California Code of Regulations
Title 10 - Investment
Chapter 6 - Real Estate Commissioner
Article 12.2 - Time-Share Project
Section 2809.1 - Properly Completed Application-Single-Site Time-Share Plan
Universal Citation: 10 CA Code of Regs 2809.1
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
An application for a final public report for a single-site time-share plan is "properly completed" within the meaning of Section 11231 of the Code if it contains the documents and information enumerated below:
(a) For every single-site time-share plan:
(1) The developer's legal name, any assumed names
used by the developer, principal office street address, mailing address, primary
contact person, and telephone number.
(2) The name of the developer's authorized or
registered agent in the state upon whom claims can be served or service of process
be had, the agent's street address in California, and telephone number.
(3) The name, street address, mailing address,
primary contact person, and telephone number of any time-share plan being
registered.
(4) The name, street
address, mailing address, and telephone number of any managing entity of the
time-share plan.
(5) Consent to service
of process upon the Bureau of Real Estate if applicant is a nonresident of
California.
(6) A description of the
inventory control system that will ensure compliance with Section 11250 of the
Code.
(7) Evidence that the
accommodation is presently suitable for human occupancy or that financial
arrangements have been made to complete construction or renovation of the
accommodation to make it suitable for human occupancy on or before the first date
for occupancy by a time-share interest owner.
(8) Evidence that the accommodations are owned or
leased by the developer of the time-share plan or is the subject of an enforceable
option or contract under which the developer will build, purchase, or lease the
accommodations.
(9) If an accommodation
in a time-share plan is located within a local governmental jurisdiction or
subdivision of real property in which the dedication of accommodations to
time-sharing is expressly prohibited by ordinance or recorded restriction, either
absolutely or without a permit or other entitlement from the governing body, the
applicant for a public report shall present evidence of a permit or other
entitlement by the appropriate authority for the local government or the
subdivision.
(10) A description of the
existing or proposed accommodations, including the type and number of time-share
interests in the accommodations.
(11)
The number of accommodations and time-share interests expressed in periods of
seven-day use availability or other time increments applicable to the time-share
plan, and available for use by purchasers and a representation about the percentage
of useable time authorized for sale.
(12) A description of any existing or proposed
amenities that will be part of the time-share plan.
(13) A description of the financial arrangements
that have been made, pursuant to Section 11230, for the completion of any
incomplete, promised amenities.
(14) A
description of the duration, phases and operation of the time-share plan.
(15) Copy of the budget meeting the requirements
of Section 11240, along with the budget certification or request that the budget be
certified by the Budget Review Section of the Bureau of Real Estate, and a
description of the method for calculating and apportioning the assessments among
purchasers.
(16) A description of any
initial or special fee due from the purchaser at closing together with a description
of the purpose and method of calculating the fee.
(17) A description of any financing available
through the developer.
(18) A
description of any liens, defects, or encumbrances on or affecting the title to the
time-share interests.
(19) A description
of any bankruptcies, pending civil or criminal suits, adjudications, or disciplinary
actions of which the developer has knowledge, that would have a material effect on
the developer's ability to perform its obligations.
(20) A description of any fees or charges to be
paid by time-share purchasers for the use of any amenities related to the time-share
plan.
(21) A description and amount of
insurance coverage provided for the protection of the purchaser.
(22) If applicable, a description of any right of
first refusal or other restraint on the transfer of all or any portion of a
time-share interest.
(23) A copy of
instructions to escrow depository for compliance with Section 11241 including the
following:
(A) Name and address of escrow
depository.
(B) A description of the
nature of the transaction.
(C)
Conditions that must be satisfied before escrow can be closed.
(D) Provision for the return to a prospective
purchaser of funds deposited toward the purchase of a time-share interest if the
escrow for the transaction has not closed on or before a given
date.
(24) Evidence of
financial arrangements to assure fulfillment of developers obligation to pay
assessments for unsold timeshare interests pursuant to Section 11241.
(25) Copy of the contract utilized between the
exchange company and a purchaser of a time-share interest and all promotional and
informational material delivered to purchasers pertaining to any offered exchange
program.
(26) Filing fee including fee
for preliminary public report if applicable.
(27) Certificate of qualification from Secretary
of State if applicant is a foreign corporation.
(28) Preliminary title report for all
accommodations comprising the time-share plan, dated not more than 90 days prior to
the date of submission of the application or, if the preliminary title report is
dated more than 90 days earlier, with an accompanying letter from the title officer,
dated not more than 90 days prior to submission of the application, indicating that
state of title has not changed from that set forth in the submitted preliminary
title report.
