66-32-112 - Public offering statement General provisions. - Tennessee Statutes

66-32-112. Public offering statement General provisions.

A public offering statement must be provided to each purchaser of a time-share interval and must contain or fully and accurately disclose:

     (1)  The name of the developer and the principal address of the developer and the time-share intervals offered in the statement;

     (2)  A general description of the units including, without limitation, the developer's schedule of commencement and completion of all buildings, units, and amenities or if completed that they have been completed;

     (3)  As to all units offered by the developer in the same time-share project:

          (A)  The types and number of units;

          (B)  Identification of units that are subject to time-share intervals; and

          (C)  The estimated number of units that may become subject to time-share intervals;

     (4)  A brief description of the project;

     (5)  If applicable, any current budget and a projected budget for the time-share intervals for one (1) year after the date of the first transfer to a purchaser. The budget must 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 time-share intervals;

          (C)  The projected common expense liability for all time-share intervals; and

          (D)  A statement of any services not reflected in the budget that the developer provides, or expenses that it pays;

     (6)  Any initial or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee;

     (7)  A description of any liens, defects, or encumbrances on or affecting the title to the time-share interval;

     (8)  A description of any financing offered by the developer;

     (9)  A statement that within ten (10) days from the date of the signing of the contract made by the purchaser, where the purchaser shall have made an on-site inspection of the time-share project prior to the signing of the contract of purchase, and where the purchaser has not made an on-site inspection of the time-share project prior to the signing of the contract of purchase fifteen (15) days from the date of signing of the contract, the purchaser may cancel any contract for the purchase of a time-share interval from developer;

     (10)  A statement of any pending suits material to the time-share intervals of which a developer has actual knowledge;

     (11)  Any restraints on alienation of any number of portion of any time-share intervals;

     (12)  A description of the insurance coverage, or a statement that there is no insurance coverage, provided for the benefit of time-share interval owners;

     (13)  Any current or expected fees or charges to be paid by time-share interval owners for the use of any facilities related to the property;

     (14)  The extent to which financial arrangements have been provided for completion of all promised improvements; and

     (15)  The extent to which a time-share unit may become subject to a tax or other lien arising out of claims against other owners of the same unit.

[Acts 1981, ch. 372, § 13; T.C.A., § 64-3213; Acts 1983, ch. 210, § 3.]