Senate Bill sb2252
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2002 SB 2252
By Senator Constantine
9-1443-02 See HB
1 A bill to be entitled
2 An act relating to timeshares; amending s.
3 721.13, F.S.; authorizing the managing entity
4 of a timeshare to allocate net rental proceeds
5 in any reasonable manner with respect to a
6 specific timeshare under certain circumstances;
7 authorizing the managing entity to rent certain
8 units to a developer at a bulk rate; amending
9 s. 721.15, F.S.; revising language with respect
10 to assessments for common expenses; providing
11 an effective date.
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13 Be It Enacted by the Legislature of the State of Florida:
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15 Section 1. Paragraph (f) of subsection (6) of section
16 721.13, Florida Statutes, is amended to read:
17 721.13 Management.--
18 (6)
19 (f)1. Provided that the managing entity has properly
20 and timely given notice to a delinquent purchaser pursuant to
21 paragraph (b) and to any affiliated exchange program pursuant
22 to paragraph (c), the managing entity may give further notice
23 to the delinquent purchaser that it may rent the delinquent
24 purchaser's timeshare period, or any use rights appurtenant
25 thereto, and will apply the proceeds of such rental, net of
26 any rental commissions, cleaning charges, travel agent
27 commissions, or any other commercially reasonable charges
28 reasonably and usually incurred by the managing entity in
29 securing rentals, to the delinquent purchaser's account. Such
30 further notice of intent to rent must be given at least 30
31 days prior to the first day of the purchaser's use period, and
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2002 SB 2252
9-1443-02 See HB
1 must be delivered to the purchaser in the manner required for
2 notices under paragraph (b). A managing entity may make a
3 reasonable determination regarding the priority of rentals of
4 timeshare periods to be rented pursuant to this paragraph and,
5 in the event that the delinquent purchaser of a timeshare
6 period rented pursuant to this paragraph cannot be
7 specifically determined due to the structure of the timeshare
8 plan, allocate such net rental proceeds by the managing entity
9 in any reasonable manner.
10 2. The notice of intent to rent, which may be included
11 in the notice required by paragraph (b), must state in
12 conspicuous type that:
13 a. The managing entity's efforts to secure a rental
14 will not commence on a date earlier than 10 days after the
15 date of the notice of intent to rent.
16 b. Unless the purchaser satisfies the delinquency in
17 full, or unless the purchaser produces satisfactory evidence
18 that the delinquency does not exist pursuant to paragraph (b),
19 the purchaser will be bound by the terms of any rental
20 contract entered into by the managing entity with respect to
21 the purchaser's timeshare period or appurtenant use rights.
22 c. The purchaser will remain liable for any difference
23 between the amount of the delinquency and the net amount
24 produced by the rental contract and applied against the
25 delinquency pursuant to this paragraph, and the managing
26 entity shall not be required to provide any further notice to
27 the purchaser regarding any residual delinquency pursuant to
28 this paragraph.
29 3. In securing a rental pursuant to this paragraph,
30 the managing entity shall not be required to obtain the
31 highest nightly rental rate available, nor any particular
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2002 SB 2252
9-1443-02 See HB
1 rental rate, and the managing entity shall not be required to
2 rent the entire timeshare period; however, the managing entity
3 must use reasonable efforts to secure a rental that is
4 commensurate with other rentals of similar timeshare periods
5 or use rights generally secured at that time. Alternatively,
6 the managing entity may rent such units to the developer at a
7 bulk rate that is below the rate described above but not less
8 than $200 per week, which amount may be prorated for daily
9 rentals.
10 Section 2. Subsection (3) of section 721.15, Florida
11 Statutes, is amended to read:
12 721.15 Assessments for common expenses.--
13 (3) Delinquent assessments may bear interest at the
14 highest rate permitted by law or at some lesser rate
15 established by the managing entity. In addition to such
16 interest, the managing entity may charge an administrative
17 late fee in an amount not to exceed $25 for each delinquent
18 assessment. Provided that a purchaser has been advised in
19 writing at least 60 days prior to turning the matter over to a
20 collection agency that the purchaser may be liable for the
21 fees of the collection agency and a lien may result therefrom,
22 Any costs of collection, including reasonable collection
23 agency fees and reasonable attorney's fees, incurred in the
24 collection of a delinquent assessment shall be paid by the
25 purchaser and shall be secured by a lien in favor of the
26 managing entity upon the timeshare interest with respect to
27 which the delinquent assessment has been incurred; provided,
28 however, in the event a managing entity turns the matter over
29 to a collection agency, the managing entity must advise the
30 purchaser at least 60 days prior to turning the matter over to
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2002 SB 2252
9-1443-02 See HB
1 a collection agency that the purchaser may be liable for the
2 fees of the collection agency and a lien may result therefrom.
3 Section 3. This act shall take effect upon becoming a
4 law.
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7 HOUSE SUMMARY
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Revises provisions of law governing timeshares to
9 authorize managing entities to allocate net rental
proceeds in any reasonable manner with respect to
10 delinquent purchasers of described timeshares. Authorizes
the managing entity to rent certain units to a developer
11 at bulk rates under described circumstances.
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