Mississippi Administrative Code
Title 30 - Professions and Occupationss
Part 1601 - Mississippi Real Estate Commission
Chapter 8 - Time Shares
Rule 30-1601-8.4 - Public Offering Statement
Universal Citation: MS Code of Rules 30-1601-8.4
Current through March 31, 2025
A. Public Offering Statement Requirements
(1) A developer must
prepare a public offering statement that shall fully and accurately disclose
the facts concerning the timeshare developer and timeshare plan as required by
these rules. The developer shall provide the public offering statement to each
purchaser of a timeshare interest in any timeshare plan prior to execution of
the purchase contract. The public offering statement shall be dated and shall
require the purchaser to certify in writing the receipt thereof. Upon approval
by the Commission, the developer may also deliver the public offering statement
on CD ROM or other electronic media.
(2) With regard to timeshare interests
offered in a single-site timeshare plan or in the specific interest of a
multi-site timeshare plan, the public offering statement should fully and
accurately disclose the following:
(a) The
name of the developer and the principal address of the developer;
(b) Information regarding the developer's
business and property management experience;
(c) A description of the type of timeshare
interests being offered;
(d) The
number of accommodations and timeshare interests, expressed in periods of
seven-days use availability or other time increments applicable to the
multi-site timeshare plan for each component site committed to the multi-site
timeshare plan and available for use by purchasers, purchasers and a
representation about the percentage of useable time authorized for sale, and if
that percentage is 100 percent, then a statement describing how adequate
periods of time for maintenance and repair will be provided. A general
description of the existing and proposed accommodations and amenities of the
timeshare plan, including their type and number personal property furnishing
the accommodation, any use restrictions, and any required fees for
use;
(e) A description of any
accommodations and amenities that are committed to be built, including, without
limitation:
(i) the developer's schedule of
commencement and completion of all accommodations and amenities;
(ii) the estimated number of accommodations
per site that may become subject to the timeshare plan;
(iii) a brief description of the duration,
phases, and operation of the timeshare plan; and
(iv) the extent to which financial
arrangements have been provided for completion of all promised
improvements.
(f) If the
timeshare plan requires the use of a reservation system, include a description
of the reservation system which shall include the following:
(i) 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.
(ii) A summary of the rules and regulations
governing access to and use of the reservation system.
(iii) 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-serve basis.
(iv) An
explanation of any demand-balancing standard utilized to assure equitable use
of the accommodations among participants.
(g) The current annual budget, if available,
or the projected annual budget for the timeshare plan. The budget must include,
without limitations:
(i) a statement of the
amount included in the budget as a reserve for repairs and
replacement;
(ii) the projected
common expense liability, if any, by category of expenditures for the timeshare
plan; and
(iii) a statement of any
services or expenses not reflected in the budget that the developer provides or
pays.
(h) Information
regarding all fees that the purchaser is required to pay in conjunction with
the purchase and ownership including, but not limited to, closing cost and
annual assessments;
(i) A
description of any liens, defects or encumbrances on or affecting the title to
the timeshare interests;
(j) A
description of any financing offered by or available through the
developer;
(k) A statement that
within seven (7) calendar days after receipt of the public offering statement
or after execution of the purchase contract, whichever is later, a purchaser
may cancel any purchase contract for a timeshare interest from a developer
together with a statement providing the name and street address to which the
purchaser shall mail any notice of cancellation. If by agreement of the parties
by and through the purchase contract, the purchase contract allows for
cancellation of the purchase contract for a period of time exceeding seven (7)
calendar days, then the public offering statement shall include a statement
that the cancellation of the purchase contract is allowing for that period of
time exceeding seven (7) calendar days;
(l) 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.
(m) Any restrictions on alienation of any
number or portion of any timeshare interests;
(n) A statement describing liability and
casualty insurance for the timeshare property;
(o) Any current or expected fees or charges
to be paid by timeshare purchasers for the use of any amenities related to the
timeshare plan;
(p) A statement
disclosing any right of first refusal or other restraint on the transfer of all
or any portion of a timeshare interest.
(q) A statement of disclosing that any
deposit made in connection which the purchase of a timeshare interest shall be
held by an escrow agent until expiration of any right to cancel the contract
and that any deposit shall be returned to the purchaser if he or she elects to
exercise his or her right of cancellation. Alternatively, if the Commission has
accepted from the developer a surety bond, irrevocable letter of credit, or
other financial assurance in lieu of placing deposits in an escrow account,
account:
(i) a statement disclosing that the
developer has provided a surety bond, irrevocable letter of credit, or other
financial assurance in an amount equal to or in excess of the funds that would
otherwise be placed in an escrow account and,
(ii) a description of the type of financial
assurance that has been arranged,
(iii) a statement that if the purchaser
elects to exercise his or her right of cancellation as provided in the
contract, the developer shall return the deposit, and
(iv) a description of the person or entity to
whom the purchaser shall apply for payment.
(r) If the timeshare plan provides purchasers
with the opportunity to participate in an exchange program, a description of
the name and address of the exchange company and the method by which a
purchaser accesses the exchange program;
(s) Such other information reasonable
required by the state agency and established by administrative rule necessary
for the protection of purchasers of timeshare interests in timeshare plans;
and
(t) Any other information that
the developer, with the approval of the Commission, desires to include in the
public offering statement.
(3) Public offering statements for specific
timeshare interest and multi-site timeshare plans shall include the following
disclosures in addition to those required in (b) above:
(a) A description of each component site,
including the name and address of each Component site.
