Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. The General Laws are hereby amended by inserting after chapter 183A the following chapter:- `tuc CHAPTER 183B. `tuc REAL ESTATE TIME-SHARES.

Section 1. This chapter may be cited as the Real Estate Time-Share Act.

Section 2. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:-

"Affiliate of a developer", any person who controls, is controlled by, or is under common control with a developer. A person controls a developer if the person is (i) a general partner, officer, director, or employer of the developer, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty per cent of the voting interest in the developer, (iii) controls in any manner the election of a majority of the directors of the developer, or (iv) has contributed more than twenty per cent of the capital of the developer. A person is controlled by a developer if the developer is (i) a general partner, officer, director, or employer of the person, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than twenty per cent of the voting interest in the person, (iii) controls in any manner the election of a majority of the directors of the person, or (iv) has contributed more than twenty per cent of the capital of the person. Control does not exist if the powers described in this paragraph are held solely as security for an obligation and are not exercised.

"Association", the association organized under the provisions of subsection (a) of section nineteen.

"Business day", any calendar day except Saturday or Sunday, or day on which a federal, state or county holiday is celebrated.

"Conversion building", a building that at any time before the disposition of any time-share was occupied wholly or partially by persons other than purchasers and persons who occupied with the consent of purchasers.

"Developer", any person who (i) offers to dispose of or disposes of his interest in a time-share not previously disposed of, or (ii) succeeds under section twenty-two to any special developer right.

"Dispose" or "disposition", a voluntary transfer of any legal or equitable interest in a time-share, but does not include the transfer or release of a security interest.

"Enrolled", paid membership in an exchange program or membership in an exchange program evidenced by written acceptance or confirmation of membership.

"Exchange company", any person owning or operating an exchange program.

"Exchange program", any program which allows for the assignment or exchange of time-share occupancy rights between or among time-share owners in the same or other time-share properties.

"Manager", any person, other than all time-share owners or the association, designated in or employed pursuant to the time-share instrument or project instrument to manage the time-share units.

"Managing entity", the manager or, if there is no manager, the association.

"Multi-location plan", a time-share plan encompassing more than one time-share property pursuant to which time-share owners may, by reservation or other similar procedure, occupy time-share units in more than one time-share property.

"Multi-location developer", a developer creating or selling its own time-shares in a multi-location plan.

"Offering", any advertisement, inducement, solicitation, or attempt to encourage any person to acquire a time-share, other than as security for an obligation. An advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of a time-share in a unit not located in the commonwealth, is not an offering if the advertisement states that an offering may be made only in compliance with the law of the jurisdiction in which the unit or units are located. An offering to the "general public" shall mean any offering to twenty-five or more people.

"Person", a natural person, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, joint venture, or other legal or commercial entity. In the case of a nominee trust, however, "person" means the beneficiary of the trust as well as the trust and the trustee.

"Project", real property, subject to a project instrument, containing more than one unit. A project may include units that are not time-share units.

"Project instrument", one or more recordable documents, by whatever name denominated, applying to the whole of a project and containing restrictions or covenants regulating the use, occupancy, or disposition of units in a project, including any amendments to the document, but excluding any law, ordinance, by-law, or governmental regulation.

"Purchaser", any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a time-share other than as security for an obligation.

"Sales contract", the written contract which provides for the sale by the developer and the purchase by the purchaser of one or more time-shares in a time-share property.

"Time-share", a time-share estate or a time-share license.

"Time-share estate", a right to the occupancy of a unit or any of several units during five or more separated time periods over a period of at least five years, including extension or renewal options, coupled with a freehold estate or an estate for years in a time-share property or a specified portion thereof.

"Time-share expenses", expenditures, fees, charges, or liabilities (i) incurred with respect to the time-shares or by or on behalf of all time-share owners in one time-share property, and (ii) imposed on the time-share units by the entity governing a project of which the time-share property is a part, together with any allocations to reserves, but excluding purchase money payable for time-shares. Time-share expenses shall include real estate taxes and other governmental assessments and charges with respect to the time-share property in which the time-shares are located.

