiliated exchange program shall notify the affiliated exchange company in writing of the denial of use. The receipt of such written notice by the affiliated exchange company shall be effective to bar the use of all third parties claiming through the affiliated exchange program, and such notice shall be binding upon the affiliated exchange company and all third parties claiming through the affiliated exchange program until such time as the affiliated exchange company receives notice from the managing entity that the purchaser is no longer delinquent. However, any third party claiming through the affiliated exchange program who has received a confirmed assignment of the delinquent purchaser's use rights from the affiliated exchange company prior to the expiration of 48 hours after the receipt by the affiliated exchange company of such written notice from the managing entity shall be permitted by the managing entity to use the accommodations and facilities of the timeshare plan to the same extent that he or she would be allowed to use such accommodations and facilities if the delinquent purchaser were not delinquent.

(d)  Any costs reasonably incurred by the managing entity in connection with its compliance with the requirements of paragraphs (b) and (c), together with any costs reasonably incurred by an affiliated exchange company in connection with its compliance with the requirements of paragraph (c), may be assessed by the managing entity against the delinquent purchaser and collected in the same manner as if such costs were common expenses of the timeshare plan allocable solely to the delinquent purchaser. The costs incurred by the affiliated exchange company shall be collected by the managing entity as the agent for the affiliated exchange company. In no event shall the total costs to be assessed against the delinquent purchaser pursuant to this paragraph at any one time exceed 5 percent of the total amount of delinquency contained in the notice given to the delinquent purchaser pursuant to paragraph (b) per timeshare period or $15 per timeshare period, whichever is less.

(e)  An exchange company may elect to deny exchange privileges to any member whose use of the accommodations and facilities of the member's timeshare plan is denied pursuant to paragraph (b), and no exchange program or exchange company shall be liable to any of its members or third parties on account of any such denial of exchange privileges.

(f)1.  Provided that the managing entity has properly and timely given notice to a delinquent purchaser pursuant to paragraph (b) and to any affiliated exchange program pursuant to paragraph (c), the managing entity may give further notice to the delinquent purchaser that it intends to rent the delinquent purchaser's timeshare period, or any use rights appurtenant thereto, and to apply the proceeds of such rental, net of any rental commissions, cleaning charges, travel agent commissions, or any other commercially reasonable charges reasonably and usually incurred by the managing entity in securing rentals, to the delinquent purchaser's account. Such further notice of intent to rent must be given at least 30 days prior to the first day of the purchaser's use period, and must be delivered to the purchaser in the manner required for notices under paragraph (b).

2.  The notice of intent to rent, which may be included in the notice required by paragraph (b), must state in conspicuous type that:

a.  The managing entity's efforts to secure a rental will commence on a date certain, which date may not be earlier than 10 days after the date of the notice of intent to rent.

b.  Unless the purchaser satisfies the delinquency in full, or unless the purchaser produces satisfactory evidence that the delinquency does not exist pursuant to paragraph (b), prior to the date designated in the notice for commencement of rental solicitation by the managing entity, the purchaser will be bound by the terms of any rental contract entered into by the managing entity with respect to the purchaser's timeshare period or appurtenant use rights.

c.  The purchaser will remain liable for any difference between the amount of the delinquency and the net amount produced by the rental contract and applied against the delinquency pursuant to this paragraph, and the managing entity shall not be required to provide any further notice to the purchaser regarding any residual delinquency pursuant to this paragraph.

3.  In securing a rental pursuant to this paragraph, the managing entity shall not be required to obtain the highest nightly rental rate available, nor any particular rental rate, and the managing entity shall not be required to rent the entire timeshare period; however, the managing entity must use reasonable efforts to secure a rental that is commensurate with other rentals of similar timeshare periods or use rights generally secured at that time.

(g)  A managing entity shall have breached its fiduciary duty described in subsection (2) in the event it enforces the denial of use pursuant to paragraph (b) against any one purchaser or group of purchasers without similarly enforcing it against all purchasers, including all developers and owners of the underlying fee; however, a managing entity shall not be required to solicit rentals pursuant to paragraph (f) for every delinquent purchaser. A managing entity shall also have breached its fiduciary duty in the event an error in the books and records of the timeshare plan results in a denial of use pursuant to this subsection of any purchaser who is not, in fact, delinquent. In addition to any remedies otherwise available to purchasers of the timeshare plan arising from such breaches of fiduciary duty, such breach shall also constitute a violation of this chapter. In addition, any purchaser receiving a notice of delinquency pursuant to paragraph (b), or any third party claiming under such purchaser pursuant to paragraph (b), may immediately bring an action for injunctive or declaratory relief against the managing entity seeking to have the notice invalidated on the grounds that the purchaser is not, in fact, delinquent, that the managing entity failed to follow the procedures prescribed by this section, or on any other available grounds. The prevailing party in any such action shall be entitled to recover his or her reasonable attorney's fees from the losing party.

(7)  Unless the articles of incorporation, the bylaws, or the provisions of this chapter provide for a higher quorum requirement, the percentage of voting interests required to make decisions and to constitute a quorum at a meeting of the members of a timeshare condominium or owners' association shall be 15 percent of the voting interests. If a quorum is not present at any meeting of the association at which members of the board of administration are to be elected, the meeting may be adjourned and reconvened within 90 days for the sole purpose of electing members of the board of administration, and the quorum for such adjourned meeting shall be 15 percent of the voting interests. This provision shall apply notwithstanding any provision of chapter 718 or chapter 719 to the contrary.

(8)  Any failure of the managing entity to faithfully discharge the fiduciary duty to purchasers imposed by this section or to otherwise comply with the provisions of this section shall be a violation of this chapter and of part VIII of chapter 468.

History.--s. 1, ch. 81-172; s. 13, ch. 83-264; s. 5, ch. 84-256; s. 52, ch. 85-62; s. 4, ch. 87-343; s. 2, ch. 88-403; s. 24, ch. 91-103; s. 9, ch. 91-236; s. 5, ch. 91-426; s. 8, ch. 93-58; s. 241, ch. 94-218; s. 11, ch. 95-274; s. 898, ch. 97-102; s. 8, ch. 98-36.

721.14  Discharge of managing entity.--

(1)  If timeshare estates are being sold to purchasers of a timeshare plan, any contract between the owners' association and a manager or management firm shall be automatically renewable every 3 years, beginning with the third year after the owners' association is first created, unless the purchasers vote to discharge the manager or management firm. Such a vote shall be conducted by the board of administration of the owners' association. The manager or management firm shall be deemed discharged if at least 66 percent of the purchasers voting, which shall be at least 50 percent of all votes allocated to purchasers, vote to discharge.

(2)  In the event the manager or management firm is discharged, the board of administration of the owners' association shall remain responsible for operating and maintaining the timeshare plan pursuant to the timeshare instrument and s. 721.13(1). If the board of administration fails to do so, any timeshare owner may apply to the circuit court within the jurisdiction of which the accommodations and facilities lie for the appointment of a receiver to manage the affairs of the association and the timeshare plan. At least 30 days before applying to the circuit court, the timeshare owner shall mail to the association and post in a conspicuous place on the timeshare property a notice describing the intended action. If a receiver is appointed, the association shall be responsible as a common expense of the timeshare plan, for payment of the salary and expenses of the receiver, relating to the discharge of her or his duties and obligations as receiver, together with the receiver's court costs, and reasonable attorney's fees. The receiver shall have all powers and duties of a duly constituted board of administration and shall serve until discharged by the circuit court.

(3)  The managing entity of a timeshare plan subject to the provisions of chapter 718 or chapter 719 may be discharged pursuant to chapter 718 or chapter 719, respectively, or its successor or pursuant to this section.

History.--s. 1, ch. 81-172; s. 14, ch. 83-264; s. 9, ch. 85-63; s. 12, ch. 95-274; s. 899, ch. 97-102.

721.15  Assessments for common expenses.--

(1)(a)  Until a managing entity is created or provided pursuant to s. 721.13, the developer shall pay all common expenses. The timeshare instrument shall provide for the allocation of common expenses among all timeshare units or timeshare periods on a reasonable basis, including timeshare periods owned or not yet sold by the developer. The timeshare instrument may provide that the common expenses allocated may differ between those units that are part of the timeshare plan and those units that are not part of the timeshare plan; however, the different proportion of expenses must be based upon reasonable differences in the benefit provided to each. The timeshare instrument shall allocate common expenses to timeshare periods owned or not yet sold by the developer on the same basis that common expenses are allocated to similar or equivalent timeshare periods sold to purchasers.

(b)  Notwithstanding any provision of chapter 718 or chapter 719 to the contrary, the allocation of total common expenses for a condominium or a cooperative timeshare plan may vary on any reasonable basis, including, but not limited to, unit size, unit type, unit location, specific identification, or a combination of these factors, if the percentage interest in the common elements attributable to each timeshare condominium parcel or timeshare cooperative parcel equals the share of the total common expenses allocable to that parcel. The share of a timeshare interest in the common expenses allocable to the timeshare condominium parcel or the timeshare cooperative parcel containing such interest may vary on any reasonable basis if the timeshare interest's share of its parcel's common expense allocation is equal to that timeshare interest's share of the percentage interest in common elements attributable to such parcel.

(2)(a)  After the creation or provision of a managing entity, the managing entity shall make an annual assessment against each purchaser for the payment of common expenses, based on the projected annual budget, in the amount specified by the contract between the seller and the purchaser or in the timeshare instrument.

(b)  No owner of a timeshare period may be excused from the payment of her or his share of the common expenses unless all owners are likewise excused from payment, except that the developer may be excused from the payment of her or his share of the common expenses which would have been assessed against her or his timeshare periods during a stated period of time during which the developer has guaranteed to each purchaser in the timeshare instrument, or by agreement between the developer and a majority of the owners of timeshare periods other than the developer, that the assessment for common expenses imposed upon the owners would not increase over a stated dollar amount. In the event of such a guarantee, the developer is obligated to pay all common expenses incurred during the guarantee period in excess of the total revenues of the timeshare plan.

(c)  For the purpose of calculating the obligation of a developer under a guarantee pursuant to paragraph (b), depreciation expenses related to real property shall be excluded from common expenses incurred during the guarantee period.

(d)  A guarantee pursuant to paragraph (b) may provide that the developer may extend or increase the guarantee for one or more additional stated periods.

(3)  Delinquent assessments may bear interest at the highest rate permitted by law or at some lesser rate established by the managing entity. In addition to such interest, the managing entity may charge an administrative late fee in an amount not to exceed $25 for each delinquent assessment. Provided that a purchaser has been advised in writing at least 60 days prior to turning the matter over to a collection agency that the purchaser may be liable for the fees of the collection agency and a lien may result therefrom, any costs of collection, including reasonable collection agency fees and reasonable attorney's fees, incurred in the collection of a delinquent assessment shall be paid by the purchaser and shall be secured by a lien in favor of the managing entity upon the timeshare period with respect to which the delinquent assessment has been incurred.

(4)  Unless otherwise specified in the contract between the seller and the purchaser, any common expenses benefiting fewer than all purchasers shall be assessed only against those purchasers benefited.

(5)  Any assessments for common expenses which have not been spent for common expenses during the year for which such assessments were made shall be shown as an item on the annual budget.

(6)  Notwithstanding any contrary requirements of s. 718.112(2)(g) or s. 719.106(1)(g), for timeshare plans subject to this chapter, assessments against purchasers need not be made more frequently than annually.

(7)  A purchaser, regardless of how her or his timeshare estate or timeshare license has been acquired, including a purchaser at a judicial sale, is personally liable for all assessments for common expenses which come due while the purchaser is the owner of such interest. A successor in interest is jointly and severally liable with her or his predecessor in interest for all unpaid assessments against such predecessor up to the time of transfer of the timeshare interest to such successor without prejudice to any right a successor in interest may have to recover from her or his predecessor in interest any amounts assessed against such predecessor and paid by such successor. The predecessor in interest shall provide the managing entity with a copy of the recorded deed of conveyance if the interest is a timeshare estate or a copy of the instrument of transfer if the interest is a timeshare license, containing the name and mailing address of the successor in interest within 15 days after the date of transfer. The managing entity shall not be liable to any person for any inaccuracy in the books and records of the timeshare plan arising from the failure of the predecessor in interest to timely and correctly notify the managing entity of the name and mailing address of the successor in interest. Nothing in this subsection shall be construed to impair the operation of s. 718.116 for timeshare condominiums.

