55-369 - Developer control in time-share estate program.
§ 55-369. Developer control in time-share estate program.
A. The time-share instrument for a time-share estate program shall providefor a period of time, to be called the "developer control period," duringwhich the developer or a managing agent selected by the developer shallmanage and control the time-share estate project and the common elements andunits, or portions thereof, comprising it. All costs associated with thecontrol, management, and operation of the time-share estate project duringthe developer control period shall belong to the developer, except fortime-share estate occupancy expenses that shall, if required by the developerin the time-share instrument, be allocated only to and paid by time-shareestate owners other than the developer. "Time-share estate occupancyexpenses" means all costs and expenses incurred in (i) the formation,organization, operation and administration, including capital contributionsthereto, of the association and both its board of directors and its membersand (ii) all owners' use and occupancy of the time-share estate projectincluding without limitation its completed and occupied time-share estateunits and common elements available for use. Such costs and expenses includebut are not limited to maintenance and housekeeping charges; repairs;refurbishing costs; insurance premiums, including the premium forcomprehensive general liability insurance required by subdivision 8 of §55-368; taxes; properly allocated labor, operational, and overhead costs;general and administrative expenses; managing agent's fee; utility chargesand deposits; the cost of periodic repair and replacement of walls and windowtreatments and furnishings, including furniture and appliances; filing feesand annual registration charges of the State Corporation Commission and theBoard; counsel fees and accountant charges; and reserves for any of theforegoing. Nothing shall preclude the developer, during the developer controlperiod and at any time after the lapse of a purchaser's right ofcancellation, and without regard to the recordation of the deed, provided thedeed has been delivered to the purchaser or the purchaser's agent, fromcollecting an annual or specially assessed charge from each time-share estateowner for the payment of the time-share estate occupancy expenses by way of a"maintenance fee." However, any such funds received and not spent or anyother funds received and allocated to the benefit of the association shall betransferred to the association by the developer at the termination of thedeveloper control period.
B. Fee simple title to the common elements, shall be transferred to thetime-share estate owners' association, free of charge, no later than at suchtime as the developer either transfers to purchasers legal or equitableownership of at least ninety percent of the time-share estates or completesall of the common elements and facilities comprising the time-share estateproject, whichever occurs later. The developer may, but shall not be requiredto, make such transfer when the period has ended for a phase or portion ofthe time-share estate project. The transfer herein required of the developershall not exonerate it from the responsibility of completion of the promisedand incomplete common elements once the transfer occurs. Upon transfer of thetime-share project or portion to the association, the developer controlperiod for such project or portion thereof shall terminate.
(1981, c. 462; 1985, c. 517; 1989, c. 637; 1991, c. 704; 1993, c. 842; 1994,c. 580; 1998, c. 460; 2001, c. 543; 2008, c. 376.)