(29) If the offering is a
security subject to the jurisdiction of the Department of Business Oversight, a
Department of Business Oversight permit or interpretive opinion or copy of
application for permit or request for interpretive opinion submitted to Department
of Business Oversight.
(30) State or
local assessment and improvement bond information if applicable to accommodations in
the project.
(31) Copies of all
contracts, deeds, fact sheets and other instruments to be used in marketing,
financing and conveyancing of time-share interests.
(32) Copy of the covenants to be recorded for the
time-share plan pursuant to Section 11251 of the Code.
(33) Copy of trust agreement for the time-share
plan if applicable.
(34) Copy of
proposed or existing agreements for management of the time-share plan.
(35) Format of fidelity insurance or bond to be
obtained for the managing agent of the time-share plan and other employees who will
have custody or control of funds of the Association.
(36) Copy of letter or other evidence giving
notice of the proposed dedication of the timeshare project to local governments in
which accommodations of the time-share plan will be located. For time-share projects
located outside this state, evidence of approval or compliance of the time-share
project in the state in which the time-share project is located is sufficient to
satisfy this requirement.
(37) Completed
documents for reservations and reservation deposits if a preliminary public report
is requested.
(38) Evidence of financial
arrangements for any repurchase guarantee included in the offering.
(39) Description of the furnishings and other
personal property to be included in the time-share offering.
(40) In a time-share plan which comprises less
than all of the accommodations in a hotel, motel or similar commercial lodging
establishment and in which the accommodations not part of the time-share plan are
concurrently used for transient accommodations, a copy of the proposed contract for
the following:
(A) Arrangements for temporary use
for transient occupancy of accommodations comprising the time-share plan and
temporary use by the time-share plan of accommodations regularly used for transient
occupancy.
(B) Apportionment of the
costs of operation of the hotel/motel that are for the joint benefit of
accommodations in the time-share plan and accommodations for transient
occupancy.
(41) Agreement of
developer to subsidize maintenance and operation of the single-site time-share plan
where applicable.
(42) Description of
each incidental benefit pursuant to Section 11237(b).
(43) If applicable, information as required by
Section 11233.
(44) If applicable, a
certification meeting requirements of Section 11246.
(45) Audited financial statements of the
Association, if applicable.
(46) For
every single-site time-share plan involving newly-built or as yet unbuilt
accommodations, or accommodations which will be renovated or reconstructed prior to
occupancy, evidence of availability of domestic utilities and services to the
project.
(47) If the time-share plan is
located outside this state, a public report or other disclosure document meeting the
requirements of Section 11226(c)(5).
(48) A draft public report.
(b) For the sole purpose of determining the effect on the time-share plan, for every single-site time-share plan with accommodations in a condominium development or other common-interest subdivision:
(1) Proposed or existing governing instruments for
the common-interest subdivision.
(2)
Copies of all contracts or proposed contracts obligating the owners' association of
the common-interest subdivision if the subdivision is one for which a public report
has not been issued.
(3) If included in
the subdivision offering, a copy of agreement of developer to subsidize maintenance
and operations of the common interest subdivision if a public report has not been
issued for the subdivision.
(4)
Financial arrangements to assure performance of the subsidization agreement referred
to in (3) above if applicable.
(5)
Latest balance sheet and annual operating statement for the owners' association for
the common interest subdivision.
(6)
Pro-forma budget reflecting estimated ownership, maintenance and operational
expenses and reserves for the subdivision.
(7) Financial arrangements to assure fulfillment
of developer's obligation to pay assessments for unsold time-share interests if
public report has not been issued for the subdivision.
(8) Copy of letters by which the developer has
given notice of the proposed dedication of an accommodation to a time-share project
to the owners' association of each common-interest subdivision in which an
accommodation of the time-share project is located.
(9) Evidence of financial arrangements for
completion of common areas and facilities in the subdivision.
1. New section
filed 5-5-2005; operative 7-1-2005 (Register 2005, No. 18).
2. Change
without regulatory effect amending subsections (a)(5), (a)(15) and (a)(29) filed
6-30-2014 pursuant to section
100, title 1, California Code of
Regulations (Register 2014, No. 27).
Note: Authority cited: Section 11281, Business and Professions Code. Reference: Sections 11226, 11231 and 11234, Business and Professions Code.
Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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