HB 0277

CS

CHAMBER ACTION

1	The Committee on Business Regulation recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to timeshare plans; amending s. 721.02,
7	F.S.; revising language with respect to legislative
8	purpose under the Florida Vacation Plan and Timesharing
9	Act; amending s. 721.03, F.S.; revising language with
10	respect to the scope of the act to include reference to
11	personal property timeshare plans; amending s. 721.05,
12	F.S.; providing definitions; amending s. 721.06, F.S.;
13	revising language with respect to contracts for purchase
14	of timeshare interests to include provisions with respect
15	to personal property timeshare interests; amending s.
16	721.065, F.S.; revising language with respect to resale
17	purchase agreements to include reference to certain real
18	property and personal property timeshare plans; amending
19	s. 721.07, F.S.; revising language with respect to public
20	offering statements; amending s. 721.075, F.S.; revising
21	language with respect to incidental benefits; requiring
22	purchasers to execute a statement indicating the source of
23	the benefit; amending s. 721.08, F.S.; revising language
24	with respect to escrow accounts; amending s. 721.09, F.S.;
25	revising language with respect to reservation agreements;
26	amending s. 721.11, F.S.; revising language with respect
27	to advertising materials; correcting cross references;
28	amending s. 721.12, F.S.; providing for required
29	recordkeeping by the seller of a personal property
30	timeshare plan; amending s. 721.13, F.S.; revising
31	language with respect to management; correcting a cross
32	reference; amending s. 721.14, F.S.; providing that a
33	section of law governing the discharge of the managing
34	entity shall not apply with respect to personal property
35	timeshare plans; amending s. 721.15, F.S.; revising
36	language with respect to assessments for common expenses;
37	amending s. 721.16, F.S.; providing that a section of law
38	governing certain liens does not apply to personal
39	property timeshare plans; amending s. 721.17, F.S.;
40	revising language with respect to transfer of interest;
41	amending s. 721.18, F.S.; revising language with respect
42	to exchange programs; amending s. 721.19, F.S.; including
43	reference to personal property timeshare interests;
44	amending s. 721.20, F.S., relating to licensing
45	requirements; providing for the application of certain
46	provisions to personal property timeshare plans; amending
47	s. 721.24, F.S.; exempting accommodations and facilities
48	of personal property timeshare plans from a provision of
49	law governing firesafety; amending s. 721.26, F.S.;
50	revising language with respect to regulation by the
51	division; amending s. 721.52, F.S.; redefining the term
52	"multisite timeshare plan" and defining the terms
53	"nonspecific multisite timeshare plan" and "specific
54	multisite timeshare plan"; amending s. 721.53, F.S.;
55	revising language with respect to subordination
56	instruments; amending s. 721.54, F.S.; correcting a cross
57	reference; amending s. 721.55, F.S.; providing reference
58	to filed rather than registered public offering
59	statements; providing reference to multisite timeshare
60	plans; amending s. 721.551, F.S.; providing for reference
61	to filed rather than registered public offering
62	statements; amending s. 721.552, F.S.; providing reference
63	to multistate timeshare plans; amending s. 721.56, F.S.;
64	providing reference to personal property timeshare plans;
65	amending s. 721.57, F.S.; revising language with respect
66	to timeshare estates in multisite timeshare plans;
67	amending s. 721.84, F.S.; revising language with respect
68	to appointment of a registered agent; amending ss. 721.96
69	and 721.97, F.S.; including reference to personal property
70	timeshare interests; amending ss. 475.011 and 718.103,
71	F.S.; correcting cross references; providing for
72	applicability; providing an effective date.
73
74	Be It Enacted by the Legislature of the State of Florida:
75
76	Section 1.  Subsections (1) and (5) of section 721.02,
77	Florida Statutes, are amended to read:
78	721.02  Purposes.--The purposes of this chapter are to:
79	(1)  Give statutory recognition to real property timeshare
80	plans timesharing and personal property timeshare plans
81	timesharing in this the state.
82	(5)  Recognize that the tourism industry in this state is a
83	vital part of the state's economy; that the sale, promotion, and
84	use of timeshare plans is an emerging, dynamic segment of the
85	tourism industry; that this segment of the tourism industry
86	continues to grow, both in volume of sales and in complexity and
87	variety of product structure; and that a uniform and consistent
88	method of regulation is necessary in order to safeguard
89	Florida's tourism industry and the state's economic well-being.
90	In order to protect the quality of Florida timeshare plans and
91	the consumers who purchase them, it is the intent of the
92	Legislature that this chapter be interpreted broadly in order to
93	encompass all forms of timeshare plans with a duration of at
94	least 3 years that are created with respect to accommodations
95	and facilities that are located in the state or that are offered
96	for sale in the state as provided herein, including, but not
97	limited to, condominiums, cooperatives, undivided interest
98	campgrounds, cruise ships, vessels, houseboats, and recreational
99	vehicles and other motor vehicles, and including vacation clubs,
100	multisite vacation plans, and multiyear vacation and lodging
101	certificates.
102	Section 2.  Paragraph (d) is added to subsection (1) of
103	section 721.03, Florida Statutes, and subsection (8) of said
104	section, is amended to read:
105	721.03  Scope of chapter.--
106	(1)  This chapter applies to all timeshare plans consisting
107	of more than seven timeshare periods over a period of at least 3
108	years in which the accommodations and facilities, if any, are
109	located within this state or offered within this state; provided
110	that:
111	(d)  For purposes of determining the term of the plan, the
112	period of any automatic renewals shall be included, except as
113	provided in s. 721.52(4)(b).
114	(8)  With respect to any personal property accommodation or
115	facility of a timeshare plan: which is situated upon
116	(a)  This chapter applies only to personal property
117	timeshare plans that are offered in this state.,
118	(b)  The division shall have the authority to adopt rules
119	interpreting and implementing the provisions of this chapter as
120	they apply to any personal property timeshare plan or any such
121	accommodation or facility that is part of a personal property
122	timeshare plan offered in this state, or as the provisions of
123	this chapter they apply to any other laws of this state, of the
124	several states, or of the United States, or of any other
125	jurisdiction, with respect to any personal property timeshare
126	plan or any such accommodation or facility that is part of a
127	personal property timeshare plan offered in this state.
128	(c)  Any developer and any managing entity of a personal
129	property timeshare plan must submit to personal jurisdiction in
130	this state in a form satisfactory to the division at the time of
131	filing a public offering statement.
132	Section 3.  Section 721.05, Florida Statutes, is amended to
133	read:
134	721.05  Definitions.--As used in this chapter, the term:
135	(1)  "Accommodation" means any apartment, condominium or
136	cooperative unit, cabin, lodge, hotel or motel room, campground,
137	cruise ship cabin, houseboat or other vessel, recreational or
138	other motor vehicle, or any or other private or commercial
139	structure which is situated on real or personal property and
140	designed for overnight occupancy or use by one or more
141	individuals. The term does not include an incidental benefit as
142	defined in this section.
143	(2)  "Agreement for deed" means any written contract
144	utilized in the sale of timeshare estates which provides that
145	legal title will not be conveyed to the purchaser until the
146	contract price has been paid in full and the terms of payment of
147	which extend for a period in excess of 180 days after either the
148	date of execution of the contract or completion of construction,
149	whichever occurs later.
150	(3)  "Agreement for transfer" means any written contract
151	utilized in the sale of personal property timeshare interests
152	which provides that legal title will not be transferred to the
153	purchaser until the contract price has been paid in full and the
154	terms of payment of which extend for a period in excess of 180
155	days after either the date of execution of the contract or
156	completion of construction, whichever occurs later.
157	(4)(3)  "Assessment" means the share of funds required for
158	the payment of common expenses which is assessed from time to
159	time against each purchaser by the managing entity.
160	(5)(4)  "Closing" means:
161	(a)  For any plan selling timeshare estates, conveyance of
162	the legal or beneficial title to a timeshare estate as evidenced
163	by the delivery of a deed for conveyance of legal title, or
164	other instrument for conveyance of beneficial title, to the
165	purchaser or to the clerk of the court for recording or
166	conveyance of the equitable title to a timeshare estate as
167	evidenced by the irretrievable delivery of an agreement for deed
168	to the clerk of the court for recording.
169	(b)  For any plan selling timeshare licenses or personal
170	property timeshare interests, the final execution and delivery
171	by all parties of the last document necessary for vesting in the
172	purchaser the full rights available under the plan.
173	(6)(5)  "Common expenses" means:
174	(a)  Those expenses, fees, or taxes properly incurred for
175	the maintenance, operation, and repair of the accommodations or
176	facilities, or both, constituting the timeshare plan.
177	(b)  Any other expenses, fees, or taxes designated as
178	common expenses in a timeshare instrument.
179	(c)  Any past due and uncollected ad valorem taxes assessed
180	against a timeshare development pursuant to s. 192.037.
181	(7)(6)  "Completion of construction" means:
182	(a)1.  That a certificate of occupancy has been issued for
183	the entire building in which the timeshare unit being sold is
184	located, or for the improvement, or that the equivalent
185	authorization has been issued, by the governmental body having
186	jurisdiction; or
187	2.  In a jurisdiction in which no certificate of occupancy
188	or equivalent authorization is issued, that the construction,
189	finishing, and equipping of the building or improvements
190	according to the plans and specifications have been
191	substantially completed; or
192	3.  With respect to personal property timeshare plans, that
193	all accommodations have been manufactured or built and acquired
194	or leased by the developer, owners' association, managing
195	entity, trustee, or other person for the use of purchasers as
196	set forth in the timeshare instrument; and
197	(b)  That all accommodations and facilities of the
198	timeshare plan are available for use in a manner identical in
199	all material respects to the manner portrayed by the promotional
200	material, advertising, and filed registered public offering
201	statements.
202	(8)(7)  "Conspicuous type" means:
203	(a)  Type in upper and lower case letters two point sizes
204	larger than the largest nonconspicuous type, exclusive of
205	headings, on the page on which it appears but in at least 10-
206	point type; or
207	(b)  Where the use of 10-point type would be impractical or
208	impossible with respect to a particular piece of written
209	advertising material, a different style of type or print may be
210	used, so long as the print remains conspicuous under the
211	circumstances.