(b) The number of accommodations and
timeshare interest, expressed in periods of seven-day use availability or other
time increments applicable to each component site of the timeshare plan,
committed to the multi-site timeshare 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 percent, then a statement describing how adequate
periods of time for maintenance and repair will be provided.
(c) 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.
(d) A description of amenities available for
use by the purchaser at each component site.
(e) A description of the reservation system,
which shall include the following:
(i) The
entity responsible for operating the reservation systems, its relationship to
the developer, and the duration of any agreement for operation of the
reservation system.
(ii) A summary
of the rules and regulations governing access to and use of the reservation
system.
(iii) The existence of and
an explanation regarding any priority reservations for the use of a given
accommodation on a first-come, first-served basis.
(iv) An explanation of any demand-balancing
standard utilized to assure equitable use of the accommodations among
participants.
(v) A description of
any method utilized to permit additions, substitutions, or deletions of
accommodations.
(vi) A description
of any criteria utilized in the use and operation of the reservation system
(such as historical occupancy levels by season, location, demand,
etc.)
(f) The name and
principal address of the managing entity of the multi-site timeshare plan and
description of the procedures, if any, for altering the powers and
responsibilities of the managing entity and for removing or replacing
it.
(g) A description of any right
to make any addition, substitutions, or deletion 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 timeshare plan.
(h)
A description of the purchaser's liability for any fees associated with the
multi-site timeshare plan.
(i) The
location of each component site of the multi-site timeshare plan, the
historical occupancy of each component site for the prior 12-month period, if
the component site was part of the multi-site timeshare plan during the
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 timeshare plan.
(j) Any other information that the developer,
with the approval of the Commission, desires to include in the timeshare
disclosure statement.
(4) Public offering statements for
nonspecific timeshare multi-site timeshare plans shall include the following:
(a) The name and address of the
developer.
(b) A description of the
type of interest and usage rights the purchaser will receive.
(c) A description of the duration and
operation of the timeshare plan.
(d) A description of the type of insurance
coverage provided for each component site.
(e) An explanation of who holds title to the
accommodations of each component site.
(f) A description of each component site,
including the name and address of each component site.
(g) The number of accommodations and
timeshare interest, expressed in periods of seven-day use availability or other
time increments applicable to the multi-site timeshare plan for each component
site committed to the multi-site timeshare plan and available for use by
purchasers. purchasers and a representation about the percentage of useable
time authorized for sale, and if that percentage is 100 percent, then a
statement describing how adequate periods of time for maintenance and repair
will be provided.
(h) 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.
(i) A description of
amenities available for use by the purchaser at each component site.
(j) A description of any incomplete amenities
at any of the component sites along with a statement as to any assurance for
completion and the estimated date the amenities will be available.
(k) The location of each component site of
the multi-site timeshare plan, the historical occupancy of each component site
for the prior 12-month period, if the component site was part of the multi-site
timeshare plan during such 12-month time period, as well as any periodic
adjustment or amendments 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 timeshare
plan.
(l) A description of any
rights 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 form the multi-site timeshare plan.
(m) A description of the reservation system
that shall included all of the following:
(i)
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.
(ii) A summary
of the rules and regulations governing access to and use of the reservation
system.
(iii) 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.
(n) The name and principal address of the
managing entity for the multi-site timeshare plan and a description of the
procedures, if any, for altering the powers and responsibilities of the
managing entity and for removing or replacing it, and a description of the
relationship between a multi-site timeshare plan managing entity and the
managing entity of the component sites of a multi-site timeshare plan, if
different from the multi-site timeshare plan managing entity.
(o) The current annual budget as provided in
Section L. of these rules, along with the projected assessments and a
description of the method of calculation and apportioning the assessments among
purchasers, all of which shall be attached as an exhibit to the public offering
statement.
(p) Any current fees or
charges to be paid by timeshare purchasers for the use of any amenities related
to the timeshare plan and statement that the fees or charges are subject to
change.
(q) Any initial or special
fee due from the purchaser at closing, together with a description of the
purpose and method of calculating the fee.
(r) A description of any financing offered by
or available through the developer.
(s) 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.
(t) A statement disclosing any right of first
refusal or other restraint on the transfer of all or any portion of a timeshare
interest.
(u) A statement
disclosing that any deposit made in connection with the purchase of a timeshare
interest shall be held by an escrow agent until expiration of any right to
cancel the contract and that any deposit shall be returned to the purchaser if
he or she elects to exercise his or her right of cancellation. Alternatively,
if the Commission has accepted from the developer a surety bond, irrevocable
letter of credit, or other financial assurance in lieu of placing deposits in
an escrow account, account: (i) a statement disclosing that the developer has
provided a surety bond, irrevocable letter of credit, or other financial
assurance in an amount equal to or in excess of the funds that would otherwise
be placed in an escrow account and, (ii) a description of the type of financial
assurance that has been arranged, (iii) a statement that if the purchaser
elects to exercise his or her right of cancellation as provided in the
contract, the developer shall return the deposit, and (iv) a description of the
person or entity to whom the purchaser should apply for payment.
(v) If the timeshare plan provides purchasers
with the opportunity to participate in an exchange program, a description of
the name and address of the exchange company and the method by which a
purchaser accesses the exchange program.
(w) Any other information that the developer,
with the approval of the Commission, desires to include in the timeshare
disclosure statement.
Miss. Code Ann. §§ 73-35-35
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