(8)(a)  Anything contained in chapter 718 or chapter 719 to the contrary notwithstanding, the managing entity of a timeshare plan shall not commingle operating funds with reserve funds; however, the managing entity may maintain operating and reserve funds within a single account for a period not to exceed 30 days after the date on which the managing entity received payment of such funds.

(b)  Anything contained in chapter 718 or chapter 719 to the contrary notwithstanding, a managing entity which serves as managing entity of more than one timeshare plan, or of more than one component site pursuant to part II, shall not commingle the common expense funds of any one timeshare plan or component site with the common expense funds of any other timeshare plan or component site. However, the managing entity may maintain common expense funds of multiple timeshare plans or multiple component sites within a single account for a period not to exceed 30 days after the date on which the managing entity received payment of such funds.

History.--s. 1, ch. 81-172; s. 15, ch. 83-264; s. 5, ch. 87-343; s. 3, ch. 88-403; s. 25, ch. 90-151; s. 65, ch. 91-110; s. 9, ch. 93-58; s. 13, ch. 95-274; s. 900, ch. 97-102; s. 9, ch. 98-36.

721.16  Liens for overdue assessments; liens for labor performed on, or materials furnished to, a unit.--

(1)  The managing entity has a lien on a timeshare period for any assessment levied against that timeshare period from the date such assessment becomes due.

(2)  The managing entity may bring an action in its name to foreclose a lien for assessments in the manner a mortgage of real property is foreclosed and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien. However, in the case of a timeshare plan in which no interest in real property is conveyed, the managing entity may bring an action under the Uniform Commercial Code.

(3)  The lien is effective from the date of recording a claim of lien in the public records of the county or counties in which the accommodations or facilities constituting the timeshare plan are located. The claim of lien shall state the name of the timeshare plan and identify the timeshare period for which the lien is effective, state the name of the purchaser, state the assessment amount due, and state the due dates. Notwithstanding any provision of s. 718.116(5)(a) to the contrary, the lien is effective until satisfied or until 5 years have expired after the date the claim of lien is recorded unless, within that time, an action to enforce the lien is commenced pursuant to subsection (2). The claim of lien may include only assessments which are due when the claim is recorded. A claim of lien shall be signed and acknowledged by an officer or agent of the managing entity. Upon full payment, the person making the payment is entitled to receive a satisfaction of the lien.

(4)  A judgment in any action or suit brought under this section shall include costs and reasonable attorney's fees for the prevailing party.

(5)  Labor performed on a unit, or materials furnished to a unit, shall not be the basis for the filing of a lien pursuant to part I of chapter 713, the Construction Lien Law, against the timeshare unit of any timeshare-period owner not expressly consenting to or requesting the labor or materials.

History.--s. 1, ch. 81-172; s. 53, ch. 85-62; s. 4, ch. 88-403; s. 27, ch. 90-109; s. 26, ch. 90-151.

721.165  Insurance.--

(1)  The seller, initially, and thereafter the managing entity, shall be responsible for obtaining insurance to protect the accommodations and facilities of the timeshare plan in an amount equal to the replacement cost of such accommodations and facilities.

(2)  A copy of each policy of insurance in effect shall be made available for reasonable inspection by purchasers and their authorized agents.

History.--s. 1, ch. 81-172; s. 54, ch. 85-62.

721.17  Transfer of interest.--Except in the case of a timeshare plan subject to the provisions of chapter 718 or chapter 719, no developer or owner of the underlying fee shall sell, lease, assign, mortgage, or otherwise transfer his or her interest in the accommodations or facilities of the timeshare plan except by an instrument evidencing the transfer recorded in the public records of the county in which the accommodations or facilities are located. The instrument shall be executed by both the transferor and transferee and shall state:

(1)  That its provisions are intended to protect the rights of all purchasers of the plan.

(2)  That its terms may be enforced by any prior or subsequent timeshare purchaser so long as that purchaser is not in default of his or her obligations.

(3)  That the transferee will fully honor the rights of the purchasers to occupy and use the accommodations and facilities as provided in their original contracts and the timeshare instruments.

(4)  That the transferee will fully honor all rights of timeshare purchasers to cancel their contracts and receive appropriate refunds.

(5)  That the obligations of the transferee under such instrument will continue to exist despite any cancellation or rejection of the contracts between the developer and purchaser arising out of bankruptcy proceedings.

Should any transfer of the interest of the developer or owner of the underlying fee occur in a manner which is not in compliance with this section, the terms set forth in this section shall be presumed to be a part of the transfer and shall be deemed to be included in the instrument of transfer. Notice shall be mailed to each purchaser of record within 30 days of the transfer. Persons who hold mortgages on the property constituting a timeshare plan before the public offering statement of such plan is approved by the division shall not be considered transferees for the purposes of this section.

History.--s. 1, ch. 81-172; s. 16, ch. 83-264; s. 901, ch. 97-102.

721.18  Exchange programs; filing of information and other materials; filing fees; unlawful acts in connection with an exchange program.--

(1)  If a purchaser is offered the opportunity to subscribe to an exchange program, the seller shall deliver to the purchaser, together with the public offering statement, and prior to the offering or execution of any contract between the purchaser and the company offering the exchange program, written information regarding such exchange program; or, if the exchange company is dealing directly with the purchaser, the exchange company shall deliver to the purchaser, prior to the initial offering or execution of any contract between the purchaser and the company offering the exchange program, written information regarding such exchange program. In either case, the purchaser shall certify in writing to the receipt of such information. Such information shall include, but is not limited to, the following information, the form and substance of which shall first be approved by the division in accordance with subsection (2):

(a)  The name and address of the exchange company.

(b)  The names of all officers, directors, and shareholders of the exchange company.

(c)  Whether the exchange company or any of its officers or directors has any legal or beneficial interest in any developer, seller, or managing entity for any timeshare plan participating in the exchange program and, if so, the name and location of the timeshare plan and the nature of the interest.

(d)  Unless otherwise stated, a statement that the purchaser's contract with the exchange company is a contract separate and distinct from the purchaser's contract with the seller of the timeshare plan.

(e)  Whether the purchaser's participation in the exchange program is dependent upon the continued affiliation of the timeshare plan with the exchange program.

(f)  A statement that the purchaser's participation in the exchange program is voluntary.

(g)  A complete and accurate description of the terms and conditions of the purchaser's contractual relationship with the exchange program and the procedure by which changes thereto may be made.

(h)  A complete and accurate description of the procedure to qualify for and effectuate exchanges.

(i)  A complete and accurate description of all limitations, restrictions, or priorities employed in the operation of the exchange program, including, but not limited to, limitations on exchanges based on seasonality, unit size, or levels of occupancy, expressed in boldfaced type, and, in the event that such limitations, restrictions, or priorities are not uniformly applied by the exchange program, a clear description of the manner in which they are applied.

(j)  Whether exchanges are arranged on a space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange program.

(k)  Whether and under what circumstances a purchaser, in dealing with the exchange program, may lose the use and occupancy of her or his timeshare period in any properly applied for exchange without her or his being provided with substitute accommodations by the exchange program.

(l)  The fees or range of fees for participation by purchasers in the exchange program, a statement whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made.

(m)  The name and address of the site of each accommodation or facility included in the timeshare plans participating in the exchange program.

(n)  The number of the timeshare units in each timeshare plan which are available for occupancy and which qualify for participation in the exchange program, expressed within the following numerical groupings: 1-5; 6-10; 11-20; 21-50; and 51 and over.

(o)  The number of currently enrolled purchasers for each timeshare plan participating in the exchange program, expressed within the following numerical groupings: 1-100; 101-249; 250-499; 500-999; and 1,000 and over; and a statement of the criteria used to determine those purchasers who are currently enrolled with the exchange program.

(p)  The disposition made by the exchange company of timeshare periods deposited with the exchange program by purchasers enrolled in the exchange program and not used by the exchange company in effecting exchanges.

(q)  The following information, which shall be independently audited by a certified public accountant or accounting firm in accordance with the standards of the Accounting Standards Board of the American Institute of Certified Public Accountants and reported annually beginning no later than July 1, 1982:

1.  The number of purchasers currently enrolled in the exchange program.

2.  The number of accommodations and facilities that have current affiliation agreements with the exchange program.

3.  The percentage of confirmed exchanges, which is the number of exchanges confirmed by the exchange program divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for.

4.  The number of timeshare periods for which the exchange program has an outstanding obligation to provide an exchange to a purchaser who relinquished a timeshare period during the year in exchange for a timeshare period in any future year.

5.  The number of exchanges confirmed by the exchange program during the year.

(r)  A statement in boldfaced type to the effect that the percentage described in subparagraph (q)3. is a summary of the exchange requests entered with the exchange program in the period reported and that the percentage does not indicate the probabilities of a purchaser's being confirmed to any specific choice or range of choices.

(2)  Each exchange company offering an exchange program to purchasers in this state shall file the information specified in subsection (1) and the audit specified in subsection (1) on or before June 1 of each year. However, an exchange company shall make its initial filing at least 20 days prior to offering an exchange program to any purchaser in this state. Each filing shall be accompanied by an annual filing fee of $500. Within 20 days of receipt of such filing, the division shall determine whether the filing is adequate to meet the requirements of this section and shall notify the exchange company in writing that the division has either approved the filing or found specified deficiencies in the filing. If the division fails to respond within 20 days, the filing shall be deemed approved. The exchange company may correct the deficiencies; and, within 10 days after receipt of corrections from the exchange company, the division shall notify the exchange company in writing that the division has either approved the filing or found additional specified deficiencies in the filing. If at any time the division determines that any of such information supplied by an exchange company fails to meet the requirements of this section, the division may undertake enforcement action against the exchange company in accordance with the provision of s. 721.26.

(3)  No developer shall have any liability with respect to any violation of this chapter arising out of the publication by the developer of information provided to it by an exchange company pursuant to this section. No exchange company shall have any liability with respect to any violation of this chapter arising out of the use by a developer of information relating to an exchange program other than that provided to the developer by the exchange company.

(4)  Audio, written, or visual publications or materials relating to an exchange company or an exchange program shall be filed with the division within 3 days of their use.

(5)  The failure of an exchange company to observe the requirements of this section, or the use of any unfair or deceptive act or practice in connection with the operation of an exchange program, is a violation of this chapter.

History.--s. 1, ch. 81-172; s. 158, ch. 83-216; s. 18, ch. 83-264; s. 55, ch. 85-62; s. 902, ch. 97-102; s. 10, ch. 98-36.

721.19  Provisions requiring purchase or lease of timeshare property by owners' association or unit owners; validity.--In any timeshare plan in which timeshare estates are sold, no grant or reservation made by a declaration, lease, or other document, nor any contract made by the developer, managing entity, or owners' association, which requires the owners' association or unit owners to purchase or lease any portion of the timeshare property shall be valid unless approved by a majority of the purchasers other than the developer, after more than 50 percent of the timeshare periods have been sold.

History.--s. 13, ch. 83-264.

721.20  Licensing requirements; suspension or revocation of license; exceptions to applicability; collection of advance fees for listings unlawful.--

(1)  Any seller of a timeshare plan must be a licensed real estate salesperson, broker, or broker-salesperson as defined in s. 475.01, except as provided in s. 475.011. Solicitors licensed under the provisions of paragraph (2)(a) who engage only in the solicitation of prospective purchasers, and purchasers engaging in solicitation activities as described in paragraph (2)(e), are exempt from the provisions of chapter 475.

(2)(a)  Pursuant to rules adopted by the division, each off-premises solicitor or other person who engages in the solicitation of prospective purchasers of units in a timeshare plan must purchase a timeshare occupational license for a fee of $100. The license shall be issued to the solicitor for a 2-year period and shall expire on the second anniversary of the date of issuance. Sellers of a timeshare plan who are licensed and in good standing under chapter 475 shall be exempt from licensure under this subsection upon filing proof of such licensure and good standing with the division prior to engaging in any solicitation activity. However, the division may deny, suspend, or revoke the exemption of such seller when the license issued under chapter 475 has been suspended or revoked.

(b)  It is unlawful for any person to solicit prospective purchasers of a timeshare plan without first having secured a timeshare occupational license and having paid the occupational license fee; however, an applicant who has completed and filed an application for a timeshare occupational license and who has paid the required occupational license fee may solicit prospective purchasers of a timeshare plan pursuant to this section pending approval or denial of his or her application by the division.

