California Code of Regulations
Title 10 - Investment
Chapter 6 - Real Estate Commissioner
Article 12.2 - Time-Share Project
Section 2809.3 - Properly Completed Application-Nonspecific Time-Share Interest Multi-Site Time-Share Plan
Universal Citation: 10 CA Code of Regs 2809.3
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
An application for a final public report for nonspecific time-share interest multi-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 nonspecific time-share interest multi-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, and
telephone number of any managing entity of the multi-site time-share plan.
(4) Consent to service of process upon the Bureau
of Real Estate if applicant is a nonresident of California.
(5) A description of the inventory control system
that will ensure compliance with Section 11250 of the Code.
(6) 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.
(7) 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.
(8) 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.
(9) A
description of the type of interest and usage rights the purchaser will
receive.
(10) A description of the
duration and operation of the time-share plan.
(11) A description of the type of insurance
coverage provided for each component site.
(12) An explanation of who holds title to the
accommodations of each component site.
(13) A description of each component site,
including the name and address of each component site.
(14) The number of accommodations and time-share
interests, expressed in periods of seven-day use availability or other time
increments applicable to the multi-site time-share plan for each component site
committed to the multi-site time-share plan and available for use by purchasers and
a representation about the percentage of useable time authorized for sale, and if
that percentage is 100%, then a statement describing how adequate periods of time
for maintenance and repair will be provided.
(15) A description of each type of accommodation
in terms of the number of bedrooms, bathrooms, and sleeping capacity, and a
statement of whether or not the accommodation contains a full kitchen. For purposes
of this description, a "full kitchen" means a kitchen having a minimum of a
dishwasher, range, sink, oven, and refrigerator.
(16) A description of amenities available for use
by the purchaser at each component site.
(17) A description of any incomplete amenities at
any of the component sites along with a statement as to any assurance for completion
pursuant to Section 11230 and the estimated date the amenities will be
available.
(18) The historical occupancy
of each component site for the prior 12-month period, if the component site was part
of the multi-site time-share plan during such 12-month time period, as well as any
periodic adjustment or amendment to the reservation system that may be needed in
order to respond to actual purchaser use patterns and changes in purchaser use
demand for the accommodations existing at that time within the multi-site time-share
plan.
(19) A description of any right to
make any additions, substitutions, or deletions of accommodations, amenities, or
component sites, and a description of the basis upon which accommodations,
amenities, or component sites may be added to, substituted in, or deleted from the
multi-site time-share plan.
(20) A
description of the reservation system that shall include all of the following:
(A) The entity responsible for operating the
reservation system, its relationship to the developer, and the duration of any
agreement for operation of the reservation system.
(B) A summary of the rules and regulations
governing access to and use of the reservation system.
(C) The existence of and an explanation regarding
any priority reservation features that affect a purchaser's ability to make
reservations for the use of a given accommodation on a first-come, first-served
basis.
(21) A description of
any liens, defects, or encumbrances that materially affect the purchaser's use
rights.
(22) A description of the
relationship between a multi-site time-share plan managing entity and the managing
entity of the component sites of a multi-site time-share plan, if different from the
multi-site time-share plan managing entity.
(23) 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.
(24) Any current fees or
charges to be paid by time-share purchasers for the use of any amenities related to
the time-share plan and a statement that the fees or charges are subject to
change.
(25) Any initial or special fee
due from the purchaser at closing with a description of the purpose and the method
of calculating the fee.
(26) A
description of any financing offered by or available through the
developer.
(27) A description of any
bankruptcies, pending civil or criminal suits, adjudications, or disciplinary
actions of which the developer has knowledge, which would have a material effect on
the developer's ability to perform its obligations.
(28) A statement disclosing any right of first
refusal or other restraint on the transfer of all or any portion of a time-share
interest.
(29) 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.
(30) Evidence of
financial arrangements to assure fulfillment of developer obligation to pay
assessments for unsold time-share interests pursuant to Section 11241.
(31) 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.
(32) Filing fee including fee
for preliminary public report if applicable.
(33) Certificate of qualification from Secretary
of State if applicant is a foreign corporation.
(34) 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.
(35) 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.
(36) State or
local assessment and improvement bond information if applicable to accommodations in
the project.
(37) Copies of all
contracts, deeds, fact sheets and other instruments to be used in marketing,
financing and conveyancing of time-share interests.
(38) Copy of the covenants for component sites of
the multi-site time-share plan in accordance with Section 11251 of the
Code.
(39) Copy of trust agreement for
the multi-site time-share plan if applicable.
(40) Copy of proposed or existing agreements for
management of the multi-site time-share plan.
(41) Format of fidelity insurance or bond to be
obtained for the managing agent of the multi-site time-share plan and other
employees who will have custody or control of funds of the multi-site time-share
plan association.
(42) Copy of letter or
other evidence giving notice of the proposed dedication of the timeshare project to
local governments in which accommodations of the multi-site 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.
(43) Completed documents for reservations and
reservation deposits if a preliminary public report is requested.
(44) Evidence of financial arrangements for any
repurchase guarantee included in the offering.
(45) Description of the furnishings and other
personal property to be included in the time-share offering.
(46) 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.
(47) Agreement of
developer to subsidize maintenance and operation of the multi-site time-share plan
where applicable.
(48) Description of
each incidental benefit pursuant to Section 11237(b).
(49) If applicable, information as required by
Section 11233.
(50) If applicable, a
certification meeting requirements of Section 11246.
(51) Audited financial statements of the
multi-site time-share plan association, if applicable.
(52) For every component 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 component site.
(53) 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).
(54) A draft public report.
(b) For the sole purpose of determining the effect on the time-share plan, for every multi-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 any promised and not yet completed amenities in the
subdivision.
1. New section
filed 5-5-2005; operative 7-1-2005 (Register 2005, No. 18).
2. Amendment
of subsections (a), (a)(3), (a)(14), (a)(18), (a)(22), (a)(38)-(42), (a)(47) and
(a)(51), new subsection (a)(54) and amendment of subsection (b) filed 8-29-2007;
operative 9-28-2007 (Register 2007, No. 35).
3. Change without regulatory
effect amending subsections (a)(4), (a)(23) and (a)(35) 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.
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