212
213	Where conspicuous type is required, it must be separated on all
214	sides from other type and print. Conspicuous type may be
215	utilized in contracts for purchase or public offering statements
216	only where required by law or as authorized by the division.
217	(9)(8)  "Contract" means any agreement conferring the
218	rights and obligations of a timeshare plan on the purchaser.
219	(10)(9)  "Developer" includes:
220	(a)  A "creating developer," which means any person who
221	creates the timeshare plan;
222	(b)  A "successor developer," which means any person who
223	succeeds to the interest of the persons in this subsection by
224	sale, lease, assignment, mortgage, or other transfer, but the
225	term includes only those persons who offer timeshare interests
226	in the ordinary course of business; and
227	(c)  A "concurrent developer," which means any person
228	acting concurrently with the persons in this subsection with the
229	purpose of offering timeshare interests in the ordinary course
230	of business.
231	(d)  The term "developer" does not include:
232	1.  An owner of a timeshare interest who has acquired the
233	timeshare interest for his or her own use and occupancy and who
234	later offers it for resale; provided that a rebuttable
235	presumption shall exist that an owner who has acquired more than
236	seven timeshare interests did not acquire them for his or her
237	own use and occupancy;
238	2.  A managing entity, not otherwise a developer, that
239	offers, or engages a third party to offer on its behalf,
240	timeshare interests in a timeshare plan which it manages,
241	provided that such offer complies with the provisions of s.
242	721.065;
243	3.  A person who owns or is conveyed, assigned, or
244	transferred more than seven timeshare interests and who
245	subsequently conveys, assigns, or transfers all acquired
246	timeshare interests to a single purchaser in a single
247	transaction, which transaction may occur in stages; or
248	4.  A person who has acquired or has the right to acquire
249	more than seven timeshare interests from a developer or other
250	interestholder in connection with a loan, securitization,
251	conduit, or similar financing arrangement transaction and who
252	subsequently arranges for all or a portion of the timeshare
253	interests to be offered by one or more developers in the
254	ordinary course of business on their own behalves or on behalf
255	of such person.
256	(e)  A successor or concurrent developer shall be exempt
257	from any liability inuring to a predecessor or concurrent
258	developer of the same timeshare plan, except as provided in s.
259	721.15(7), provided that this exemption shall not apply to any
260	of the successor or concurrent developer's responsibilities,
261	duties, or liabilities with respect to the timeshare plan that
262	accrue after the date the successor or concurrent developer
263	became a successor or concurrent developer, and provided that
264	such transfer does not constitute a fraudulent transfer. In
265	addition to other provisions of law, a transfer by a predecessor
266	developer to a successor or concurrent developer shall be deemed
267	fraudulent if the predecessor developer made the transfer:
268	1.  With actual intent to hinder, delay, or defraud any
269	purchaser or the division; or
270	2.  To a person that would constitute an insider under s.
271	726.102(7).
272
273	The provisions of this paragraph shall not be construed to
274	relieve any successor or concurrent developer from the
275	obligation to comply with the provisions of any applicable
276	timeshare instrument.
277	(11)(10)  "Division" means the Division of Florida Land
278	Sales, Condominiums, and Mobile Homes of the Department of
279	Business and Professional Regulation.
280	(12)(11)  "Enrolled" means paid membership in an exchange
281	program or membership in an exchange program evidenced by
282	written acceptance or confirmation of membership.
283	(13)(12)  "Escrow account" means an account established
284	solely for the purposes set forth in this chapter with a
285	financial institution located within this state.
286	(14)(13)  "Escrow agent" includes only:
287	(a)  A savings and loan association, bank, trust company,
288	or other financial institution, any of which must be located in
289	this state and any of which must have a net worth in excess of
290	$5 million;
291	(b)  An attorney who is a member of The Florida Bar or his
292	or her law firm;
293	(c)  A real estate broker who is licensed pursuant to
294	chapter 475 or his or her brokerage firm; or
295	(d)  A title insurance agent that is licensed pursuant to
296	s. 626.8417, a title insurance agency that is licensed pursuant
297	to s. 626.8418, or a title insurer authorized to transact
298	business in this state pursuant to s. 624.401.
299	(15)(14)  "Exchange company" means any person owning or
300	operating, or owning and operating, an exchange program.
301	(16)(15)  "Exchange program" means any method, arrangement,
302	or procedure for the voluntary exchange of the right to use and
303	occupy accommodations and facilities among purchasers. The term
304	does not include the assignment of the right to use and occupy
305	accommodations and facilities to purchasers pursuant to a
306	particular multisite timeshare plan's reservation system. Any
307	method, arrangement, or procedure that otherwise meets this
308	definition, wherein the purchaser's total contractual financial
309	obligation exceeds $3,000 per any individual, recurring
310	timeshare period, shall be regulated as a multisite timeshare
311	plan in accordance with part II.
312	(17)(16)  "Facility" means any amenity, including any
313	structure, furnishing, fixture, equipment, service, improvement,
314	or real or personal property, improved or unimproved, other than
315	an the accommodation of the timeshare plan, which is made
316	available to the purchasers of a timeshare plan. The term does
317	not include an incidental benefit as defined in this section.
318	(18)  "Filed public offering statement" means a public
319	offering statement that has been filed with the division
320	pursuant to s. 721.07(5) or s. 721.55.
321	(19)(17)  "Incidental benefit" means an accommodation,
322	product, service, discount, or other benefit which is offered to
323	a prospective purchaser of a timeshare plan or to a purchaser of
324	a timeshare plan prior to the expiration of his or her initial
325	10-day voidability period pursuant to s. 721.10; which is not an
326	exchange program as defined in subsection (16) (15); and which
327	complies with the provisions of s. 721.075. The term shall not
328	include an offer of the use of the accommodations and facilities
329	of the timeshare plan on a free or discounted one-time basis.
330	(20)(18)  "Independent," for purposes of determining
331	eligibility of escrow agents and trustees pursuant to s.
332	721.03(7), means that:
333	(a)  The escrow agent or trustee is not a relative, as
334	described in s. 112.3135(1)(d), or an employee of the developer,
335	seller, or managing entity, or of any officer, director,
336	affiliate, or subsidiary thereof.
337	(b)  There is no financial relationship, other than the
338	payment of fiduciary fees or as otherwise provided in this
339	subsection, between the escrow agent or trustee and the
340	developer, seller, or managing entity, or any officer, director,
341	affiliate, or subsidiary thereof.
342	(c)  Compensation paid by the developer to an escrow agent
343	or trustee for services rendered shall not be paid from funds in
344	the escrow or trust account unless and until the developer is
345	otherwise entitled to receive the disbursement of such funds
346	from the escrow or trust account pursuant to this chapter.
347	(d)  A person shall not be disqualified to serve as an
348	escrow agent or a trustee solely because of the following:
349	1.  A nonemployee, attorney-client relationship exists
350	between the developer and the escrow agent or trustee;
351	2.  The escrow agent or trustee provides brokerage services
352	as defined by chapter 475 for the developer;
353	3.  The escrow agent or trustee provides the developer with
354	routine banking services which do not include construction or
355	receivables financing or any other lending activities; or
356	4.  The escrow agent or trustee performs closings for the
357	developer or seller or issues owner's or lender's title
358	insurance commitments or policies in connection with such
359	closings.
360	(21)(19)  "Interestholder" means a developer, an owner of
361	the underlying fee or owner of the underlying personal property,
362	a mortgagee, judgment creditor, or other lienor, or any other
363	person having an interest in or lien or encumbrance against the
364	accommodations or facilities of the timeshare plan.
365	(22)(20)  "Managing entity" means the person who operates
366	or maintains the timeshare plan pursuant to s. 721.13(1).
367	(23)(21)  "Memorandum of agreement" means a written
368	document, in a recordable form sufficient to permit the document
369	to be recorded or otherwise filed in the appropriate public
370	records and to provide constructive notice of its contents under
371	applicable law, which includes the names of the seller and the
372	purchasers, a legal description of the timeshare property or
373	other sufficient description for a personal property timeshare
374	plan, and all timeshare interests to be included in such
375	document, and a description of the type of timeshare interest
376	license sold by the seller.
377	(24)(22)  "Offer to sell," "offer for sale," "offered for
378	sale," or "offer" means the solicitation, advertisement, or
379	inducement, or any other method or attempt, to encourage any
380	person to acquire the opportunity to participate in a timeshare
381	plan.
382	(25)(23)  "One-to-one purchaser to accommodation ratio"
383	means the ratio of the number of purchasers eligible to use the
384	accommodations of a timeshare plan on a given day to the number
385	of accommodations available for use within the plan on that day,
386	such that the total number of purchasers eligible to use the
387	accommodations of the timeshare plan during a given calendar
388	year never exceeds the total number of accommodations available
389	for use in the timeshare plan during that year. For purposes of
390	calculation under this subsection, each purchaser must be
391	counted at least once, and no individual timeshare unit may be
392	counted more than 365 times per calendar year (or more than 366
393	times per leap year). A purchaser who is delinquent in the
394	payment of timeshare plan assessments shall continue to be
395	considered eligible to use the accommodations of the timeshare
396	plan for purposes of this subsection notwithstanding any
397	application of s. 721.13(6).
398	(26)(24)  "Owner of the underlying fee" or "owner of the
399	underlying personal property" means any person having an
400	interest in the real property or personal property comprising or
401	underlying the accommodations or facilities of a the timeshare
402	plan at or subsequent to the time of creation of the timeshare
403	plan.
404	(27)(25)  "Owners' association" means an the association
405	made up of all owners of timeshare interests in a timeshare
406	plan, including developers and purchasers of such a timeshare
407	plan who have purchased timeshare estates.
408	(28)  "Personal property timeshare interest" means a right
409	to occupy an accommodation located on or in or comprised of
410	personal property that is not permanently affixed to real
411	property, whether or not coupled with a beneficial or ownership
412	interest in the accommodations or personal property.
413	(29)(26)  "Public offering statement" means the written
414	materials describing a single-site timeshare plan or a multisite
415	timeshare plan, including a text and any exhibits attached
416	thereto as required by ss. 721.07, 721.55, and 721.551. The term
417	"public offering statement" shall refer to both a filed
418	registered public offering statement and a purchaser public
419	offering statement.
