Bill Text: TX HB2261 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to the transfer or termination of certain timeshare interests.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2015-06-16 - Effective on 9/1/15 [HB2261 Detail]
Download: Texas-2015-HB2261-Enrolled.html
H.B. No. 2261 |
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relating to the transfer or termination of certain timeshare | ||
interests. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 221.003(b), Property Code, is amended to | ||
read as follows: | ||
(b) Timeshare properties located outside this state are | ||
subject only to Subchapters C through H and J. | ||
SECTION 2. Chapter 221, Property Code, is amended by adding | ||
Subchapter J to read as follows: | ||
SUBCHAPTER J. SERVICE AGREEMENTS TO TRANSFER OR TERMINATE A | ||
TIMESHARE INTEREST | ||
Sec. 221.101. TRANSFER OR TERMINATION OF TIMESHARE | ||
INTEREST. In this subchapter: | ||
(1) "Termination" with respect to a timeshare | ||
interest: | ||
(A) means: | ||
(i) the release of contractual obligations | ||
relating to a timeshare interest by the developer, association, or | ||
managing entity; or | ||
(ii) the invalidation, cancellation, | ||
nullification, or cessation of contractual obligations related to a | ||
timeshare interest by a judgment or court order; and | ||
(B) does not include the cancellation of a | ||
purchase contract governed by Subchapter E. | ||
(2) "Transfer" with respect to a timeshare interest | ||
means the conveyance of all or substantially all of a timeshare | ||
interest. | ||
Sec. 221.102. APPLICABILITY. (a) This subchapter applies | ||
to a timeshare interest if the timeshare interest has been acquired | ||
only for the purchaser's personal, family, or household use and: | ||
(1) the timeshare interest is owned by a resident of | ||
this state; | ||
(2) the timeshare property is located in this state; | ||
or | ||
(3) the timeshare interest acquired is in a multisite | ||
timeshare plan required to be registered under Subchapter C. | ||
(b) Except as provided by Subsection (c), this subchapter | ||
applies to a person who: | ||
(1) is acting in the ordinary course of business; and | ||
(2) directly or indirectly, regardless of whether | ||
acting in person, by mail, by telephone, or by any mode of Internet | ||
or electronic communication, offers or advertises an offer to | ||
engage in, for consideration, the following activities: | ||
(A) obtaining or attempting to obtain on behalf | ||
of a timeshare interest owner a termination of contractual | ||
obligations relating to a timeshare interest; | ||
(B) selling, renting, listing, or advertising a | ||
timeshare interest on behalf of a timeshare interest owner; | ||
(C) purchasing a timeshare interest from a | ||
timeshare interest owner; or | ||
(D) assisting in the transfer of an owner's | ||
timeshare interest. | ||
(c) This subchapter does not apply to: | ||
(1) a license holder under Chapter 1101, Occupations | ||
Code, acting as a broker, agent, or salesperson under that person's | ||
license in connection with the transfer or termination of a | ||
timeshare interest; | ||
(2) a developer, association, or managing entity for a | ||
timeshare interest to be transferred or terminated or a third party | ||
acting at the specific request of the developer, association, or | ||
managing entity; or | ||
(3) an attorney, title agent, title company, or escrow | ||
company that: | ||
(A) provides only closing, settlement, or other | ||
comparable transaction services in connection with the transfer or | ||
termination of a timeshare interest; and | ||
(B) does not otherwise engage in activities | ||
described by Subsection (b). | ||
Sec. 221.103. GENERAL DISCLOSURES REQUIRED. A person | ||
subject to this subchapter who enters into an agreement with a | ||
timeshare interest owner to facilitate the transfer or termination | ||
of a timeshare interest shall provide to the timeshare interest | ||
owner, before the third day before the date the timeshare interest | ||
owner enters into the agreement the following written disclosures, | ||
as applicable: | ||
(1) the name, telephone number, and physical address | ||
of the person providing services under the agreement and any | ||
affiliate, agent, or third-party representative of that person; | ||
(2) if the person identified in Subdivision (1), or an | ||
affiliate, agent, or third-party representative of that person | ||
providing services under the agreement, is an attorney licensed to | ||
practice law in this state, a disclosure of whether the attorney | ||
will be providing services under the agreement and representing the | ||
timeshare interest owner in connection with the transfer or | ||
termination of the timeshare interest; | ||
(3) a description, legally sufficient for | ||
identification, of the timeshare interest to be transferred or | ||
terminated; | ||
(4) a description of the method of transfer or | ||
termination or a copy of the instrument that will be used for | ||
transferring or terminating the timeshare interest; | ||
(5) a description of any interest the timeshare | ||
interest owner retains after the transfer; | ||
(6) a description of the scope of a power of attorney | ||
