Texas § PR.221.033 - EXCHANGE DISCLOSURE STATEMENT

§ PR.221.033. EXCHANGE DISCLOSURE STATEMENT

EXCHANGE DISCLOSURE STATEMENT. (a) Before the signing of any agreement to purchase a timeshare interest in which a prospective purchaser is also offered participation in any exchange program, the developer shall also deliver to the prospective purchaser the exchange disclosure statement of any exchange company whose service is advertised or offered by the developer or other person in connection with the disposition. (b) If participation in an exchange program is offered for the first time after a disposition has occurred, any person offering that participation shall also deliver an exchange disclosure statement to the purchaser before the execution by the purchaser of any instrument relating to participation in the exchange program. (c) In all cases, the person offering participation in the exchange program shall obtain from the purchaser a written acknowledgement of receipt of the exchange disclosure statement. (d) The exchange disclosure statement must include the following information: (1) the name and address of the exchange company; (2) if the exchange company is not the developer, a statement describing the legal relationship, if any, between the exchange company and the developer; (3) a statement indicating the conditions under which the exchange program might terminate or become unavailable; (4) whether membership or participation or both in the exchange program is voluntary or mandatory; (5) a complete description of the required procedure for executing an exchange of timeshare periods; (6) the fee required for membership or participation or both in the program and whether the fee is subject to change; (7) a statement to the effect that participation in the exchange program is conditioned on compliance with the terms of a contract between the exchange company and the purchaser; (8) a statement in conspicuous and bold-faced print to the effect that all exchanges are arranged on a space-available basis and that neither the developer nor the exchange company guarantees that a particular timeshare period can be exchanged; and (9) a description of seasonal demand and unit occupancy restrictions employed in the exchange program. Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.033 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by: Acts 2005, 79th Leg., Ch. 539 (H.B. 1045 ), Sec. 6, eff. January 15, 2006.