420	(30)(27)  "Purchaser" means any person, other than a
421	developer, who by means of a voluntary transfer acquires a legal
422	or equitable interest in a timeshare plan other than as security
423	for an obligation.
424	(31)(28)  "Purchaser public offering statement" means that
425	portion of the filed registered public offering statement which
426	must be delivered to purchasers pursuant to s. 721.07(6) or s.
427	721.551.
428	(29)  "Registered public offering statement" means a public
429	offering statement which has been filed with the division
430	pursuant to s. 721.07(5) or s. 721.55.
431	(32)(30)  "Regulated short-term product" means a
432	contractual right, offered by the seller, to use accommodations
433	of a timeshare plan or other accommodations, provided that:
434	(a)  The agreement to purchase the short-term right to use
435	is executed in this state on the same day that the prospective
436	purchaser receives an offer to acquire an interest in a
437	timeshare plan and does not execute a purchase contract, after
438	attending a sales presentation; and
439	(b)  The acquisition of the right to use includes an
440	agreement that all or a portion of the consideration paid by the
441	prospective purchaser for the right to use will be applied to or
442	credited against the price of a future purchase of a timeshare
443	interest, or that the cost of a future purchase of a timeshare
444	interest will be fixed or locked in at a specified price.
445	(33)(31)  "Seller" means any developer or any other person,
446	or any agent or employee thereof, who offers timeshare interests
447	in the ordinary course of business. The term "seller" does not
448	include:
449	(a)  An owner of a timeshare interest who has acquired the
450	timeshare interest for his or her own use and occupancy and who
451	later offers it for resale; provided that a rebuttable
452	presumption shall exist that an owner who has acquired more than
453	seven timeshare interests did not acquire them for his or her
454	own use and occupancy;
455	(b)  A managing entity, not otherwise a seller, that
456	offers, or engages a third party to offer on its behalf,
457	timeshare interests in a timeshare plan which it manages,
458	provided that such offer complies with the provisions of s.
459	721.065;
460	(c)  A person who owns or is conveyed, assigned, or
461	transferred more than seven timeshare interests and who
462	subsequently conveys, assigns, or transfers all acquired
463	timeshare interests to a single purchaser in a single
464	transaction, which transaction may occur in stages; or
465	(d)  A person who has acquired or has the right to acquire
466	more than seven timeshare interests from a developer or other
467	interestholder in connection with a loan, securitization,
468	conduit, or similar financing arrangement and who subsequently
469	arranges for all or a portion of the timeshare interests to be
470	offered by one or more developers in the ordinary course of
471	business on their own behalves or on behalf of such person.
472	(34)(32)  "Timeshare estate" means a right to occupy a
473	timeshare unit, coupled with a freehold estate or an estate for
474	years with a future interest in a timeshare property or a
475	specified portion thereof. The term shall also mean an interest
476	in a condominium unit pursuant to s. 718.103, an interest in a
477	cooperative unit pursuant to s. 719.103, or an interest in a
478	trust that complies in all respects with the provisions of s.
479	721.08(2)(c)4.3., provided that the trust does not contain any
480	personal property timeshare interests. A timeshare estate is a
481	parcel of real property under the laws of this state.
482	(35)(33)  "Timeshare instrument" means one or more
483	documents, by whatever name denominated, creating or governing
484	the operation of a timeshare plan.
485	(36)(34)  "Timeshare interest" means a timeshare estate, a
486	personal property timeshare interest, or a timeshare license.
487	(37)(35)  "Timeshare license" means a right to occupy a
488	timeshare unit, which right is not a personal property timeshare
489	neither coupled with a freehold interest or a timeshare, nor
490	coupled with an estate for years with a future interest, in a
491	timeshare property.
492	(38)(36)  "Timeshare period" means the period or periods of
493	time when a purchaser of a timeshare interest is afforded the
494	opportunity to use the accommodations or facilities, or both, of
495	a timeshare plan.
496	(39)(37)  "Timeshare plan" means any arrangement, plan,
497	scheme, or similar device, other than an exchange program,
498	whether by membership, agreement, tenancy in common, sale,
499	lease, deed, rental agreement, license, or right-to-use
500	agreement or by any other means, whereby a purchaser, for
501	consideration, receives ownership rights in or a right to use
502	accommodations, and facilities, if any, for a period of time
503	less than a full year during any given year, but not necessarily
504	for consecutive years. The term "timeshare plan" includes:
505	(a)  A "personal property timeshare plan," which means a
506	timeshare plan in which the accommodations are comprised of
507	personal property that is not permanently affixed to real
508	property; and
509	(b)  A "real property timeshare plan," which means a
510	timeshare plan in which the accommodations of the timeshare plan
511	are comprised of or permanently affixed to real property.
512	(40)(38)  "Timeshare property" means one or more timeshare
513	units subject to the same timeshare instrument, together with
514	any other property or rights to property appurtenant to those
515	timeshare units. Notwithstanding anything to the contrary
516	contained in chapter 718 or chapter 719, the timeshare
517	instrument for a timeshare condominium or cooperative may
518	designate personal property, contractual rights, affiliation
519	agreements of component sites of vacation clubs, exchange
520	companies, or reservation systems, or any other agreements or
521	personal property, as common elements or limited common elements
522	of the timeshare condominium or cooperative.
523	(41)(39)  "Timeshare unit" means an accommodation of a
524	timeshare plan which is divided into timeshare periods. Any
525	timeshare unit in which a door or doors connecting two or more
526	separate rooms are capable of being locked to create two or more
527	private dwellings shall only constitute one timeshare unit for
528	purposes of this chapter, unless the timeshare instrument
529	provides that timeshare interests may be separately conveyed in
530	such locked-off portions.
531	(40)  "Vacation ownership plan" means any timeshare plan
532	consisting exclusively of timeshare estates.
533	(41)  "Vacation plan" or "vacation membership plan" means
534	any timeshare plan consisting exclusively of timeshare licenses
535	or consisting of a combination of timeshare licenses and
536	timeshare estates.
537	Section 4.  Section 721.06, Florida Statutes, is amended to
538	read:
539	721.06  Contracts for purchase of timeshare interests.--
540	(1)  Each seller shall utilize and furnish each purchaser a
541	fully completed and executed copy of a contract pertaining to
542	the sale, which contract shall include the following
543	information:
544	(a)  The actual date the contract is executed by each
545	party.
546	(b)  The names and addresses of the developer and the
547	timeshare plan.
548	(c)  The initial purchase price and any additional charges
549	to which the purchaser may be subject in connection with the
550	purchase of the timeshare interest, such as financing, or which
551	will be collected from the purchaser on or before closing, such
552	as the current year's annual assessment for common expenses.
553	(d)1.  For real property timeshare plans, an estimate of
554	any anticipated annual assessment stated on an Any annually
555	recurring basis for any use charges, fees, charge and the next
556	year's estimated annual assessment for common expenses, or and
557	for ad valorem taxes or, if an estimate for next year's
558	assessment is unavailable, the current year's actual annual
559	assessment for any use charges, fees, common expenses, or and
560	for ad valorem taxes.
561	2.  For personal property timeshare plans, an estimate of
562	any anticipated annual assessment stated on an annually
563	recurring basis for any use charges, fees, common expenses, or
564	taxes or, if an estimate is unavailable, the current year's
565	actual annual assessment for any use charges, fees, common
566	expenses, or taxes.
567	(e)  The estimated date of completion of construction of
568	each accommodation or facility promised to be completed which is
569	not completed at the time the contract is executed and the
570	estimated date of closing.
571	(f)  A brief description of the nature and duration of the
572	timeshare interest being sold, including whether any interest in
573	real property or personal property is being conveyed and the
574	specific number of years constituting the term of the timeshare
575	plan.
576	(g)  Immediately prior to the space reserved in the
577	contract for the signature of the purchaser, in conspicuous
578	type, substantially the following statements:
579	1.  If the purchaser will receive a personal property
580	timeshare interest:  This personal property timeshare plan is
581	governed only by limited sections of the timeshare management
582	provisions of Florida law.
583	2.  If the accommodations or facilities are located on or
584	in a documented vessel or foreign vessel as provided in s.
585	721.08(2)(c)3.e., the disclosure required by s.
586	721.08(2)(c)3.e.(IV).
587	3.  You may cancel this contract without any penalty or
588	obligation within 10 calendar days after the date you sign this
589	contract or the date on which you receive the last of all
590	documents required to be given to you pursuant to section
591	721.07(6), Florida Statutes, whichever is later. If you decide
592	to cancel this contract, you must notify the seller in writing
593	of your intent to cancel. Your notice of cancellation shall be
594	effective upon the date sent and shall be sent to ...  (Name of
595	Seller)  ... at ...  (Address of Seller)  .... Any attempt to
596	obtain a waiver of your cancellation right is void and of no
597	effect. While you may execute all closing documents in advance,
598	the closing, as evidenced by delivery of the deed or other
599	document, before expiration of your 10-day cancellation period,
600	is prohibited.
601
602	(h)  If a timeshare estate is being conveyed, the following
603	statement in conspicuous type:
604
605	For the purpose of ad valorem assessment, taxation and
606	special assessments, the managing entity will be considered the
607	taxpayer as your agent pursuant to section 192.037, Florida
608	Statutes.
609
610	(i)  A statement that, in the event the purchaser cancels
611	the contract during a 10-day cancellation period, the developer
612	will refund to the purchaser the total amount of all payments
613	made by the purchaser under the contract, reduced by the
614	proportion of any contract benefits the purchaser has actually
615	received under the contract prior to the effective date of the
616	cancellation. The statement shall further provide that the
617	refund will be made within 20 days after receipt of notice of
618	cancellation or within 5 days after receipt of funds from the
619	purchaser's cleared check, whichever is later. A seller and a
620	purchaser shall agree in writing on a specific value for each
621	contract benefit received by the purchaser for purposes of this
622	paragraph. The term "contract benefit" shall not include
623	purchaser public offering statements or other documentation or
624	materials that must be furnished to a purchaser pursuant to
625	statute or rule.
626	(j)  If the timeshare interest is being sold pursuant to an
627	agreement for deed or an agreement for transfer, a statement
628	that the signing of the agreement for deed or agreement for
629	transfer does not entitle the purchaser to receive the
630	conveyance or transfer of his or her timeshare estate or
631	personal property timeshare interest a deed until all payments
632	under the agreement have been made.
