61J2-23.001: Time-share Resale Listing Agreement Disclosures
PURPOSE AND EFFECT: To ensure that the rule is in compliance with statutory requirements.
SUMMARY: This rule ensures that the language is in compliance with statutory requirements.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared. The Board determined the proposed rule will not have an impact on small business.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 475.05, 475.42(1)(n) FS.
LAW IMPLEMENTED: 475.42 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Lori Crawford, Deputy Clerk, Division of Real Estate, 400 West Robinson Street, Hurston Building, North Tower, Suite N802, Orlando, Florida 32801
THE FULL TEXT OF THE PROPOSED RULE IS:
61J2-23.001 Time-share Resale Listing Agreement Disclosures.
Pursuant to Section 475.42(1)(n), Florida Statutes, it shall be a violation of Chapter 475, Florida Statutes, for any broker or salesperson to enter into any agreement with any person engaging the services of the broker in connection with the resale of a time-share period unless the agreement complies in all respects with the following provisions.
(1) In addition to all other requirements of and obligations under Chapter 475, Florida Statutes, all agreements engaging the services of a broker in connection with the resale of a time-share period shall contain all of the following:
(a) The following statement in conspicuous type located immediately prior to the space in the agreement reserved for the signature of the owner of the time-share period: THERE IS NO GUARANTEE THAT YOUR TIME-SHARE PERIOD CAN BE SOLD AT ANY PARTICULAR PRICE OR WITHIN ANY PARTICULAR PERIOD OF TIME. Any written advertising material utilized by a broker or salesperson in connection with the solicitation of a listing agreement for the resale of a time-share period must also contain this statement in conspicuous type.
(b) A complete and clear disclosure of any fees, commissions, and other costs or compensation payable to or received by the broker under the agreement, whether directly or indirectly.
(c) The term of the agreement; a statement regarding the ability of any party to extend the term of the agreement; and a description of the conditions under which the agreement may be extended and all related costs.
(d) If a fee or other compensation to be paid in advance of closing of the resale of the time-share period is charged by the broker, a statement describing the promotional efforts that the broker will undertake, including all methods typically or customarily used by the broker to generate prospective resale purchasers, and including a description of the average circulation and geographical distribution area of any printed or media advertising, including catalogues, used by the broker.
(d)(e) A description of the services to be provided by the broker under the agreement, and a description of the obligations of each party regarding a resale purchase, including any costs to be borne and any obligations regarding notification of the managing entity of the time-share plan and any exchange company.
(e)(f) A statement disclosing whether the agreement grants exclusive rights to the broker to locate a purchaser during the term of the agreement; a statement disclosing to whom and when any proceeds from a sale of the time-share period will be disbursed; a statement whether any party may terminate the agreement and under what conditions; and a statement disclosing the amount of any commission or other compensation due to the broker from any party upon a termination of the agreement prior to the closing of the resale.
(f)(g) A statement disclosing whether the agreement permits the broker or any other person to make any use whatsoever of the time-share period in question and a detailed description of any such permitted use rights, including a disclosure of to whom any rents or profits generated from such use of the time-share period will be paid.
(g)(h) A statement disclosing the existence of any judgments or pending litigation against the broker resulting from or alleging a violation by the broker of Chapter 475, 498, 718 or 721, Florida Statutes, or resulting from or alleging consumer fraud on the part of the broker.
(2) All agreements described in subsection (1) must be reduced to writing, and the person engaging the services of the broker must receive a fully executed copy of the written agreement on the day he signs it. If the agreement is initially entered into by telephone or by any other oral means, the broker must make all of the disclosures required by subsection (1) to the person engaging his services prior to accepting anything of value from such person. In any event, a written agreement executed by the broker must be presented for signature to the person engaging his services within 10 days after the date the agreement was initially orally entered into.
Rulemaking Specific Authority 475.05, 475.42 FS. Law Implemented 475.42 FS. History–New 10-25-89, Formerly 21V-23.001, Amended_________.