(c)  Prior to issuing an occupational license to an applicant, the division shall receive an application, on forms designed by the division, containing such pertinent background information as is necessary to properly identify the applicant; however, the fingerprinting of applicants is not required.

(d)  The division may deny, suspend, or revoke any occupational license when the applicant or holder thereof has violated the provisions of chapter 468, chapter 718, chapter 719, this chapter, or the rules of the division governing timesharing, or when the holder of a license issued pursuant to chapter 475 has had his or her license suspended or revoked. If any occupational license expires by division rule while administrative charges are pending against the license, the proceedings against the license shall continue to conclusion as if the license were still in effect. In addition to those remedies available against the developer, the division may impose against an applicant or licensed solicitor a civil fine of up to $500 in addition to, or in lieu of, a suspension or revocation provided for in this section for violation of the rules of the division.

(e)  Any purchaser who refers no more than 20 people to a developer per year or who otherwise provides testimonials on behalf of a developer shall not be subject to licensure under the provisions of paragraph (a).

(f)  The division may require up to 2 hours of continuing education annually as a condition of renewal of an occupational license.

(3)  This section does not apply to those individuals who offer for sale only timeshare periods in timeshare property located outside this state and who do not engage in any sales activity within this state or to timeshare plans which are registered with the Securities and Exchange Commission. For the purposes of this section, both timeshare licenses and timeshare estates are considered to be interests in real property.

(4)  Notwithstanding the provisions of s. 475.452, it is unlawful for any broker, salesperson, or broker-salesperson to collect any advance fee for the listing of any timeshare estate or timeshare license.

History.--s. 1, ch. 81-172; s. 19, ch. 83-264; s. 7, ch. 84-256; s. 56, ch. 85-62; s. 6, ch. 87-343; s. 10, ch. 93-58; s. 14, ch. 95-274; s. 903, ch. 97-102.

721.21  Purchasers' remedies.--An action for damages or for injunctive or declaratory relief for a violation of this chapter may be brought by any purchaser or association of purchasers against the developer, a seller, an escrow agent, or the managing entity. The prevailing party in any such action, or in any action in which the purchaser claims a right of voidability based upon either a closing before the expiration of the cancellation period or an amendment which materially alters or modifies the offering in a manner adverse to the purchaser, may be entitled to reasonable attorney's fees. Relief under this section does not exclude other remedies provided by law.

History.--s. 1, ch. 81-172; s. 20, ch. 83-264.

721.22  Partition.--

(1)  No action for partition of any timeshare unit shall lie, unless otherwise provided for in the contract between the seller and the purchaser.

(2)  If a timeshare estate exists as an estate for years with a future interest, the estate for years shall not be deemed to have merged with the future interest, but neither the estate for years nor the corresponding future interest shall be conveyed or encumbered separately from the other.

History.--s. 1, ch. 81-172; s. 21, ch. 83-264.

721.23  Securities.--Timeshare plans are not securities under the provisions of chapter 517 or its successor.

History.--s. 1, ch. 81-172; s. 57, ch. 85-62.

721.24  Firesafety.--

(1)  Any:

(a)  Facility or accommodation of a timeshare plan, as defined in this chapter and chapter 718, which is of three stories or more and for which the construction contract has been let after September 30, 1983, with interior corridors which do not have direct access from the timeshare unit to exterior means of egress, or

(b)  Building over 75 feet in height that has direct access from the timeshare unit to exterior means of egress and for which the construction contract has been let after September 30, 1983,

shall be equipped with an automatic sprinkler system installed in compliance with the provisions prescribed in the National Fire Protection Association publication NFPA No. 13 (1985), "Standards for the Installation of Sprinkler Systems." The sprinkler installation may be omitted in closets which are not over 24 square feet in area and in bathrooms which are not over 55 square feet in area, which closets and bathrooms are located in timeshare units. Each timeshare unit shall be equipped with an approved listed single-station smoke detector meeting the minimum requirements of NFPA-74 (1984), "Standards for the Installation, Maintenance and Use of Household Fire Warning Equipment," powered from the building electrical service, notwithstanding the number of stories in the structure, if the contract for construction is let after September 30, 1983. Single-station smoke detection is not required when a timeshare unit's smoke detectors are connected to a central alarm system which also alarms locally.

(2)  Any timeshare unit of a timeshare plan, as defined in this chapter and chapter 718 which is of three stories or more and for which the construction contract was let before October 1, 1983, shall be equipped with:

(a)  A system which complies with subsection (1); or

(b)  An approved sprinkler system for all interior corridors, public areas, storage rooms, closets, kitchen areas, and laundry rooms, less individual timeshare units, if the following conditions are met:

1.  There is a minimum 1-hour separation between each timeshare unit and between each timeshare unit and a corridor.

2.  The building is constructed of noncombustible materials.

3.  The egress conditions meet the requirements of s. 5-3 of the Life Safety Code, NFPA 101 (1985).

4.  The building has a complete automatic fire detection system which meets the requirements of NFPA-72A (1987) and NFPA-72E (1984), including smoke detectors in each timeshare unit individually annunciating to a panel at a supervised location.

(3)  The Division of State Fire Marshal of the Department of Insurance may prescribe uniform standards for firesafety equipment for timeshare units of timeshare plans for which the construction contracts were let before October 1, 1983. An entire building shall be equipped as outlined, except that the approved sprinkler system may be delayed by the Division of State Fire Marshal until October 1, 1991, on a schedule for complete compliance in accordance with rules adopted by the Division of State Fire Marshal, which schedule shall include a provision for a 1-year extension which may be granted not more than three times for any individual requesting an extension. The entire system must be installed and operational by October 1, 1994. The Division of State Fire Marshal shall not grant an extension for the approved sprinkler system unless a written request for the extension and a construction work schedule is submitted. The Division of State Fire Marshal may grant an extension upon demonstration that compliance with this section by the date required would impose an extreme hardship and a disproportionate financial impact. Any establishment that has been granted an extension by the Division of State Fire Marshal shall post, in a conspicuous place on the premises, a public notice stating that the establishment has not yet installed the approved sprinkler system required by law.

(4)  The provisions for installation of single-station smoke detectors required in subsection (1) and subparagraph (2)(b)4. shall be waived by the Division of State Fire Marshal for any establishment for which the construction contract was let before October 1, 1983, and which is under three stories in height, if each individual timeshare unit is equipped with a smoke detector approved by the Division of State Fire Marshal.

(5)  The Division of State Fire Marshal shall adopt, in accordance with the provisions of chapter 120, any rules necessary for the implementation and enforcement of this section. The Division of State Fire Marshal shall enforce this section in accordance with the provisions of chapter 633.

History.--s. 55, ch. 90-339.

721.25  Zoning and building.--All laws, ordinances, and regulations concerning buildings or zoning shall be construed and applied with reference to the nature and use of the real estate timeshare plan property, without regard to the form of ownership.

History.--s. 1, ch. 81-172; s. 159, ch. 83-216; s. 58, ch. 85-62.

721.26  Regulation by division.--The division has the power to enforce and ensure compliance with the provisions of this chapter, except for parts III and IV, using the powers provided in this chapter, as well as the powers prescribed in chapters 498, 718, and 719. In performing its duties, the division shall have the following powers and duties:

(1)  To aid in the enforcement of this chapter, or any division rule or order promulgated or issued pursuant to this chapter, the division may make necessary public or private investigations within or outside this state to determine whether any person has violated or is about to violate this chapter, or any division rule or order promulgated or issued pursuant to this chapter.

(2)  The division may require or permit any person to file a written statement under oath or otherwise, as the division determines, as to the facts and circumstances concerning a matter under investigation.

(3)  For the purpose of any investigation under this chapter, the director of the division or any officer or employee designated by the director may administer oaths or affirmations, subpoena witnesses and compel their attendance, take evidence, and require the production of any matter which is relevant to the investigation, including the identity, existence, description, nature, custody, condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence. Failure to obey a subpoena or to answer questions propounded by the investigating officer and upon reasonable notice to all persons affected thereby shall be a violation of this chapter. In addition to the other enforcement powers authorized in this subsection, the division may, at its discretion, apply to the circuit court for an order compelling compliance.

(4)  The division may prepare and disseminate a prospectus and other information to assist prospective purchasers, sellers, and managing entities of timeshare plans in assessing the rights, privileges, and duties pertaining thereto.

(5)  Notwithstanding any remedies available to purchasers, if the division has reasonable cause to believe that a violation of this chapter, or of any division rule or order promulgated or issued pursuant to this chapter, has occurred, the division may institute enforcement proceedings in its own name against any regulated party, as such term is defined in this subsection:

(a)1.  "Regulated party," for purposes of this section, means any developer, exchange company, seller, managing entity, association, association director, association officer, management firm, escrow agent, trustee, any respective assignees or agents, or any other person having duties or obligations pursuant to this chapter.

2.  Any person who materially participates in any offer or disposition of any interest in, or the management or operation of, a timeshare plan in violation of this chapter or relevant rules involving fraud, deception, false pretenses, misrepresentation, or false advertising or the disbursement, concealment, or diversion of any funds or assets, which conduct adversely affects the interests of a purchaser, and which person directly or indirectly controls a regulated party or is a general partner, officer, director, agent, or employee of such regulated party, shall be jointly and severally liable under this subsection with such regulated party, unless such person did not know, and in the exercise of reasonable care could not have known, of the existence of the facts giving rise to the violation of this chapter. A right of contribution shall exist among jointly and severally liable persons pursuant to this paragraph.

(b)  The division may permit any person whose conduct or actions may be under investigation to waive formal proceedings and enter into a consent proceeding whereby an order, rule, or letter of censure or warning, whether formal or informal, may be entered against that person.

(c)  The division may issue an order requiring a regulated party to cease and desist from an unlawful practice under this chapter and take such affirmative action as in the judgment of the division will carry out the purposes of this chapter.

(d)1.  The division may bring an action in circuit court for declaratory or injunctive relief or for other appropriate relief, including restitution.

2.  The division shall have broad authority and discretion to petition the circuit court to appoint a receiver with respect to any managing entity which fails to perform its duties and obligations under this chapter with respect to the operation of a timeshare plan. The circumstances giving rise to an appropriate petition for receivership under this subparagraph include, but are not limited to:

a.  Damage to or destruction of any of the accommodations or facilities of a timeshare plan, where the managing entity has failed to repair or reconstruct same.

b.  A breach of fiduciary duty by the managing entity, including, but not limited to, undisclosed self-dealing or failure to timely assess, collect, or disburse the common expenses of the timeshare plan.

c.  Failure of the managing entity to operate the timeshare plan in accordance with the timeshare instrument and this chapter.

If, under the circumstances, it appears that the events giving rise to the petition for receivership cannot be reasonably and timely corrected in a cost-effective manner consistent with the timeshare instrument, the receiver may petition the circuit court to implement such amendments or revisions to the timeshare instrument as may be necessary to enable the managing entity to resume effective operation of the timeshare plan, or to enter an order terminating the timeshare plan, or to enter such further orders regarding the disposition of the timeshare property as the court deems appropriate. All reasonable costs and fees of the receiver relating to the receivership shall become common expenses of the timeshare plan upon order of the court.

3.  The division may revoke its approval of any filing for any timeshare plan for which a petition for receivership has been filed pursuant to this paragraph.

(e)1.  The division may impose a penalty against any regulated party for a violation of this chapter or any rule adopted thereunder. A penalty may be imposed on the basis of each day of continuing violation, but in no event may the penalty for any offense exceed $10,000. All accounts collected shall be deposited with the Treasurer to the credit of the Division of Florida Land Sales, Condominiums, and Mobile Homes Trust Fund.

2.a.  If a regulated party fails to pay a penalty, the division shall thereupon issue an order directing that such regulated party cease and desist from further operation until such time as the penalty is paid; or the division may pursue enforcement of the penalty in a court of competent jurisdiction.

b.  If an association or managing entity fails to pay a civil penalty, the division may pursue enforcement in a court of competent jurisdiction.

(f)  In order to permit the regulated party an opportunity either to appeal such decision administratively or to seek relief in a court of competent jurisdiction, the order imposing the penalty or the cease and desist order shall not become effective until 20 days after the date of such order.

(g)  Any action commenced by the division shall be brought in the county in which the division has its executive offices or in the county where the violation occurred.