633	(k)  Unless the developer is, at the time of offering the
634	plan, the owner in fee simple absolute of the accommodations and
635	facilities of the timeshare plan, free and clear of all liens,
636	and encumbrances, and claims of other interestholders, a
637	statement that the developer is not the sole owner of the
638	underlying fee or owner of the underlying personal property or
639	that the such accommodations or facilities are subject to
640	without liens or encumbrances, which statement shall include:
641	1.  The names and addresses of all other interestholders
642	persons or entities having an ownership interest or other
643	interest in the accommodations or facilities; and
644	2.  The actual interest of the developer in the
645	accommodations or facilities. As an alternative to including the
646	statement in the purchase contract, a seller may include a
647	reference in the purchase contract to the location in the
648	purchaser public offering statement text of such information.
649	(l)  If the purchaser will receive an interest in a
650	multisite timeshare plan pursuant to part II, a statement shall
651	be provided in conspicuous type in substantially the following
652	form:
653
654	The developer is required to provide the managing entity of
655	the multisite timeshare plan with a copy of the approved public
656	offering statement text and exhibits filed with the division and
657	any approved amendments thereto, and any other component site
658	documents as described in section 721.07 or section 721.55,
659	Florida Statutes, that are not required to be filed with the
660	division, to be maintained by the managing entity for inspection
661	as part of the books and records of the plan.
662
663	(m)  The following statement in conspicuous type:
664
665	Any resale of this timeshare interest must be accompanied
666	by certain disclosures in accordance with section 721.065,
667	Florida Statutes.
668
669	(n)  A description of any rights reserved by the developer
670	to alter or modify the offering prior to closing.
671	(2)(a)  An agreement for deed shall be recorded by the
672	developer within 30 days after the day it is executed by the
673	purchaser. The developer shall pay all recording costs
674	associated therewith. A form copy of such instrument must be
675	filed with the division for review pursuant to s. 721.07.
676	(b)  An agreement for transfer shall be filed with the
677	appropriate official responsible for maintaining such records in
678	the appropriate jurisdiction within 30 days after the day it is
679	executed by the purchaser. The developer shall pay all filing
680	costs associated therewith. A form copy of such instrument must
681	be filed with the division for review pursuant to s. 721.07.
682	(3)  The escrow agent shall provide the developer with a
683	receipt for all purchaser funds or other property received by
684	the escrow agent from a seller.
685	Section 5.  Paragraph (b) of subsection (2) of section
686	721.065, Florida Statutes, is amended to read:
687	721.065  Resale purchase agreements.--
688	(2)  Any resale purchase agreement utilized by a person
689	described in subsection (1) must contain all of the following:
690	(b)  One of the following statements in conspicuous type
691	located immediately prior to the disclosure required by
692	paragraph (c):
693	1.  If the resale purchase agreement pertains to a real
694	property timeshare plan:
695
696	The current year's assessment for common expenses allocable to
697	the timeshare interest you are purchasing is $_____. This
698	assessment, which may be increased from time to time by the
699	managing entity of the timeshare plan, is payable in full each
700	year on or before __________. This assessment (includes/does not
701	include) yearly ad valorem real estate taxes, which (are/are
702	not) billed and collected separately. (If ad valorem real
703	property taxes are not included in the current year's assessment
704	for common expenses, the following statement must be included:
705	The most recent annual assessment for ad valorem real estate
706	taxes for the timeshare interest you are purchasing is $_____.)
707	(If there are any delinquent assessments for common expenses or
708	ad valorem taxes outstanding with respect to the timeshare
709	interest in question, the following statement must be included:
710	A delinquency in the amount of $_____ for unpaid common expenses
711	or ad valorem taxes currently exists with respect to the
712	timeshare interest you are purchasing, together with a per diem
713	charge of $_____ for interest and late charges.) For the purpose
714	of ad valorem assessment, taxation, and special assessments, the
715	managing entity will be considered the taxpayer as your agent
716	pursuant to section 192.037, Florida Statutes. Each owner is
717	personally liable for the payment of her or his assessments for
718	common expenses, and failure to timely pay these assessments may
719	result in restriction or loss of your use and/or ownership
720	rights.
721
722	There are many important documents relating to the timeshare
723	plan which you should review prior to purchasing a timeshare
724	interest, including the declaration of condominium or covenants
725	and restrictions; the owners' association articles and bylaws;
726	the current year's operating and reserve budgets; and any rules
727	and regulations affecting the use of timeshare plan
728	accommodations and facilities.
729
730	2.  If the resale purchase agreement pertains to a personal
731	property timeshare plan:
732
733	The current year's assessment for any common expenses, use
734	charges, fees, or taxes allocable to the timeshare interest you
735	are purchasing is $_____. This assessment, which may be
736	increased from time to time by the managing entity of the
737	timeshare plan, is payable in full each year on or before
738	__________. (If there are any delinquent assessments for common
739	expenses, use charges, fees, or taxes outstanding with respect
740	to the timeshare interest in question, the following statement
741	must be included: A delinquency in the amount of $_____ for
742	unpaid common expenses, use charges, fees, or taxes currently
743	exists with respect to the timeshare interest you are
744	purchasing, together with a per diem charge of $_____ for
745	interest and late charges.) Each owner is personally liable for
746	the payment of her or his assessments for common expenses, and
747	failure to timely pay these assessments may result in
748	restriction or loss of your use and/or ownership rights.
749
750	There are many important documents relating to the timeshare
751	plan which you should review prior to purchasing a timeshare
752	interest, including any owners' association articles and bylaws;
753	the current year's operating and reserve budgets; and any rules
754	and regulations affecting the use of timeshare plan
755	accommodations and facilities.
756	Section 6.  Section 721.07, Florida Statutes, is amended to
757	read:
758	721.07  Public offering statement.--Prior to offering any
759	timeshare plan, the developer must submit a filed registered
760	public offering statement to the division for approval as
761	prescribed by s. 721.03, s. 721.55, or this section. Until the
762	division approves such filing, any contract regarding the sale
763	of that timeshare plan is subject to cancellation voidable by
764	the purchaser pursuant to s. 721.10.
765	(1)  The division shall, upon receiving a filed registered
766	public offering statement from a developer, mail to the
767	developer an acknowledgment of receipt. The failure of the
768	division to send such acknowledgment will not, however, relieve
769	the developer from the duty of complying with this section.
770	(2)(a)  Within 45 days after receipt of a filed registered
771	public offering statement which is subject only to this part and
772	is submitted in proper form as prescribed by rule, or within 120
773	days after receipt of a filed registered public offering
774	statement which is subject to part II and is submitted in proper
775	form as prescribed by rule, the division shall determine whether
776	the proposed filed registered public offering statement is
777	adequate to meet the requirements of this section and shall
778	notify the developer by mail that the division has either
779	approved the statement or found specified deficiencies in the
780	statement. If the division fails to approve the statement or
781	specify deficiencies in the statement within the period
782	specified in this paragraph, the filing will be deemed approved.
783	(b)  If the developer fails to respond to any cited
784	deficiencies within 20 days after receipt of the division's
785	deficiency notice, the division may reject the filing.
786	Subsequent to such rejection, a new filing fee pursuant to
787	subsection (4) and a new division initial review period pursuant
788	to paragraph (a) shall apply to any refiling or further review
789	of the rejected filing.
790	(c)  Within 20 days after receipt of the developer's timely
791	and complete response to any deficiency notice, the division
792	shall notify the developer by mail that the division has either
793	approved the filing, found additional specified deficiencies in
794	it, or determined that any previously specified deficiency has
795	not been corrected. If the division fails to approve or specify
796	additional deficiencies within 20 days after receipt of the
797	developer's timely and complete response, the filing will be
798	deemed approved.
799	(d)  A developer shall have the authority to deliver to
800	purchasers any purchaser public offering statement that is not
801	yet approved by the division, provided that the following shall
802	apply:
803	1.  At the time the developer delivers an unapproved
804	purchaser public offering statement to a purchaser pursuant to
805	this paragraph, the developer shall deliver a fully completed
806	and executed copy of the purchase contract required by s. 721.06
807	that contains the following statement in conspicuous type in
808	substantially the following form which shall replace the
809	statements required by s. 721.06(1)(g):
810
811	The developer is delivering to you a public offering statement
812	that has been filed with but not yet approved by the Division of
813	Florida Land Sales, Condominiums, and Mobile Homes. Any
814	revisions to the unapproved public offering statement you have
815	received must be delivered to you, but only if the revisions
816	materially alter or modify the offering in a manner adverse to
817	you. After the division approves the public offering statement,
818	you will receive notice of the approval from the developer and
819	the required revisions, if any.
820
821	Your statutory right to cancel this transaction without any
822	penalty or obligation expires 10 calendar days after the date
823	you signed your purchase contract or the date on which you
824	receive the last of all documents required to be given to you
825	pursuant to section 721.07(6), Florida Statutes, or 10 calendar
826	days after you receive revisions required to be delivered to
827	you, if any, whichever is later. If you decide to cancel this
828	contract, you must notify the seller in writing of your intent
829	to cancel. Your notice of cancellation shall be effective upon
830	the date sent and shall be sent to (Name of Seller) at (Address
831	of Seller). Any attempt to obtain a waiver of your cancellation
832	right is void and of no effect. While you may execute all
833	closing documents in advance, the closing, as evidenced by
834	delivery of the deed or other document, before expiration of
835	your 10-day cancellation period, is prohibited.
836
837	2.  After receipt of approval from the division and prior
838	to closing, if any revisions made to the documents contained in
839	the purchaser public offering statement materially alter or
840	modify the offering in a manner adverse to a purchaser, the
841	developer shall send the purchaser such revisions together with
842	a notice containing a statement in conspicuous type in
843	substantially the following form:
844
845	The unapproved public offering statement previously delivered to
846	you, together with the enclosed revisions, has been approved by
847	the Division of Florida Land Sales, Condominiums, and Mobile
848	Homes. Accordingly, your cancellation right expires 10 calendar
849	days after you sign your purchase contract or 10 calendar days
850	after you receive these revisions, whichever is later. If you
851	have any questions regarding your cancellation rights, you may
852	contact the division at [insert division's current address].
