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.
The terms of a residential tenancy may not be altered during the notice period required under sub. (1)
Failure to give notice as required by this section is a defense to an action for possession.
(2) Notice of termination.
If the notice provided under sub. (1)
meets the requirements of s. 704.17
, whichever may be applicable, and s. 704.21
, the notice constitutes both a notice of conversion and notice of termination of tenancy.
(3) Priority of lease.
Nothing in this section permits termination of a lease by a developer in violation of the terms of the lease.
History: 1987 a. 399
Protection of campground interests. 707.51(1)(a)
Except as provided in par. (b)
, the total amount of dues payments in any year required to be paid by a campground member may not be increased over the total amount of dues payments required during the previous year by a percentage greater than the percentage increase in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor for the previous year, plus 3 percent.
The limit on a dues payment increase provided in par. (a)
does not apply if all of the following occur:
The campground operator proposes an increase greater than the limit.
The campground operator mails a ballot to each campground member to whom the increase would apply, at the campground member's last-known mailing address.
A majority of the campground members who return ballots approve the increase.
(2) Use of dues payments.
Dues payments may not be used for any purposes other than those stated in the campground contract.
(3) Modification of campground rules. 707.51(3)(a)(a)
Except as provided in par. (b)
, with respect to a campground located in this state, the campground operator may not, in any manner that significantly degrades or diminishes the rights of the majority of campground members, adversely modify any campground rules or regulations or adversely modify rights to or the scope or nature of any campground or campground amenity, unless occasioned by unanticipated emergency circumstances, in which case the modifications may be made for a period not to exceed 90 days.