"Time-share instrument", one or more documents, by whatever name denominated, creating or regulating time-shares.

"Time-share liability", the liability for time-share expenses allocated to each time-share pursuant to paragraph (4) of subsection (a) of section twelve.

"Time-share license", a right to the occupancy of a unit or any of several units during five or more separated time periods not coupled with a freehold estate or an estate for years.

"Time-share owner", a person who is an owner or co-owner of a time-share other than as security for an obligation.

"Time-share plan", the rights, obligations and program created by the time-share instrument for a time-share property or, in the case of a multi-location plan, for time-share properties.

"Time-share property", one or more time-share units subject to the same time-share instrument, together with any other real estate or rights therein appurtenant to those units.

"Time-share unit", a unit in which time-shares exist.

"Unit", real property, or a portion thereof, designated for separate use.

Section 3. (a) Except as otherwise provided in this chapter and notwithstanding any contrary rule of common law, a grant of an estate in a unit conferring the right of possession during a potentially infinite number of separated time periods creates an estate in fee simple having the character and incidents of such an estate at common law, and a grant of an estate in a unit conferring the right of possession during five or more separated time periods over a finite number of years equal to five or more, including extension or renewal options, creates an estate for years having the character and incidents of such an estate at common law.

(b) Each time-share estate constitutes for all purposes a separate estate in real property; provided, however, that a time-share property shall be considered one parcel of real estate for the assessment and collection of real estate taxes, betterment assessments or portions thereof, annual sewer use charges, water rates and charges, and all other assessments or portions thereof, rates and charges of every nature, due to a city, town or district with respect to the time-share property. Notices of assessments and bills for taxes shall be furnished to and paid by the managing entity, if any, as agent for the time-share owners, or if there is no managing entity, to each time-share owner. The managing entity shall give notice of such assessment to the time-share owners.

(c) A document transferring or encumbering a time-share estate may not be rejected for recording because of the nature or duration of such estate.

Section 4. Except as otherwise expressly provided in this chapter, provisions of this chapter shall not be varied by agreement, and rights conferred by this chapter shall not be waived. A developer shall not act under a power of attorney, or use any other device, to evade the limitations or prohibitions of this chapter or of the time-share instrument.

Section 5. (a) The court, upon finding as a matter of law that a time-share contract or contract clause was unconscionable at the time the contract was made, may refuse to enforce such contract, may enforce the remainder of the contract without the unconscionable clause, or may limit the application of any such unconscionable clause in order to avoid an unconscionable result.

(b) Whenever it is claimed, or appears to said court, that such contract or contract clause is unconscionable, the court shall afford the parties a reasonable opportunity to present evidence as to:

(1) the commercial setting of the negotiations;

(2) whether a party has knowingly taken advantage of the inability of the other party reasonably to protect his interests by reason of physical or mental infirmity, illiteracy, or inability to understand the language of the agreement or similar factors;

(3) the effect and purpose of the contract or clause; and

(4) if a sale, any gross disparity, at the time of contracting, between the amount charged for the time-share and the value of the time-share measured by the price at which similar time-shares were readily obtainable, but a disparity between the contract price and the value of the time-share measured by the price at which a similar time-share was readily obtainable in similar transactions shall not, of itself, render the contract unconscionable.

Section 6. Every contract or duty governed by this chapter imposes an obligation of good faith in its performance or enforcement.

Section 7. (a) The remedies provided by this chapter shall be liberally administered to the end that the aggrieved party is put in as good a position as if the other party had fully performed. However, consequential, special, or punitive damages may not be awarded except as specifically provided in this chapter or by other rule of law.

(b) Any right or obligation established by this chapter shall be enforceable by judicial proceeding.

Section 8. The principles of law and equity, including the law of corporations and unincorporated associations, the law of real property and the law relative to capacity to contract, principal and agent, eminent domain, estoppel, fraud, misrepresentation, duress, coercion, mistake, receivership, substantial performance, or other validating or invalidating cause shall supplement the provisions of this chapter, except to the extent such principles are inconsistent with this chapter.

