707.39(5)(d)3.
3. No proposal may be adopted by an initiative in which the ballots favoring the proposal represent less than 10% of the votes allocated to all owners.
707.39(5)(e)
(e) A proposal adopted under this subsection may not be repealed or modified within 3 years after adoption except by another initiative under this subsection. After the 3-year period, the managing entity may not repeal or modify the result without the approval of the owners in a referendum under
sub. (6). If the project instrument permits the managing entity to initiate a referendum for that purpose, no referendum may be initiated for that purpose more often than once every 3 years.
707.39(6)(a)(a) The owners may amend the project instrument by referendum, and the project instrument may specify other matters which the owners may determine by referendum and may permit the managing entity to select matters which the owners may determine by referendum.
707.39(6)(b)
(b) If an amendment to a project instrument proposed by the managing entity, or other matter, is to be determined by referendum, the managing entity shall prepare and, not less than 30 days nor more than 180 days before the votes are to be counted, mail to each owner a ballot stating each matter to be determined and affording the opportunity to approve or reject each matter. The ballot may be accompanied by a writing of not more than 750 words from the managing entity recommending a particular decision.
707.39(6)(c)
(c) Within 10 days after the date specified under
sub. (4) (a) 2., the managing entity shall examine the ballots and determine the vote. Except as provided in
s. 707.20 (2), a simple majority of the votes counted shall determine each matter in question unless the project instrument specifies a larger majority, but no matter may be determined by referendum unless the ballots favoring the majority decision represent at least 10% of the votes allocated to all owners.
707.39(7)(a)(a) In addition to any manner permitted by the project instrument, the owners may discharge the manager with or without cause in the manner provided by this subsection.
707.39(7)(b)1.1. An owner may prepare a ballot affording the opportunity to indicate a preference between retaining the present manager and discharging the present manager in favor of a new manager. A writing of not more than 750 words supporting discharge of the manager may be attached to the ballot.
707.39(7)(b)2.
2. A copy of the ballot and of any writing that is to be mailed with the ballots shall be delivered to the manager. Not less than 10 days nor more than 30 days after the ballot and writing are delivered to the manager, the owner who prepared the ballot shall mail to each owner the ballot and writing, if any, supporting discharge, and a copy of any written reply from the manager of not more than 750 words.
707.39(7)(c)1.1. Within 10 days after the date specified under
sub. (4) (a) 2., the person who receives the ballots shall examine those that have been returned, determine the vote and promptly notify the manager of the result. If at least 66 2/3% of the vote, representing at least 33 1/3% of the votes allocated to all owners, favors discharging the manager, then all of the following shall occur:
707.39(7)(c)1.a.
a. The developer shall be notified of the result and the ballots or photocopies of the ballots shall be given promptly to the manager.
707.39(7)(c)1.b.
b. The developer shall diligently attempt to procure offers for management contracts from prospective managers. Any owner other than the developer also may attempt to procure such offers.
707.39(7)(c)2.
2. If the developer or any owner obtains an offer within 60 days after the date on which the vote was tabulated, the developer or owner shall promptly notify the developer and the owner who was responsible for tabulating the vote. If no offer is obtained from a prospective manager other than the current manager within the 60-day period, that period shall be extended for successive intervals of 30 days each until an offer is obtained.
707.39(7)(c)3.
3. At the end of any period under
subd. 2. during which an offer from a prospective manager other than the current manager is obtained, the owner who prepared the ballot, or the developer if that owner so directs in a writing delivered to the developer, shall promptly prepare and mail to each owner a 2nd ballot stating the term and compensation provided by each offer that has been received and affording an opportunity to indicate a preference for any one of the offers or for retaining the current manager. A letter recommending that a particular offer be accepted or that the current manager be retained may accompany the ballot, and if the developer prepared the ballot, the developer shall enclose a copy of any letter submitted by the owner who was responsible for tabulating the vote.
707.39(7)(c)4.
