Timeshare Registration & Renewal
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The Texas Real Estate Commission regulates the sale of timeshare interests under the provisions of the
Texas Timeshare Act, Chapter 221, Texas Property Code the Chapter 621, Contests and Gift Giveaways, Texas Business and Commerce Code and Sections 543.1 - 543.12 of the Rules of the Texas Real Estate Commission.
Before a developer can sell or offer to sell a timeshare interest in Texas, a developer must register the timeshare plan with the Texas Real Estate Commission. Original applications are filed on the TREC Form for Application to Register a Timeshare Plan and applications to amend are filed on the TREC Form for Application to Amend a Timeshare Registration. The registration filing fees range from $500 to $3500, and the Amendment Application fees range from $100 to $2000. A timeshare plan registered in another jurisdiction that has similar or more stringent requirements than Texas� may be able to file an application for abbreviated registration on the TREC Form for Abbreviated Registration of a Timeshare Plan.
The Commission will begin renewing registrations with anniversary dates that fall on or after January 15, 2007. The Commission will mail a renewal notice to the developer�s address approximately 90 days before the anniversary date. The developer will need to complete the TREC Form to Renew the Registration of a Timeshare Plan, and pay a renewal fee of $100. The renewal will be for 2 years. It is incumbent on each developer to keep a current mailing address on file with the Commission to ensure receipt of the renewal notice.
The Commission also handles consumer complaints regarding the sale of timeshare interests. The Texas Timeshare Act authorizes the Commission to take disciplinary action against the registration of a timeshare plan for a violation of the Act. Complaint forms and information are available from the Commission. The Commission does not resolve contractual disputes.
Information on scams, resales, and a list of licensed resale companies is available on the website of the American Resort Development Association-Resort Owner Coalition (ARDA-ROC): http://www.ardaroc.org/resales/
The person responsible for operating and maintaining
a timeshare property (the "managing entity") shall have an annual
independent audit of the financial statements of the timeshare plan
performed by a certified public accountant or an accounting firm. The
audit must be:
- conducted in accordance with generally accepted auditing
- completed not later than five months after the last day of the fiscal
year of the timeshare property.
Not later than five months after the last day of each
fiscal year, each timeshare owner may request from the person responsible
for operating and maintaining a timeshare property (the "managing entity")
the Annual Timeshare Fee and Expense Statement. This statement accounts
for the collection and expenditure of assessments. The statement shall
- a balance sheet;
- an income and expense statement;
- the current budget for the timeshare property; and
- the name, address, and telephone number of a designated representative
of the managing entity.
A timeshare owner may also ask the managing entity for the name and
address of each member of the board of directors of the owners'
association, if one exists.
For further information on these requirements and rights, see Section
221.074, Texas Property Code.