Section 9. In the event of any conflict between this chapter and chapter one hundred and eighty-three A or chapter one hundred and fifty-seven, the provisions of this chapter shall prevail, but this chapter does not invalidate or otherwise affect rights or obligations vested under said chapter one hundred and eighty-three A or said chapter one hundred and fifty-seven, or the manner of their exercise or enforcement.

The subdivision control law shall not apply to the division of a building into time-share units or to the creation of time-shares in a unit.

Nothing in this chapter shall be deemed to limit or otherwise affect the authority of the board of registration of real estate brokers and salesmen to regulate out-of-state real property sales within the commonwealth.

Section 10. This chapter being intended as a unified coverage of its subject matter, no part of it shall be construed to be impliedly repealed in whole or in part by subsequent legislation if such construction can reasonably be avoided.

Section 11. If all of the documents constituting the project instrument are recorded, time-shares shall not be created in any unit in a project unless expressly permitted by the project instrument. No amendment to a project instrument which is recorded shall permit the creation of time-shares unless the owners of at least eighty per cent of the units, or any larger vote required by the project instrument or by law, consent to such amendment.

Section 12. (a) Except as provided in subsection (b), more than twelve time-shares may be created in a single time-share property only by a time-share instrument recorded in the registry of deeds or land registration office for the district in which the time-share unit is situated. Said instrument shall contain or provide for the following:

(1) a legally sufficient description of the time-share property and the name or other identification of the project, if any, within which it is situated;

(2) the name of the registry district or land registration office in which the time-share property is situated;

(3) identification of time periods by letter, name, number, or combination thereof;

(4) the time-share expense liability and any voting rights assigned to each time-share;

(5) if additional units may become part of the time-share property, the method of doing so and the formula for allocation and reallocation of the time-share expense liabilities and any votes;

(6) the method of designating the insurance trustee required under section twenty-six;

(7) allocation of time for maintenance of the time-share units;

(8) provisions for management by a managing entity or by the time-share owners;

(9) if all of the time-shares are time-share licenses, the rights of a licensee, if his license is terminated, with respect to any of the property his license affects, or a statement that he has no rights; and

(10) any requirements for amendments to the time-share instrument.

(b) If a time-share license applies to units in more than one time-share property, the time-share instrument creating the license need not comply with the provisions of clauses (1) to (7), inclusive, of subsection (a).

Section 13. (a) The time-share instrument shall state the amount of or formula used to determine any time-share expense liability allocated to each time-share.

(b) If the time-share instrument provides for voting, it shall allocate votes to each time-share unit and to each time-share estate and may allocate votes to any time-share license. It shall not allocate any votes to any other property or to any person who is not a time-share owner. The number of votes allocated to each time-share shall be equal for all time-shares or proportionate to each time-share's value as estimated by the developer, time-share expense liability, or unit size. The time-share instrument may specify some matters as to which the votes shall be equal and others as to which they shall be proportionate.

(c) Except as otherwise provided pursuant to clause (5) of subsection (a) of section twelve, the votes and time-share expense liabilities allocated to a time-share shall not be altered without the unanimous consent of all time-share owners entitled to vote and voting at a meeting in which at least eighty per cent of the votes allocated to time-shares are cast or in an initiative or referendum in which at least eighty per cent of said votes are cast.

(d) Except for minor variations due to rounding, the sum of the time-share expense liabilities assigned to all time-shares shall equal one if stated as fractions or one hundred per cent if stated as percentages. In the event of discrepancy between the time-share liabilities or votes allocated to a time-share and the result derived from the application of the formulas, the allocated time-share expense liability or vote prevails.

Section 14. No action for partition of a time-share unit may be maintained except as permitted by the time-share instrument or by subsection (d) of section fifteen.

Section 15. (a) This section shall apply to time-share licenses only to the extent expressly provided by the time-share instrument.

(b) All time-shares in a time-share property may be terminated only by agreement of the time-share owners having at least eighty per cent of the time-shares, or such larger vote as the time-share instrument may specify.