853
854	3.  After receipt of approval from the division and prior
855	to closing, if no revisions have been made to the documents
856	contained in the unapproved purchaser public offering statement,
857	or if such revisions do not materially alter or modify the
858	offering in a manner adverse to a purchaser, the developer shall
859	send the purchaser a notice containing a statement in
860	conspicuous type in substantially the following form:
861
862	The unapproved public offering statement previously delivered to
863	you has been approved by the Division of Florida Land Sales,
864	Condominiums, and Mobile Homes. Revisions made to the unapproved
865	public offering statement, if any, are either not required to be
866	delivered to you or are not deemed by the developer, in its
867	opinion, to materially alter or modify the offering in a manner
868	that is adverse to you. Accordingly, your cancellation right
869	expired 10 days after you signed your purchase contract. A
870	complete copy of the approved public offering statement is
871	available through the managing entity for inspection as part of
872	the books and records of the plan. If you have any questions
873	regarding your cancellation rights, you may contact the division
874	at [insert division's current address].
875	(3)(a)1.  Any change to an approved public offering
876	statement filing shall be filed with the division for approval
877	as an amendment prior to becoming effective. The division shall
878	have 20 days after receipt of a proposed amendment to approve or
879	cite deficiencies in the proposed amendment. If the division
880	fails to act within 20 days, the amendment will be deemed
881	approved. If the proposed amendment adds a new component site to
882	an approved multisite timeshare plan, the division's initial
883	period in which to approve or cite deficiencies is 45 days. If
884	the developer fails to adequately respond to any deficiency
885	notice within 30 days, the division may reject the amendment.
886	Subsequent to such rejection, a new filing fee pursuant to
887	subsection (4) and a new division initial review period pursuant
888	to this paragraph shall apply to any refiling or further review
889	of the rejected amendment.
890	2.  For filings only subject to this part, each approved
891	amendment to the approved purchaser public offering statement,
892	other than an amendment made only for the purpose of the
893	addition of a phase or phases to the timeshare plan in the
894	manner described in the timeshare instrument or any amendment
895	that does not materially alter or modify the offering in a
896	manner that is adverse to a purchaser, shall be delivered to a
897	purchaser no later than 10 days prior to closing. For filings
898	made under part II, each approved amendment to the multisite
899	timeshare plan purchaser public offering statement, other than
900	an amendment made only for the purpose of the addition,
901	substitution, or deletion of a component site pursuant to part
902	II or the addition of a phase or phases to a component site of a
903	multisite timeshare plan in the manner described in the
904	timeshare instrument or any amendment that does not materially
905	alter or modify the offering in a manner that is adverse to a
906	purchaser, shall be delivered to a purchaser no later than 10
907	days prior to closing.
908	3.  Amendments made to a timeshare instrument for a
909	component site located in this state are not required to be
910	delivered to purchasers who do not receive a timeshare estate or
911	an interest in a specific multisite timeshare plan license in
912	that component site. Amendments made to a timeshare instrument
913	for a component site not located in this state are not required
914	to be delivered to purchasers.
915	(b)  At the time that any amendments required to be
916	delivered to purchasers, as provided in paragraph (a), are
917	delivered to purchasers, the developer shall provide to those
918	purchasers who have not closed a written statement that the
919	purchaser or lessee will have a 10-day voidability period.
920	(4)(a)  Upon the filing of a filed registered public
921	offering statement, the developer shall pay a filing fee of $2
922	for each 7 days of annual use availability in each timeshare
923	unit that may be offered as a part of the proposed timeshare
924	plan pursuant to the filing.
925	(b)  Upon the filing of an amendment to an approved filed
926	registered public offering statement, other than an amendment
927	adding a phase to the timeshare plan, the developer shall pay a
928	filing fee of $100.
929	(5)  Every filed registered public offering statement for a
930	timeshare plan which is not a multisite timeshare plan shall
931	contain the information required by this subsection. The
932	division is authorized to provide by rule the method by which a
933	developer must provide such information to the division.
934	(a)  A cover page stating only:
935	1.  The name of the timeshare plan; and
936	2.  The following statement, in conspicuous type: This
937	public offering statement contains important matters to be
938	considered in acquiring a timeshare interest. The statements
939	contained in this public offering statement are only summary in
940	nature. A prospective purchaser should refer to all references,
941	accompanying exhibits, contract documents, and sales materials.
942	You should not rely upon oral representations as being correct.
943	Refer to this document and accompanying exhibits for correct
944	representations. The seller is prohibited from making any
945	representations other than those contained in the contract and
946	this public offering statement.
947	(b)  A listing of all statements required to be in
948	conspicuous type in the public offering statement and in all
949	exhibits thereto.
950	(c)  A separate index of the contents and exhibits of the
951	public offering statement.
952	(d)  A text which shall include, where applicable, the
953	disclosures set forth in paragraphs (e)-(hh).
954	(e)  A description of the timeshare plan, including, but
955	not limited to:
956	1.  Its name and location.
957	2.  An explanation of the form of timeshare ownership that
958	is being offered, including a statement as to whether any
959	interest in the underlying real property will be conveyed to the
960	purchaser. If the plan is being created or being sold on a
961	leasehold, a description of the material terms of the lease
962	shall be included. If the plan is a plan in which timeshare
963	estates or personal property timeshare interests are sold as
964	interests in a trust pursuant to the requirements of this
965	chapter, a full and accurate description of the trust
966	arrangement and the trustee's duties shall be included. If the
967	plan is a personal property timeshare plan, a description of the
968	material terms of the arrangement for the ownership or use of
969	the personal property shall be included.
970	3.  An explanation of the manner in which the apportionment
971	of common expenses and ownership of the common elements has been
972	determined.
973	4.  If ownership or use of the timeshare plan is based on a
974	point system, a statement indicating the circumstances by which
975	the point values may change, the extent of such changes, and the
976	person or entity responsible for the changes.
977	5.  If any of the accommodations or facilities are part of
978	a personal property timeshare plan in which the accommodations
979	or facilities are located on or in a documented vessel or
980	foreign vessel as provided in s. 721.08(2)(c)3.e., the
981	disclosure required by s. 721.08(2)(c)3.e.(IV).
982	(f)  A description of the accommodations, including, but
983	not limited to:
984	1.  The number of timeshare units in each building, the
985	total number of timeshare periods declared as part of the
986	timeshare plan and filed with the division, and the number of
987	bathrooms and bedrooms in each type of timeshare unit.
988	2.  The latest date estimated for completion of
989	constructing, finishing, and equipping the timeshare units
990	declared as part of the timeshare plan and filed with the
991	division.
992	3.  The estimated maximum number of units and timeshare
993	periods that will use the accommodations and facilities. If the
994	maximum number of timeshare units or timeshare periods will
995	vary, a description of the basis for variation.
996	4.  The duration, in years, of the timeshare plan.
997	5.  If any of the accommodations are part of a personal
998	property timeshare plan, the name, vehicle registration number,
999	title certificate number, or any other identifying registration
1000	number assigned to the accommodation of a personal property
1001	timeshare plan by a state, federal, or international
1002	governmental agency.
1003	6.  If any of the accommodations are part of a personal
1004	property timeshare plan, the fire detection system and fire
1005	safety equipment and description of method of compliance with
1006	any applicable firesafety or fire detection regulations.
1007	(g)  A description of any the facilities that will be used
1008	by purchasers of the plan, including, but not limited to:
1009	1.  The intended purpose, if not apparent from the
1010	description.
1011	2.  The estimated date when each facility will be available
1012	for use by the purchaser.
1013	3.  A statement as to whether the facilities will be used
1014	exclusively by purchasers of the timeshare plan, and, if not, a
1015	statement as to whether the purchasers of the timeshare plan are
1016	required to pay any portion of the maintenance and expenses of
1017	such facilities.
1018	(h)1.  If any facilities offered by the developer for use
1019	by purchasers are to be leased or have club memberships
1020	associated with them, other than participation in a vacation
1021	club, one of the following statements in conspicuous type: There
1022	is a lease associated with one or more facilities of the
1023	timeshare plan; or, There is a club membership associated with
1024	one or more facilities of the timeshare plan.
1025	2.  If it is mandatory that purchasers pay fees, rent,
1026	dues, or other charges under a facilities lease or club
1027	membership for the use of the facilities, other than
1028	participation in a vacation club, the applicable statement in
1029	conspicuous type in substantially the following form:
1030	a.  Membership in a facilities club is mandatory for
1031	purchasers;
1032	b.  Purchasers or the owners' association(s) are required,
1033	as a condition of ownership, to be lessees under the facilities
1034	lease;
1035	c.  Purchasers or the owners' association(s) are required
1036	to pay their share of the rent or costs and expenses of
1037	maintenance, management, upkeep, and replacement under the
1038	facilities lease (or the other instruments providing the
1039	facilities); or
1040	d.  A similar statement of the nature of the organization
1041	or the manner in which the use rights are created, and that
1042	purchasers are required to pay.
1043
1044	Immediately following the applicable statement, a description of
1045	the lease or other instrument shall be stated, including a
1046	description of terms of the payment of rent or costs and
1047	expenses of maintenance, management, upkeep, and replacement of
1048	the facilities.
1049	3.  If the purchasers are required to pay a use fee, or
1050	other payment for the use of the facilities, not including the
1051	rent or maintenance, management, upkeep, or replacement costs
1052	and expenses, the following statement in conspicuous type: The
1053	purchasers or the owners' association(s) must pay use fees for
1054	one or more facilities. Immediately following this statement, a
1055	description of the use fees shall be included.
1056	4.  If any person other than the owners' association has
1057	the right to a lien on the timeshare interests to secure the
1058	payment of assessments, rent, or other exactions, a statement in
1059	conspicuous type in substantially the following form:
1060	a.  There is a lien or lien right against each timeshare
1061	interest to secure the payment of rent and other exactions under
1062	the facilities lease. A purchaser's failure to make these
1063	payments may result in foreclosure of the lien; or
1064	b.  There is a lien or lien right against each timeshare
1065	interest to secure the payment of assessments or other exactions
1066	coming due for the use, maintenance, upkeep, or repair of one or
1067	more facilities. A purchaser's failure to make these payments
1068	may result in foreclosure of the lien.
