P.R. Laws tit. 31, § 1252g
(a) As used in this chapter, the term “existing timeshare property” means a timeshare property located in Puerto Rico with respect to which, on the effective date of this act, at least twenty-one (21) persons who are not affiliates have either purchased a timeshare in the timeshare property or have entered into a purchase contract for a timeshare within the timeshare property.
(b) Provided the provisions of §§ 1254—1254b of this title are satisfied, if the developer of an existing timeshare property files with the Company an application for a timeshare permit containing the documents and information specified in § 1252a(1) of this title and, if by the first anniversary of the effective date of this act, the Company has issued regulations requiring additional information he provided under § 1252a, such additional information and items shall be filed by the first day of the month next following such anniversary, timeshares in the existing timeshare property may be offered for sale and sold without a timeshare permit until the Company denies the application for a timeshare permit, if at all. The Company shall not deny an application for a timeshare permit for an existing timeshare property without first providing the developer with written notice of intent to deny the application and a statement of specific reasons for the Company’s intended denial. The notice shall advise the developer that unless written objection to the notice of intention to deny is received from the developer within sixty (60) days following the date of actual delivery of the notice to the developer, the denial shall become effective upon the expiration of the sixty (60) day period. The notice shall also specify the time, place and date [not earlier than ninety (90) days following the date of actual delivery to the developer of the notice] on which a show cause hearing shall take place, if the developer files an objection to the notice. The developer has the right to present evidence, to cross examine, and to be represented by counsel. Upon the expiration of the sixty (60) day period, the developer must immediately cease and desist from entering into any additional purchase contracts unless the developer delivers written objection to the Company together with a copy of the written disclosure which the developer shall provide to each prospective purchaser, thereafter, until a decision is rendered following the hearing and said decision becomes final, firm and unappealable. The disclosure document must inform the prospective purchaser, in writing, that the Company has issued a notice of intention to deny developer’s application for a timeshare permit; that developer has requested a hearing on the denial; and that if, following a hearing, the order of denial is issued and the order becomes final, firm and unappealable, any monies deposited by the prospective purchaser shall be promptly returned to the prospective purchaser without deduction and the purchase contract executed by the prospective purchaser shall be of no further force or effect.
The provisions of §§ 1262—1268e of this title shall not apply to existing timeshare property which has been organized on the basis of §§ 1291 et seq. of this title, known as the “Horizontal Property Act”, which shall also be exempt from compliance with the following provisions of this chapter in so far as compliance with said provisions would conflict with such timeshare property’s organizational documents or with the provisions of §§ 1291 et seq. of this title, supra:
(1) The provisions of the first paragraph of § 1251a of this title, and
(2) the provisions of clauses (i) and (ii) of § 1255b(c) of this title.
(c) The Company may accept a timeshare plan for an existing timeshare property which does not comply with all of the applicable provisions of this chapter if it complies with §§ 1254—1254b of this title and if the Company determines that it would be impossible or impractical to modify the timeshare plan in order to comply with other provisions of this chapter and that the basic rights of the purchasers and of the owners in the existing timeshare property will be adequately protected by the timeshare plan (subject to modification of the timeshare plan in the manner required by the Company) for the existing timeshare property.
History —Dec. 26, 1995, No. 252, § 2-108; —July 5, 1996, No. 66, § 5.