Louisiana § RS 37:1437.1 - Timeshare registration

§ RS 37:1437.1. Timeshare registration

            A. Any person or entity desiring to engage directly in the business of selling timeshare interests must register with the commission.

            B.(1) The application for registration shall be in such form as may be required by the commission and in accordance with R.S. 9:1131.9.

            (2) The commission shall approve or deny such applications for registration within forty-five days from receipt of the application by the commission.

            (3) When an applicant has been convicted of forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or theft or has been convicted of a felony that the commission finds is directly related to real estate activity pursuant to R.S. 37:2950, the conviction may in itself be sufficient grounds for refusal of a timeshare interest sales registration.

            (4) When an applicant has made a false statement of material fact on his application, such false statement may in itself be sufficient grounds for refusal of a timeshare interest sales registration.

            (5) Grounds for suspension or revocation of a registration, or real estate license, or the previous revocation of a real estate license or registration in Louisiana or any other jurisdiction, shall be grounds for refusal to grant a timeshare interest sales registration.

            (6) A timeshare registration shall not be issued to any person who has not attained the age of eighteen years. A timeshare interest sales registration shall not be issued to any person who is not a high school graduate or the holder of a certificate of high school equivalency.

            C. The provisions of this Section shall not apply to a licensed real estate broker or salesperson or to employees of a timeshare developer registered under this Section.

            D. Notwithstanding any other provisions of law, a timeshare developer may not avoid liability to timeshare purchasers for the acts of timeshare interest salespersons or real estate licensees on the basis that the timeshare interest salesperson or real estate licensee is merely an independent contractor.

            E. Every nondeveloper timeshare sales registrant shall file and maintain with the Louisiana Real Estate Commission a bond issued by a surety company authorized to do business in this state in the amount of ten thousand dollars. This bond shall be in favor of the state for the use, benefit, and indemnity of any person who suffers any damage or loss as a result of the sale registrant's unfair or deceptive practice or other violation of law in connection with the sale offer or solicitation to sell of a timeshare interest.

            F. Except for the provisions contained in R.S. 9:1131.12, the changes and additions effected by Act No. 999 of the 1985 Regular Session of the Legislature shall not apply to any timeshare project approved to operate by the Louisiana Real Estate Commission on or before June 1, 1985, if all of the following conditions have been met:

            (1) Protection under the federal bankruptcy law has not been filed.

            (2) The developer has not been suspended by the Louisiana Real Estate Commission.

            (3) The project has been actively and consistently marketed as a timeshare project, if approved prior to July 20, 1984.

            G. Any timeshare interest salesperson or seller of a timeshare interest shall comply with the provisions of the Louisiana Real Estate License Law and the rules adopted pursuant thereto, including licensure, unless otherwise exempt.

            (1) The Louisiana Real Estate License Law shall not apply to a timeshare developer registered under this Section, acting as sole owner or sole lessor of real estate solely owned or solely leased by the developer, a registered affiliated entity, or a registered wholly-owned subsidiary of the developer.

            (2) The Louisiana Real Estate License Law shall not apply to an existing timeshare owner who refers prospective purchasers, for compensation, provided that the existing timeshare owner adheres to all of the following:

            (a) Refers no more than twenty prospective purchasers in any calendar year.

            (b) Limits such activities to referring prospective purchasers of timeshare interests to the developer or the developer's employees or agents.

            (c) Does not show, discuss terms or conditions, or otherwise participate in negotiation with regard to timeshare interests.

            Added by Acts 1983, No. 552, §2; Acts 1984, No. 943, §2, eff. July 20, 1984; Acts 1985, No. 999, §§2,4; Acts 1989, No. 655, §1, eff. Jan. 1, 1990; Acts 2003, No. 978, §1; Acts 2016, No. 533, §1; Acts 2024, No. 644, §1.

{{NOTE: SEE ACTS 1985, NO. 999, §5.}}