1069
1070	Immediately following the applicable statement, a description of
1071	the lien right shall be included.
1072	(i)  If the developer or any other person has the right to
1073	increase or add to the facilities at any time after the
1074	establishment of the timeshare plan, without the consent of the
1075	purchasers or owners' association being required, a statement in
1076	conspicuous type in substantially the following form: Facilities
1077	may be expanded or added without consent of the purchasers or
1078	the owners' association(s). Immediately following this
1079	statement, a description of such reserved rights shall be
1080	included.
1081	(j)1.  For a real property timeshare plan, an explanation
1082	of the status of the title to the real property underlying the
1083	timeshare plan, including a statement of the existence of any
1084	lien, defect, judgment, mortgage, or other encumbrance affecting
1085	the title to the property, and how such lien, defect, judgment,
1086	mortgage, or other encumbrance will be removed or satisfied
1087	prior to closing.
1088	2.  For a personal property timeshare plan, an explanation
1089	of the status of title to the personal property underlying the
1090	timeshare plan, including a statement of the existence of any
1091	lien, defect, judgment, or other encumbrance affecting the title
1092	to the personal property, and how such lien, defect, judgment,
1093	or other encumbrance will be removed or satisfied prior to
1094	closing.
1095	(k)  A description of any judgment against the developer,
1096	the managing entity, the owner of the underlying fee, or the
1097	owner of the underlying personal property fee, which judgment is
1098	material to the timeshare plan; the status of any pending suit
1099	to which the developer, the managing entity, the owner of the
1100	underlying fee, or the owner of the underlying personal property
1101	fee is a party, which suit is material to the timeshare plan;
1102	and any other suit which is material to the timeshare plan of
1103	which the developer, managing entity, the owner of the
1104	underlying fee, or the owner of the underlying personal property
1105	fee has actual knowledge. If no judgments or pending suits
1106	exist, there shall be a statement of such fact.
1107	(l)  A description of all unusual and material
1108	circumstances, features, and characteristics of the real
1109	property or personal property underlying or comprising the
1110	timeshare plan.
1111	(m)  A description of any financing to be offered to
1112	purchasers by the developer or any person or entity in which the
1113	developer has a financial interest, together with a disclosure
1114	that the description of such financing may be changed by the
1115	developer and that any change in the financing offered to
1116	prospective purchasers will not be deemed to be a material
1117	change.
1118	(n)  A detailed explanation of any financial arrangements
1119	which have been provided for completion of all promised
1120	improvements.
1121	(o)  The name and address of the managing entity; a
1122	statement whether the seller may change the managing entity or
1123	its control and, if so, the manner by which the seller may
1124	change the managing entity; a statement of the arrangements for
1125	management, maintenance, and operation of the accommodations and
1126	facilities and of other property that will serve the purchasers;
1127	and a description of the management arrangement and any
1128	contracts for these purposes having a term in excess of 1 year,
1129	including the names of the contracting parties, the term of the
1130	contract, the nature of the services included, and the
1131	compensation, stated for a month and for a year, and provisions
1132	for increases in the compensation. In the case of a personal
1133	property timeshare plan in which the accommodations or
1134	facilities are located on or in a documented vessel or foreign
1135	vessel as provided in s. 721.08(2)(c)3.e., a statement shall be
1136	included that describes the trustee's or owners' association's
1137	association's access to the certificates of classification
1138	and that the certificate of classification will be made
1139	available to purchasers on request.
1140	(p)  If any person other than the purchasers has the right
1141	to retain control of the board of administration of the owners'
1142	association, if any, for a period of time which may exceed 1
1143	year after the closing of the sale of a majority of the
1144	timeshare interests in that timeshare plan to persons other than
1145	successors or concurrent developers and the plan is one in which
1146	all purchasers automatically become members of the owners'
1147	association, a statement in conspicuous type in substantially
1148	the following form: The developer (or other person) has the
1149	right to retain control of the owners' association after a
1150	majority of the timeshare interests have been sold. Immediately
1151	following this statement, a description of the applicable
1152	transfer of control provisions of the timeshare plan shall be
1153	included.
1154	(q)1.  If there are any restrictions upon the sale,
1155	transfer, conveyance, or leasing of a timeshare interest, a
1156	statement in conspicuous type in substantially the following
1157	form: The sale, lease, or transfer of timeshare interests is
1158	restricted or controlled. Immediately following this statement,
1159	a description of the nature of the restriction, limitation, or
1160	control on the sale, lease, or transfer of timeshare interests
1161	shall be included.
1162	2.  The following statement in conspicuous type in
1163	substantially the following form: The purchase of a timeshare
1164	interest should be based upon its value as a vacation experience
1165	or for spending leisure time, and not considered for purposes of
1166	acquiring an appreciating investment or with an expectation that
1167	the timeshare interest may be resold.
1168	(r)  If the timeshare plan is part of a phase project, a
1169	statement to that effect and a complete description of the
1170	phasing. Notwithstanding any provisions of s. 718.110 or s.
1171	719.1055, a developer may develop a timeshare condominium or a
1172	timeshare cooperative in phases if the original declaration of
1173	condominium or cooperative documents submitting the initial
1174	phase to condominium ownership or cooperative ownership or an
1175	amendment to the declaration of condominium or cooperative
1176	documents which has been approved by all of the unit owners and
1177	unit mortgagees provides for phasing. Notwithstanding any
1178	provisions of s. 718.403 or s. 719.403 to the contrary, the
1179	original declaration of condominium or cooperative documents, or
1180	an amendment to the declaration of condominium or cooperative
1181	documents adopted pursuant to this subsection, need only
1182	generally describe the developer's phasing plan and the land
1183	which may become part of the condominium or cooperative, and, in
1184	conjunction therewith, the developer may also reserve all rights
1185	to vary his or her phasing plan as to phase boundaries, plot
1186	plans and floor plans, timeshare unit types, timeshare unit
1187	sizes and timeshare unit type mixes, numbers of timeshare units,
1188	and facilities with respect to each subsequent phase. There
1189	shall be no time limit during which a developer of a timeshare
1190	condominium or timeshare cooperative must complete his or her
1191	phasing plan, and the developer shall not be required to notify
1192	owners of existing timeshare estates of his or her decision not
1193	to add one or more proposed phases.
1194	(s)  A description of the material restrictions, if any, to
1195	be imposed on timeshare interests concerning the use of any of
1196	the accommodations or facilities, including statements as to
1197	whether there are restrictions upon children and pets or a
1198	reference to a copy of the documents containing the restrictions
1199	which shall be attached as an exhibit. If there are no
1200	restrictions, there shall be a statement of such fact.
1201	(t)  If there is any land or personal property that is
1202	offered by the developer for use by the purchasers and which is
1203	neither owned by them nor leased to them, the owners'
1204	association, or any entity controlled by the purchasers, a
1205	statement describing the land or personal property, how it will
1206	serve the timeshare plan, and the nature and term of service.
1207	(u)  An estimated operating budget for the timeshare plan
1208	and a schedule of the purchaser's expenses shall be attached as
1209	an exhibit and shall contain the following information:
1210	1.  The estimated annual expenses of the timeshare plan
1211	collectible from purchasers by assessments. The estimated
1212	payments by the purchaser for assessments shall also be stated
1213	in the estimated amounts for the times when they will be due.
1214	Expenses shall also be shown for the shortest timeshare period
1215	offered for sale by the developer. If the timeshare plan
1216	provides for the offer and sale of units to be used on a
1217	nontimeshare basis, the estimated monthly and annual expenses of
1218	such units shall be set forth in a separate schedule.
1219	2.  The estimated weekly, monthly, and annual expenses of
1220	the purchaser of each timeshare interest, other than assessments
1221	payable to the managing entity. Expenses which are personal to
1222	purchasers that are not uniformly incurred by all purchasers or
1223	that are not provided for or contemplated by the timeshare plan
1224	documents may be excluded from this estimate.
1225	3.  The estimated items of expenses of the timeshare plan
1226	and the managing entity, except as excluded under subparagraph
1227	2., including, but not limited to, if applicable, the following
1228	items, which shall be stated either as management expenses
1229	collectible by assessments or as expenses of the purchaser
1230	payable to persons other than the managing entity:
1231	a.  Expenses for the managing entity:
1232	(I)  Administration of the managing entity.
1233	(II)  Management fees.
1234	(III)  Maintenance.
1235	(IV)  Rent for facilities.
1236	(V)  Taxes upon timeshare property.
1237	(VI)  Taxes upon leased areas.
1238	(VII)  Insurance.
1239	(VIII)  Security provisions.
1240	(IX)  Other expenses.
1241	(X)  Operating capital.
1242	(XI)  Reserves for deferred maintenance and reserves for
1243	capital expenditures, including:.
1244	(A)  Reserves for deferred maintenance or capital
1245	expenditures of accommodations and facilities of a real property
1246	timeshare plan, if any. All reserves for any accommodations and
1247	facilities of real property timeshare plans located in this
1248	state shall be calculated by a formula which is based upon
1249	estimated life and replacement cost of each reserve item.
1250	Reserves for deferred maintenance for such accommodations and
1251	facilities shall include accounts for roof replacement, building
1252	painting, pavement resurfacing, replacement of timeshare unit
1253	furnishings and equipment, and any other component, the useful
1254	life of which is less than the useful life of the overall
1255	structure. For any accommodations and facilities of real
1256	property timeshare plans located outside of this state, the
1257	developer shall disclose the amount of reserves for deferred
1258	maintenance or capital expenditures required by the law of the
1259	situs state, if applicable, and maintained for such
1260	accommodations and facilities.
1261	(B)  Reserves for deferred maintenance or capital
1262	expenditures of accommodations and facilities of a personal
1263	property timeshare plan, if any. If such reserves are
1264	maintained, the estimated operating budget shall disclose the
1265	methodology of how the reserves are calculated. If a personal
1266	property timeshare plan does not require reserves, the following
1267	statement, in conspicuous type, shall appear in both the budget
1268	and the public offering statement:
1269
1270	The estimated operating budget for this personal property
1271	timeshare plan does not include reserves for deferred
1272	maintenance or capital expenditures; each timeshare interest may
1273	be subject to substantial special assessments from time to time
1274	because no such reserves exist.
1275
1276	(XII)  Fees payable to the division.