(h)  Notice to any regulated party shall be complete when delivered by United States mail, return receipt requested, to the party's address currently on file with the division or to such other address at which the division is able to locate the party. Every regulated party has an affirmative duty to notify the division of any change of address at least 5 business days prior to such change.

(6)  The division has authority to adopt rules pursuant to ss. 120.536(1) and 120.54 to implement and enforce the provisions of this chapter.

(7)(a)  The use of any unfair or deceptive act or practice by any person in connection with the sales or other operations of an exchange program or timeshare plan is a violation of this chapter.

(b)  Any violation of the Florida Deceptive and Unfair Trade Practices Act, ss. 501.201 et seq., relating to the creation, promotion, sale, operation, or management of any timeshare plan shall also be a violation of this chapter.

(c)  The division is authorized to institute proceedings against any such person and take any appropriate action authorized in this section in connection therewith, notwithstanding any remedies available to purchasers.

(8)  The failure of any person to comply with any order of the division is a violation of this chapter.

History.--s. 1, ch. 81-172; s. 22, ch. 83-264; s. 23, ch. 87-102; s. 15, ch. 95-274; s. 11, ch. 98-36; s. 223, ch. 98-200.

721.265  Service of process.--

(1)  In addition to the methods of service provided for in the Florida Rules of Civil Procedure and the Florida Statutes, service of process may be made by delivering a copy of the process to the director of the division, which shall be binding upon the defendant or respondent, if:

(a)  The plaintiff, which may be the division, immediately sends a copy of the process and the pleading by certified mail to the defendant or respondent at her or his last known address.

(b)  The plaintiff files an affidavit of compliance with this section on or before the return date of the process or within the time set by the court.

(2)  If any person, including any nonresident of this state, allegedly engages in conduct prohibited by this chapter, or by any rule or order of the division, and has not filed a consent to service of process, and personal jurisdiction over her or him cannot otherwise be obtained in this state, the director shall be authorized to receive service of process in any noncriminal proceeding against that person or her or his successor which grows out of the conduct and which is brought under this chapter or any rule or order of the division. The process shall have the same force and validity as if personally served. Notice shall be given as provided in subsection (1).

(3)  In addition to any means recognized by law, substituted service of process on timeshare purchasers in receivership proceedings may be made in accordance with s. 721.85(1).

History.--s. 16, ch. 95-274; s. 904, ch. 97-102; s. 12, ch. 98-36.

721.27  Annual fee for each timeshare period in plan.--On January 1 of each year, each managing entity shall collect as a common expense and pay to the division an annual fee equal to the aggregate filing fee calculated pursuant to s. 721.07(4)(a) or s. 721.58, whichever is applicable, based upon the total number of periods of 7-day annual use availability that exist within the timeshare plan at that time. Each developer of a phased timeshare plan shall remit to the managing entity that portion of the annual fee that relates to those timeshare units filed for sale by the developer but not yet declared as part of the condominium or cooperative regime or otherwise committed to the timeshare plan before January 1. If any portion of the annual fee is not paid by March 1, the managing entity shall be assessed a late fee of 10 percent of the amount due or $250, whichever is greater.

History.--s. 1, ch. 81-172; s. 23, ch. 83-264; s. 10, ch. 91-236; s. 11, ch. 93-58; s. 17, ch. 95-274.

721.28  Division of Florida Land Sales, Condominiums, and Mobile Homes Trust Fund.--All funds collected by the division and any amounts paid as fees or penalties under this chapter shall be deposited in the State Treasury to the credit of the Division of Florida Land Sales, Condominiums, and Mobile Homes Trust Fund created by s. 498.019.

History.--s. 1, ch. 81-172; s. 22, ch. 83-339; s. 24, ch. 87-102.

721.301  Florida Timesharing, Vacation Club, and Hospitality Program.--

(1)(a)  There is established the Florida Timesharing, Vacation Club, and Hospitality Program. The primary purpose of this program is to provide the opportunity for a public-private partnership between the state and the timeshare, vacation club, hospitality, and tourism industries affecting this state.

(b)  In conducting the program, the director, or the director's designee, shall:

1.  Solicit research and educational projects and proposals from the timeshare, vacation club, hospitality, and tourism industries;

2.  Consult with the Florida chapter of the American Resort Development Association (ARDA-Florida), the Chancellor of the State University System, or the chancellor's designee; and

3.  Assist in the preparation of appropriate reports produced by the program partnership.

(c)  The director may designate funds from the Division of Florida Land Sales, Condominiums, and Mobile Homes Trust Fund, not to exceed $50,000 annually, to support the projects and proposals undertaken pursuant to paragraph (b). All state trust funds to be expended pursuant to this section must be matched equally with private moneys and shall comprise no more than half of the total moneys expended annually.

(2)  As the initial focus of the program partnership described in subsection (1), the director shall prepare a report identifying problems and solutions relating to the method by which timeshare periods are assessed for ad valorem real and personal property taxation; the method by which such taxes are collected; and the impact of taxes upon the timeshare, vacation club, hospitality, and tourism industries in this state. Such report shall include recommendations regarding solutions and remedies and shall be submitted to the President of the Senate and the Speaker of the House of Representatives on or before January 15, 1996.

(3)  The division is authorized to adopt, amend, and repeal rules prescribing criteria for processing and approval of project applications.

History.--s. 28, ch. 95-274; s. 13, ch. 97-93; s. 905, ch. 97-102.

721.50  Short title.

721.51  Legislative purpose; scope.

721.52  Definitions.

721.53  Subordination instruments; alternate security arrangements.

721.54  Term of nonspecific multisite timeshare plans.

721.55  Multisite timeshare plan public offering statement.

721.551  Delivery of multisite timeshare plan public offering statement.

721.552  Additions, substitutions, or deletions of component site accommodations or facilities; purchaser remedies for violations.

721.553  Portrayal of proposed component sites.

721.56  Management of multisite timeshare plans; reservation systems; demand balancing.

721.57  Offering of timeshare estates in multisite timeshare plans; required provisions in the timeshare instrument.

721.58  Filing fee; annual fee.

721.50  Short title.--This part may be cited as the "McAllister Act" in recognition and appreciation for the years of extraordinary and insightful contributions by Mr. Bryan C. McAllister, Examinations Supervisor, Division of Florida Land Sales, Condominiums, and Mobile Homes.

History.--s. 12, ch. 93-58; s. 33, ch. 95-274.

721.51  Legislative purpose; scope.--

(1)  The purpose of this part is to advance the purposes of this chapter as set forth in s. 721.02 with respect to multisite vacation and timeshare plans, also known as vacation clubs.

(2)  All multisite timeshare plans shall be governed by both part I and this part except where otherwise provided in this part. In the event of a conflict between the provisions of part I and this part, the provisions of this part shall prevail.

(3)(a)  A multisite timeshare plan which includes accommodations located in this state, but which is offered exclusively outside of the jurisdictional limits of the United States shall be exempt from all other requirements of this part if it complies with paragraph (b).

(b)  In order to claim exemption from regulation under this part pursuant to paragraph (a), the person claiming exemption shall register the following minimum information with the division pertaining to the multisite timeshare plan:

1.  The name and address of the multisite timeshare plan;

2.  The name and address of the developer or seller;

3.  The location and a brief description of the accommodations and facilities of the multisite timeshare plan;

4.  The number of timeshare periods to be offered;

5.  The term of the multisite timeshare plan; and

6.  A copy of the form purchase contract to be utilized in offering the multisite timeshare plan, which contract must contain the disclosure required by paragraph (c).

The division is authorized to adopt rules requiring additional information to be furnished to the division or in the purchase contract in connection with the registration for exemption. The initial exemption registration fee shall be $100; however, the division may provide by rule for an exemption registration fee of up to $500. No person shall be entitled to claim exemption pursuant to paragraph (a) until that person has fully registered pursuant to this paragraph.

(c)  Each purchase contract utilized in offering a multisite timeshare plan for which an exemption is claimed pursuant to this subsection shall contain the following disclosure in conspicuous type immediately above the space provided for the purchaser's signature:

The offering of this timeshare plan outside the jurisdictional limits of the United States of America is exempt from regulation under Florida law, and any purchase resulting from such an offer is not protected by the State of Florida. However, the management and operation of any accommodations or facilities located in Florida is subject to Florida law and may give rise to enforcement action regardless of the location of any offer.

History.--s. 12, ch. 93-58; s. 18, ch. 95-274.

721.52  Definitions.--As used in this part, the term:

(1)  "Applicable law" means the law of the jurisdiction where the accommodations and facilities referred to are located.

(2)  "Component site" means a specific geographic site where a portion of the accommodations and facilities of the multisite timeshare plan are located. If permitted under applicable law, separate phases operated as a single development located at a specific geographic site under common management shall be deemed a single component site for purposes of this part.

(3)  "Inventory" means the accommodations and facilities located at a particular component site or sites owned, leased, licensed, or otherwise acquired for use by a developer and offered as part of the multisite timeshare plan.

(4)  "Multisite timeshare plan" means any method, arrangement, or procedure with respect to which a purchaser obtains, by any means, a recurring right to use and occupy accommodations or facilities of more than one component site, only through use of a reservation system, whether or not the purchaser is able to elect to cease participating in the plan. However, the term "multisite timeshare plan" shall not include any method, arrangement, or procedure wherein:

(a)  The contractually specified maximum total financial obligation on the purchaser's part is $1,500 or less, excluding the aggregate amount of any common expense assessments and special assessments levied by an owners' association or other person who is not an affiliate of the seller or the developer, provided that any such assessment obligations are fully described as accurately as possible in the purchaser's purchase contract, but including all other amounts paid by such purchaser for any purpose whatsoever, regardless of the term of such use and occupancy rights; or

(b)  The term is for a period of 3 years or less, regardless of the purchaser's contractually specified maximum total financial obligation, if any. For purposes of determining the term of such use and occupancy rights, the period of any optional renewals which a purchaser, in his or her sole discretion, may elect to exercise, whether or not for additional consideration, shall be included.

Multisite timeshare plan does not mean an exchange program as defined in s. 721.05. Timeshare estates may only be offered in a multisite timeshare plan pursuant to s. 721.57.

(5)  "Reservation system" means the method, arrangement, or procedure by which a purchaser, in order to reserve the use and occupancy of any accommodation or facility of the multisite timeshare plan for one or more use periods, is required to compete with other purchasers in the same multisite timeshare plan regardless of whether such reservation system is operated and maintained by the multisite timeshare plan managing entity, an exchange company, or any other person. In the event that a purchaser is required to use an exchange program as the purchaser's principal means of obtaining the right to use and occupy a multisite timeshare plan's accommodations and facilities, such arrangement shall be deemed a reservation system. When an exchange company utilizes a mechanism for the exchange of use of timeshare periods among members of an exchange program, such utilization is not a reservation system of a multisite timeshare plan.

(6)  "Vacation club" means a multisite timeshare plan.

History.--s. 12, ch. 93-58; s. 19, ch. 95-274; s. 906, ch. 97-102.

721.53  Subordination instruments; alternate security arrangements.--

(1)  With respect to each accommodation or facility of a multisite timeshare plan, the developer shall provide the division with satisfactory evidence that one of the following has occurred with respect to each interestholder prior to offering the accommodation or facility as a part of the multisite timeshare plan:

(a)  The interestholder has executed and recorded a nondisturbance and notice to creditors instrument pursuant to s. 721.08(2)(c).

(b)  The interestholder has executed a subordination and notice to creditors instrument and recorded it among the appropriate public records in the jurisdiction in which the subject accommodation or facility is located. The subordination instrument shall expressly subordinate the interest or lien of the interestholder in the subject accommodation or facility to the rights of purchasers of the multisite timeshare plan created with respect to such accommodation or facility by the timeshare instrument, and shall provide that:

1.  If the party seeking enforcement is not in default of its obligations, the instrument may be enforced by both the seller and any purchaser of the multisite timeshare plan;

2.  The instrument shall be effective as between the timeshare purchaser and interestholder despite any rejection or cancellation of the contract between the timeshare purchaser and developer as a result of bankruptcy proceedings of the developer; and

3.  So long as a purchaser remains in good standing with respect to her or his obligations under the timeshare instrument, including making all payments to the managing entity required by the timeshare instrument with respect to the annual common expenses of the multisite timeshare plan, then the interestholder will honor all rights of such purchaser relating to the subject accommodation or facility as reflected in the timeshare instrument.