4. The developer has no obligation under this paragraph and nothing need be delivered to the developer if the developer owned no estate or interest in any unit on the date that the first ballot was delivered to the manager and neither the developer nor the affiliates of the developer or the developer's appointees caused the current manager to be hired.
707.39(7)(d)
(d) Within 10 days after the date specified under
sub. (4) (a) 2., the person who receives the ballots prepared under
par. (c) 3. shall examine the ballots that have been returned, determine the vote, notify the manager of the result, and hold the ballots available for inspection by the manager and any proposed manager for at least 30 days. If more votes favor accepting a particular offer rather than retaining the manager, the manager shall be discharged 90 days after being notified of the result, except that if the ballot prepared under
par. (b) was delivered to the manager before the current term of the manager began, the manager is discharged immediately upon being notified of the result. The person who received the ballots prepared under
par. (c) 3. shall accept on behalf of the owners the offer that received the largest number of votes. The expenses under a contract accepted under this paragraph are time-share expenses.
707.39(7)(e)
(e) A manager discharged under this subsection is not entitled because of the discharge to any penalty or other charge payable directly or indirectly in whole or in part by any owner other than the developer.
707.39(7)(f)
(f) If the manager is discharged under
par. (d), the reasonable expenses incurred by the developer or any owner in obtaining offers and preparing and mailing ballots under this subsection, including reasonable attorney fees, shall be promptly collected by the managing entity from all owners as a time-share expense and paid to the developer or the owner.
707.39 History
History: 1987 a. 399.
PROTECTION OF PURCHASERS
707.40
707.40
Applicability; exemptions. This subchapter applies to all time shares subject to this chapter, except that
ss. 707.41 to
707.45 and
707.48 do not apply to any of the following:
707.40(1)
(1) The disposition of a time share in any of the following circumstances:
707.40(1)(d)
(d) By foreclosure or deed in lieu of foreclosure.
707.40(2)
(2) The disposition of a time share if the purchaser may cancel at any time and for any reason without penalty.
707.40(3)
(3) The disposition of a time share in a unit situated wholly outside this state under a contract executed wholly outside this state, if there has been no offering within this state.
707.40(4)
(4) An offering by a developer of time shares in not more than one time-share unit at any one time.
707.40(5)
(5) Disposition to one purchaser of a time-share property or all of the time shares in a time-share property.
707.40(6)
(6) A transaction normal and customary in the hotel and motel business, including but not limited to acceptance of advance reservations, if the person engaging in the transaction operates or owns a motel or hotel substantially engaged in the business of accepting short-term, single reservation contracts with customers who obtain no associated long-term use rights.
707.40 History
History: 1987 a. 399.
707.41
707.41
Time-share disclosure statement. 707.41(1)(a)(a) Except as provided in
par. (b), a developer, before offering an interest in a time-share unit, shall prepare a time-share disclosure statement conforming to the requirements of this section and, if applicable,
ss. 707.42 to
707.45.
707.41(1)(b)
(b) A developer may transfer responsibility for preparation of all or a part of the time-share disclosure statement to a successor developer or to a person in the business of selling real estate who intends to offer time shares in the time-share property for the person's own account. The developer shall provide the transferee with any information necessary to enable the transferee to fulfill the requirements of this section.
707.41(2)
(2) Delivery of statement; single statement. 707.41(2)(a)(a) A developer or other person in the business of selling real estate who offers a time share for the person's own account to a purchaser shall deliver a time-share disclosure statement to a prospective purchaser in the manner prescribed in
s. 707.47 (1).
707.41(2)(b)
(b) If a time-share property is part of any other real estate venture in connection with the sale of which the delivery of a disclosure statement is required under the laws of this state, a single disclosure statement conforming to the requirements of this section and, if applicable,
ss. 707.42 to
707.45, as those requirements relate to all real estate ventures in which the time-share property is located, and to any other requirements imposed under the laws of this state, may be prepared and delivered in lieu of providing 2 or more disclosure statements.
