P.R. Laws tit. 31, § 1255a
Every public offering statement filed with the Company, together with any amendments thereof, shall disclose fully and accurately all material characteristics of the timeshare plan or vacation club. At a minimum, it shall contain the following components and current information, effective as of the date of issuance of a timeshare or vacation club permit by the Company, pursuant to §§ 1252—1252j of this title:
(1) A cover page stating only:
(a) The name and principal address of the developer and the timeshare plan or vacation club, and
(b) the following statement in conspicuous type:
THIS PUBLIC OFFERING STATEMENT CONTAINS IMPORTANT INFORMATION TO BE CONSIDERED WHEN YOU BUY A TIMESHARE (OR VACATION CLUB RIGHT OR ACCOMMODATION). YOU SHOULD REVIEW IT BEFORE YOU SIGN ANY PURCHASE CONTRACT. YOU MAY CANCEL YOUR PURCHASE CONTRACT AND RECEIVE A REFUND OF ANY MONIES PAID TO THE SELLER, LESS THE VALUE OF ANY BENEFITS RECEIVED PURSUANT TO YOUR PURCHASE CONTRACT WITHIN SEVEN (7) DAYS FOLLOWING THE DATE UPON WHICH YOU EXECUTED SUCH PURCHASE CONTRACT OR RECEIVED THIS PUBLIC OFFERING STATEMENT, WHICHEVER OCCURRED LATER. SHOULD YOU DECIDE TO CANCEL YOUR CONTRACT FOR ANY REASON, YOU MUST PROVIDE WRITTEN NOTICE OF YOUR DECISION TO (NAME OF SELLER) AT (SELLER’S ADDRESS) POSTMARKED PRIOR TO MIDNIGHT OF THE SEVENTH (7TH) CALENDAR DAY AFTER YOU SIGNED THE CONTRACT OR RECEIVED THIS PUBLIC OFFERING STATEMENT, WHICHEVER OCCURRED LATER.
(2) The number of years that the developer has been in business generally, and in the resort and leisure industry specifically.
(3) The property management experience of the developer and of the managing entity selected by the developer.
(4) The term of each owner’s ownership of a timeshare, vacation club right or accommodation. It shall be a violation of this chapter to represent to a prospective purchaser of a nonspecific timeshare or vacation club right that the term of his ownership of the timeshare or vacation club right in the applicable vacation club is any longer than the shortest period of availability for use and occupancy of any of the timeshare plan’s or vacation club’s protected accommodations that: (i) are included within the timeshare plan or vacation club at the time of his purchase or represented by or on behalf of the developer as being available at some time in the future; and (ii) must be counted in order for the one-to-one purchaser to accommodation ratio requirement to be satisfied. It shall be a violation of this chapter to represent to a prospective purchaser of a specific timeshare right that the term of his ownership of his timeshare is any longer than the shorter of: (i) the period of availability for use and occupancy of the timeshare property or the accommodation(s) thereat in which such prospective purchaser will own a specific timeshare right; or (ii) the term of the timeshare plan. It shall be a violation of this chapter to represent to a prospective purchaser of a specific vacation club right that the term of his ownership of a vacation club right in the applicable vacation club is any longer than the shorter of (i) the period of availability for use and occupancy of the component site or the accommodation(s) [thereof] in which such prospective purchaser will own a specific timeshare right; or (ii) the term of the vacation club. The developer shall also disclose the term of availability of each component site within the vacation club. Under no circumstances shall an owner be entitled to any use or occupancy rights with respect to a timeshare plan’s or vacation club’s accommodations or facilities following the expiration of such owner’s term of ownership, as such term may be represented to the owner, pursuant to this subsection.
Notwithstanding the foregoing limitation, a developer shall be permitted to represent to prospective purchasers that shorter term accommodations are included as part of the timeshare plan or vacation club; Provided, That:
(a) The period of availability of any such accommodation is clearly and conspicuously disclosed to the prospective purchaser in the public offering statement and in all advertising and promotional materials published or otherwise disseminated with respect to the vacation club, and
(b) no accommodation which is available for use and occupancy for a shorter period of time is included in calculating whether the one-to-one purchaser to accommodation ratio requirement has been satisfied.
(5) A description of the reservation system and the rules and regulation adopted by the developer or the managing entity which govern the making, confirmation, and cancellation of reservations, together with the information required to be disclosed pursuant to § 1256d(5) of this title. However, if the timeshare plan or vacation club has less than one year’s operating experience, the public offering statement shall contain a description of the projected demand at each component site or state that no such projection has been made and that it may be difficult for owners to obtain reservations of accommodations of their choice.
(6) The owner of the computer hardware and software which comprise the reservation system and a description of the material terms of any lease or license of the reservation system. However, the developer shall not be required to disclose the financial terms of any such lease or license if it has been prepaid in full for the entire term of the timeshare plan or vacation club or to such an extent that owners are not required to pay their proportionate shares of any amounts payable to the applicable lessor or licensor as common expenses.
