707.42 Exchange or reciprocal program; additional requirements.

495 words·~2 min read·/wi/chapter-707/707-42-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. In this section:

(a)“Exchange company” means a person operating an exchange program.

(b)“Exchange program” means an arrangement where time-share owners exchange occupancy rights among themselves or with time-share owners of other time-share units or both.

(c)“Reciprocal program” means an arrangement allowing a campground member to use one or more campgrounds, the owners of which are persons other than the campground operator who entered into the campground contract with the campground member.

(2)Exchange program; disclosures. If time-share owners are permitted or required to become members of or to participate in an exchange program, the time-share disclosure statement or a supplement delivered with the statement shall contain or fully and accurately disclose, in addition to the information required by s. 707.41

(4)and, if applicable, ss. 707.43 to 707.45 , all of the following information:

(a)Whether membership or participation in the exchange program by a time-share owner is voluntary or mandatory.

(b)The name and address of the exchange company, whether the exchange company is an affiliate of the developer, and whether the exchange company or any of its officers or directors has any legal or beneficial interest in any developer or manager of any time-share property participating in the exchange program.

(c)The names of all officers, directors and shareholders owning 5 percent or more of the outstanding stock of the exchange company.

(d)The terms and conditions of the contractual relationship between the time-share owner and the exchange company.

(e)The procedures whereby the contractual relationship between the time-share owner and the exchange company may be changed or terminated, and whether it may be terminated or otherwise affected by action or inaction of the developer or the managing entity or by other factors beyond the control of the time-share owner.

(f)A complete and accurate description of all limitations, restrictions or priorities used in the operation of the exchange program, including limitations on exchanges based on the season, unit size or levels of occupancy, expressed in boldface type, and if the limitations, restrictions or priorities are not uniformly applied by the exchange program, a clear description of the manner in which they are applied.

(g)The procedures to qualify for and effectuate exchanges and the manner in which exchanges are arranged by the exchange company.

(h)Whether exchanges are arranged on a space-available basis and whether the exchange program guarantees fulfilling specific requests for exchanges.

(i)Whether and under what circumstances a time-share owner, in dealing with the exchange company, may lose the use and occupancy of the time share in an exchange which the time-share owner properly applied for without being provided with substitute accommodations by the exchange company.

(j)The fees or range of fees for participation by time-share owners in the exchange program, a statement of whether the fees may be altered by the exchange company and the circumstances under which changes in the fees may be made.