(c) An agreement to terminate all time-shares in a time-share property shall be evidenced by the execution, in the same manner as a deed, of a termination agreement, or ratifications thereof, by the requisite number of time-share owners. The termination agreement shall specify a date after which it shall be void unless it is recorded on or before said date. A termination agreement and all ratifications thereof shall be recorded in the registry of deeds or land registration office in every district in which a portion of the time-share property is situated, and shall be effective only upon such recording.

(d) Unless the termination agreement sets forth the material terms of a contract or proposed contract under which an estate or interest in each time-share unit equal to the sum of the time-shares therein is to be sold and designates a trustee to effect the sale, title to an estate or interest in each time-share unit equal to the sum of the time-shares therein vests upon termination in the time-share owners thereof in proportion to their respective interests as provided in subsection (h), and liens on the time-shares shall attach to and encumber said interests. Any co-owner of said estate or interest in a unit may thereafter maintain an action for partition or for allotment or sale in lieu of partition.

(e) If the termination agreement sets forth the material terms of a contract or proposed contract under which an estate or interest in each time-share unit equal to the sum of the time-shares therein is to be sold and designates a trustee to effect the sale, title to said estate or interest vests upon termination in the trustee for the benefit of the time-share owners, to be transferred pursuant to the contract. Proceeds of the sale shall be distributed to time-share owners and lien holders as their interests may appear, in proportion to the respective interests of the time-share owners as provided in subsection (h).

(f) Except as otherwise provided in the termination agreement, so long as the former time-share owners or their trustee hold title to an estate or interest equal to the sum of the time-shares, each former time-share owner and his successors in interest have the same rights with respect to occupancy in the former time-share unit that he would have had if termination had not occurred, together with the same liabilities and other obligations imposed by this chapter or the time-share instrument.

(g) After termination of all time-shares in a time-share property and adequate provision for the payment of the claims of the creditors for time-share expenses, distribution of (i) the proceeds of any sale pursuant to this section, (ii) the proceeds of any personalty held for the use and benefit of the former time-share owners, and (iii) any other funds held for the use and benefit of the former time-share owners, shall be made to the former time-share owners and their successors in interest in proportion to their respective interests as provided in subsection (h). Following termination, creditors of the association holding liens perfected against the time-share property prior to the termination may enforce said liens in the same manner as any other lien holder. All other creditors of the association shall be treated as if they had perfected liens on the time-share property immediately prior to termination.

(h) The time-share instrument may specify the respective fractional or percentage interest in the estate or interest in each unit equal to the sum of the time-shares therein that will be owned by each former time-share owner upon termination of the time-shares. If the time-share instrument fails to so specify, an appraisal shall be made of the fair market value of each time-share by one or more impartial qualified appraisers selected either by the trustee designated in the termination agreement, or by the managing entity if no trustee was so designated. Said appraisal shall be made not more than one hundred and eighty days prior to the termination. Said appraisal shall also state the corresponding fractional or percentage interests calculated in proportion to said values and in accordance with this subsection. A notice stating all of said values and corresponding interests and the return address of the sender shall be sent by registered mail, return receipt requested, by the managing entity or by the trustee designated in the termination agreements, to all of the time-share owners. Said appraisal governs the fractional or percentage interest of each estate or interest unless (i) at least twenty-five per cent of the time-share owners deliver, within sixty days after the date the notices were mailed, written disapprovals to the return address of the sender of the notice, or (ii) the final judgment of a court of competent jurisdiction, entered during or after said period, holds that the appraisal shall be set aside. The appraisal and the calculation of interests shall be made in accordance with the following:

(1) If the termination agreement sets forth the material terms of a contract or proposed contract for the sale of the estate or interest equal to the sum of the time-shares, each time-share conferring a right of occupancy during a limited number of time periods shall be appraised as if the time until the date specified for the conveyance of the property had elapsed. If no such date is specified, each time-share conferring a right of occupancy during a limited number of time periods shall be appraised as if the time until the date specified pursuant to subsection (c) had elapsed.