707.41(3)
(3) Liability for statement. The person who prepared all or a part of the time-share disclosure statement is liable under
ss. 707.47 and
707.57 for any false or misleading statement set forth in, or any omission of material fact from, that portion of the time-share disclosure statement which the person prepared.
707.41(4)
(4) Contents of statement. A time-share disclosure statement shall contain or fully and accurately disclose all of the following:
707.41(4)(a)
(a) A cover sheet bearing the title "Time-Share Disclosure Statement" and the name and principal business address of the developer and the developer's agent, if any, the name and location of the time-share property and the following 3 statements in boldface type or capital letters no smaller than the largest type on the page:
707.41(4)(a)1.
1. THESE ARE THE LEGAL DOCUMENTS COVERING YOUR RIGHTS AND RESPONSIBILITIES AS A TIME-SHARE OWNER. IF YOU DO NOT UNDERSTAND ANY PROVISIONS CONTAINED IN THEM, YOU SHOULD OBTAIN PROFESSIONAL ADVICE.
707.41(4)(a)2.
2. THESE DISCLOSURE MATERIALS GIVEN TO YOU AS REQUIRED BY LAW MAY BE RELIED UPON AS CORRECT AND BINDING. ORAL STATEMENTS MAY NOT BE LEGALLY BINDING.
707.41(4)(a)3.
3. YOU MAY CANCEL IN WRITING ANY CONTRACT FOR THE PURCHASE OF A TIME SHARE, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN 5 BUSINESS DAYS FROM THE DATE YOU SIGN THE CONTRACT OR UNTIL 5 BUSINESS DAYS AFTER YOU RECEIVE THE TIME-SHARE DISCLOSURE STATEMENT, WHICHEVER IS LATER. IF YOU SO CANCEL THE CONTRACT, YOU ARE ENTITLED TO RECEIVE A FULL REFUND OF ANY DEPOSITS MADE, EXCEPT, IF YOU HAVE USED OR OCCUPIED THE TIME-SHARE PROPERTY FOR MORE THAN 12 HOURS, THE MANAGING ENTITY OR CAMPGROUND OPERATOR MAY SUBTRACT FROM DEPOSITS MADE A REASONABLE CHARGE TO COVER THE LENGTH OF STAY PLUS THE COST FOR DAMAGES TO THE TIME-SHARE PROPERTY DIRECTLY ATTRIBUTABLE TO YOU OR ANY MEMBER OF YOUR PARTY.
707.41(4)(b)
(b) A general description of the time-share property and the time-share units, including the number of units in the time-share property and in any project of which it is a part, and the schedule of commencement and completion of all promised improvements as described in the time-share instrument, promotional materials, advertising and the time-share disclosure statements.
707.41(4)(c)
(c) As to all units owned or offered by the developer in the same project, all of the following:
707.41(4)(c)4.
4. The maximum number of units that may become part of the time-share property.
707.41(4)(c)5.
5. A statement of the maximum number of time shares that may be created or a statement that there is no maximum.
707.41(4)(d)
(d) Copies and a brief narrative description of the significant features of the time-share instrument and any documents, other than plats and plans, referred to in the time-share instrument, copies of any contracts or leases to be signed by the purchaser at closing, and a brief narrative description of any contracts or leases that may be canceled by the association under
s. 707.32.
707.41(4)(e)
(e) The identity of the managing entity and the manner, if any, by which the developer may change the managing entity or its control.
707.41(4)(f)
(f) A current balance sheet and budget for the association, if there is an association, either within or as an exhibit to the time-share disclosure statement. During the 12 months after the date of the first transfer to a purchaser the budget may be a projected budget. The budget shall include all of the following:
707.41(4)(f)1.
1. A statement of who prepared the budget and the budgetary assumptions concerning occupancy and inflation factors.
707.41(4)(f)2.
2. A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement.
707.41(4)(f)4.
4. The projected time-share expenses by category of expenditure, for the time-share units.
707.41(4)(f)5.
