(765 ILCS 101/5-25)
Sec. 5-25. Timeshare plan public offering statement requirements.
(a) A developer shall prepare a public offering statement, shall provide the statement to each purchaser of a timeshare interest in any timeshare plan at the time of purchase, and shall fully and accurately disclose those facts concerning the timeshare developer and timeshare plan that are required by this Act or by rule. The public offering statement shall be in writing and dated and shall require the purchaser to certify in writing the receipt thereof.
(b) With regard to timeshare interests offered in a timeshare plan, a public offering statement shall fully and accurately disclose the following:
(1) The name of the developer and the principal
address of the developer.
(2) A description of the type of timeshare interests
being offered.
(3) A general description of the existing and
proposed accommodations and amenities of the timeshare plan, including their type and number, personal property furnishing the accommodation, any use restrictions, and any required fees for use.
(4) A description of any accommodations and
amenities that are committed to be built, including, without limitation:
(A) the developer's schedule of commencement and
completion of all accommodations and amenities; and
(B) the estimated number of accommodations per
site that may become subject to the timeshare plan.
(5) A brief description of the duration, phases, and
operation of the timeshare plan.
(6) The current annual budget, if available, or the
projected annual budget for the timeshare plan. The budget shall include, without limitation:
(A) a statement of the amount, or a statement
that there is no amount, included in the budget as a reserve for repairs and replacement;
(B) the projected common expense liability, if
any, by category of expenditures for the timeshare plan; and
(C) a statement of any services or expenses not
reflected in the budget that the developer provides or pays.
(7) Any initial or special fee due from the purchaser
at closing, together with a description of the purpose and method of calculating the fee.
(8) A description of any liens, defects, or
encumbrances on or affecting the title to the timeshare interests.
(9) A description of any financing offered by or
available through the developer.
(10) A statement that within 5 calendar days after
receipt of the public offering statement or after execution of the purchase contract, whichever is later, a purchaser may cancel any purchase contract for a timeshare interest from a developer together with a statement providing the name and street address to which the purchaser should mail any notice of cancellation. However, if by agreement of the parties by and through the purchase contract, the purchase contract allows for cancellation of the purchase contract for a period of time exceeding 5 calendar days, then the public offering statement shall include a statement that the cancellation of the purchase contract is allowed for that period of time exceeding 5 calendar days.
(11) A statement of any pending suits, adjudications,
or disciplinary actions material to the timeshare interests of which the developer has knowledge.
(12) Any restrictions on alienation of any number or
portion of any timeshare interests.
(13) A statement describing liability and casualty
insurance for the timeshare property.
(14) Any current or expected fees or charges to be
paid by timeshare purchasers for the use of any amenities related to the timeshare property.
(15) The extent to which financial arrangements have
been provided for completion of all promised improvements.
(16) The developer or managing entity must notify the
Department of the extent to which an accommodation may become subject to a tax or other lien arising out of claims against other purchasers in the same timeshare plan. The Department may require the developer or managing entity to notify a prospective purchaser of any such potential tax or lien which would materially and adversely affect the prospective purchaser.
(17) A statement indicating that the developer and
timeshare plan are registered with the State of Illinois.
(18) If the timeshare plan provides purchasers with
the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program.
(19) Such other information reasonably required by
the Department and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans.
(20) Any other information that the developer, with
the approval of the Department, desires to include in the public offering statement.
(c) A developer offering a multi-site timeshare plan shall also fully and accurately disclose the following information, which may be disclosed in a written, graphic, or tabular form:
(1) A description of each component site, including
the name and address of each component site.
(2) The number of accommodations and timeshare
periods, expressed in periods of 7-day use availability, committed to the multi-site timeshare plan and available for use by purchasers.
(3) Each type of accommodation in terms of the number
of bedrooms, bathrooms, and sleeping capacity, and a statement of whether or not the accommodation contains a full kitchen. For purposes of this description, a "full kitchen" means a kitchen having a minimum of a dishwasher, range, sink, oven, and refrigerator.
(4) A description of amenities available for use by
the purchaser at each component site.
(5) A description of the reservation system, which
shall include the following:
(A) The entity responsible for operating the
reservation system.
(B) A summary of the rules and regulations
governing access to and use of the reservation system.
(C) The existence of and an explanation regarding
any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-served basis.
(6) A description of any right to make any additions,
substitutions, or deletions of accommodations or amenities, and a description of the basis upon which accommodations and amenities may be added to, substituted in, or deleted from the multi-site timeshare plan.
(7) A description of the purchaser's liability for
any fees associated with the multi-site timeshare plan.
(8) The location and the anticipated relative use
demand of each component site in a multi-site timeshare plan, as well as any periodic adjustment or amendment to the reservation system which may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at that time within the multi-site timeshare plan.
(9) Such other information reasonably required by the
Department and established by administrative rule necessary for the protection of purchasers of timeshare interests in timeshare plans.
(10) Any other information that the developer, with
the approval of the Department, desires to include in the public offering statement.
(d) If a developer offers a non-specific timeshare interest in a multi-site timeshare plan, the developer shall disclose the information set forth in subsection (b) as to each component site.
(Source: P.A. 96-738, eff. 8-25-09.)
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Last modified: February 18, 2015