(2) The interest of each time-share owner is the value of the time-share he owned divided by the sum of the values of all time-shares in the unit or units to which his time-share applies.

(i) Foreclosure or enforcement of a lien or encumbrance against all of the time-shares in a time-share property does not of itself terminate said time-shares.

Section 16. A developer may maintain sales offices, management offices, and models in the time-share property only if the time-share instrument so provides and specifies the rights of a developer with regard to the number, size, location, and relocation thereof. He may maintain signs on the property advertising the property. The provisions of this section shall be subject to other provisions of law, local ordinances or by-laws and the project instruments.

Section 17. The time-share instrument may require that all or a specified number or percentage of the mortgagees of units or time-shares approve specified actions of the unit owners, time-share owners, developer, or managing entity as a condition to the effectiveness of said actions, but a requirement for approval shall not operate to (i) deny or delegate control over the general administrative affairs of any association by the unit owners, time-share owners, or both, or their elected representatives, or (ii) to prevent any association from commencing, intervening in, or settling any litigation or proceeding, or receiving and distributing any insurance proceeds pursuant to section twenty-six.

Section 18. A time-share estate, coupled with a freehold estate, shall be evidenced by a time-share deed, and a time-share estate, coupled with an estate for years shall be evidenced by a notice of time-share lease. A time-share license shall be evidenced by a notice of time-share license. Said deed, notice of time-share lease or notice of time-share license shall be recorded in the registry of deeds or land registration office for the district in which the time-share property is located; provided however, that the number of time-shares in a time-share property is more than twelve. The time-share deed shall include the information required by law to be set forth in a deed of real property and the notice of time-share lease or notice of time-share license shall include the information required by law to be set forth in a notice of lease. In addition such deed or notice shall include:

(1) a statement that the instrument relates to a time-share and is subject to the provisions of this chapter;

(2) a description of the time-share including designation of the unit or units, and the time-share property in which it is located;

(3) the book, page and date of recording of all time-share instruments denominating, creating or regulating the time-share;

(4) a statement of the use for which the time-share is intended and the restrictions, if any, on its use;

(5) the time-share expense liability and any voting rights assigned to the time-share; and

(6) any further provisions which the parties may deem desirable to set forth, consistent with the time-share instruments and the provisions of this chapter.

Section 19. (a) If the number of time-shares in a time-share property is more than twelve, the developer, before the first transfer of a time-share, shall create or provide a managing entity to manage the time-share property. The managing entity may be (i) a manager, who may be the developer, or (ii) an association, which shall be a profit or nonprofit corporation or an unincorporated association, the membership of which shall at all times consist exclusively of all the time-share owners. If the time-share property is part of a project containing time-share units and other units, the manager may be the entity that governs the project. If the number of time-shares in the time-share property is twelve or fewer and there is no managing entity, the time-share owners may form an association meeting the requirements specified above.

(b) In the absence of a managing entity required by this section, a court upon application of a party in interest, including a time-share owner or a lienholder, may appoint and prescribe the powers of a managing entity.

Section 20. (a) Subject to the provisions of subsection (b) and the time-share instrument, the association, even if unincorporated, may:

(1) adopt and amend by-laws, rules, and regulations;

(2) adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for time-share expenses from time-share owners;

(3) hire and discharge managing agents and other agents, employees, and independent contractors;

(4) institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more time-share owners on matters affecting the time-share property or time-shares;

(5) make contracts and incur liabilities;

(6) provide for and regulate the use, maintenance, repair, replacement, and modification of the time-share property;

(7) cause additional improvements to be made to the time-share property;

(8) impose charges for late payment of assessments and, after notice and an opportunity to be heard, levy reasonable fines for violations of the time-share instrument, by-laws, and rules or regulations of the association;

(9) impose reasonable charges for the preparation of resale certificates required by section forty-two or statements of unpaid assessments;

(10) exercise any other powers conferred by the time-share instrument or by-laws;

(11) impose and receive payments, fees, or charges for the use, rental, or operation of the time-share property, and for services provided to time-share owners;

(12) acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property;

(13) assign its right to future income, including the right to receive time-share expense assessments, but only to the extent the time-share instrument expressly so provides;

(14) provide for the indemnification of its directors and officers and maintain directors' and officers' liability insurance; provided, however, that no indemnification shall be provided for any person with respect to any matter as to which he shall have been adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his action was in the best interests of the time-share property;

(15) exercise all other powers that may be exercised by legal entities of the same type as the association; and

(16) exercise any other powers necessary and proper for the governance and operation of the association.