(7) A description of each component site and of the protected accommodations and facilities of the timeshare plan or vacation club, in a summary format, which includes for each component site:
(a) The number of dwelling units at the component site and the number and percentage thereof which are included as part of the timeshare plan or vacation club;
(b) the total number of use periods per year which each such dwelling unit is available for use and occupancy by owners of timeshares or vacation club rights, together with the length of each such use period;
(c) the legal right with respect to each accommodation held by the timeshare plan or vacation club or the owners therein (i.e., fee, leasehold, etc.);
(d) a description and the number of each accommodation size and type at the component site, including the minimum and maximum number thereof, their square footage, their number of bedrooms and total sleeping capacity, and any special location (e.g., poolside, ocean view, etc.);
(e) if construction of any of the accommodations or facilities is not yet completed or any such accommodation or facility is otherwise unavailable for use or occupancy, the latest date estimated for its availability;
(f) whether or not any of the accommodations are unavailable for use and occupancy during certain periods of time, whether due to the performance of periodic maintenance during such periods or otherwise, and if so, when such periods occur;
(g) the exact period of time during which each accommodation at the component site will be available for use and occupancy by owners;
(h) whether or not the developer intends to offer other types of accommodations for sale at the component site, and
(i) a summary of the rules and regulations, if any, governing an owner’s use of each accommodation and facility at the component site.
(8) If other than protected accommodations or protected facilities are offered as part of the timeshare plan or vacation club, a description of any such unprotected accommodations and facilities which constitute incidental benefits, in a summary format, including substantially the same information as the developer is required to disclose in § 1255a(7) of this title with respect to protected accommodations and facilities. In addition, any description of such unprotected accommodations and incidental benefits shall be preceded by the following notice in conspicuous type:
THE ACCOMMODATIONS AND INCIDENTAL BENEFITS, IF ANY, DESCRIBED HEREIN OR IN ANY SEPARATE INCIDENTAL BENEFIT DISCLOSURE STATEMENT MAY NOT BE AVAILABLE FOR THE FULL TERM OF YOUR TIMESHARE (OR VACATION CLUB RIGHT) OWNERSHIP, AND THERE ARE NO FINANCIAL ASSURANCES THAT THESE ACCOMMODATIONS AND INCIDENTAL BENEFITS WILL BE AVAILABLE AT ALL. YOU SHOULD NOT RELY UPON THE CONTINUED AVAILABILITY OF THESE ACCOMMODATIONS OR INCIDENTAL BENEFITS WHEN DECIDING WHETHER OR NOT TO PURCHASE A TIMESHARE (OR VACATION CLUB RIGHT).
(9) The following information regarding management of the timeshare plan or vacation club and of each component site:
(a) The relationship, if any, between the developer, the managing entity, and the various component site managing entities;
(b) any person who has the right to after or amend the timeshare or vacation club documents or change the terms and conditions under which assessments may be imposed upon owners of timeshares or vacation club rights or accommodations;
(c) whether timeshare property or component site common expenses (including real estate taxes) are included within the common expenses of the timeshare plan or vacation club and, if not, the manner in which timely payment of timeshare property or component site common expenses and real estate taxes will be accomplished, and
(d) any current or expected assessments, fees, or charges to be paid by owners of timeshares, vacation club rights or accommodations for the use and enjoyment of any accommodations or facilities of the timeshare plan or vacation club. The developer shall also disclose the following information for the timeshare property or each component site, as applicable:
(1) Any limitation on annual increases in common expense assessments and, if none exist, a statement so disclosing;
(2) the existence or nonexistence of any bad debt or working capital reserve, and
(3) the existence or nonexistence of any replacement or deferred maintenance reserve.
(e) A statement in conspicuous type indicating whether the owners of accommodations in the timeshare regime or vacation club will contribute towards the payment of common expenses on a different basis than the owners of timeshares or vacation club rights; and if so, the basis on which such accommodation owners will contribute.
(10) The legal nature of the timeshare or vacation club right purchased and whether it includes any priority right of use of accommodations or facilities at a particular component site.
(11) A statement in conspicuous type that the timeshares, vacation club rights or accommodations being offered by the developer are for the personal use and enjoyment of the owner and that such timeshares, vacation club rights or accommodations are not suitable for investment or intended for resale for profit.
(12) A description of any blanket encumbrances which affect any accommodations or facilities of the timeshare plan or vacation club, together with a description of the means by which such accommodations and facilities have been financially assured as required by §§ 1254—1254b of this title.
(13) A general description of any financing offered or arranged by the developer.
(14) A statement in conspicuous type stating that the timeshares, vacation club rights or accommodations being offered by the developer are not subject to the provisions of §§ 1291 et seq. of this title, known as the “Horizontal Property Act”, so that owners thereof shall not be entitled to many of the protective measures afforded by said chapter to purchasers of apartments or units in condominiums.
(15) If the developer has made or intends to make in the deed of dedication referred to in § 1264 of this title, a reservation of the use dedication provided for in § 1264(2)(d) of this title, a description of the details of such reservation and the terms and conditions for the exercise of the option to subsequently establish the ultimate use dedication by the developer, as well as an explanation as to how, when exercised, the rights of the owners of accommodations, timeshares or vacation club rights in the timeshare regime or vacation club may be affected, if at all.
(16) The procedures available for foreclosure and sale of a real property right over an accommodation when failure of payment occurs, as established under § 1268a of this title.
(17) Any other information required by the Company in order to assure full and fair disclosure to prospective purchasers of timeshares, vacation club rights or accommodations.
History —Dec. 26, 1995, No. 252, § 5-102; Jan. 5, 1999, No. 3, § 29; July 29, 2010, No. 106, § 6.