SECTION .0200 ‑ PUBLIC OFFERING STATEMENT

 

21 NCAC 58B .0201          GENERAL PROVISIONS

(a)  Information contained in a public offering statement

shall be accurate on the day it is supplied to a purchaser.  Before any public

offering statement is supplied to a purchaser, the developer shall file a copy

of the statement with the Commission.

(b)  In addition to the information required to be contained

in a public offering statement by G.S. 93A-44, every public offering statement

shall disclose to the purchaser of a time share complete and accurate

information concerning:

(1)           the real property type of the time share

program, whether tenancy‑in‑common, condominium or other, and a

description of the estate the purchaser will own, the term of that estate and

the remainder interest, if any, once the term has expired;

(2)           the document creating the time share

program, a statement that it is the document which governs the program and a

reference to the location where the purchaser may obtain or examine a copy of

the document;

(3)           whether or not the property is being

converted to a time share from some other use and, if so, a statement to that

effect and disclosure of the prior use of the property;

(4)           the maximum number of time shares in the

project, each recreational and other commonly used facility offered, and who or

what will own each facility, if the project is to be completed in one

development or construction phase;

(5)           if the project is planned in phased

construction or development, the complete plan of phased offerings, including

the maximum number of time shares which may be in the project, each

recreational and other commonly used facility, who or what will own each

facility, and the developer's representations regarding his or her commitment

to build out the project;

(6)           the association of owners or other entity

which will ultimately be responsible for managing the time share program, the

first date or event when the entity will convene or commence to conduct

business, each owner's voting right, if any, and whether and for how long the

developer, as time share owner, will control the entity;

(7)           the location where owners may inspect the

articles and bylaws of the owners association, or other organizational

documents of the entity and the books and records it produces;

(8)           whether the entity has lien rights against

time share owners for failure to pay assessments;

(9)           whether or not the developer has entered

into a management contract on behalf of the managing entity, the extent to

which the managing entity's powers are delegated to the manager and the

location where a copy of the management contract may be examined;

(10)         whether or not the developer will pay

assessments for time shares which it owns and a statement that the amount of

assessments due the managing entity from owners will change over time, as

circumstances may change;

(11)         whether or not the developer sponsors or

will sponsor a rental or resale program and, if so, a summary of the program or

programs; and

(12)         the developer's role at the project, if the

developer is a separate entity from any other registered developer of the time

share project.

(c)  The inclusion of false or misleading statements in a

public offering statement shall be grounds for disciplinary action by the

Commission.

 

History Note:        Authority G.S. 93A-44(8); 93A-51;

Eff. March 1, 1984;

Amended Eff. October 1, 2000; August 2, 1993; February 1,

1989; April 1, 1987.