(b) The time-share instrument may not impose limitations on the power of the association to deal with the developer which are more restrictive than the limitations imposed on the power of the association to deal with other persons.

(c) Except as otherwise provided in the time-share instrument, the manager; to the extent permitted by the management contract, may exercise the powers specified in clauses (1) to (11), inclusive, of subsection (a).

(d) If the time-share property is part of a project, this section and section twenty-one shall not confer any powers on the managing entity, the developer, or the time-share owners with respect to any portion of the project other than the time-share property.

Section 21. The developer shall have the duties imposed on the managing entity by this chapter and the powers set forth in clauses (1) to (11), inclusive, of subsection (a) of section twenty until a managing entity is provided or the developer and his affiliates own no estate or interest in the time-share property, whichever first occurs. Thereafter, if there is no managing entity and the number of time-shares in the time-share property is twelve or fewer, the time-share owners shall have said powers subject to any provisions of the time-share instrument relating to the manner of the exercise thereof and shall have the responsibilities and liabilities of an association for the purposes of sections twenty-four and twenty-five. To the extent that the time-share instrument is silent with respect to the manner of exercise of any of said powers, the time-share owner may exercise said powers only by unanimous action.

Section 22. (a) For the purposes of this section, "special developer right" shall mean a right reserved for the benefit of a developer to add more units to a time-share property to maintain sales offices, management offices, models, and signs or to appoint, control, or serve as the managing entity. No special developer right created or reserved under this chapter may be transferred except by an instrument evidencing the transfer recorded in the registry of deeds or land registration office for every district in which any portion of the time-share property is located. The instrument shall not be effective unless it is also executed by the transferee.

(b) Upon transfer of a special developer right, the liability of a transferor developer shall be as follows:

(1) A transferor shall not be relieved of any obligation or liability arising before the transfer and shall remain liable for warranty obligations imposed upon him by this chapter. Lack of privity shall not deprive any time-share owner of standing to maintain an action to enforce any obligation of the transferor.

(2) If a successor to any special developer right is an affiliate of a developer, the transferor shall be jointly and severally liable with the successor for any obligations or liabilities of the successor relating to the time-share property.

(3) If a transferor retains any special developer right, but transfers other special developer rights to a successor who is not an affiliate of the developer, the transferor shall be liable for any obligations or liabilities imposed on a developer either by this chapter or by the time-share instrument relating to the retained special developer rights and arising after the transfer.

(4) A transferor shall not be liable for any act or omission or any breach of the contractual or warranty obligation arising from the exercise of a special developer right by a successor developer who is not an affiliate of the transferor.

(c) Unless otherwise provided in a mortgage instrument, in case of foreclosure of a mortgage, tax sale, judicial sale, or sale under bankruptcy code or receivership proceedings, of any time-shares owned by a developer in the time-share property, a person acquiring title to all the time-shares being foreclosed or sold succeeds to all special developer rights, or only to any rights reserved in the time-share instrument pursuant to section sixteen and held by said developer but only upon his request. The judgment or instrument conveying title shall provide for transfer of only the special developer rights requested.

(d) Upon foreclosure, tax sale, judicial sale, or sale under bankruptcy code or receivership proceedings, of all time-shares in a property owned by a developer

(1) the right to appoint, control, or serve as the managing entity shall terminate unless the judgment or instrument conveying title provides for transfer of all special developer rights to a successor developer; and

(2) the developer shall cease to have any other special developer rights.

