a fiduciary to the purchasers, provided that the developer has transferred control of that entity to the purchasers or does not exercise its voting rights in that entity with respect to the subject accommodations or amenities. Prior to the transfer, any lien or other encumbrance against the accommodation or facility shall be made subject to a subordination and notice to creditors instrument pursuant to subsection b. of this section; or
d. Alternative arrangements have been made which are adequate to protect the rights of the purchasers of the timeshare interests and are approved by the commission.
L. 2006, c. 63, § 19, eff. Oct. 31, 2006.
45:15-16.69. Compliance by sales agents; non-monetary compensation
a. A sales agent in New Jersey shall comply with the provisions of R.S.45:15-1 et seq., and the regulations adopted pursuant thereto, including licensure requirements, unless otherwise exempt by law.
(1)Misrepresent a fact material to a purchaser’s decision to buy a timeshare interest;
(2)Predict any increase in the value of a timeshare interest represented over a period of time, excluding bona fide pending price increases by the developer;
(3)Materially misrepresent the qualities or characteristics of accommodations or the amenities available to the occupant of those accommodations;
(4)Misrepresent the length of time accommodations or amenities will be available to the purchaser of a timeshare interest; or
(5)Misrepresent the conditions under which a purchaser of a timeshare interest may exchange the right of the purchaser’s occupancy for the right to occupy other accommodations.
b. A developer or other person using a promotion in connection with the offering of a timeshare interest shall clearly disclose all of the following:
(1)That the purpose of the promotion is to sell timeshare interests, which shall appear in bold face or other conspicuous type on all promotional materials;
(2)That any person whose name or address is obtained during the promotion may be solicited to purchase a timeshare interest;
(3)The name of each developer or other person trying to sell a timeshare interest through the promotion, and the name of each person paying for the promotion if different from the developer; b. A timeshare interest owner, who, for non-monetary compensation, as provided for in this act and by regulation, refers in a calendar year no more than 12 prospective purchasers of timeshare interests in the timeshare plan shall not be required to be licensed pursuant to R.S.45:15-1 et seq., provided the referring timeshare interest owner does not show, discuss terms or conditions of purchase or otherwise participate in negotiations with regard to the timeshare purchase. Examples of non-monetary compensation shall include, but shall not be limited to, the following:
(1) Waiver of association maintenance fees; (4)The complete details of participation in the promotion;
(2)Free meals at a restaurant or rounds of golf at a golf course;
(3)Points or other non-monetary currency associated with hotel, timeshare or other loyalty programs; or
(4)Other benefits specifically associated with the timeshare plan.
c. A person licensed under R.S.45:15-1 et seq., who also is a bona fide owner of a timeshare property, shall be entitled to receive non-monetary compensation as defined in subsection b. of this section on the same basis as any other owner of a timeshare property. The non-monetary compensation or referral pursuant to subsection b. of this section shall not fall within the scope of R.S.45:15-1 et seq. or the rules and regulations implementing R.S.45:15-1 et seq.
L. 2006, c. 63, § 20, eff. Oct. 31, 2006.
45:15-16.70. Prohibitions relative to developers of timeshares
a. A developer or other person offering a timeshare plan shall not:
(5)The method of awarding premiums or other benefits under the promotion;
(6)A complete and fully detailed description, including approximate retail value of each premium or benefit under the promotion if the retail value of the premium or benefit is over $ 50;
(7)The quantity of each premium to be awarded or conferred;
(8)The date by which each premium or benefit will be awarded or conferred; and
(9)Any other disclosures required by the commission pursuant to regulation.
c. The required disclosures for an advertisement that contains a promotion in connection with the offering of a timeshare interest shall be provided or otherwise made available to prospective purchasers in writing or electronically at least once prior to any scheduled sales presentation and received by the prospective purchasers prior to their leaving to attend the sales presentation. The required disclosures need not be included in every written, oral or electronic communication to the prospective purchaser prior to the sales presentation.
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