5. The projected time-share liability for each time share.
707.41(4)(g)
(g) A description of the nature and purposes of all charges, dues, maintenance fees and other expenses that may be assessed, the current amounts assessed and the method and formula for changes.
707.41(4)(h)
(h) Any services provided by the developer or expenses paid by the developer which the developer expects may become a time-share expense, and the projected time-share liability attributable to each of those services or expenses for each time share.
707.41(4)(i)
(i) Any initial or special fee due from the purchaser at closing and a description of the purpose of, and method of calculating, the fee.
707.41(4)(j)
(j) A statement of the effect on the time-share owners of liens, defects or encumbrances on, or affecting the title to, the time-share units.
707.41(4)(k)
(k) A description of any financing offered by the developer.
707.41(4)(L)
(L) The terms and significant limitations of any warranties provided by the developer, including statutory warranties and limitations on the enforcement of the warranties or on damages.
707.41(4)(m)
(m) If of significance to the time-share units, a statement of any unsatisfied judgments against the managing entity or the developer, the status of any pending suits involving the sale or management of real estate to which the managing entity or the developer or an affiliate of the developer is a defending party, and the status of any pending suits of which the developer has actual knowledge.
707.41(4)(n)
(n) A statement that an amount equal to 50% of the deposits, as defined in
s. 707.49 (1) (b), made in connection with the purchase of a time share will be held in an escrow account, except as provided in
s. 707.49 (4), until all of the events listed in
s. 707.49 (3) (b) 3. have occurred or any later time specified in the contract to purchase the time share, and that the full amount of the deposit, minus any amount that may be withheld under
s. 707.47 (6) (b), will be returned to the purchaser if the purchaser cancels the contract under
s. 707.47.
707.41(4)(o)
(o) Any restraints on transfer of time shares or portions of time shares.
707.41(4)(p)
(p) A description of the insurance coverage provided for the benefit of time-share owners in accordance with
s. 707.35.
707.41(4)(q)
(q) Any current or expected fees or charges to be paid by time-share owners for the use of any facilities related to the project.
707.41(4)(r)
(r) The extent to which financial arrangements have been provided for completion of all promised improvements as described in the time-share instrument, promotional materials, advertising and the time-share disclosure statements.
707.41(4)(s)
(s) The extent to which a time-share unit may become subject to a tax or other lien arising out of claims against other time-share owners of the same time-share unit.
707.41(4)(t)
(t) A description of the rights and remedies provided in the time-share instrument to a time-share owner who is prevented from enjoying exclusive occupancy of a time-share unit by others, or a statement that there are none provided in the time-share instrument.
707.41(4)(u)
(u) All unusual and material circumstances, features and characteristics of the project.
707.41 History
History: 1987 a. 399.
707.42
707.42
Exchange or reciprocal program; additional requirements. 707.42(1)(a)
(a) "Exchange company" means a person operating an exchange program.
707.42(1)(b)
(b) "Exchange program" means an arrangement where time-share owners exchange occupancy rights among themselves or with time-share owners of other time-share units or both.
707.42(1)(c)
(c) "Reciprocal program" means an arrangement allowing a campground member to use one or more campgrounds, the owners of which are persons other than the campground operator who entered into the campground contract with the campground member.
707.42(2)
(2) Exchange program; disclosures. If time-share owners are permitted or required to become members of or to participate in an exchange program, the time-share disclosure statement or a supplement delivered with the statement shall contain or fully and accurately disclose, in addition to the information required by
s. 707.41 (4) and, if applicable,
ss. 707.43 to
707.45, all of the following information:
707.42(2)(a)
(a) Whether membership or participation in the exchange program by a time-share owner is voluntary or mandatory.
707.42(2)(b)
(b) The name and address of the exchange company, whether the exchange company is an affiliate of the developer, and whether the exchange company or any of its officers or directors has any legal or beneficial interest in any developer or manager of any time-share property participating in the exchange program.
707.42(2)(c)
(c) The names of all officers, directors and shareholders owning 5% or more of the outstanding stock of the exchange company.