The subordination instrument shall also contain language sufficient to provide subsequent creditors of the developer and the interestholder with notice of the existence of the timeshare plan and of the rights of purchasers and shall serve to protect the interest of the timeshare purchasers from any claims of such subsequent creditors.

(c)  The interestholder has transferred the subject accommodation or facility or all use rights therein to a nonprofit organization or owners' association to be held for the use and benefit of the purchasers, which entity shall act as a fiduciary to the purchasers. Prior to such transfer, any lien or other encumbrance against such accommodation or facility shall be made subject to a subordination and notice to creditors instrument pursuant to either paragraph (a) or paragraph (b). No transfer pursuant to this paragraph shall become effective until the nonprofit organization or owners' association accepts such transfer and the responsibilities set forth in subsection (2).

(d)  The subject accommodation or facility is free and clear of the claims of any interestholder, and the purchasers' rights in and to the subject accommodation or facility as described in and limited by the timeshare instrument are protected by a recorded instrument against the claims of any subsequent creditors of any owner of the underlying fee.

(2)  The nonprofit organization or owners' association described in paragraph (1)(c) shall comply with the following provisions:

(a)  The nonprofit organization or owners' association shall not convey, hypothecate, mortgage, assign, or otherwise transfer or encumber in any fashion any portion of the timeshare property with respect to which any purchaser has a right of use or occupancy unless the timeshare plan is terminated pursuant to the timeshare instrument or the timeshare property held by the entity is deleted from a multisite timeshare plan pursuant to s. 721.552(3).

(b)  The nonprofit organization or owners' association shall notify the division and the managing entity of the multisite timeshare plan of any proposed transfer of the accommodations or facilities or use rights therein which is permitted by paragraph (a) at least 30 days prior to said transfer.

(c)  All expenses reasonably incurred by the nonprofit organization or owners' association in the performance of its duties, pursuant to paragraph (a), shall be common expenses of the timeshare plan.

(3)  In lieu of the requirements of subsection (1) or subsection (2), the director of the division may accept other assurances from the developer with respect to the subject accommodation or facility, including, but not limited to, a surety or fidelity bond or an irrevocable letter of credit, based upon the value of the subject accommodation or facility as established by independent appraisal or other evidence acceptable to the director.

History.--s. 12, ch. 93-58; s. 20, ch. 95-274; s. 907, ch. 97-102.

721.54  Term of nonspecific multisite timeshare plans.--It shall be a violation of this part to represent to a purchaser of a nonspecific multisite timeshare plan as defined in s. 721.552(4) that the term of the plan for that purchaser is longer than the shortest term of availability of any of the accommodations included within the plan at the time of purchase.

History.--s. 12, ch. 93-58; s. 21, ch. 95-274.

721.55  Multisite timeshare plan public offering statement.--Each public offering statement filed with the division for a multisite timeshare plan shall contain the information required by this section and shall comply with the provisions of s. 721.07. The division is authorized to provide by rule the method by which a developer must provide such information to the division. Each multisite timeshare plan public offering statement shall contain the following information and disclosures:

(1)  A cover page containing:

(a)  The name of the multisite timeshare plan.

(b)  The following statement in conspicuous type:

This public offering statement contains important matters to be considered in acquiring an interest in a multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club). The statements contained herein are only summary in nature. A prospective purchaser should refer to all references, exhibits hereto, contract documents, and sales materials. The prospective purchaser should not rely upon oral representations as being correct and should refer to this document and accompanying exhibits for correct representations.

(2)  A summary containing all statements required to be in conspicuous type in the public offering statement and in all exhibits thereto.

(3)  A separate index for the contents and exhibits of the public offering statement.

(4)  A text, which shall include, where applicable, the information and disclosures set forth in paragraphs (a)-(l) below together with cross-references to the location in the public offering statement of each exhibit, if applicable.

(a)  A description of the multisite timeshare plan, including its term, legal structure, and form of ownership. For multisite timeshare plans in which the purchaser will receive a timeshare estate pursuant to s. 721.57 or a specific timeshare license as defined in s. 721.552(4), the description must also include the term of each component site within the multisite timeshare plan.

(b)  A description of the structure and ownership of the reservation system together with a disclosure of the entity responsible for the operation of the reservation system. The description shall include the financial terms of any lease of the reservation system, if applicable. The developer shall not be required to disclose the financial terms of any such lease if such lease is prepaid in full for the term of the multisite timeshare plan or to any extent that neither purchasers nor the managing entity will be required to make payments for the continued use of the system following default by the developer or termination of the managing entity.

(c)1.  A description of the manner in which the reservation system operates. The description shall include a disclosure in compliance with the demand balancing standard set forth in s. 721.56(6) and shall describe the developer's efforts to comply with same in creating the reservation system. The description shall also include a summary of the rules and regulations governing access to and use of the reservation system.

2.  In lieu of describing the rules and regulations of the reservation system in the public offering statement text, the developer may attach the rules and regulations as a separate public offering statement exhibit, together with a cross-reference in the public offering statement text to such exhibit.

3.  For each component site for which occupancy information is available, the developer shall disclose the average level of occupancy calculated by category of quarter or season for the calendar year including the date 2 years prior to the date on which the multisite timeshare plan is first offered. Every 2 years such averages must be revised and updated. In lieu of providing such information in the public offering statement text, the developer may provide the information in a public offering statement exhibit, together with a cross-reference in the public offering statement text to such exhibit.

(d)  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 or facility on a first come, first served basis, including, if applicable, the following statement in conspicuous type:

Component sites contained in the multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club) are subject to priority reservation features which may affect your ability to obtain a reservation.

(e)  A summary of the material rules and regulations, if any, other than the reservation system rules and regulations, affecting the purchaser's use of each accommodation and facility at each component site.

(f)  If the provisions of s. 721.552 and the timeshare instrument permit additions, substitutions, or deletions of accommodations or facilities, the public offering statement must include the following information:

1.  Additions.--

a.  A description of the basis upon which new accommodations and facilities may be added to the multisite timeshare plan; by whom additions may be made; and the anticipated effect of the addition of new accommodations and facilities upon the reservation system, its priorities, its rules and regulations, and the availability of existing accommodations and facilities.

b.  The developer must disclose the existence of any cap on annual increases in common expenses of the multisite timeshare plan that would apply in the event that additional accommodations and facilities are made a part of the plan.

c.  The developer shall also disclose any extent to which the purchasers of the multisite timeshare plan will have the right to consent to any proposed additions; if the purchasers do not have the right to consent, the developer must include the following disclosure in conspicuous type:

Accommodations and facilities may be added to this multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club) without the consent of the purchasers. The addition of accommodations and facilities to the plan may result in the addition of new purchasers who will compete with existing purchasers in making reservations for the use of available accommodations and facilities within the plan, and may also result in an increase in the annual assessment against purchasers for common expenses.

2.  Substitutions.--

a.  A description of the basis upon which new accommodations and facilities may be substituted for existing accommodations and facilities of the multisite timeshare plan; by whom substitutions may be made; the basis upon which the determination may be made to cause such substitutions to occur; and any limitations upon the ability to cause substitutions to occur.

b.  The developer shall also disclose any extent to which purchasers will have the right to consent to any proposed substitutions; if the purchasers do not have the right to consent, the developer must include the following disclosure in conspicuous type:

New accommodations and facilities may be substituted for existing accommodations and facilities of this multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club) without the consent of the purchasers. The replacement accommodations and facilities may be located at a different place or may be of a different type or quality than the replaced accommodations and facilities. The substitution of accommodations and facilities may also result in an increase in the annual assessment against purchasers for common expenses.

3.  Deletions.--A description of any provision of the timeshare instrument governing deletion of accommodations and facilities from the multisite timeshare plan. If the timeshare instrument does not provide for business interruption insurance in the event of a casualty, or if it is unavailable, or if the instrument permits the developer, the managing entity, or the purchasers to elect not to reconstruct after casualty under certain circumstances or to secure replacement accommodations or facilities in lieu of reconstruction, the public offering statement must contain a disclosure that during the reconstruction, replacement, or acquisition period, or as a result of a decision not to reconstruct, purchasers of the plan may temporarily compete for available accommodations on a greater than one-to-one purchaser to accommodation ratio.

(g)  A description of the developer and the managing entity of the multisite timeshare plan, including:

1.  The identity of the developer; the developer's business address; the number of years of experience the developer has in the timeshare, hotel, motel, travel, resort, or leisure industries; and a description of any pending lawsuit or judgment against the developer which is material to the plan. If there are no such pending lawsuits or judgments, there shall be a statement to that effect.

2.  The identity of the managing entity of the multisite timeshare plan; the managing entity's business address; the number of years of experience the managing entity has in the timeshare, hotel, motel, travel, resort, or leisure industries; and a description of any lawsuit or judgment against the managing entity which is material to the plan. If there are no pending lawsuits or judgments, there shall be a statement to that effect. The description of the managing entity shall also include a description of the relationship among the managing entity of the multisite timeshare plan and the various component site managing entities.

(h)  A description of the purchaser's liability for common expenses of the multisite timeshare plan, including the following:

1.  A description of the common expenses of the plan, including the method of allocation and assessment of such common expenses, whether component site common expenses and real estate taxes are included within the total common expense assessment of the multisite timeshare plan, and, if not, the manner in which timely payment of component site common expenses and real estate taxes shall be accomplished.

2.  A description of any cap imposed upon the level of common expenses payable by the purchaser. In no event shall the total common expense assessment for the multisite timeshare plan in a given calendar year exceed 125 percent of the total common expense assessment for the plan in the previous calendar year.

3.  A description of the entity responsible for the determination of the common expenses of the multisite timeshare plan, as well as any entity which may increase the level of common expenses assessed against the purchaser at the multisite timeshare plan level.

4.  A description of the method used to collect common expenses, including the entity responsible for such collections, and the lien rights of any entity for nonpayment of common expenses. If the common expenses of any component site are collected by the managing entity of the multisite timeshare plan, a statement to that effect together with the identity and address of the escrow agent required by s. 721.56(3).

5.  If the purchaser will receive a nonspecific timeshare license as defined in s. 721.552(4), a statement that a multisite timeshare plan budget is attached to the public offering statement as an exhibit pursuant to paragraph (7)(c). The multisite timeshare plan budget shall comply with the provisions of s. 721.07(5)(x).

6.  If the developer intends to guarantee the level of assessments for the multisite timeshare plan, such guarantee must be based upon a good faith estimate of the revenues and expenses of the multisite timeshare plan. The guarantee must include a description of the following:

a.  The specific time period, measured in one or more calendar or fiscal years, during which the guarantee will be in effect.

b.  A statement that the developer will pay all common expenses incurred in excess of the total revenues of the multisite timeshare plan, if the developer is to be excused from the payment of assessments during the guarantee period.

c.  The level, expressed in total dollars, at which the developer guarantees the assessments. If the developer has reserved the right to extend or increase the guarantee level, a disclosure must be included to that effect.

7.  As required under applicable law, the developer shall also disclose the following matters for each component site:

a.  Any limitation upon annual increases in common expenses;

b.  The existence of any bad debt or working capital reserve; and

c.  The existence of any replacement or deferred maintenance reserve.

(i)  If there are any restrictions upon the sale, transfer, conveyance, or leasing of an interest in a multisite timeshare plan, a description of the restrictions together with a statement in conspicuous type in substantially the following form:

The sale, lease, or transfer of interests in this multisite timeshare plan is restricted or controlled.

(j)  The following statement in conspicuous type in substantially the following form:

The purchase of an interest in a multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club) should be based upon its value as a vacation experience or for spending leisure time, and not considered for purposes of acquiring an appreciating investment or with an expectation that the interest may be resold.

(k)  If the multisite 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. In lieu of this requirement, the public offering statement text may contain a cross-reference to other provisions in the public offering statement or in an exhibit containing this information.

(l)  A description of each component site, which description may be disclosed in a written, graphic, tabular, or other form approved by the division. The description of each component site shall include the following information:

1.  The name and address of each component site.

2.  The number of accommodations and timeshare periods, expressed in periods of 7-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 facilities available for use by the purchaser at each component site, including the following:

a.  The intended use of the facility, if not apparent from the description.

b.  The capacity of the facility in terms of the number of people who can use it at any one time.

c.  If the facility is a swimming pool, a statement as to whether or not the pool is heated.

d.  Any user fees associated with a purchaser's use of the facility.

5.  A cross-reference to the location in the public offering statement of the description of any priority reservation features which may affect a purchaser's ability to obtain a reservation in the component site.

