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R. Scott Alagood: The Texas Timeshare Act

If a timeshare property is subject to the TTA, a person may not offer or dispose of a timeshare interest unless a timeshare plan is registered with the Texas Real Estate Commission. "Offer" means any advertisement, inducement, solicitation or encouragement ...

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Search the Denton Record-Chronicle Submit Search Business Business Chronicle Connect With Us Facebook Twitter Instagram --> All Topics Home News Argyle Aubrey Bartonville Blotter Calendar Century Club Christmas in Denton County Congress Cooke County Copper Canyon Corinth Cropped Out Cross Roads Denton Denton County Denton County Commissioners Denton County Sheriff's Office Denton Enterprise Airport Denton Municipal Electric Denton Police Dish Donald Trump Double Oak Environmental issues Flower Mound Grapevine Lake Hickory Creek Insight Denton Krugerville Krum Lake Dallas Lantana Lewisville Lewisville Lake Nation And World News Gathering Nonprofits Oak Point Oil and gas Photos Pilot Point Politics Ponder Providence Village Ray Roberts Lake Road Construction Sanger Shady Shores State Supreme Court Texas Legislature The Watchdog Traffic Weather Wise County Year In Review Yesteryear Sports AP Argyle Eagles Aubrey Chaparrals Braswell Bengals Calvary Academy Lions Colleges Dallas Cowboys Dallas Mavericks Dallas Stars Denton Broncos Guyer Wildcats High Schools Krum Bobcats Lake Dallas Falcons Liberty Christian Warriors Mean Green Motor sports NASCAR Other Sports Outdoors Pilot Point Bearcats Ponder Lions Ryan Raiders Sanger Indians Sports AP Headlines TWU Pioneers Texas Rangers The Masters Your Team Entertainment Best of Denton 2017 Denton Dammit Denton Time Movies Music Theater Education Argyle High School Aubrey High School Aubrey ISD Braswell High School Denton Calvary Academy Denton High School Denton ISD Guyer High School Higher Education Immaculate Conception Catholic School Krum High School Krum ISD Lake Dallas High School Lake Dallas ISD Liberty Christian High School North Central Texas College Pilot Point High School Pilot Point ISD Ponder High School Ponder ISD Ryan High School Sanger High School Sanger ISD Selwyn College Preparatory School Texas Woman's University University of North Texas Business Business Chronicle Life AgriLife Extension Anniversaries Engagements Garden Health Native Roots Pools Religion The Place is Argyle Weddings Opinion Columns Editorial Letters Close Close {"@context":"http:\/\/","@type":"NewsArticle","mainEntityOfPage":{"@type":"NewsArticle","@id":"http:\/\/\/business\/business-chronicle\/2018\/01\/17\/r-scott-alagood-texas-timeshare-act","author":[{"@type":"Person","name":"RScott Alagood"}],"datePublished":"2018-01-17T05:00:00-06:00","headline":"RScott Alagood: The Texas Timeshare Act","image":{"@type":"ImageObject","url":"https:\/\/\/1515807942-DRC_ALAGOODscott.jpg?w=1200&h=630&format=jpg&crop=faces&fit=crop","height":1200,"width":630},"publisher":{"@type":"Organization","name":"Denton Record-Chronicle","logo":{"@type":"ImageObject","url":"http:\/\/\/resources\/author-default-image.png"}},"dateModified":"2018-01-17T05:00:00-06:00","mainEntityOfPage":"RScott Alagood: The Texas Timeshare Act"},"url":"http:\/\/\/business\/business-chronicle\/2018\/01\/17\/r-scott-alagood-texas-timeshare-act","author":[{"@type":"Person","name":"RScott Alagood"}],"thumbnailUrl":"https:\/\/\/1515807942-DRC_ALAGOODscott.jpg","headline":"RScott Alagood: The Texas Timeshare Act...","dateCreated":"2018-01-17T05:00:00-06:00","datePublished":"2018-01-17T05:00:00-06:00","dateModified":"2018-01-17T05:00:00-06:00","image":{"@type":"ImageObject","url":"https:\/\/\/1515807942-DRC_ALAGOODscott.jpg?w=1200&h=630&format=jpg&crop=faces&fit=crop","height":1200,"width":630},"publisher":{"@type":"Organization","name":"Denton Record-Chronicle","logo":{"@type":"ImageObject","url":"http:\/\/\/resources\/author-default-image.png"}},"articleSection":"Business","keywords":["Business Chronicle"]} RScott Alagood: The Texas Timeshare Act Filed under Business Chronicle at Yesterday Share Facebook Twitter Email Print This Story Written by RScott Alagood, Commentary Connect with RScott Alagood Email Don't miss a storyLike us on Facebook. Like The Denton Record-Chronicle's Facebook Page Timeshares have been and continue to be a popular method to secure affordable vacation destinations. For timeshare properties located in or offered for sale in Texas, Texas Property Code Chapter 221, also known as the Texas Timeshare Act, governs and regulates timeshare interests"Timeshare interests" comprise estates, properties and uses.A "timeshare estate" is any arrangement under which the purchaser receives a right to occupy a timeshare property along with an interest in real property. A "timeshare property" is one or more accommodations and any related amenities that are subject to the same timeshare instrument, and any other property rights that may co-exist. An "accommodation" includes apartments, condominiums, cooperative units, hotel or motel rooms, cabins, lodges or other private or commercial dwellings