Final Text
CHAPTER 40
TIME-SHARE REGULATIONS (REPEALED)
18VAC135-40-20. Definitions and explanation of terms. (Repealed.)
The definitions provided in § 55-362 of the Code of Virginia,
as they may be supplemented herein, shall apply to this chapter.
18VAC135-40-50. Application for registration. (Repealed.)
Application for registration of time-share projects and programs
shall be filed with the board on an application form furnished by the board and
shall contain all of the documents and information required by § 55-391.1 of
the Code of Virginia.
18VAC135-40-60. Form of the application; submission of
documents. (Repealed.)
The board may establish specific guidelines which establish
the form for preparation of the application for registration. These guidelines
may set forth reasonable requirements for paper size, binding and organization
which assure uniformity in the manner disclosures are made to prospective
purchasers.
18VAC135-40-80. Filing fees. (Repealed.)
1. The filing fee for an original application for
registration of a time-share project shall be $1,500.
2. The filing fee for an amendment to the application for
registration adding a phase or phases to the time-share project shall be $250.
3. The filing fee for the annual report filed by the
developer shall be $500.
4. The filing fee for an original application for
registration of an exchange company shall be $1,000. The filing fee for the
annual report of an exchange company shall be $250.
5. There shall be no fee for filing an amended public
offering statement with the board.
18VAC135-40-100. Preregistration offers prohibited. (Repealed.)
A. No developer or individual or entity acting on behalf of
the developer shall offer or dispose of a time-share prior to its registration.
B. No preregistration time-share marketing activity shall
be deemed an offer unless, by its express terms, it induces, solicits or
encourages a prospective purchaser to execute a contract of sale for a
time-share or perform some other act which would create or purport to create a
legal or equitable interest in a time-share other than a security interest in
or a nonbinding reservation of the time-share.
18VAC135-40-110. Time-share marketing standards. (Repealed.)
A. No promise, assertion, representation or statement of fact
or opinion in connection with a time-share marketing activity shall be made
which is false, inaccurate or misleading by reason of inclusion of an untrue
statement of a material fact or omission of a statement of a material fact
relative to the actual or intended characteristics, circumstances or features
of the time-share project or a time-share.
B. No promise, assertion, representation or statement of
fact or opinion made in connection with a time-share marketing activity and
relating to a time-share project not registered shall, by its express terms,
induce, solicit or encourage a contract for sale or performing some other act
which would create or purport to create a legal or equitable interest in the
time-share other than a security interest in or a nonbinding reservation of the
time-share, when to do so would circumvent the provisions of the Virginia Real
Estate Time-Share Act.
18VAC135-40-140. Preparation and distribution of public
offering statement. (Repealed.)
A. The public offering statement shall be clear and legible
with pages numbered sequentially. The first page of the public offering
statement shall conform to the specimen appended as Appendix A to this chapter
and made a part hereof.
B. The developer may include as part of the public offering
statement a receipt page printed in such a way that the developer may obtain
verification that a prospective purchaser has received the public offering
statement. The receipt page shall include the effective date of the public
offering statement as well as a place for the date of delivery and signature
lines for the prospective purchaser. The authorized receipt page in proper
form, duly executed, shall be evidence that the public offering statement was
delivered.
C. The developer shall distribute a current public offering
statement to any prospective purchaser before such purchaser executes a
contract to purchase a time-share.
18VAC135-40-150. Nature of information to be included in
public offering statement. (Repealed.)
A. The provisions of § 55-374 of the Code of Virginia and this
chapter shall be strictly construed to promote full and accurate disclosure in
the public offering statement of the characteristics of and material
circumstances affecting the time-share project and the characteristics of the
time-share(s) being offered.
B. The requirements for disclosure are not exclusive. In
addition to expressly required information, the developer shall disclose all
other available information which may reasonably be expected to affect the
decision of the ordinarily prudent purchaser to accept or reject the offer of a
time-share. The developer shall disclose any additional information necessary
to make the required information not misleading. No information may be
presented in such a fashion as to obscure the facts, to encourage a misinterpretation
of the facts or otherwise to mislead a purchaser.