(5)  Such other information as the division determines is necessary to fairly, meaningfully, and effectively disclose all aspects of the multisite timeshare plan, including, but not limited to, any disclosures made necessary by the operation of s. 721.03(9). However, if a developer has, in good faith, attempted to comply with the requirements of this section, and if, in fact, the developer has substantially complied with the disclosure requirements of this chapter, nonmaterial errors or omissions shall not be actionable.

(6)  Any other information that the developer, with the approval of the division, desires to include in the public offering statement text.

(7)  The following documents shall be included as exhibits to the public offering statement filed with the division, if applicable:

(a)  The timeshare instrument.

(b)  The reservation system rules and regulations.

(c)  The multisite timeshare plan budget pursuant to subparagraph (4)(h)5.

(d)  Any document containing the material rules and regulations described in paragraph (4)(e).

(e)  Any contract, agreement, or other document through which component sites are affiliated with the multisite timeshare plan.

(f)  Any escrow agreement required pursuant to s. 721.08 or s. 721.56(3).

(g)  The form agreement for sale or lease of an interest in the multisite timeshare plan.

(h)  The form receipt for multisite timeshare plan documents required to be given to the purchaser pursuant to s. 721.551(2)(b).

(i)  The description of documents list required to be given to the purchaser by s. 721.551(2)(b).

(j)  The component site managing entity affidavit or statement required by s. 721.56(1).

(k)  Any subordination instrument required by s. 721.53.

(l)1.  If the multisite timeshare plan contains any component sites located in this state, the information required by s. 721.07(5) pertaining to each such component site.

2.  If the purchaser will receive a timeshare estate pursuant to s. 721.57 or a specific timeshare license as defined in s. 721.552(4) in a component site located outside of this state but which is offered in this state, the information required by s. 721.07(5) pertaining to that component site.

(8)(a)  A timeshare plan containing only one component site must be filed with the division as a multisite timeshare plan if the timeshare instrument reserves the right for the developer to add future component sites. However, if the developer fails to add at least one additional component site to a timeshare plan described in this paragraph within 3 years after the date the plan is initially filed with the division, the multisite filing for such plan shall thereupon terminate, and the developer may not thereafter offer any further interests in such plan unless and until he or she refiles such plan with the division pursuant to this chapter.

(b)  The public offering statement for any timeshare plan described in paragraph (a) must include the following disclosure in conspicuous type:

This timeshare plan has been filed as a multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club); however, this plan currently contains only one component site. The developer is not required to add any additional component sites to the plan. Do not purchase an interest in this plan in reliance upon the addition of any other component sites.

History.--s. 12, ch. 93-58; s. 22, ch. 95-274; s. 14, ch. 97-93; s. 908, ch. 97-102.

721.551  Delivery of multisite timeshare plan public offering statement.--

(1)  The division is authorized to prescribe by rule the form of the approved multisite timeshare plan public offering statement that must be furnished by a seller to each purchaser pursuant to this section. The form of the public offering statement that is furnished to purchasers must provide fair, meaningful, and effective disclosure of all aspects of the multisite timeshare plan.

(2)  The developer shall furnish each purchaser with the following:

(a)  A copy of the approved multisite timeshare plan public offering statement text filed with the division containing the information required by s. 721.55(1)-(6).

(b)  A receipt for multisite timeshare plan documents and a list describing any exhibit to the public offering statement filed with the division which is not delivered to the purchaser. The division is authorized to prescribe by rule the form of the receipt for multisite timeshare plan documents and the description of exhibits list that must be furnished to the purchaser pursuant to this section.

(c)  If the purchaser will receive a timeshare estate pursuant to s. 721.57 or a specific timeshare license as defined in s. 721.552(4) in a component site located in this state, the developer shall also furnish the purchaser with the information required to be delivered pursuant to s. 721.07(6)(a) and (b) for the component site in which the purchaser will receive an estate or license.

(d)  Any other exhibit that the developer elects to include as part of the public offering statement to be furnished to purchasers, provided that the developer first files the exhibit with the division.

(e)  An executed copy of any document which the purchaser signs.

(f)  The developer shall be required to provide the managing entity of the multisite timeshare plan with a copy of the approved public offering statement text and exhibits filed with the division and any approved amendments thereto to be maintained by the managing entity as part of the books and records of the timeshare plan pursuant to s. 721.13(3)(d).

History.--s. 23, ch. 95-274.

721.552  Additions, substitutions, or deletions of component site accommodations or facilities; purchaser remedies for violations.--Additions, substitutions, or deletions of component site accommodations or facilities may be made only in accordance with the following:

(1)  ADDITIONS.--

(a)  The timeshare instrument must provide for:

1.  The basis upon which new accommodations and facilities may be added to the multisite timeshare plan; by whom additions may be made; and the anticipated effect of the addition of new accommodations and facilities upon the reservation system, its priorities, its rules and regulations, and the availability of existing accommodations and facilities.

2.  Any cap on annual increases in common expenses of the multisite timeshare plan that would apply in the event that additional accommodations and facilities are made a part of the plan.

3.  The extent, if any, to which purchasers of the multisite timeshare plan will have the right to consent to any proposed additions.

(b)  Any person who is authorized by the timeshare instrument to make additions to the multisite timeshare plan pursuant to this subsection shall act as a fiduciary in such capacity in the best interests of the purchasers of the plan as a whole and shall adhere to the demand balancing standard set forth in s. 721.56(6) in connection with such additions. Additions that are otherwise permitted may be made only so long as a one-to-one purchaser to accommodation ratio is maintained at all times.

(2)  SUBSTITUTIONS.--

(a)  Substitutions are available only for nonspecific timeshare license plans as defined in subsection (4). Specific timeshare license plans as defined in subsection (4) and plans offering timeshare estates pursuant to s. 721.57 may not contain an accommodation substitution right.

(b)  The timeshare instrument shall provide for the following:

1.  The basis upon which new accommodations and facilities may be substituted for existing accommodations and facilities of the multisite timeshare plan; by whom substitutions may be made; and the basis upon which the determination may be made to cause such substitutions to occur.

2.  The replacement accommodations and facilities must provide purchasers with an opportunity to enjoy a substantially similar vacation experience as was available with the replaced accommodation or facility. In determining whether the replacement accommodations and facilities will provide a substantially similar vacation experience, all relevant factors must be considered, including, but not limited to, some or all of the following: size, capacity, furnishings, maintenance, location (geographic, topographic, and scenic), demand, and availability for purchaser use, and recreational capabilities.

3.  The extent, if any, to which purchasers will have the right to consent to any proposed substitutions.

(c)  No substitutions may be made during the first year after the developer begins to offer the multisite timeshare plan.

(d)  No more than 25 percent of the available accommodations at a given component site may undergo substitution in a given calendar year in which substitution is permitted. This paragraph shall be interpreted to permit the substitution of an entire component site over a 4-year period.

(e)  The person authorized to make substitutions shall notify all purchasers of the multisite timeshare plan in writing of her or his intention to delete accommodations at a given component site and to substitute them with other specified accommodations pursuant to this subsection. This notice must be given at least 6 months in advance of the date that the substitution will occur, and the notice must inform the purchasers that they may reserve the use of the accommodations to be deleted during this 6-month period. At the end of the 6-month period, the person authorized to make substitutions may delete accommodations for substitution only to the extent that they were not reserved during the 6-month period.

(f)  If the managing entity of a multisite timeshare plan includes an owners' association composed of all purchasers or a corporation which owns or controls the accommodations and facilities of the plan, the board of administration of either of which is comprised of a majority of board members elected by purchasers other than the developer, and if such managing entity has the right to make substitutions pursuant to the timeshare instrument, all of the available accommodations at a given component site may undergo substitution in a given year without compliance with paragraphs (d) and (e) if a written plan of substitution provided to each purchaser has been approved by a majority of the board of administration and by a majority of all purchasers in the plan. The plan of substitution must:

1.  Specifically identify the component site being replaced and the proposed substitute component site.

2.  Contain information regarding prior demand for purchaser use of the component site being replaced.

3.  Provide the results of a survey of purchaser attitudes regarding the component site being replaced and the proposed substitute component site.

4.  Explain the practical and business reasons for effecting a total substitution within the given calendar year.

5.  Provide a plan for handling reservation requests during the substitution period for both the component site being replaced and the proposed substitute component site.

Substitutions made pursuant to this paragraph shall not be subject to the provisions of subparagraph (b)2.

(g)  The person who is authorized by the timeshare instrument to make substitutions to the multisite timeshare plan pursuant to this subsection shall act as a fiduciary in such capacity in the best interests of the purchasers of the plan as a whole and shall adhere to the demand balancing standard set forth in s. 721.56(6) in connection with such substitutions. Substitutions that are otherwise permitted may be made only so long as a one-to-one purchaser to accommodation ratio is maintained at all times.

(3)  DELETIONS.--

(a)  Deletion by casualty.--

1.  Pursuant to s. 721.165, the timeshare instrument creating the multisite timeshare plan must provide for casualty insurance for the accommodations and facilities of the multisite timeshare plan in an amount equal to the replacement cost of the accommodations or facilities. The timeshare instrument must also provide that in the event of a casualty that results in accommodations or facilities being unavailable for use by purchasers, the managing entity shall notify all affected purchasers of such unavailability of use within 30 days after the event of casualty.

2.  The timeshare instrument must also provide for the application of any insurance proceeds arising from a casualty to either the replacement or acquisition of additional similar accommodations or facilities or to the removal of purchasers from the multisite timeshare plan so that purchasers will not be competing for available accommodations on a greater than one-to-one purchaser to accommodation ratio.

3.  If the timeshare instrument does not provide for business interruption insurance, or if it is unavailable, or if the instrument permits the developer, the managing entity, or the purchasers to elect not to reconstruct after casualty under certain circumstances or to secure replacement accommodations or facilities in lieu of reconstruction, purchasers of the plan may temporarily compete for available accommodations on a greater than one-to-one purchaser to accommodation ratio. The decision whether or not to reconstruct shall be made as promptly as possible under the circumstances.

4.  Any replacement of accommodations or facilities pursuant to this paragraph shall be made upon the same basis as required for substitution as set forth in subparagraph (2)(b)2.

(b)  Deletion by eminent domain.--

1.  The timeshare instrument creating the multisite timeshare plan must also provide for the application of any proceeds arising from a taking under eminent domain proceedings to either the replacement or acquisition of additional similar accommodations or facilities or to the removal of purchasers from the multisite timeshare plan so that purchasers will not be competing for available accommodations on a greater than one-to-one purchaser to accommodation ratio.

2.  Any replacement of accommodations or facilities pursuant to this paragraph shall be made upon the same basis as required for substitution set forth in subparagraph (2)(b)2.

(c)  Automatic deletion.--The timeshare instrument may provide that a component site will be automatically deleted upon the expiration of its term in other than a nonspecific license plan or as otherwise provided in the timeshare instrument. However, the timeshare instrument must also provide that in the event a component site is deleted from the plan in this manner, a sufficient number of purchasers of the plan will also be deleted so as to maintain no greater than a one-to-one purchaser to accommodation ratio.

(4)  SPECIFIC AND NONSPECIFIC TIMESHARE LICENSES.--For purposes of this chapter, a specific timeshare license means one with respect to which a purchaser receives a specific right to use accommodations and facilities, if any, at one component site of a multisite timeshare plan, together with use rights in the other accommodations and facilities of the multisite timeshare plan created by or acquired through the reservation system. For purposes of this chapter, a nonspecific timeshare license means one with respect to which a purchaser receives a right to use all of the accommodations and facilities, if any, of a multisite timeshare plan through the reservation system, but no specific right to use any particular accommodations and facilities for the remaining term of the multisite timeshare plan in the event that the reservation system is terminated for any reason prior to the expiration of the term of the multisite timeshare plan.

(5)  VIOLATIONS; PURCHASER REMEDIES.--All purchaser remedies pursuant to s. 721.21 shall be available for any violation of the provisions of this section.

History.--s. 24, ch. 95-274; s. 909, ch. 97-102.

721.553  Portrayal of proposed component sites.--A seller of a multisite timeshare plan may portray a possible component site to prospective purchasers with no accommodations or facilities located at such component site being available for use by purchasers so long as the seller satisfies the following requirements:

(1)  A developer of a multisite timeshare plan may disseminate oral or written statements to broadcast or print media describing the general geographic location of a possible component site with no obligation on the developer's part to actually add such component site to the multisite timeshare plan or to amend the developer's filing with the division, but only so long as such oral or written statements are not considered advertising material pursuant to s. 721.11(3)(e). For purposes of this subsection, the term "general geographic location" shall mean the boundaries of a state or country.

