707.39(1)(a)
(a) "Owner" means a person who, other than as security for an obligation, is an owner or coowner of a time share or is an owner or coowner of a unit that is not a time-share unit.
707.39(1)(b)
(b) "Time share" does not include a time-share easement in a campground.
707.39(1)(c)
(c) "Unit" does not include real property in which a time-share easement in a campground exists.
707.39(2)
(2) Applicability. This section applies only to a project in which at least 50% of the votes are allocated to time shares.
707.39(3)
(3) Address list. For purposes of this section, the managing entity shall keep reasonably available for inspection and copying by any owner all addresses, known to it or to the developer, of all of the owners, with the principal permanent residence address of each indicated, if known. The managing entity shall revise continually the list of addresses based on any new information it obtains, and the developer shall keep the managing entity advised of any information which the developer has or obtains.
707.39(4)(a)(a) Each ballot prepared under
subs. (5) to
(7) shall contain all of the following:
707.39(4)(a)1.
1. A statement that the ballot will not be counted unless signed by an owner.
707.39(4)(a)2.
2. The date, not less than 30 days nor more than 180 days after the date the ballot is mailed, by which the ballot must be received by the person to whom it is to be returned, and a statement that the ballot will not be counted unless received by that date.
707.39(4)(a)3.
3. The name and address of the person to whom the ballot is to be returned.
707.39(4)(a)4.
4. No material other than what is required by this section.
707.39(4)(b)
(b) Each ballot mailed under
subs. (5) to
(7) shall be mailed to the principal permanent residence of the owner to whom it is addressed, if known to the person responsible for mailing it, and that person shall procure and keep reasonably available for inspection for at least one year after the vote is calculated a certificate of mailing for each ballot mailed and the original or a photocopy of each ballot returned by the date specified in
par. (a) 2.
707.39(4)(c)
(c) If the developer or a person on behalf of the developer communicates with an owner, other than as expressly authorized by
sub. (5),
(6) or
(7), on the subject matter of any petition or ballot prepared under any of those subsections, the expense of that communication may not be assessed directly or indirectly in whole or in part to any owner other than the developer.
707.39(4)(d)
(d) The vote allocated to any time share and to any unit other than a time-share unit shall be counted as having been cast in accordance with the ballot of any owner of that time share or unit. If the ballots of different owners of the same time share, or of the same unit other than a time-share unit, are not in accord with one another, the vote allocated to that time share or unit shall be divided in proportion to the number of owners of the time share or unit voting each way and shall be counted accordingly. Any ballot that is not signed by an owner or is not received by the date specified under
par. (a) 2. is void.
707.39(4)(e)
(e) The managing entity shall take action reasonably calculated to notify all owners of the resolution of any matter considered under
sub. (5),
(6) or
(7).
707.39(4)(f)
(f) No right or power of an owner under this section may be waived, limited or delegated by contract, power of attorney, proxy or otherwise, in favor of the developer, an affiliate of a developer, a managing entity or a designee of any of them.
707.39(4m)
(4m) Amendment to project instrument. The project instrument may be amended by the owners by direct initiative under
sub. (5) or by referendum under
sub. (6). An amendment adopted under
sub. (5) or
(6) shall be promptly recorded by the managing entity with a statement of the vote and becomes effective upon recordation.
707.39(5)(a)(a) The owners may amend the project instrument or any unrecorded document governing the project, or approve or reject any proposed expenditure, in accordance with this subsection or in any manner permitted by the project instrument or document.
707.39(5)(b)
(b) An owner may deliver to the managing entity a petition containing the language of a proposed amendment and signed by the owners of at least one time share or other estate or interest in each of a number of units to which at least 33 1/3% of the votes are allocated or any smaller percentage specified by the document to be amended. A writing of not more than 750 words in support of the proposal may be attached to the petition and mailed with the ballots under
par. (c).
707.39(5)(c)
(c) Within 20 days after receiving the petition under
par. (b), the managing entity shall mail to each owner a ballot setting forth the language of the petition and affording an opportunity to approve or reject the proposal, together with a copy of the writing, if any, attached to the petition. A writing of not more than 750 words from the managing entity recommending approval or rejection of the proposal may be mailed with the ballots.
707.39(5)(d)1.1. Within 10 days after the date specified under
sub. (4) (a) 2., the managing entity shall examine the ballots that have been returned and determine the vote. A signature on the petition shall be treated for the purpose of
sub. (4) (d) as a ballot from the signer indicating approval of the proposed amendment.
707.39(5)(d)2.
2. Except as provided in
s. 707.20 (2), a simple majority of the votes counted shall be sufficient for the adoption of the proposal unless the document to be amended specifies a larger majority or, in the case of a proposed expenditure, the project instrument specifies a larger majority not exceeding 66 2/3%, except that no document may specify more than a simple majority for a proposal which the managing entity could effect unilaterally.
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.
