A statement by the developer of the expected useful life of each item reported on in par. (a)
or a statement that no representations are made in that regard.
A list of any outstanding notices of uncorrected violations of building codes or other state and municipal regulations, together with the estimated cost of correcting those violations.
This section applies only to units which may be used as a dwelling or for recreational purposes or both.
History: 1987 a. 399
Amendments to statement.
A developer shall promptly amend all of the following:
The time-share disclosure statement to report any material change in the information required by s. 707.41
The time-share disclosure statement or any supplement to the statement to report any material change known to the developer in the information required by s. 707.42
, except that:
The developer shall report to purchasers any significant change in information required by s. 707.42 (2) (b)
that adversely affects purchasers' interests within 30 days after the change occurs, and if the developer reports the change as required, the developer is not liable to purchasers for any harm resulting because purchasers were not informed earlier of the change.
The information required by s. 707.42 (2) (m)
shall be calculated, at a minimum, from the records of the exchange company, as defined in s. 707.42 (1) (a)
, for each calendar year and shall be available no later than July 1 of the succeeding year.
The time-share disclosure statement or any supplement to the statement to report any material change in the information required by s. 707.43
, except that the information required by s. 707.43 (2) (d)
shall be calculated, at a minimum, from the records of the multilocation developer, as defined in s. 707.43 (1)
, for the preceding calendar year and shall be available no later than July 1 of the succeeding year.
History: 1987 a. 399
Contract; minimum requirements. 707.46(1)(1)
All contracts for the purchase of a time share shall contain at least all of the following provisions:
The actual date that the contract is executed by each party.
The name and address of the developer or seller and of any agent acting on behalf of the developer or seller, and, if different than the developer or seller, any owner of the land or buildings included in the project of which the time shares are a part.
The total financial obligation of the purchaser, including the initial purchase price and any additional charges to which the purchaser may be subject, such as financing, reservation and recreation charges and time-share expenses.
The projected date of completion of construction, as defined in s. 707.49 (1) (a)
, of each part of the project of which time shares are a part which is not completed at the time the purchase contract is executed.
A description of the nature and duration of the time share being sold.
(2) Campgrounds; additional provisions.
In addition to the information required under sub. (1)
, a contract for the purchase of a time-share easement in a campground shall include all of the following information:
Any policy or other existing obligation to allow persons who are not campground members to use the campground or campground amenities.
The maximum ratio of campground contracts projected to be sold per campsite during the course of a campground contract.
A contract for the purchase of a time-share and any other instrument that is evidence of a purchase of a time-share is valid only if it is recorded.
does not apply to a contract for, or other instrument evidencing, the purchase of a time-share license.
Purchaser's right to cancel. 707.47(1)(1)
Provision of statement.
A person required to deliver a time-share disclosure statement under s. 707.41 (2)
shall, before transfer of a time share and no later than the date of any contract for the purchase of a time share, provide a prospective purchaser with a copy of the time-share disclosure statement and all amendments and supplements to the statement.
(2) Right to cancel.
If delivery of a time-share disclosure statement is required under s. 707.41 (2)
, the purchaser may cancel a contract for the purchase of a time share until midnight of the 5th business day after whichever of the following is later:
The date on which the purchaser receives the last of the documents required to be provided to the purchaser under sub. (1)
(3) Activity before cancellation period expires.
No title may be recorded, deed delivered or deposit released until the cancellation period under sub. (2)
has expired. Nothing in this subsection or sub. (4)
precludes the execution of documents before the cancellation period expires, for delivery after the cancellation period expires.
(4) Waiver prohibited.
The purchaser or any person on behalf of the purchaser may not waive the right to cancel under sub. (2)
(5) Notice of cancellation.
If a purchaser elects to cancel a contract under sub. (2)
, the purchaser may do so by personally-delivering notice of the cancellation to the seller or by mailing the notice to the developer or to the developer's agent for service of process. If mailed, any notice of cancellation shall be considered given on the date that the notice is postmarked.
Cancellation under sub. (2)
shall be without penalty, and, except as provided in par. (b)
, all payments made by the purchaser before cancellation shall be refunded within 20 days after receipt of the notice of cancellation or within 5 days after receipt of funds from the purchaser's cleared check, whichever is later.
If the purchaser has used or occupied the time-share property for more than 12 hours before cancellation, the funds to be returned to the purchaser may be reduced by a reasonable charge to cover the length of stay plus the cost for damages, if any, to the time-share property directly attributable to the purchaser's use or occupancy of the time share property.
History: 1987 a. 399
Resales of time shares. 707.48(1)(1)
Except as provided in s. 707.40
or except where delivery of a time-share disclosure statement is required under s. 707.41 (2)
, a seller of a time share shall furnish to the purchaser before execution of any contract for the purchase of a time share, or otherwise before the transfer of title, a copy of the time-share instrument, other than any plats or plans, and a certificate containing statements disclosing all of the following information:
The effect on the proposed transfer of any right of first refusal or other restraint on transfer of all or any portion of the time share.
The amount of the periodic time-share liability and any unpaid time-share expense or special assessment or other sums currently due and payable from the seller.
Any other fees payable by time-share owners.
Any judgments or other matters that are or may become liens against the time share or the time-share unit and the status of any pending suits that may result in those liens.