(2)  A seller may make representations to purchasers in advertising material or in a public offering statement regarding the possible accommodations and facilities of a possible component site only after the developer has entered into a contract to purchase the real property underlying the possible component site, under which contract all contingencies pertaining to zoning, development, and any necessary consents and permits have been either satisfied or waived. However, prior to the satisfaction or waiver of any contractual contingencies pertaining to zoning, development, or any necessary consents and permits, a seller may portray to purchasers in advertising material or in a public offering statement any drawings, renderings, maps, plans, depictions, or other graphic representations of the possible component site or its accommodations or facilities which have been submitted by the developer to any governmental authority for approval for purposes of obtaining building or development permits. The division may require that the developer provide the division with copies of any documents filed by the developer with any governmental authority pursuant to this subsection.

(3)  In the event a seller makes any of the representations permitted by subsection (2), the purchase agreement must contain the following conspicuous disclosure unless and until such time as the developer has committed itself in the timeshare instrument to adding the possible component site to the multisite timeshare plan, at which time the seller may portray the component site pursuant to the timeshare instrument without restriction:

[Description of possible component site] is only a possible component site which may never be added to the multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club). Do not purchase an interest in the multisite timeshare plan (or multisite vacation ownership plan or multisite vacation plan or vacation club) in reliance upon the addition of this component site.

(4)  Anything contained in this chapter to the contrary notwithstanding, a developer or managing entity may communicate with existing purchasers who have closed on their purchases regarding possible component sites without restriction, so long as all oral and written statements made to existing purchasers pursuant to this subsection comply with the provisions of s. 721.11(4).

(5)  Any violation of this section by a developer, seller, or managing entity shall constitute a violation of this chapter. Any violation of this section with respect to a purchaser whose purchase has not yet closed shall be deemed to provide that purchaser with a new 10-day voidability period.

History.--s. 25, ch. 95-274; s. 15, ch. 97-93.

721.56  Management of multisite timeshare plans; reservation systems; demand balancing.--

(1)  The developer as a prerequisite for approval of his or her public offering statement filing or his or her phase filing must obtain an affidavit, or other evidence satisfactory to the director of the division, from the component site managing entity containing all of the following:

(a)  A statement that all assessments on inventory are fully paid as required by applicable law.

(b)  A statement as to the amount of delinquent assessments existing at the component site, if any.

(c)  If required by applicable law, a statement that the latest annual audit of the component site shows that, if required, reserves are adequately maintained with respect to each component site.

(d)  A statement that the component site managing entity specifically acknowledges the existence of the multisite timeshare plan relating to the use of the accommodations and facilities of the component site by purchasers of the plan.

(2)  In the event that the developer files an affidavit or other evidence with the division pursuant to subsection (1) and subsequently determines that the status of the component site has materially changed such that any portion of the affidavit or other evidence is consequently materially changed, the developer shall immediately notify the division of the change. In any event, the affidavit required by subsection (1) shall be renewed at least annually.

(3)(a)  The managing entity of the multisite timeshare plan shall establish an escrow account with an escrow agent qualified pursuant to s. 721.05 and deposit into such account all payments received by the managing entity from time to time from the developer and purchasers of the plan that relate to common expenses and real estate taxes due with respect to any component site. The managing entity of the multisite timeshare plan shall not be required to escrow payments received from the developer or purchasers that relate to other plan expenses, including those pertaining to the compensation of the managing entity of the multisite timeshare plan and pertaining to the operation of the reservation system.

(b)  Funds may only be disbursed from the escrow account described in paragraph (a) by the escrow agent upon receipt of an affidavit from the managing entity of the multisite timeshare plan specifying the purpose for which the disbursement is requested and making reference to the budgetary source of authority for such disbursement. The escrow agent shall only disburse moneys from escrow relating to a particular component site directly to the managing entity of that component site. Real estate tax payments shall only be disbursed from the escrow account to the component site managing entity or to the appropriate tax collection authority pursuant to applicable law.

(c)  The escrow agent shall be entitled to rely upon the affidavit of the managing entity and shall have no obligation to independently ascertain the propriety of the requested disbursement so long as the escrow agent has no actual knowledge that the affidavit is false in any respect.

(d)  An escrow agent shall maintain the account called for in this section only in such a manner as to be under the direct supervision and control of the escrow agent. The escrow agent shall have a fiduciary duty to each purchaser to maintain the escrow account in accordance with good accounting principles and to release funds from escrow only in accordance with this subsection. The escrow agent shall retain all affidavits received pursuant to this subsection for a period of 5 years. Should the escrow agent receive conflicting demands for the escrowed funds, the escrow agent shall immediately notify the division of the dispute and either promptly submit the matter to arbitration or, by interpleader or otherwise, seek an adjudication of the matter by court.

(e)  Any managing entity or escrow agent who intentionally fails to comply with the provisions of this subsection concerning the establishment of an escrow account, deposit of funds into escrow, and withdrawal therefrom commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, or the successor thereof. The failure to establish an escrow account or to place funds therein as required in this subsection is prima facie evidence of an intentional and purposeful violation of this subsection.

(f)  In lieu of the escrow required by this subsection, the director of the division shall have the discretion to accept other assurances in accordance with s. 721.08, provided that such other assurances are maintained at a minimum amount equal to the total common expense assessment payments for the then-current fiscal year.

(g)  The provisions of this subsection shall not apply to any payments made directly to a component site managing entity by the developer or a purchaser of a multisite timeshare plan.

(4)  The managing entity of a multisite timeshare plan shall comply fully with the requirements of s. 721.13; however, with respect to a given component site, the managing entity of the multisite timeshare plan shall not be responsible for compliance as the managing entity of that component site unless the managing entity of the multisite timeshare plan is also the managing entity of that component site. Unless the timeshare instrument provides otherwise, the operator of the reservation system is the managing entity of a multisite timeshare plan.

(5)(a)1.  The reservation system is a facility of any nonspecific timeshare license multisite timeshare plan as defined in s. 721.552(4). The reservation system is not a facility of any specific timeshare license multisite timeshare plan as defined in s. 721.552(4), nor is it a facility of any multisite timeshare plan in which timeshare estates are offered pursuant to s. 721.57.

2.  The reservation system of any multisite timeshare plan shall include any computer software and hardware employed for the purpose of enabling or facilitating the operation of the reservation system. Nothing contained in this part shall preclude a management company that is serving as managing entity of a multisite timeshare plan from providing in its contract with the purchasers or owners' association of the multisite timeshare plan or in the timeshare instrument that the management company owns the reservation system and that the managing entity shall continue to own the reservation system in the event the purchasers discharge the managing entity pursuant to s. 721.14.

(b)  In the event of a termination of a managing entity of a nonspecific license multisite timeshare plan as defined in s. 721.552(4), which managing entity owns the reservation system, irrespective of whether the termination is voluntary or involuntary and irrespective of the cause of such termination, in addition to any other remedies available to purchasers in this part, the terminated managing entity shall, prior to such termination, establish a trust meeting the criteria set forth in this paragraph. It is the intent of the Legislature that this trust arrangement provide for an adequate period of continued operation of the reservation system of the multisite timeshare plan, during which period the new managing entity shall make provision for the acquisition of a substitute reservation system.

1.  The trust shall be established with an independent trustee. Both the terminated managing entity and the new managing entity shall attempt to agree on an acceptable trustee. In the event they cannot agree on an acceptable trustee, they shall each designate a nominee, and the two nominees shall select the trustee.

2.  The terminated managing entity shall take all steps necessary to enable the trustee or the trustee's designee to operate the reservation system in the same manner as provided in the timeshare instrument and the public offering statement. The trustee may, but shall not be required to, contract with the terminated managing entity for the continued operation of the reservation system. In the event the trustee elects to contract with the terminated managing entity, that managing entity shall be required to operate the reservation system and shall be entitled to payment for that service. The payment shall in no event exceed the amount previously paid to the terminated managing entity for operation of the reservation system.

3.  The trust shall remain in effect for a period of no longer than 1 year following the date of termination of the managing entity.

4.  Nothing contained in this subsection shall abrogate or otherwise interfere with any proprietary rights in the reservation system that have been reserved by the discharged managing entity, in its management contract or otherwise, so long as such proprietary rights are not asserted in a manner that would prevent the continued operation of the reservation system as contemplated in this subsection.

(c)  In the event of a termination of a managing entity of a timeshare estate or specific license multisite timeshare plan as defined in s. 721.552(4), which managing entity owns the reservation system, irrespective of whether the termination is voluntary or involuntary and irrespective of the cause of such termination, in addition to any other remedies available to purchasers in this part, the terminated managing entity shall, prior to such termination, promptly transfer to each component site managing entity all relevant data contained in the reservation system with respect to that component site, including, but not limited to:

1.  The names, addresses, and reservation status of component site accommodations.

2.  The names and addresses of all purchasers of timeshare periods at that component site.

3.  All outstanding confirmed reservations and reservation requests for that component site.

4.  Such other component site records and information as are necessary, in the reasonable discretion of the component site managing entity, to permit the uninterrupted operation and administration of the component site, provided that a given component site managing entity shall not be entitled to any information regarding other component sites or regarding the terminated multisite timeshare plan managing entity.

All reasonable costs incurred by the terminated managing entity in effecting the transfer of information required by this paragraph shall be reimbursed to the terminated managing entity on a pro rata basis by each component site, and the amount of such reimbursement shall constitute a common expense of each component site.

(6)  Prior to offering the multisite timeshare plan, the developer shall create the reservation system and shall establish rules and regulations for its operation. In establishing these rules and regulations, the developer shall take into account the location and anticipated relative use demand of each component site that he or she intends to offer as a part of the plan and shall use his or her best efforts, in good faith and based upon all reasonably available evidence under the circumstances, to further the best interests of the purchasers of the plan as a whole with respect to their opportunity to use and enjoy the accommodations and facilities of the plan. The rules and regulations shall also provide for periodic adjustment or amendment of the reservation system by the managing entity from time to time in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations and facilities existing at that time within the plan. The person authorized to make additions and substitutions during the term of the multisite timeshare plan shall also comply with the requirements of this subsection in ascertaining the desirability of the proposed addition, substitution, adjustment, or amendment and the impact of same upon the demand for and availability of existing plan accommodations and facilities.

History.--s. 12, ch. 93-58; s. 26, ch. 95-274; s. 910, ch. 97-102.

721.57  Offering of timeshare estates in multisite timeshare plans; required provisions in the timeshare instrument.--

(1)  In addition to meeting all the requirements of part I, timeshare estates offered in a multisite timeshare plan must meet the requirements of subsection (2). Any offering of timeshare estates in a multisite timeshare plan that does not comply with these requirements shall be deemed to be an offering of a timeshare license.

(2)  The timeshare instrument of a multisite timeshare plan in which timeshare estates are offered must contain or provide for all of the following matters:

(a)  The purchaser will receive a timeshare estate as defined in s. 721.05 in one of the component sites of the multisite timeshare plan. The use rights in the other component sites of the multisite timeshare plan shall be made available to the purchaser through the reservation system pursuant to the timeshare instrument.

(b)  In the event that the reservation system is terminated or otherwise becomes unavailable for any reason prior to the expiration of the term of the multisite timeshare plan:

1.  The purchaser will be able to continue to use the accommodations and facilities of the component site in which she or he has been conveyed a timeshare estate in the manner described in the timeshare instrument for the remaining term of the timeshare estate; and

2.  Any use rights in that component site which had previously been made available through the reservation system to purchasers of the multisite timeshare plan who were not offered a timeshare estate at that component site will terminate when the reservation system is terminated or otherwise becomes unavailable for any reason.

History.--s. 12, ch. 93-58; s. 911, ch. 97-102.

721.58  Filing fee; annual fee.--

(1)  The developer of the multisite timeshare plan shall pay the filing fee required by s. 721.07(4)(a); however, the maximum amount of such filing fee shall be $25,000 or the total filing fee due with respect to the timeshare units in the multisite timeshare plan that are located in this state pursuant to s. 721.07(4)(a), whichever is greater.

