Texas Property Code Title 12, Chapter 221 - Texas Timeshare Act

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 221.001 - Short Title
  This chapter shall be known and may be cited as the Texas Timeshare Act. Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff....
• Texas Section 221.002 - Definitions
  As used in this chapter: (1) "Accommodation" means any apartment, condominium or cooperative unit, hotel or motel room, cabin, lodge, or other private or commercial...
• Texas Section 221.003 - Applicability
  (a) This chapter applies to all timeshare properties that are located in this state or offered for sale in this state. (b) Timeshare properties located...

SUBCHAPTER B CREATION OF TIMESHARE REGIME

• Texas Section 221.004 - Conflicts Of Law
  (a) The provisions of this chapter prevail over a conflicting or inconsistent provision of law applicable to timeshare owners' associations. (b) Provisions of this code...
• Texas Section 221.011 - Declaration
  (a) The developer of a timeshare plan any part of which is located in this state must record the timeshare instrument in this state. When...
• Texas Section 221.012 - Conveyance And Encumbrance
  Once the property is established as a timeshare plan, each timeshare interest may be individually conveyed or encumbered and shall be entirely independent of all...
• Texas Section 221.013 - Common Ownership
  (a) Any timeshare interest may be jointly or commonly owned by more than one person. (b) A timeshare estate may be jointly or commonly owned...

SUBCHAPTER C REGISTRATION

• Texas Section 221.014 - Partition
  An action for partition of a timeshare interest may not be maintained during the term of a timeshare plan. Added by Acts 1987, 70th Leg.,...
• Texas Section 221.021 - Registration Required
  (a) Except as provided by Subsection (b) or (d) of this section or another provision of this chapter, a person may not offer or dispose...
• Texas Section 221.022 - Application For Registration
  (a) An application for registration filed under this section must include a timeshare disclosure statement and any required exchange disclosure statement required by Section 221.033,...
• Texas Section 221.023 - Amendment Of Registration
  The developer shall file amendments to the registration reporting to the commission any materially adverse change in any document contained in the registration not later...
• Texas Section 221.024 - Powers Of Commission
  (a) The commission may prescribe and publish forms and adopt rules necessary to carry out the provisions of this chapter and may suspend or revoke...
• Texas Section 221.025 - Effect Of Registration On Other Laws: Exemption From Certain Laws
  (a) A developer's compliance with this chapter exempts the developer's offer and disposition of timeshare interests subject to this chapter from securities and dealer registration...
• Texas Section 221.026 - Issuance And Renewal Of Registration
  (a) The commission by rule shall adopt requirements for the issuance and renewal of a developer's registration under this chapter, including: (1) the form required...

SUBCHAPTER D DISCLOSURE

• Texas Section 221.027 - Temporary Suspension
  (a) The presiding officer of the commission shall appoint a disciplinary panel consisting of three commission members to determine whether the registration for a timeshare...
• Texas Section 221.031 - Advertisements And Promotions
  (a) At any time, the commission may request a developer to file for review by the commission any advertisement used in this state by the...
• Texas Section 221.032 - Timeshare Disclosure Statement
  (a) Before the signing of any agreement to acquire a timeshare interest, the developer shall provide a timeshare disclosure statement to the prospective purchaser and...
• Texas Section 221.033 - 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,...
• Texas Section 221.034 - Exempt Offerings And Dispositions; Communications
  (a) An offering or disposition is exempt from this chapter if it is: (1) a gratuitous offering or disposition of a timeshare interest; (2) a...
• Texas Section 221.035 - Supervisory Duties Of Developer
  Notwithstanding obligations placed upon any other persons by this chapter, the developer shall supervise, manage, and control all aspects of the offering of a timeshare...
• Texas Section 221.036 - Developer Preparation And Completion Of Documents
  (a) A developer may charge a reasonable fee for completion of a contract form, closing document, or disclosure document required for the sale, exchange, option,...

SUBCHAPTER E CANCELLATION OF PURCHASE CONTRACT

• Texas Section 221.037 - Alternative Terminology Or Name
  (a) In providing the disclosures required by this chapter, the use of the terms "vacation ownership interest" or "vacation ownership plan" to refer to the...
• Texas Section 221.041 - Purchaser's Right To Cancel
  (a) A purchaser may cancel a purchase contract before the sixth day after the date the purchaser signs and receives a copy of the purchase...
• Texas Section 221.042 - Notice; Refund
  (a) If a purchaser elects to cancel a purchase contract under Section 221.041, the purchaser may do so by hand-delivering notice of cancellation to the...

SUBCHAPTER F EXCHANGE PROGRAM

• Texas Section 221.043 - Contract Requirements
  (a) Each purchase contract shall contain the following information. The statements required by this subsection and Subsection (c)(8) shall be provided in a conspicuous manner...
• Texas Section 221.051 - Operation Requirement
  An exchange company shall employ seasonal demand and unit occupancy restrictions in the operation of its exchange program. Added by Acts 1987, 70th Leg., ch....
• Texas Section 221.052 - Liability Of Developer And Exchange Company
  (a) A developer does not incur any liability arising out of the use, delivery, or publication to a purchaser of written information or audio-visual materials...