(e) The liabilities and obligations of a person who succeeds to a special developer right shall be as follows:

(1) a successor to any special developer right who is an affiliate of a developer shall be subject to all obligations and liabilities imposed on the transferor by this chapter or by the time-share instrument;

(2) a successor to any special developer right, other than a successor described in clauses (3) or (4), who is not an affiliate of a developer, shall be subject to all obligations and liabilities imposed by this chapter or the time-share instrument:

(i) on a developer, which relate to his exercise or non-exercise of special developer rights; or

(ii) on his transferor other than:

(A) misrepresentation by any previous developer;

(B) warranty obligations on improvements made by any previous developer or made before the property became a time-share property;

(C) breach of any fiduciary obligation by any previous developer or his appointees; or

(D) any liability or obligation imposed on the transferor as a result of the transferor's acts or omissions after the transfer.

(3) a successor to only a right to maintain sales offices, management offices, models, and signs, if he is not an affiliate of a developer, may not exercise any other special developer right and shall not be subject to any liability or obligation as a developer, except the obligation to provide a public offering statement and any liability arising as a result thereof; and

(4) a successor to all special developer rights held by his transferor who is not an affiliate of said developer and who has succeeded to said rights pursuant to a deed in lieu of foreclosure or a judgment or instrument conveying title to the time-shares pursuant to subsection (c) may declare his intention to hold said rights solely for transfer to another person in an instrument recorded in the appropriate registry of deeds or land registration office. Thereafter, until transferring all special developer rights to any person acquiring title to any time-share owned by the successor, or until recording an instrument permitting exercise of all said rights, said successor may not exercise any of said rights other than any right held by his transferor to appoint, control, or serve as the managing entity, and any attempted exercise of said rights shall be void. So long as a successor may not exercise special developer rights under this subsection, he shall not be subject to any liability or obligation as a developer other than liability for his acts and omissions in appointing, controlling, or serving as the managing entity.

(f) Nothing in this section shall subject any successor to a special developer right to any claims against or other obligations of a transferor developer, other than claims and obligations arising under this chapter or the time-share instrument.

Section 23. (a) If, before the developer ceases to appoint, control or serve as the managing entity, there is entered into (i) any management contract, employment contract, or lease of recreational or parking areas or facilities between the managing entity and the developer or an affiliate of the developer, or (ii) any other contract or lease, between the managing entity and the developer or an affiliate of the developer, or (iii) any contract or lease that is not bona fide or was unconscionable to the time-share owners at the time entered into under the circumstances then prevailing, the contract or lease may be terminated without penalty by the association or, if there is no association, the time-share owners at any time after the developer ceases to appoint, control or serve as the managing entity, upon not less than ninety days' notice to the other party. This subsection shall not apply to any lease the termination of which would terminate the time-share property or reduce its size, unless the real estate subject to said lease was included in the property for the purpose of avoiding the right to terminate a lease under this section.

(b) If there is no association, any time-share owner individually or on behalf of the class of time-share owners may maintain an action for appropriate relief.

Section 24. Except to the extent otherwise provided by the time-share instrument, the managing entity shall be responsible for maintenance, repair, and replacement of the time-share units and any personal property available for use by time-share owners in conjunction therewith, other than personal property separately owned by a time-share owner. Each time-share owner shall afford access to his time-share unit reasonably necessary for said purposes, but if damage is inflicted on a time-share unit to which access is taken, the managing entity shall be responsible for its prompt repair. Subject to the provisions of the time-share instrument and other provisions of law, a time-share owner shall not alter or change the appearance of a time-share unit without the consent of the managing entity.

Section 25. (a) A time-share owner shall be personally liable for his acts and omissions and those of his employees and agents other than the managing entity.

(b) An action shall not be maintained against a time-share owner, nor shall a time-share owner be precluded from maintaining an action, solely because he owns a time-share or is an officer, director, or member of the association.