or other delegation of authority, if any, that the timeshare | ||
interest owner is required to give to complete the transfer of the | ||
timeshare interest; | ||
(7) an itemized statement of any amounts the timeshare | ||
owner is required to pay as consideration or reimbursement for | ||
services provided in connection with the agreement; | ||
(8) the name of each recipient of amounts described by | ||
Subdivision (7); | ||
(9) the estimated date for completing all services | ||
sufficient to transfer or terminate the timeshare interest; and | ||
(10) a statement that, on completion of the transfer | ||
or termination of the timeshare interest, the person will give | ||
written notice of the transfer or termination to: | ||
(A) the developer, association, or managing | ||
entity, as applicable; and | ||
(B) if applicable, the exchange company for the | ||
timeshare interest. | ||
Sec. 221.104. DISCLOSURE OF AUTHORIZED USE OF TIMESHARE | ||
INTEREST. (a) A person subject to this subchapter who enters into | ||
an agreement with a timeshare interest owner to facilitate the | ||
transfer or termination of a timeshare interest shall disclose in | ||
writing to the timeshare interest owner the name of any person, | ||
other than the timeshare interest owner, who may occupy, rent, | ||
exchange, or otherwise use the timeshare interest during the term | ||
of the agreement. | ||
(b) If a person is authorized to occupy, rent, exchange, or | ||
otherwise use the timeshare interest during the term of the | ||
agreement, the agreement must state the name of each person | ||
receiving consideration for the occupation, rent, exchange, or use | ||
of the timeshare interest. | ||
Sec. 221.105. DISCLOSURES RELATING TO PAYMENT OF FEES FOR | ||
TRANSFER SERVICES. A person subject to this subchapter who enters | ||
into an agreement with a timeshare interest owner to facilitate the | ||
transfer of the timeshare interest must conspicuously disclose in | ||
writing to the timeshare interest owner that the timeshare interest | ||
owner is not required to pay any consideration or reimbursement | ||
under the agreement until the timeshare interest owner receives: | ||
(1) a written acknowledgement from the developer, the | ||
association, or the managing entity that the person facilitating | ||
the transfer under the agreement complied with all applicable | ||
policies of the developer, association, or managing entity, if any, | ||
governing the transfer of the timeshare interest; and | ||
(2) a copy of the instrument transferring the | ||
timeshare interest, recorded, if required by applicable law, in the | ||
real property records of the county in which the timeshare property | ||
is located. | ||
Sec. 221.106. REQUIRED NOTICE FOR TRANSFER SERVICES. A | ||
person subject to this subchapter who enters into an agreement with | ||
a timeshare interest owner to facilitate the transfer of the | ||
timeshare interest must provide to the timeshare interest owner a | ||
statement printed in 14-point boldface type or 14-point uppercase | ||
typewritten letters that reads substantially similar to the | ||
following: | ||
I (name of the person facilitating the transfer) WILL ACT IN | ||
GOOD FAITH AND IN A COMMERCIALLY REASONABLE MANNER TO COMPLETE THE | ||
TRANSFER OF OWNERSHIP OF YOUR TIMESHARE INTEREST NOT LATER THAN THE | ||
180TH DAY AFTER THE DATE OF THIS AGREEMENT. | ||
YOUR OBLIGATION TO PAY ALL COSTS AND FEES ASSOCIATED WITH | ||
YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL | ||
ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES, DOES NOT CEASE BY | ||
VIRTUE OF THE EXECUTION OF THIS AGREEMENT. | ||
IF THE TRANSFER OF YOUR TIMESHARE INTEREST IS NOT COMPLETED | ||
BEFORE THE 180TH DAY AFTER THE DATE OF THIS AGREEMENT, YOU WILL | ||
CONTINUE TO BE RESPONSIBLE FOR THE PAYMENT OF ALL COSTS AND FEES | ||
ASSOCIATED WITH YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR | ||
SPECIAL ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES. | ||
Sec. 221.107. REQUIRED NOTICE FOR TERMINATION SERVICES. A | ||
person subject to this subchapter who enters into an agreement with | ||
a timeshare interest owner to facilitate the termination of the | ||
timeshare interest must provide to the timeshare interest owner a | ||
statement printed in 14-point boldface type or 14-point uppercase | ||
typewritten letters that reads substantially similar to the | ||
following: | ||
I (name of the person facilitating the termination of the | ||
timeshare interest) WILL ACT IN GOOD FAITH AND IN A COMMERCIALLY | ||
REASONABLE MANNER TO COMPLETE THE TERMINATION OF YOUR TIMESHARE | ||
INTEREST NOT LATER THAN THE 180TH DAY AFTER THE DATE OF THIS | ||
AGREEMENT BY OBTAINING: | ||
(1) A VALID AND ENFORCEABLE RELEASE FROM THE | ||
DEVELOPER, ASSOCIATION, OR MANAGING ENTITY; OR | ||
(2) A JUDGMENT OR COURT ORDER INVALIDATING THE | ||
PURCHASE OR OWNERSHIP OF YOUR TIMESHARE INTEREST. | ||
YOUR OBLIGATION TO PAY ALL COSTS AND FEES ASSOCIATED WITH | ||
YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL | ||
ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES, DOES NOT CEASE BY | ||
VIRTUE OF THE EXECUTION OF THIS AGREEMENT. | ||
I CANNOT GUARANTEE THAT I WILL SUCCESSFULLY COMPLETE THE | ||
