This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  H.B. No. 2261
 
 
 
 
AN ACT
  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