(2)  The managing entity of the multisite timeshare plan shall pay the annual fee required by s. 721.27; provided, however, that the maximum amount of such annual fee shall be $25,000 or the total annual fee due with respect to the timeshare units in the multisite timeshare plan that are located in this state calculated pursuant to s. 721.07(4)(a), whichever is greater.

History.--s. 12, ch. 93-58.

721.80  Short title.

721.81  Legislative purpose.

721.82  Definitions.

721.83  Consolidation of foreclosure actions.

721.84  Appointment of a registered agent; duties.

721.85  Service to notice address or on registered agent.

721.86  Miscellaneous provisions.

721.80  Short title.--This part may be cited as the "Timeshare Lien Foreclosure Act."

History.--s. 13, ch. 98-36.

721.81  Legislative purpose.--The purposes of this part are to:

(1)  Recognize that timeshare estates are parcels of real property used for vacation experience rather than for homestead purposes and that there are numerous timeshare estates in the state.

(2)  Recognize that the economic health and efficient operation of the vacation ownership industry are in part dependent upon the availability of an efficient and economical process for foreclosure.

(3)  Recognize the need to assist vacation ownership resort owners' associations and mortgagees by simplifying and expediting the process of foreclosure of assessment liens and mortgage liens against timeshare estates.

(4)  Reduce court congestion and the cost to taxpayers by establishing streamlined procedures for the foreclosure of assessment liens and mortgage liens against timeshare estates.

History.--s. 13, ch. 98-36.

721.82  Definitions.--As used in this part, the term:

(1)  "Assessment lien" means:

(a)  A lien for delinquent assessments as provided in ss. 721.16 and 718.116 as to timeshare condominiums; or

(b)  A lien for unpaid taxes and special assessments as provided in s. 192.037(8).

(2)  "Junior interestholder" means any person who has a lien or interest of record against a timeshare estate in the county in which the timeshare estate is located, which is inferior to the mortgage lien or assessment lien being foreclosed under this part.

(3)  "Lienholder" means a holder of an assessment lien or a holder of a mortgage lien, as applicable. A receiver appointed under s. 721.26 is a lienholder for purposes of this part.

(4)  "Mortgage" has the same meaning set forth in s. 697.01.

(5)  "Mortgage lien" means a security interest in a timeshare estate created by a mortgage encumbering the timeshare estate.

(6)  "Mortgagee" means a person holding a mortgage lien.

(7)  "Mortgagor" means a person granting a mortgage lien or a person who has assumed the obligation secured by a mortgage lien.

(8)  "Notice address" means:

(a)  As to an assessment lien, the address of the current owner of a timeshare estate as reflected by the books and records of the timeshare plan under ss. 721.13(4) and 721.15(7).

(b)  As to a mortgage lien:

1.  The address of the mortgagor as set forth in the mortgage, the promissory note or a separate document executed by the mortgagor at the time the mortgage lien was created, or the most current address of the mortgagor according to the records of the mortgagee; and

2.  If the current owner of the timeshare estate is different from the mortgagor, the address of the current owner of the timeshare estate as reflected by the books and records of the mortgagee.

(c)  As to a junior interestholder, the address as set forth in the recorded instrument creating the junior interest or lien, or any recorded supplement thereto changing the address, or written notification by the junior interestholder to the foreclosing lienholder of such change in address.

(9)  "Obligor" means the mortgagor, the person subject to an assessment lien, or the record owner of the timeshare estate.

(10)  "Registered agent" means an agent duly appointed by the obligor under s. 721.84 for the purpose of accepting all notices and service of process under this part. A registered agent may be an individual resident in this state whose business office qualifies as a registered office, or a domestic or foreign corporation or a not-for-profit corporation as defined in chapter 617 authorized to transact business or to conduct its affairs in this state, whose business office qualifies as a registered office. A registered agent for any obligor may not be the lienholder or the attorney for the lienholder.

(11)  "Registered office" means the street address of the business office of the registered agent appointed under s. 721.84, located in this state.

History.--s. 13, ch. 98-36.

721.83  Consolidation of foreclosure actions.--

(1)  A complaint in a foreclosure proceeding involving timeshare estates may join in the same action multiple defendant obligors and junior interestholders of separate timeshare estates, provided:

(a)  The foreclosure proceeding involves a single timeshare property;

(b)  The foreclosure proceeding is filed by a single plaintiff;

(c)  The default and remedy provisions in the written instruments on which the foreclosure proceeding is based are substantially the same for each defendant; and

(d)  The nature of the defaults alleged is the same for each defendant.

(2)  In any foreclosure proceeding involving multiple defendants filed under subsection (1), the court shall sever for separate trial any count of the complaint in which a defense or counterclaim is timely raised by a defendant.

History.--s. 13, ch. 98-36.

721.84  Appointment of a registered agent; duties.--

(1)  Any obligor may appoint a registered agent on whom notices and process may be served under s. 721.85. The statement of appointment must be in writing signed by the obligor and must:

(a)  Provide the name of the registered agent and the street address for the registered office;

(b)  Identify the obligor for whom the registered agent serves;

(c)  Indicate the purpose of the appointment;

(d)  Specify the instruments out of which the liens arise;

(e)  Designate the address the obligor wishes to use to receive mail from the registered agent; and

(f)  Contain the obligor's undertaking to inform the registered agent of any change in such designated address.

The statement of appointment must also provide for the registered agent's acceptance of the appointment, which must confirm that the registered agent is familiar with and accepts the obligations of that position as set forth in this section.

(2)  An obligor may change but not revoke its appointment of registered agent and registered office under this chapter by executing a written statement of change that identifies the former registered agent and registered address and also satisfies all of the requirements of subsection (1). A copy of the statement of change must be promptly provided to the former registered agent and the affected lienholder and becomes effective upon receipt by the affected lienholder.

(3)  A registered agent appointed under subsection (1) or a successor registered agent appointed under subsection (2) shall provide the lienholder with a copy of the obligor's appointment and the executed acceptance of the appointment by the registered agent promptly following the registered agent's receipt of the statement of appointment or statement of change executed by the obligor. The statement of appointment or statement of change becomes effective upon receipt by the lienholder of the fully executed form. A successor registered agent shall promptly provide a copy of a statement of change to the former registered agent.

(4)  A registered agent may change its business name or the street address of the registered office for any obligor for which it serves as registered agent by:

(a)  Notifying all obligors of the specific change in writing at the address such obligor designated for receipt of mail from the registered agent; and

(b)  Delivering to each respective lienholder a statement that updates the information on the original appointment or change of appointment, identifies the names of all affected obligors, and states that each such affected obligor has been notified of the change.

(5)  A registered agent may resign his agency appointment for any obligor for which he serves as registered agent, provided that:

(a)  The resigning registered agent executes a written statement of resignation that identifies himself or herself and the street address of his or her registered office, and identifies the obligors affected by his or her resignation;

(b)  A successor registered agent is appointed and such successor registered agent executes an acceptance of appointment as successor registered agent and satisfies all of the requirements of subsection (1). The resigning registered agent may designate the successor registered agent; however, if the resigning registered agent fails to designate a successor registered agent or the designated successor registered agent fails to accept, the successor registered agent for the affected obligors may be designated by the mortgagee as to the ¹mortgage lien and by the association of the timeshare plan as to the assessment lien; and

(c)  Copies of the statement of resignation and acceptance of appointment as successor registered agent are promptly mailed to the affected obligors at the obligors' last designated address shown on the records of the resigning registered agent and to the affected lienholders. The agency and registered office of the resigning registered agent are terminated and the agency and registered office of the successor registered agent are effective as of the 10th day after the date on which the statement of resignation and acceptance of appointment as successor registered agent are received by the lienholder, unless a longer period is provided in the statement of resignation and acceptance of appointment as successor registered agent.

(6)  Unless otherwise provided in this section, a registered agent in receipt of any notice or other document addressed from the lienholder to the obligor in care of the registered agent at the registered office must mail, by first class mail if the obligor's address is within the United States, and by international air mail if the obligor's address is outside the United States, with postage fees prepaid, such notice or documents to the obligor at the obligor's last designated address within 5 days of receipt.

(7)  In the absence of a written agreement to the contrary, a registered agent is not liable for the failure to give notice to the obligor of the receipt of any document under this part if, such registered agent has complied in a timely manner with the procedures and duties in this section.

History.--s. 13, ch. 98-36.

¹Note.--The word "mortgage" was substituted for the word "mortgagee" by the editors.

721.85  Service to notice address or on registered agent.--

(1)  Service of process for a foreclosure proceeding involving a timeshare estate may be made by any means recognized by law. In addition, substituted service on a party who has appointed a registered agent under s. 721.84 may be made on such registered agent at the registered office. Also, when using s. 48.194 where in rem or quasi in rem relief only is sought, such service of process provisions are modified in connection with a foreclosure proceeding against a timeshare estate to provide that:

(a)  Such service of process may be made on any person whether the person is located inside or outside this state, by certified or registered mail, addressed to the person to be served at the notice address, or on the party's registered agent duly appointed under s. 721.84, at the registered office; and

(b)  Service shall be considered obtained upon the signing of the return receipt by any person at the notice address, or by the registered agent.

(2)  The current owner and the mortgagor of a timeshare estate must promptly notify the association of the timeshare plan and the mortgagee of any change of address.

History.--s. 13, ch. 98-36.

721.86  Miscellaneous provisions.--

(1)  The procedures in this part must be given effect in the context of any foreclosure proceedings against timeshare estates governed by this chapter, chapter 702, or chapter 718.

(2)  If any provision of this part, or the application thereof to any person or circumstances, is held invalid, such invalidity does not affect other provisions or applications of this part which can be given effect without the invalid provision or application. To this end, the provisions of this part are declared severable.

(3)  The division has no authority to regulate, enforce, or ensure compliance with any provision of this part.

(4)  In addition to assessment liens and mortgage liens arising after the effective date of this part, the provisions of this part apply to all assessment liens and mortgage liens existing prior to the effective date of this act regarding which a foreclosure proceeding has not yet commenced.

History.--s. 13, ch. 98-36.

721.96  Purpose.

721.97  Timeshare commissioner of deeds.

721.98  Powers of the division.

721.96  Purpose.--The purpose of this part is to provide for the appointment of commissioners of deeds to take acknowledgments, proofs of execution, and oaths outside the United States in connection with the execution of any deed, mortgage, deed of trust, contract, power of attorney, or any other agreement, instrument or writing concerning, relating to, or to be used or recorded in connection with a timeshare estate, timeshare license, any property subject to a timeshare plan, or the operation of a timeshare plan located within this state.

History.--s. 14, ch. 98-36.

721.97  Timeshare commissioner of deeds.--

¹(1)  The Governor may appoint commissioners of deeds to take acknowledgments, proofs of execution, or oaths in any foreign country. The term of office is 4 years. Commissioners of deeds shall have authority to take acknowledgments, proofs of execution, and oaths in connection with the execution of any deed, mortgage, deed of trust, contract, power of attorney, or any other writing to be used or recorded in connection with a timeshare estate, timeshare license, any property subject to a timeshare plan, or the operation of a timeshare plan located within this state; provided such instrument or writing is executed outside the United States. Such acknowledgments, proofs of execution, and oaths must be taken or made in the manner directed by the laws of this state, including but not limited to s. 117.05(4), (5)(a), and (6), Florida Statutes 1997, and certified by a commissioner of deeds. The certification must be endorsed on or annexed to the instrument or writing aforesaid and has the same effect as if made or taken by a notary public licensed in this state.

(2)  Any person seeking to be appointed a commissioner of deeds must take and subscribe to an oath, before a notary public in this state or any other state, or a person authorized to take oaths in another country, to well and faithfully execute and perform the duties of such commissioner of deeds. The oath must be filed with the Department of State prior to the person being commissioned.

(3)  Official acts performed by any previously appointed commissioners of deeds, between May 30, 1997, and the effective date of this part, are declared valid as though such official acts were performed in accordance with and under the authority of this part.

History.--s. 14, ch. 98-36; s. 18, ch. 98-322.

¹Note.--Section 19, ch. 98-322, provides that "[t]he amendment to section 721.97(1), Florida Statutes, made by section 18 of this act shall take effect only if CS for HB 1125 (1998) becomes law, and shall operate retroactively to [April 30, 1998]." Committee Substitute for House Bill 1125 became ch. 98-246.

721.98  Powers of the division.--The division has no duty or authority to regulate, enforce, or ensure compliance with any provision of this part.

History.--s. 14, ch. 98-36.