55-367 - Instruments.
§ 55-367. Instruments.
A. In order to create a time-share program for a time-share estate project,the developer shall execute a time-share instrument prepared and executed inaccordance with this chapter and record it in the clerk's office where suchtime-share project is located. The time-share instrument shall contain thefollowing:
1. The name of the time-share project, which name must include or be followedby a qualifying adjective or term outlined in § 55-364.1;
2. The name of the locality and the state or situs in which the time-shareproject is situated;
3. The legal description, street address, or other description sufficient toidentify the time-share project;
4. A legally sufficient description of the real estate constituting thetime-share project;
5. A statement of the form of time-share program, i.e., whether it is atime-share estate or time-share use;
6. Identification of time periods by letter, name, number or combinationthereof;
7. Identification of time-shares and where applicable, the method wherebyadditional time-shares may be created or withdrawn;
8. The formula, fraction, or percentage of the common expenses and any votingrights assigned to each time-share;
9. Any restrictions on the use, occupancy, enjoyment, alteration, oralienation of time-shares;
10. The ownership interest, if any, in personal property available totime-share owners;
11. The program by which the managing entity, if any, will provide managementof the project;
12. The period for which units are designated and committed to the time-shareprogram and the property classification of the units at the expiration ofsuch period;
13. Any provision for amending the time-share instrument;
14. A description of the events, including but not limited to condemnationand damage or destruction, upon which the time-share program may or shall beterminated before the expiration of its full term and the consequences ofsuch termination, including but not limited to the manner in which thetime-share project or the proceeds from the disposition thereof shall be heldor distributed among owners;
15. A statement of whether or not the developer reserves the right to add toor delete any incidental benefit;
16. A statement of whether or not the developer reserves the right to add toor delete any alternative purchase; and
17. Such other matters as the developer deems appropriate.
B. In order to create a time-share program for a time-share use project, thedeveloper shall either (i) execute and record a time-share instrument asrequired by subsection A or (ii) execute a time-share instrument that takesthe form of and is a part of the contract which contains the informationrequired by subsection A.
C. If the developer explicitly reserves the right to develop additionaltime-shares, the time-share instrument shall also contain the following:
1. A legally sufficient description of all land which may be added to thetime-share project which shall be referred to as "additional land";
2. A statement outlining the order in which portions of the additional landmay be subjected to the exercise of each development right, or a statementthat no assurances are made in that regard;
3. A statement of the time limit upon which the option to develop shallexpire, together with a statement of the circumstances, if any, which willterminate that option prior to the expiration of the specified time limit;
4. A statement of the maximum number of units which may be added to thetime-share project, if known, and if not known, a statement to that effect;and
5. A statement of the property classification of the additional land if thedeveloper fails to exercise the development rights as reserved in thetime-share instrument.
(1981, c. 462; 1985, c. 517; 1994, c. 580; 1998, c. 460.)