1277	b.  Expenses for a purchaser:
1278	(I)  Rent for the timeshare unit, if subject to a lease.
1279	(II)  Rent payable by the purchaser directly to the lessor
1280	or agent under any lease for the use of facilities, which use
1281	and payment is a mandatory condition of ownership and is not
1282	included in the common expenses or assessments for common
1283	maintenance paid by the purchasers to the managing entity.
1284	4.  The estimated amounts shall be stated for a period of
1285	at least 12 months and may distinguish between the period prior
1286	to the time that purchasers elect a majority of the board of
1287	administration and the period after that date.
1288	5.  If the developer intends to guarantee the level of
1289	assessments, such guarantee must be based upon a good faith
1290	estimate of the revenues and expenses of the timeshare plan. The
1291	guarantee must include a description of the following:
1292	a.  The specific time period measured in one or more
1293	calendar or fiscal years during which the guarantee will be in
1294	effect.
1295	b.  A statement that the developer will pay all common
1296	expenses incurred in excess of the total revenues of the
1297	timeshare plan pursuant to s. 721.15(2) if the developer has
1298	excused himself or herself from the payment of assessments
1299	during the guarantee period.
1300	c.  The level, expressed in total dollars, at which the
1301	developer guarantees the budget. If the developer has reserved
1302	the right to extend or increase the guarantee level pursuant to
1303	s. 721.15(2), a disclosure must be included to that effect.
1304	6.  If the developer intends to provide a trust fund to
1305	defer or reduce the payment of annual assessments, a copy of the
1306	trust instrument shall be attached as an exhibit and shall
1307	include a description of such arrangement, including, but not
1308	limited to:
1309	a.  The specific amount of such trust funds and the source
1310	of the funds.
1311	b.  The name and address of the trustee.
1312	c.  The investment methods permitted by the trust
1313	agreement.
1314	d.  A statement in conspicuous type that the funds from the
1315	trust account may not cover all assessments and that there is no
1316	guarantee that purchasers will not have to pay assessments in
1317	the future.
1318	7.  The budget of a phase timeshare plan may contain a note
1319	identifying the number of timeshare interests covered by the
1320	budget, indicating the number of timeshare interests, if any,
1321	estimated to be declared as part of the timeshare plan during
1322	that calendar year, and projecting the common expenses for the
1323	timeshare plan based upon the number of timeshare interests
1324	estimated to be declared as part of the timeshare plan during
1325	that calendar year.
1326	(v)  A schedule of estimated closing expenses to be paid by
1327	a purchaser or lessee of a timeshare interest and a statement as
1328	to whether a title opinion or title insurance policy is
1329	available to the purchaser and, if so, at whose expense.
1330	(w)  The identity of the developer and the chief operating
1331	officer or principal directing the creation and sale of the
1332	timeshare plan and a statement of the experience of each in this
1333	field or, if no experience, a statement of that fact.
1334	(x)  A statement of the total financial obligation of the
1335	purchaser, including the purchase price and any additional
1336	charges to which the purchaser may be subject.
1337	(y)  The name of any person who will or may have the right
1338	to alter, amend, or add to the charges to which the purchaser
1339	may be subject and the terms and conditions under which such
1340	alterations, amendments, or additions may be imposed.
1341	(z)  A statement of the purchaser's right of cancellation
1342	of the purchase contract.
1343	(aa)  A description of the insurance coverage provided for
1344	the timeshare plan.
1345	(bb)  A statement as to whether the timeshare plan is
1346	participating in an exchange program and, if so, the name and
1347	address of the exchange company offering the exchange program.
1348	(cc)  The existence of rules and regulations regarding any
1349	reservation features governing a purchaser's ability to make
1350	reservations for a timeshare period, including, if applicable, a
1351	conspicuous type disclaimer in substantially the following form:
1352
1353	The right to reserve a timeshare period is subject to rules and
1354	regulations of the timeshare plan reservation system.
1355
1356	(dd)  If a developer is filing a timeshare plan that
1357	includes a timeshare instrument or component site document that
1358	was in conformance with the laws and rules in existence at the
1359	time the timeshare plan was created but does not conform to
1360	existing laws and rules that govern the timeshare plan and the
1361	developer does not have the authority or power to amend or
1362	change the timeshare instrument or component site document to
1363	conform to such existing laws or rules as directed by the
1364	division, a brief explanation of current law and the conflict
1365	with the timeshare instrument or component site document,
1366	preceded by disclaimer in conspicuous type in substantially the
1367	following form:
1368
1369	Florida law has been amended and certain provisions in [insert
1370	appropriate reference to timeshare instrument or component site
1371	document] that were in conformance with Florida law as it
1372	existed at the time the timeshare plan was created are not in
1373	conformance with current Florida law. These documents may only
1374	be amended by [insert appropriate reference to person or entity
1375	that has the right to amend or change the timeshare instrument
1376	or component site document]. The developer does not warrant that
1377	such documents are in technical compliance with all applicable
1378	Florida laws and regulations. All questions regarding amendment
1379	of these documents should be directed to [insert appropriate
1380	reference to person or entity that has the right to amend or
1381	change the timeshare instrument or component site document].
1382
1383	(ee)  Any other information that a seller, with the
1384	approval of the division, desires to include in the public
1385	offering statement.
1386	(ff)  Copies of the following documents and plans, to the
1387	extent they are applicable, shall be included as exhibits to the
1388	filed registered public offering statement provided, if the
1389	timeshare plan has not been declared or created at the time of
1390	the filing, the developer shall provide proposed documents:
1391	1.  The declaration of condominium.
1392	2.  The cooperative documents.
1393	3.  The declaration of covenants and restrictions.
1394	4.  The articles of incorporation creating the owners'
1395	association.
1396	5.  The bylaws of the owners' association.
1397	6.  Any The ground lease or other underlying lease of the
1398	real property associated with on which the timeshare plan is
1399	situated. In the case of a personal property timeshare plan, any
1400	lease of the personal property associated with the personal
1401	property timeshare plan.
1402	7.  The management agreement and all maintenance and other
1403	contracts regarding the management and operation of the
1404	timeshare property which have terms in excess of 1 year.
1405	8.  The estimated operating budget for the timeshare plan
1406	and the required schedule of purchasers' expenses.
1407	9.  The floor plan of each type of accommodation and the
1408	plot plan showing the location of all accommodations and
1409	facilities declared as part of the timeshare plan and filed with
1410	the division.
1411	10.  The lease for any facilities.
1412	11.  A declaration of servitude of properties serving the
1413	accommodations and facilities, but not owned by purchasers or
1414	leased to them or the owners' association.
1415	12.  Any documents required by s. 721.03(3)(e) as the
1416	result of the inclusion of a timeshare plan in the conversion of
1417	the building to condominium or cooperative ownership.
1418	13.  The form of agreement for sale or lease of timeshare
1419	interests.
1420	14.  The executed agreement for escrow of payments made to
1421	the developer prior to closing and the form of any agreement for
1422	escrow of ad valorem tax escrow payments, if any, to be made
1423	into an ad valorem tax escrow account pursuant to s. 192.037(6).
1424	15.  The documents containing any restrictions on use of
1425	the property required by paragraph (s).
1426	16.  A letter from the escrow agent or filing attorney
1427	confirming that the escrow agent and its officers, directors, or
1428	other partners are independent pursuant to the requirements of
1429	this chapter.
1430	17.  Any nondisturbance and notice to creditors instrument
1431	required by s. 721.08.
1432	18.  In the case of any personal property timeshare plan in
1433	which the accommodations and facilities are located on or in a
1434	documented vessel or foreign vessel as provided in s.
1435	721.08(2)(c)3.e., a copy of the certificate of ownership of such
1436	vessel and either a copy of the certificate of documentation or
1437	certificate of registry of such vessel.
1438	19.  An executed affidavit given under oath by an attorney
1439	licensed to practice law in any jurisdiction in the United
1440	States stating that the attorney has researched the applicable
1441	laws of the jurisdiction in which governing law has been
1442	established and the laws of the jurisdiction in which the vessel
1443	is registered, and has found that the timeshare instrument
1444	complies with the provisions of s. 721.08(2)(c)3.e.(II)(C) and
1445	(III).
1446	20.16.  Any other documents or instruments creating the
1447	timeshare plan.
1448	(gg)  Such other information as is necessary to fairly,
1449	meaningfully, and effectively disclose all aspects of the
1450	timeshare plan, including, but not limited to, any disclosures
1451	made necessary by the operation of s. 721.03(8). However, if a
1452	developer has, in good faith, attempted to comply with the
1453	requirements of this section, and if, in fact, he or she has
1454	substantially complied with the disclosure requirements of this
1455	chapter, nonmaterial errors or omissions shall not be
1456	actionable.
1457	(hh)  Notwithstanding the provisions of this subsection,
1458	the filed registered public offering statement for a component
1459	site of a multisite timeshare plan filed pursuant to this
1460	subsection may contain cross-references to information contained
1461	in the related multisite timeshare plan filed registered public
1462	offering statement filed pursuant to s. 721.55 in lieu of
1463	repeating such information.
1464	(6)  The division is authorized to prescribe by rule the
1465	form of the approved purchaser public offering statement that
1466	must be furnished by the developer to each purchaser. The form
1467	of the purchaser public offering statement must provide fair,
1468	meaningful, and effective disclosure of all aspects of the
1469	timeshare plan. For timeshare plans filed pursuant to this part,
1470	the developer shall furnish each purchaser with the following:
1471	(a)  A copy of the purchaser public offering statement text
1472	in the form approved by the division for delivery to purchasers.
1473	(b)  Copies of the exhibits required to be filed with the
1474	division pursuant to subparagraphs (5)(ff)1., 2., 4., 5., 8.,
1475	and 20. 16.
1476	(c)  A receipt for timeshare plan documents and a list
1477	describing any exhibit to the filed registered public offering
1478	statement filed with the division which is not delivered to the
1479	purchaser. The division is authorized to prescribe by rule the
1480	form of the receipt for timeshare plan documents and the
1481	description of exhibits list that must be furnished to the
1482	purchaser. The description of documents list utilized by a
1483	developer shall be filed with the division for review as part of
1484	the filed registered public offering statement pursuant to this
1485	section. The developer shall be required to provide the managing
1486	entity with a copy of the approved filed registered public
1487	offering statement and any approved amendments thereto to be
1488	maintained by the managing entity as part of the books and
1489	records of the timeshare plan pursuant to s. 721.13(3)(d).
