N.J. Admin. Code § 11:5-9A.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:5-9A.6 - Public offering statements

(a) No person shall dispose of any timeshare interest in a registered timeshare plan unless he or she delivers a current public offering statement and affords the purchaser a reasonable opportunity to read the same before the purchaser signs the contract or purchase agreement.

1. In all cases where a New Jersey purchaser has not had contact with an authorized New Jersey broker, registrants shall maintain the signed and dated receipt for the New Jersey public offering statement and a copy of the contract which the New Jersey purchaser signed for a period of seven years.

(b) The public offering statement shall disclose fully and accurately the characteristics of the timeshare plan offered and shall make known to prospective purchasers all unusual and material circumstances and features affecting the timeshare plan. The public offering statement shall be in clear and concise language and combine simplicity and accuracy in order to fully advise purchasers of their rights, privileges, obligations and restrictions.

1. The public offering statement shall be in a form authorized by the Commission. No change in form shall be made without the consent of the Commission.

2. The Commission may require an applicant to alter or amend the proposed public offering statement in order to assure full and fair disclosure to prospective purchasers.

3. A public offering statement shall not be deemed current unless it contains all amendments approved by the Commission.

4. Applicants and registrants shall report to the Commission any material change, as defined in N.J.A.C. 11:5-9A.5, in the information contained in any proposed or approved public offering statement in accordance with N.J.S.A. 45:15-16.6 0b(1) and shall simultaneously submit a request for approval of the appropriate amendments.

5. The Commission shall process and review requests for amendments to public offering statements in accordance with the standards and procedures established in N.J.A.C. 11:5-9A.5.

6. The public offering statement shall not be used for any promotional purposes before registration of the project, and thereafter only if used in its entirety.

7. No public offering statement shall indicate, and no person shall represent or imply, that the Commission approves the merits of, or recommends the purchase of, an interest in the properties described in the offering.

8. Prior to distributing a public offering statement as required under the Act in a language other than English, registrants who advertise in a language other than English shall file with the Commission copies of the public offering statement approved by the Commission printed in both English and in the language in which the advertising appears. The filing shall be accompanied by a certification attesting to the accuracy of the translation of the text of the public offering statement. The certification shall be in a form as specified by the Commission and signed by an authorized representative of the registrant and a qualified translator.

9. The public offering statement shall contain a statement, printed in 10 point type or larger and conspicuously located, indicating that within seven days after receipt of the public offering statement or execution of the purchase contract, whichever is later, a purchaser may cancel any purchase contract for a timeshare interest from the developer. The statement shall also contain the name and street address to which the purchaser shall mail any notice of cancellation. If by agreement of the parties in the contract, and/or if local law in the jurisdiction where the timeshare interest is located provides for a cancellation period of greater than seven days, then the longer cancellation period shall apply and the public offering statement shall so state.

10. All public offering statements shall contain a glossary defining the key terms in the offering statement and timeshare plan. This glossary shall be located prior to the narrative portion of the offering statement.

11. The following documents, if applicable, shall be contained in the public offering statement or simultaneously provided to the purchaser:

i. The timeshare instrument;

ii. The association articles of incorporation;

iii. The association bylaws;

iv. The association rules;

v. Copies of any leases or contracts, excluding the purchase contract and loan documents, required to be signed by the purchaser;

vi. The actual or estimated operating budget for the timeshare plan containing the information required under N.J.S.A. 45:15-16.59(b)13, and the schedule of purchaser's expenses;

vii. The form of any applicable agreement for the escrow of ad valorum tax escrow payments;

viii. Documents detailing the procedures and methods by which a purchaser's use and access to the accommodations is scheduled; and

ix. For accommodations located in New Jersey, all documentation required to be given to purchasers under the New Jersey Condominium Act, N.J.S.A. 46:8B-1 et seq., and any other laws governing the transfer of interests in real property, including interests in common interest ownership communities in New Jersey.

12. A signed and dated receipt for the public offering statement and required documents shall be maintained by the developer, along with an executed copy of the purchaser contract for a period of seven years. If the documents are delivered in an alternative format as permitted under N.J.S.A. 45:15-16.59(a), a signed receipt evidencing the purchaser's acceptance of the documents in the alternative format, shall also be maintained by the developer.

N.J. Admin. Code § 11:5-9A.6