(765 ILCS 101/5-40)
Sec. 5-40. Resale agent duties. A resale agent shall comply with all of the following:
(a) Prior to engaging in any resale activities on behalf of any owner of a timeshare interest or accepting anything of value from any owner of a timeshare interest, a resale agent shall enter into a listing agreement with that owner. Every listing agreement shall be in writing and signed by both the resale agent and the timeshare interest owner. The requirements of the written listing agreement shall be established by rule, but at a minimum the listing agreement shall disclose the following:
(1) The name and address of the resale agent and the
timeshare interest owner.
(2) The term of the listing agreement.
(3) Whether the resale agent's rights under the
listing agreement are exclusive and, if the resale agent's rights are exclusive, the length of such exclusivity period.
(4) Whether any person other than the timeshare
interest owner may use the timeshare during the period before the timeshare interest is resold.
(5) Whether any person other than the timeshare
interest owner may rent or exchange the use of the timeshare interest during the term of the listing agreement.
(6) The name of any person who will receive any
rents, profits, or other thing of value generated from the use of the timeshare interest during the period before the timeshare interest is resold.
(7) A detailed description of any relationship
between the resale agent and any other person who receives any benefit from the use of the timeshare interest.
(8) A description of any fees or costs that relate to
the listing or sale of the timeshare interest that the timeshare interest owner (or any other person) must pay to the resale agent or any third party. If the timeshare interest owner (or any other person) must pay a fee to the resale agent or any third party before the sale of the timeshare interest, the listing agreement must identify each of the following:
(A) The amount of each pre-sale fee and to whom
such pre-sale fee must be paid.
(B) The time by which each pre-sale fee must be
paid.
(C) A reasonable description of each pre-sale
cost or fee.
(D) A description and the estimated amount of any
other fees or costs associated with the listing or sale of the timeshare interest.
(E) The ratio or percentage of the number of
listings of timeshare interests for sale versus the number of timeshare interests sold by the resale agent for each of the past 3 years.
(9) A description of the amount or percentage and
procedures for paying any commissions due to the resale agent upon resale of the timeshare interest.
(b) A resale agent shall maintain records as required by rule. The records required to be maintained include, but are not limited to, all listing agreements, copies of disbursement authorizations in accordance with subsection (c), and resale contracts.
(c) A resale agent who collects any fees prior to a transfer of an interest from any owner shall deposit the fees in an escrow account. Any fees that are to be paid to the resale agent prior to closing may be disbursed from the escrow account only upon receipt of a disbursement authorization, signed by the owner, in the following form:
"I, (name of owner), am the owner of a timeshare
interest in (name of timeshare plan). I understand that for my protection I can require the entire fee to be held in escrow until the closing on the resale of my timeshare interest, but I am authorizing a release before the transfer in the following amount: (amount written in words) ($ (amount in numbers)), for the following purpose or purposes (description of purpose or purposes). I understand that the resale agent is regulated by the Illinois Department of Financial and Professional Regulation, or its successor agency, under the Real Estate Timeshare Act of 1999. The Illinois Department of Financial and Professional Regulation requires the resale agent to obtain this disbursement authorization with my signature before disbursement of my funds."
(d) A resale agent shall utilize a purchase agreement that discloses to a purchaser of a timeshare interest all of the following:
(1) A legally sufficient description of the timeshare
interest being purchased.
(2) The name and address of the managing entity of
the timeshare property.
(3) The amount of the most recent assessment for the
common expenses allocated to the timeshare interest being purchased including the time period to which the assessment relates (e.g., monthly, quarterly, yearly) and the date on which it is due. If not included in the applicable common expense assessment, the amount of any real or personal property taxes allocated to the timeshare interest being purchased.
(3.5) Whether all assessments and real or
personal property taxes that are due against the timeshare interest are paid in full and, if not, the amount owed and the consequences of failure to pay timely any assessment or real or personal property taxes.
(4) A complete and accurate disclosure of the terms
and conditions of the purchase and closing, including the obligations of the owner, the purchaser, or both for closing costs and the title insurance.
(5) The entity responsible for providing notification
to the managing entity of the timeshare plan and the applicable exchange company regarding any change in the ownership of the timeshare interest.
(6) A statement of the first year in which the
purchaser is entitled to receive the actual use rights and occupancy of the timeshare interest, as determined by the managing entity of the timeshare plan and any exchange company.
(6.5) The name, address, telephone number, and
website (if applicable) where the governing documents of the association, if any, and the timeshare instrument may be obtained, together with the following disclosure:
"There are many important documents relating to
the timeshare plan that you should review before purchasing a timeshare interest. These may include, but are not limited to, (a) the declaration of condominium, (b) the declaration of timeshare plan, (c) the reciprocal easement and cost sharing agreement, (d) the declaration of restrictions, covenants, and conditions, (e) the owners association articles and bylaws, (f) the current year's operating and reserve budgets, if any, for the owners association, and (g) any rules and regulations affecting the use of the timeshare property or other facility or amenity available for use by timeshare interest owners."
(7) In making the disclosures required by this
subsection (d), the timeshare resale agent may rely upon information provided in writing by the owner or managing entity of the timeshare plan.
(8) The purchaser's 5 calendar day cancellation
period as required by Section 10-10.
(9) Any other information determined by the
Department and established by rule.
(e) A resale agent must be licensed as a real estate broker or salesperson pursuant to the Real Estate License Act of 2000 or its successor Act.
(f) A resale agent is exempt from the duties imposed by subsections (a) through (d) of this Section if the resale agent offers an aggregate total of no more than 8 timeshare interests per calendar year as a resale agent, regardless of (1) whether those timeshare interests are located in this State and (2) whether the resale agent offers all, or only some, of those timeshare interests, in this State.
(Source: P.A. 96-738, eff. 8-25-09.)
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Last modified: February 18, 2015