SUBCHAPTER G ESCROW DEPOSITS

• Texas Section 221.053 - Exchange Company Liability
  Except for written information or audio-visual materials provided to a developer by an exchange company, an exchange company does not incur liability as a result...
• Texas Section 221.061 - Escrow Or Trust Account Required
  (a) A developer or escrow agent of a timeshare plan shall deposit in an escrow or trust account in a federally insured depository 100 percent...
• Texas Section 221.062 - Release Of Escrow
  (a) The funds or property constituting the escrow or trust deposit may be released from escrow only in accordance with this section. (b) If the...
• Texas Section 221.063 - Alternative To Escrow Or Trust Account: Financial Assurance
  (a) Instead of the deposit of funds in an escrow or trust account as provided by Section 221.061, the commission may accept from the developer...

SUBCHAPTER H MISCELLANEOUS PROVISIONS

• Texas Section 221.064 - Documentation Required
  The escrow or trust account agent or developer shall make documents related to the escrow or trust account or the financial assurance provided available to...
• Texas Section 221.071 - Deceptive Trade Practices
  (a) A developer or other person commits a false, misleading, or deceptive act or practice within the meaning of Subsections (a) and (b) of Section...
• Texas Section 221.072 - Insurance
  Before the disposition of any timeshare interest, the developer or managing entity shall maintain the following insurance with respect to the timeshare property: (1) property...
• Texas Section 221.073 - Penalty
  (a) A developer subject to this chapter commits an offense if the developer offers or disposes of a timeshare interest in a timeshare property which...
• Texas Section 221.074 - Annual Timeshare Fee And Expense Statement
  (a) Notwithstanding any contrary provision of the required timeshare disclosure statement, project instrument, timeshare instrument, or bylaws adopted pursuant to a timeshare instrument, the managing...
• Texas Section 221.075 - Civil Penalty For Late Statement; Injunction
  (a) On receipt of a written request filed with the commission by a managing entity before the date on which the statement required by Section...
• Texas Section 221.076 - Managing Entities That Manage More Than One Timeshare Property
  (a) A managing entity that manages two or more single-site timeshare plans may commingle the assessments collected from purchasers of one timeshare plan with the...

SUBCHAPTER I TIMESHARE OWNERS' ASSOCIATIONS

• Texas Section 221.077 - Availability Of Books And Records; Records Retention
  (a) A developer or managing entity, on written request of an owner, shall make available for examination at its registered office or principal place of...
• Texas Section 221.081 - Applicability
  (a) Except as provided by this section, this subchapter applies to a timeshare plan, the project instrument governing the timeshare property subject to the timeshare...
• Texas Section 221.082 - Powers And Limitations Of Board
  (a) An association may be governed by a board of directors. Except as provided in the project instrument, or this chapter, the board may act...
• Texas Section 221.083 - Period Of Developer Control
  (a) Except as otherwise provided in this section, the project instrument may provide for a period of developer control of an association during which the...
• Texas Section 221.084 - Election Of Initial Board Members And Officers
  (a) Not later than the termination, by expiration or surrender, of any period of developer control, the owners, including the developer to the extent of...
• Texas Section 221.085 - Removal Of Board Members
  Notwithstanding any provision of a project instrument to the contrary, the owners, by a vote of at least two-thirds of the voting rights of persons...
• Texas Section 221.086 - Quorum
  (a) Unless the project instrument provides for a larger quorum requirement, the percentage of voting interests constituting a quorum at a meeting of the members...
• Texas Section 221.087 - Votes
  (a) If only one of the multiple owners of a timeshare interest is present at a meeting of the association, that owner may cast all...
• Texas Section 221.088 - Open Meetings; Exceptions
  (a) Notwithstanding any provision in the project instrument to the contrary and except as provided in this section, after the period of developer control under...
• Texas Section 221.089 - Notice
  (a) A meeting of the members of the association must be held annually after the termination of the period of developer control under Section 221.083....

SUBCHAPTER J SERVICE AGREEMENTS TO TRANSFER OR TERMINATE A TIMESHARE INTEREST

• Texas Section 221.090 - Duties; List Of Owners
  (a) The association or managing entity of the association must maintain among its records a complete and current list of the names and addresses of...
• Texas Section 221.101 - Transfer Or Termination Of Timeshare Interest
  In this subchapter: (1) "Termination" with respect to a timeshare interest: (A) means: (i) the release of contractual obligations relating to a timeshare interest by...
• Texas Section 221.102 - Applicability
  (a) This subchapter applies to a timeshare interest if the timeshare interest has been acquired only for the purchaser's personal, family, or household use and:...
• Texas Section 221.103 - General Disclosures Required
  A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer or termination of a timeshare...
• Texas Section 221.104 - Disclosure Of Authorized Use Of Timeshare Interest
  (a) A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer or termination of a...
• Texas Section 221.105 - Disclosures Relating To Payment Of Fees For Transfer Services
  A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer of the timeshare interest must...
• Texas Section 221.106 - Required Notice For Transfer Services
  A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer of the timeshare interest must...
• Texas Section 221.107 - Required Notice For Termination Services
  A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the termination of the timeshare interest must...
• Texas Section 221.108 - Reliance
  In making disclosures required by this subchapter, a person facilitating the transfer or termination of a timeshare interest may rely on written information provided by...
• Texas Section 221.109 - Duty Of Good Faith Regarding Transfer Or Termination Services
  A person facilitating the transfer or termination of a timeshare interest must act in good faith to accomplish the transfer or termination not later than...
• Texas Section 221.110 - Deceptive Trade Practices
  A person subject to this subchapter commits a false, misleading, or deceptive act or practice within the meaning of Sections 17.46(a) and (b), Business &...
• Texas Section 221.111 - Supervisory Duties
  (a) The person who enters into an agreement to facilitate the transfer or termination of a timeshare interest shall supervise, manage, and control all aspects...

Last modified: September 28, 2016