(2) Managing entity; preparation of certificate. 707.48(2)(a)(a)
Except as provided in par. (b)
, the managing entity, within 10 days after a request by a time-share owner, shall furnish a certificate containing the information necessary to enable the time-share owner to comply with sub. (1)
If there is no managing entity, the time-share owner shall furnish the information specified in sub. (1)
A purchaser is not liable for any unpaid time-share liability or fee greater than the amount set forth in a certificate prepared under sub. (2)
A time-share owner is not liable to a purchaser for the failure or delay of the managing entity to provide the certificate in a timely manner or for any erroneous information provided by the managing entity and included in the certificate, except for information on judgment liens against the time share or the time-share unit.
A purchaser may void a purchase contract until the certificate, whether prepared by the managing entity or time-share owner, is provided and for 5 business days after the certificate is provided or until transfer of the time share, whichever occurs first.
History: 1987 a. 399
Deposits; escrow requirement. 707.49(1)(a)
“Completion of construction" means that all accommodations of the time-share unit and all buildings, improvements and other facilities of the time-share property, including campground amenities, are available for use in a manner identical in all material respects to the manner portrayed by the time-share instrument, promotional materials, advertising and the time-share disclosure statements.
“Deposit" means any money or property given by a purchaser as earnest money, downpayment or other payment in connection with the purchase of a time share, whether the payment is intended to be applied toward the purchase price or other obligation or returned to the purchaser, but excluding any dues payment.
“Escrow account" means an account established solely for the purposes set forth in this section with a financial institution, as defined in s. 705.01 (3)
, which is located within this state and the accounts of which are insured by a governmental agency or instrumentality.
A savings and loan association, savings bank, bank or trust company located in this state.
An attorney who is a member of the State Bar of Wisconsin.
A title insurance company authorized to do business in this state.
Except as provided in sub. (4)
, before the sale of any time shares in a project, the developer shall establish an escrow account and shall designate an escrow agent for the purpose of protecting the deposits of purchasers. All escrow agents shall be independent of the developer, and the developer, any affiliate of the developer or any officer, director, subsidiary or employee of the developer shall not serve as escrow agent.
An escrow agent designated under par. (a)
shall do all of the following:
Maintain, in accordance with generally accepted accounting practices, separate books and records for each time share.
Maintain the accounts required by this section only in such a manner as to be under the direct supervision and control of the escrow agent.
Upon receipt of conflicting demands for the escrowed funds or property, immediately and with the consent of all parties either submit the matter to arbitration or, by interpleader or otherwise, seek an adjudication of the matter in court.
(3) Escrow agreement; release of funds. 707.49(3)(a)(a)
Until the deposit may be released from escrow under par. (b)
, an amount equal to 50 percent of the deposit shall be deposited in an escrow account under an escrow agreement.
The escrow agreement shall provide that the deposit may be released from escrow only as follows:
If a purchaser gives a valid notice of cancellation under s. 707.47 (5)
or is otherwise entitled to cancel the sale, the deposit shall be returned to the purchaser under s. 707.47 (6)
After expiration of the cancellation period under s. 707.47 (2)
, if the purchaser defaults in the performance of his or her obligations under the contract to purchase, the developer shall provide an affidavit to the escrow agent requesting release of the escrowed deposit and shall provide a copy of the affidavit to the purchaser who has defaulted. The developer's affidavit shall include all of the following:
A statement that the purchaser has defaulted and that the developer has not defaulted.
A brief explanation of the nature of the default and the date of default.
A statement that the developer is entitled under the contract to the deposit held by the escrow agent.
A statement that the developer has not received from the purchaser any written notice of a dispute between the purchaser and developer or a claim by the purchaser to the escrowed deposit.
If no cancellation or default has occurred, the escrow agent may release the escrowed deposit upon presentation by the developer of an affidavit and, if the project is subject to a blanket encumbrance, as defined in s. 707.38 (1)
, a certified copy of a recorded nondisturbance agreement. The developer's affidavit shall state that all of the following have occurred:
Completion of construction of the time-share unit and amenities or, if ownership is not related to a specific unit, completion of construction of sufficient units to provide appropriate use of the completed time-share units by the purchaser.
(4) Surety bond and other options.
Instead of placing deposits in an escrow account, a developer may obtain a surety bond issued by a company authorized to do business in this state or obtain and maintain an irrevocable letter of credit or a similar arrangement, in an amount which at all times is not less than the amount of the deposits otherwise subject to the escrow requirements of this section. The bond, letter of credit or similar arrangement shall be filed with the department of agriculture, trade and consumer protection and made payable to the department of agriculture, trade and consumer protection for the benefit of aggrieved parties.
Conversion building; tenants' rights. 707.50(1)(1)
Notice of conversion.
A developer of a time-share property which includes all or part of a conversion building, and any person in the business of selling real estate for the person's own account who intends to offer time shares in a time-share property which includes all or part of a conversion building, shall give each residential tenant and residential subtenant in possession of the proposed time-share units 120 days' prior written notice of the conversion. The notice shall set forth generally the rights of tenants and subtenants under this section and shall be personally delivered to the unit or mailed to the tenant and subtenant at the address of the unit or any other mailing address provided by a tenant.
A residential tenant or residential subtenant shall not be required to vacate the property during the notice period required under sub. (1)
unless the tenancy is properly terminated under s. 704.17
or unless, with respect to a tenancy under a lease, as defined in s. 704.01 (1)
, the term of the lease expires.