21 NCAC 58B .0201. GENERAL PROVISIONS

(a)  Information contained in a public offering statement shall be accurate on the day it is supplied to a purchaser.  Before any public offering statement is supplied to a purchaser, the developer shall file a copy of the statement with the Commission.

(b)  In addition to the information required to be contained in a public offering statement by G.S. 93A-44, every public offering statement shall disclose to the purchaser of a time share complete and accurate information concerning:

(1)           the real property type of the time share program, whether tenancy‑in‑common, condominium or other, and a description of the estate the purchaser will own, the term of that estate and the remainder interest, if any, once the term has expired;

(2)           the document creating the time share program, a statement that it is the document which governs the program and a reference to the location where the purchaser may obtain or examine a copy of the document;

(3)           whether or not the property is being converted to a time share from some other use and, if so, a statement to that effect and disclosure of the prior use of the property;

(4)           the maximum number of time shares in the project, each recreational and other commonly used facility offered, and who or what will own each facility, if the project is to be completed in one development or construction phase;

(5)           if the project is planned in phased construction or development, the complete plan of phased offerings, including the maximum number of time shares which may be in the project, each recreational and other commonly used facility, who or what will own each facility, and the developer's representations regarding his or her commitment to build out the project;

(6)           the association of owners or other entity which will ultimately be responsible for managing the time share program, the first date or event when the entity will convene or commence to conduct business, each owner's voting right, if any, and whether and for how long the developer, as time share owner, will control the entity;

(7)           the location where owners may inspect the articles and bylaws of the owners association, or other organizational documents of the entity and the books and records it produces;

(8)           whether the entity has lien rights against time share owners for failure to pay assessments;

(9)           whether or not the developer has entered into a management contract on behalf of the managing entity, the extent to which the managing entity's powers are delegated to the manager and the location where a copy of the management contract may be examined;

(10)         whether or not the developer will pay assessments for time shares which it owns and a statement that the amount of assessments due the managing entity from owners will change over time, as circumstances may change;

(11)         whether or not the developer sponsors or will sponsor a rental or resale program and, if so, a summary of the program or programs; and

(12)         the developer's role at the project, if the developer is a separate entity from any other registered developer of the time share project.

(c)  The inclusion of false or misleading statements in a public offering statement shall be grounds for disciplinary action by the Commission.

 

History Note:        Authority G.S. 93A-44(8); 93A-51;

Eff. March 1, 1984;

Amended Eff. October 1, 2000; August 2, 1993; February 1, 1989; April 1, 1987.