1490	(d)  Any other exhibit which the developer includes as part
1491	of the purchaser public offering statement, provided that the
1492	developer first files the exhibit with the division.
1493	(e)  An executed copy of any document which the purchaser
1494	signs.
1495	(f)  Each purchaser shall receive a fully executed paper
1496	copy of the purchase contract.
1497	Section 7.  Paragraph (g) of subsection (1) of section
1498	721.075, Florida Statutes, is amended and paragraph (e) is added
1499	to subsection (2) of said section, to read:
1500	721.075  Incidental benefits.--Incidental benefits shall be
1501	offered only as provided in this section.
1502	(1)  Accommodations, facilities, products, services,
1503	discounts, or other benefits which satisfy the requirements of
1504	this subsection shall be subject to the provisions of this
1505	section and exempt from the other provisions of this chapter
1506	which would otherwise apply to such accommodations or facilities
1507	if and only if:
1508	(g)  The incidental benefit is filed with the division for
1509	review in conjunction with the filing of a timeshare plan or in
1510	connection with a previously filed timeshare plan.
1511	(2)  Each purchaser shall execute a separate acknowledgment
1512	and disclosure statement with respect to all incidental
1513	benefits, which statement shall include the following
1514	information:
1515	(e)  A statement indicating the source of the services,
1516	points, or other products that constitute the incidental
1517	benefit.
1518	Section 8.  Section 721.08, Florida Statutes, is amended to
1519	read:
1520	721.08  Escrow accounts; nondisturbance instruments;
1521	alternate security arrangements; transfer of legal title.--
1522	(1)  Prior to the filing of a registered public offering
1523	statement with the division, all developers shall establish an
1524	escrow account with an escrow agent for the purpose of
1525	protecting the funds or other property of purchasers required to
1526	be escrowed by this section. An escrow agent shall maintain the
1527	accounts called for in this section only in such a manner as to
1528	be under the direct supervision and control of the escrow agent.
1529	The escrow agent shall have a fiduciary duty to each purchaser
1530	to maintain the escrow accounts in accordance with good
1531	accounting practices and to release the purchaser's funds or
1532	other property from escrow only in accordance with this chapter.
1533	The escrow agent shall retain all affidavits received pursuant
1534	to this section for a period of 5 years. Should the escrow agent
1535	receive conflicting demands for funds or other property held in
1536	escrow, the escrow agent shall immediately notify the division
1537	of the dispute and either promptly submit the matter to
1538	arbitration or, by interpleader or otherwise, seek an
1539	adjudication of the matter by court.
1540	(2)  One hundred percent of all funds or other property
1541	which is received from or on behalf of purchasers of the
1542	timeshare plan or timeshare interest prior to the occurrence of
1543	events required in this subsection shall be deposited pursuant
1544	to an escrow agreement approved by the division. The escrow
1545	agreement shall provide that the funds or other property may be
1546	released from escrow only as follows:
1547	(a)  Cancellation.--In the event a purchaser gives a valid
1548	notice of cancellation pursuant to s. 721.10 or is otherwise
1549	entitled to cancel the sale, the funds or other property
1550	received from or on behalf of the purchaser, or the proceeds
1551	thereof, shall be returned to the purchaser. Such refund shall
1552	be made within 20 days after of demand therefor by the purchaser
1553	or within 5 days after receipt of funds from the purchaser's
1554	cleared check, whichever is later. If the purchaser has received
1555	benefits under the contract prior to the effective date of the
1556	cancellation, the funds or other property to be returned to the
1557	purchaser may be reduced by the proportion of contract benefits
1558	actually received.
1559	(b)  Purchaser's default.--Following expiration of the 10-
1560	day cancellation period, if the purchaser defaults in the
1561	performance of her or his obligations under the terms of the
1562	contract to purchase or such other agreement by which a seller
1563	sells the timeshare interest, the developer shall provide an
1564	affidavit to the escrow agent requesting release of the escrowed
1565	funds or other property and shall provide a copy of such
1566	affidavit to the purchaser who has defaulted. The developer's
1567	affidavit, as required herein, shall include:
1568	1.  A statement that the purchaser has defaulted and that
1569	the developer has not defaulted;
1570	2.  A brief explanation of the nature of the default and
1571	the date of its occurrence;
1572	3.  A statement that pursuant to the terms of the contract
1573	the developer is entitled to the funds held by the escrow agent;
1574	and
1575	4.  A statement that the developer has not received from
1576	the purchaser any written notice of a dispute between the
1577	purchaser and developer or a claim by the purchaser to the
1578	escrow.
1579	(c)  Compliance with conditions.--
1580	1.  Timeshare licenses.--If the timeshare plan is one in
1581	which timeshare licenses are to be sold and no cancellation or
1582	default has occurred, the escrow agent may release the escrowed
1583	funds or other property to or on the order of the developer upon
1584	presentation of:
1585	a.  An affidavit by the developer that all of the following
1586	conditions have been met:
1587	(I)  Expiration of the cancellation period.
1588	(II)  Completion of construction.
1589	(III)  Closing.
1590	(IV)  Either:
1591	(A)  Execution, delivery, and recordation by each
1592	interestholder of the nondisturbance and notice to creditors
1593	instrument, as described in this section; or, alternatively,
1594	(B)  Transfer by the developer of legal title to the
1595	subject accommodations and facilities, or all use rights
1596	therein, into to a trust satisfying the requirements of
1597	subparagraph 4. sub-subparagraph 3.b. and the execution,
1598	delivery, and recordation by each other interestholder of the
1599	nondisturbance and notice to creditors instrument, as described
1600	in this section.
1601	b.  A certified copy of each the recorded nondisturbance
1602	and notice to creditors instrument that complies with subsection
1603	(3).
1604	c.  One of the following:
1605	(I)  A copy of a memorandum of agreement, as defined in s.
1606	721.05(21), together with satisfactory evidence that the
1607	original memorandum of agreement has been irretrievably
1608	delivered for recording to the appropriate official responsible
1609	for maintaining the public records in the county in which the
1610	subject accommodations and facilities are located. The original
1611	memorandum of agreement must be recorded within 180 days after
1612	the date on which the purchaser executed her or his purchase
1613	agreement.
1614	(II)  A notice delivered for recording to the appropriate
1615	official responsible for maintaining the public records in each
1616	county in which the subject accommodations and facilities are
1617	located notifying all persons of the identity of an independent
1618	escrow agent or trustee satisfying the requirements of
1619	subparagraph 4. sub-subparagraph 3.b. that shall maintain
1620	separate books and records, in accordance with good accounting
1621	practices, for the timeshare plan in which timeshare licenses
1622	are to be sold. The books and records shall indicate each
1623	accommodation and facility that is subject to such a timeshare
1624	plan and each purchaser of a timeshare license in the timeshare
1625	plan.
1626	2.  Timeshare estates.--If the timeshare plan is one in
1627	which timeshare estates are to be sold, other than interests in
1628	a trust pursuant to subparagraph 3., and no cancellation or
1629	default has occurred, the escrow agent may release the escrowed
1630	funds or other property to or on the order of the developer upon
1631	presentation of:
1632	a.  An affidavit by the developer that all of the following
1633	conditions have been met:
1634	(I)  Expiration of the cancellation period.
1635	(II)  Completion of construction.
1636	(III)  Closing.
1637	b.  If the timeshare estate is sold by agreement for deed,
1638	a certified copy of the recorded nondisturbance and notice to
1639	creditors instrument, as described in this section.
1640	c.  Evidence that each accommodation and facility:
1641	(I)  Is free and clear of the claims of any
1642	interestholders, other than the claims of interestholders that,
1643	through a recorded instrument, are irrevocably made subject to
1644	the timeshare instrument and the use rights of purchasers made
1645	available through the timeshare instrument;
1646	(II)  Is the subject of a recorded nondisturbance and
1647	notice to creditors instrument that complies with subsection (3)
1648	and s. 721.17; or
1649	(III)  Has been transferred into a trust satisfying the
1650	requirements of subparagraph 4.
1651	d.  Evidence that the timeshare estate:
1652	(I)  Is free and clear of the claims of any
1653	interestholders, other than the claims of interestholders that,
1654	through a recorded instrument, are irrevocably made subject to
1655	the timeshare instrument and the use rights of purchasers made
1656	available through the timeshare instrument;, or
1657	(II)  Is that are the subject of a recorded nondisturbance
1658	and notice to creditors instrument that complies with subsection
1659	(3) and s. 721.17.
1660	3.  Personal property timeshare interests.--If the
1661	timeshare plan is one in which personal property timeshare
1662	interests estates are to be sold as interests in a trust that
1663	complies in all respects with the provisions of sub-subparagraph
1664	b., and no cancellation or default has occurred, the escrow
1665	agent may release the escrowed funds or other property to or on
1666	the order of the developer upon presentation of:
1667	a.  An affidavit by the developer that all of the following
1668	conditions have been met:
1669	(I)  Expiration of the cancellation period.
1670	(II)  Completion of construction.
1671	(III)  Transfer of the subject accommodations and
1672	facilities, or all use rights therein, to the trust.
1673	(IV)  Closing.
1674	b.  If the personal property timeshare interest is sold by
1675	agreement for transfer, evidence that the agreement for transfer
1676	complies fully with s. 721.06 and this section.
1677	c.  Evidence that one of the following has occurred:
1678	(I)  Transfer by the owner of the underlying personal
1679	property of legal title to the subject accommodations and
1680	facilities or all use rights therein into a trust satisfying the
1681	requirements of subparagraph 4.; or
1682	(II)  Transfer by the owner of the underlying personal
1683	property of legal title to the subject accommodations and
1684	facilities or all use rights therein into an owners' association
1685	satisfying the requirements of subparagraph 5.
1686	d.  Evidence of compliance with the provisions of
1687	subparagraph 6., if required.
1688	e.  If a personal property timeshare plan is created with
1689	respect to accommodations and facilities that are located on or
1690	in an oceangoing vessel, including a "documented vessel" or a

CODING: Words stricken are deletions; words underlined are additions.