attached to real property. An "amenity" includes any common areas, recreational facilities or other common components of timeshare property. A "timeshare use" is any arrangement that allows the purchaser the right to use timeshare property but does not grant any other interest in such property. It must be noted that any timeshare interest located outside of Texas is not subject to the TTA's provisions relating to the creation of the timeshare regime (Subchapter B) and the rules relating to a timeshare owners association (Subchapter I). So long as out-of-state timeshare interests are offered for sale in Texas, the provisions of the TTA relating to registration (Subchapter C), disclosures and advertisements (Subchapter D), cancellation and rescission rights (Subchapter E), exchange programs (Subchapter F), escrow deposits (Subchapter G), deceptive trade practices (Subchapter H) and the transfer or termination of timeshare interests (Subchapter J), will apply.  Only timeshare properties in existence on or after Aug. 26, 1985, are subject to the TTAThere are certain types of offerings and dispositions that are exempt from the TTA. If a timeshare property is subject to the TTA, a person may not offer or dispose of a timeshare interest unless a timeshare plan is registered with the Texas Real Estate Commission"Offer" means any advertisement, inducement, solicitation or encouragement to attempt to cause a purchase of a timeshare interest"Dispose" means a voluntary transfer of any legal or equitable timeshare interest. Offering or disposing of a timeshare interest that has not been registered is a Class A misdemeanorHowever, it is permissible for a developer to accept a reservation and deposit from a prospective purchaser on an unregistered property and place the deposit in a segregated escrow account with an independent escrow agent, so long as such deposit is fully refundable upon request by the purchaser. Any advertisement or promotion related to a timeshare interest offering must comply with the Contest and Gift Giveaway Act (Chapter 621 of the Texas Business & Commerce Code)Any advertisement must make it clear that it is soliciting purchasers of timeshare interests and anyone whose name is obtained during a promotion may be solicited, and must set forth the developer's name and the name and address of any marketing company involved in the promotion, unless affiliated with the developer. A developer must provide a timeshare disclosure statement to any prospective purchaser before entering into a purchase agreementThe required contents of a timeshare disclosure statement can be found in Section 221.032(b) of the TTA. If the timeshare interest includes an exchange program, the party making the offer must also provide an exchange program disclosure statementThe details of the exchange program disclosure statement can be found in Section 221.033(d) of the TTA. An "exchange program" is any method, arrangement or procedure for the voluntary exchange of timeshare interests between owners. Typically the company administering an exchange program is not responsible for misrepresentations of the developer or for the denial of any exchange privilegesSo long as the developer's contracts and sale documents have been approved by the Texas Real Estate Commission or a licensed Texas attorney, the developer may charge a reasonable fee for completing such forms, including the disclosure statements, purchase agreement and closing documents. Section 221.043(c) of the TTA sets out the requirements for the timeshare purchase contractThe contract must advise the purchaser of his or her right to cancel the contract without penaltyThis right to cancel extends through the fifth day following the purchaser's execution and receipt of the contract or the purchaser's receipt of the timeshare disclosure statement, whichever is laterThe cancellation right cannot be waived. Enforcement of the TTA may be accomplished through the filing of an administrative complaint with the Texas Real Estate Commission or by private enforcement through the courtsSeveral violations of the TTA also constitute violations of the Texas Deceptive Trade Practices-Consumer Protection Act (Texas Business & Commerce Code Section 17.41 etseq.). Upon a finding of a material violation of the TTA, the Texas Real Estate Commission may suspend or revoke a developer's registration, place it on probation, issue a reprimand, impose an administrative penalty of up to $10,000 or take any other disciplinary action authorized by the TTA.RSCOTT ALAGOOD is certified in commercial and residential real estate law by the Texas Board of Legal Specialization and can be reached at or (function(){var c=document.createElement("script"),e=document.getElementsByTagName("script")[0];c.async=true,c.src=("https:"==document.location.protocol?"https://c":"http://c")+"",e.parentNode.insertBefore(c,e)})(); Comments Tags Business Chronicle Share Facebook Twitter Email Print This Story Get the most important stories right in stream Don't miss out on the conversationStay connected with The Denton Record-Chronicle 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