TERMINATION OF YOUR TIMESHARE INTEREST. IF I FAIL TO COMPLETE THE | ||
TERMINATION OF YOUR TIMESHARE INTEREST, YOU WILL CONTINUE TO BE | ||
RESPONSIBLE FOR THE PAYMENT OF ALL COSTS AND FEES ASSOCIATED WITH | ||
YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL | ||
ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES. | ||
Sec. 221.108. RELIANCE. In making disclosures required by | ||
this subchapter, a person facilitating the transfer or termination | ||
of a timeshare interest may rely on written information provided by | ||
the timeshare interest owner, the developer, the association, or | ||
the managing entity. | ||
Sec. 221.109. DUTY OF GOOD FAITH REGARDING TRANSFER OR | ||
TERMINATION SERVICES. A person facilitating the transfer or | ||
termination of a timeshare interest must act in good faith to | ||
accomplish the transfer or termination not later than the 180th day | ||
after the date the person enters into an agreement with the | ||
timeshare interest owner. | ||
Sec. 221.110. DECEPTIVE TRADE PRACTICES. A person subject | ||
to this subchapter commits a false, misleading, or deceptive act or | ||
practice within the meaning of Sections 17.46(a) and (b), Business & | ||
Commerce Code, by engaging in any of the following acts: | ||
(1) failing to disclose information as required by | ||
this subchapter; | ||
(2) making false or misleading statements concerning: | ||
(A) the existence of an offer related to the | ||
purchase or rent of a timeshare interest; | ||
(B) the likelihood of the completion or the time | ||
necessary to complete any sale, rental, transfer, or termination of | ||
a timeshare interest; | ||
(C) the value of a timeshare interest; | ||
(D) the current or future costs, including | ||
assessments, maintenance fees, or taxes, of owning a timeshare | ||
interest; | ||
(E) the method by which or source from which a | ||
timeshare interest owner's name, address, telephone number, or | ||
other contact information was obtained; | ||
(F) the identity of the person providing services | ||
to facilitate the transfer or termination of a timeshare interest | ||
or any affiliate, agent, or third-party representative of that | ||
person; | ||
(G) the terms and conditions under which services | ||
to facilitate a transfer or termination of a timeshare interest are | ||
offered; | ||
(H) the willingness of a developer, association, | ||
or managing entity to: | ||
(i) agree to the transfer or termination of | ||
a timeshare interest; or | ||
(ii) execute instruments necessary to | ||
transfer or terminate the timeshare interest; or | ||
(I) the manner in which consideration or | ||
reimbursements paid by a timeshare interest owner will be used or | ||
applied; | ||
(3) encouraging or inducing a timeshare interest owner | ||
to stop paying the developer, the association, or the managing | ||
entity in violation of a contract with or any other legally | ||
enforceable obligation to the developer, the association, or the | ||
managing entity before the completion of a transfer or termination; | ||
or | ||
(4) receiving or collecting consideration for or | ||
reimbursement related to the facilitation of the transfer of a | ||
timeshare interest before the timeshare interest owner receives the | ||
documents described by Sections 221.105(1) and (2). | ||
Sec. 221.111. SUPERVISORY DUTIES. (a) The person who | ||
enters into an agreement to facilitate the transfer or termination | ||
of a timeshare interest shall supervise, manage, and control all | ||
aspects of the services provided under the agreement. | ||
(b) Any violation of this subchapter that occurs during the | ||
provision of services is considered a violation by the person who | ||
enters into the agreement and any affiliate, agent, or third-party | ||
representative of that person. | ||
(c) Section 221.035 does not apply to a person providing | ||
services under this subchapter. | ||
SECTION 3. (a) The disclosure and notice requirements | ||
provided by Subchapter J, Chapter 221, Property Code, as added by | ||
this Act, apply only to an agreement to facilitate the transfer or | ||
termination of a timeshare interest entered into on or after the | ||
effective date of this Act. An agreement to facilitate the transfer | ||
or termination of a timeshare interest entered into before the | ||
effective date of this Act is governed by the law as it existed | ||
immediately before the effective date of this Act, and that law is | ||
continued in effect for that purpose. | ||
(b) Section 221.110, Property Code, as added by this Act, | ||
applies only to conduct that occurs on or after the effective date | ||
of this Act. Conduct that occurs before the effective date of this | ||
Act is governed by the law as it existed when the conduct occurred, | ||
and the former law is continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2261 was passed by the House on April | ||
30, 2015, by the following vote: Yeas 134, Nays 5, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2261 on May 21, 2015, by the following vote: Yeas 141, Nays 1, | ||
1 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2261 was passed by the Senate, with | ||
amendments, on May 20, 2015, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |