37-53-303. Disclosure document. A person who offers or sells a timeshare shall provide the prospective purchaser with a written disclosure document before the prospective purchaser signs an agreement for the purchase of a timeshare. The disclosure document must include:
     (1) the official name and address of the developer, its parent or affiliates, and the names and addresses of the director and officers of each;
     (2) the location of the timeshare property;
     (3) a general description of the timeshare property and the timeshare units;
     (4) a list of all units offered by the promoter in the same project, including:
     (a) the types, current prices, and number of units;
     (b) the types and durations of the timeshares;
     (c) the maximum number of units that may become part of the timeshare property;
     (d) a statement of the maximum number of timeshares that may be created or a statement that there is no maximum;
     (5) a description of the types of financing offered by the promoter;
     (6) a statement of ownership of all properties included in the timeshare offering, including any liens or encumbrances affecting the property;
     (7) copies of any agreements or leases to be signed by purchasers at closing and a copy of the timeshare instrument;
     (8) the identity of the managing entity and the name, address, and telephone number of the person or persons in charge, and the manner, if any, whereby the developer may change the managing entity;
     (9) a true copy of the current or projected budget of the owners' association along with a description of the nature and purpose of all charges, dues, maintenance fees, and other expenses that may be assessed, including the formula for payment of charges if all timeshares are not sold and a statement of who pays additional costs;
     (10) a statement in boldface type on the cover page of the disclosure document that, within 3 days after receipt of a disclosure document or the signing of the timeshare purchase agreement, whichever is later, a purchaser may cancel any agreement for the purchase of a timeshare from a developer or salesperson and that the cancellation must be in writing and be delivered either in person or by certified mail to the developer or the developer's agent;
     (11) any restrictions on transfers of a timeshare or portion thereof;
     (12) a description of any insurance coverage provided for the benefit of timeshare owners by the managing entity or the timeshare owners' association;
     (13) a full and accurate disclosure of whether the timeshare owners are permitted or required to become members of or participate in any program for the exchange of property rights among themselves or with the timeshare owners of other timeshare units, or both, and a complete description of the program; and
     (14) any additional information the board finds necessary to fully inform prospective purchasers, including but not limited to the financial and background information required by 37-53-202.

     History: En. Sec. 14, Ch. 444, L. 1987.