C. No information shall be incorporated by reference to an
extrinsic source which is not readily available or already known to an ordinary
purchaser. Whenever required information is not known or not reasonably
available, such fact shall be stated in the public offering statement with a
brief explanation. Whenever special circumstances exist which would render
required disclosure inaccurate or misleading, the required disclosure shall be modified
to accomplish the purpose of the requirement or the disclosure shall be
omitted, provided that such modification or omission promotes full and accurate
disclosure.
D. The public offering statement shall be as brief as is
consistent with full and accurate disclosure. In no event shall the public
offering statement be made so lengthy or detailed as to discourage close
examination. Duplication and unnecessary legal language is discouraged.
E. Expressions of opinion in the public offering statement
shall be deemed inconsistent with full and accurate disclosure unless there is
an existing foundation in fact for the opinion expressed therein; provided,
however, that this sentence shall not affect in any way the developer's duty to
set forth a projected budget for the time-share estate program's operation.
F. Except for brief excerpts, the public offering statement
shall not incorporate verbatim portions of the time-share instrument or other
documents. The developer is encouraged in the public offering statement to
direct the purchaser's attention to pertinent portions of the time-share
instrument or documents attached to the public offering statement where
required disclosures can be found, and if incorporated by reference, shall be
deemed to be a part of the public offering statement.
G. Maps, photographs and drawings may be utilized in the
public offering statement, provided that such use promotes full and accurate
disclosure of the required characteristics of and material circumstance
affecting the time-share project and the characteristics of the time-share(s)
being offered.
18VAC135-40-160. Readability of public offering statement.
(Repealed.)
The public offering statement shall be clear and understandable.
The public offering statement may be written in narrative, question and answer,
or other form selected by the developer so long as all information required by
the Virginia Real Estate Time-Share Act and this chapter is included in a clear
and understandable manner. Use of defined terms in the Virginia Real Estate
Time-Share Act in writing the public offering statement is encouraged.
Determination as to compliance with this section is within the exclusive
discretion of the board.
18VAC135-40-420. Amendment of public offering statement;
material change. (Repealed.)
A. Within 20 business days of the occurrence of a material change,
as defined by § 55-362 of the Code of Virginia, the developer shall amend the
public offering statement to disclose each occurrence constituting the material
change.
B. An amendment of the public offering statement,
necessitated by the occurrence of a material change, may be accomplished in any
intelligible manner and, to the extent that strict compliance with any of the
other provisions of this chapter governing the form of presentation of
information in the public offering statement would be unduly burdensome, the
developer may deviate therefrom in amending the public offering statement,
provided that (i) no such deviation shall be more extensive than is necessary
and appropriate under the circumstances, (ii) the requirements of this chapter
are strictly observed and (iii) the presentation of information in the amended
public offering statement is organized so as to facilitate reading and
comprehension. Nothing contained in this chapter shall authorize a deviation
from strict compliance with this chapter governing the substance of disclosure
in the public offering statement. If any information has become inaccurate or
misleading by reason of the material change, such information shall be deleted
from the public offering statement or amended in such a way to make the
information accurate and not misleading.
18VAC135-40-430. Filing of amended public offering statement.
(Repealed.)
A. The developer shall file with the board a copy of the amended
public offering statement generated pursuant to 18VAC135-40-420. The filing
shall be dated by the developer and its receipt dated by the board. The amended
public offering statement shall be effective upon its receipt by the board.
B. When an amended document pursuant to 18VAC135-40-420 is
filed with the board, and the amendments are not apparent on the face of the
document, the document shall be redlined, highlighted or otherwise marked to
indicate the changes.
FORMS (18VAC135-40) (Repealed.)
Appendix A -- Public Offering Statement (eff. 7/03).
Application for Registration of Time-Share.