(c) An action in tort alleging a wrong done by a developer, a managing entity selected by the developer or his appointees, or an agent or employee of either, in connection with any portion of the property which the developer or the managing entity has the responsibility to maintain, shall not be maintained against the association or any other time-share owner other than the developer. Other actions in tort alleging a wrong done by an association or by an agent or employee of the association or an action arising from a contract made by or on behalf of the association shall be maintained only against the association. If the tort or breach of contract occurred during any period of developer control, the developer shall be subject to liability for all unreimbursed losses suffered by the association or time-share owners as a result, including costs and reasonable attorney's fees. The operation of any statute of limitations affecting the right of action of the association or time-share owners under this section shall be tolled until the period of developer control terminates. A time-share owner shall not be precluded from maintaining an action contemplated by this subsection because he is a time-share owner or a member or officer of the association.

(d) A judgment for money against an association, if recorded in the registry of deeds or land registration office for the district in which the time-share property is located, shall be a lien against all of the time-shares, but no other property of a time-share owner shall be subject to the claims of creditors of the association.

(e) A judgment against the association shall be indexed in the name of the association.

Section 26. (a) Commencing not later than the time a developer offers a time-share for sale in a time-share property in which the number of time-shares is more than twelve, the managing entity shall maintain, to the extent reasonably available and applicable and not otherwise agreed by the time-share owners or provided by the developer or by a person managing a project of which the time-share property is a part:

(1) fire, extended coverage and all risk insurance on the time-share property and any personal property available for use by time-share owners in conjunction therewith, other than personal property separately owned by a time-share owner, in a total amount, after application of any deductibles, of not less than ninety per cent of the full replacement value of the insured property, exclusive of land excavations, foundations, and other items normally excluded from property policies; and

(2) comprehensive public liability insurance, including medical payments insurance, in an amount determined by the managing entity but not less than any amount specified in the time-share instrument, covering all occurrences commonly insured against, for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the time-share property and time-share units.

(b) If the insurance described in subsection (a) is not reasonably available, the managing entity promptly shall cause notice of said fact to be hand-delivered or sent by prepaid mail to all time-share owners. The managing entity shall make copies of all insurance policies available for inspection by the time-share owners during normal business hours. The time-share instrument may require the managing entity to maintain any other insurance, and the managing entity in any event may maintain any other insurance deemed appropriate.

(c) Each insurance policy maintained pursuant to subsection (a) shall provide that:

(1) each time-share owner is an insured person under the policy whether designated as an insured by name individually or as part of a named group or otherwise, as his interest may appear;

(2) the insurer waives its right to subrogation under the policy against any time-share owner or members of his household;

(3) no act or omission of any time-share owner, unless acting within the scope of his authority on behalf of an association, will void the policy or be a condition to recovery by any other person under the policy; and

(4) if, at the time of a loss under the policy, there is other insurance in the name of a time-share owner covering the same risk covered by the policy, the policy maintained pursuant to subsection (a) shall be primary insurance not contributing with the other insurance, and other insurance in the name of a time-share owner shall apply only to loss in excess of the primary coverage.

(d) Unless the insurance required by clause (1) of subsection (a) is provided by a person managing a project of which the time-share property is a part, any loss covered by said insurance shall be adjusted with, and the insurance proceeds from said loss payable to, the insurance trustee, who may be a party in interest, designated in accordance with the time-share instrument. If no insurance trustee has been designated or if the designated trustee fails to serve, the managing entity shall be the insurance trustee. The insurance trustee shall hold any insurance proceeds in trust for time-share owners and lien holders as their interests may appear and be determined in accordance with the provisions of section fifteen. Subject to the provisions of subsection (g), the proceeds shall be disbursed for the repair or restoration of the property, and time-share owners and lien holders shall not be entitled to receive payment of any portion of the proceeds unless there is (i) a surplus of proceeds after the property has been completely repaired or restored, or (ii) a termination pursuant to section fifteen.

(e) An insurance policy issued pursuant to subsection (a) shall not prevent a time-share owner from obtaining insurance for his own benefit.

(f) An insurer that has issued an insurance policy under this section shall issue certificates or memoranda of insurance to any association and, upon written request, to any time-share owner or mortgagee. The insurance may not be cancelled until thirty days after notice of the proposed cancellation has been mailed to any managing entity and each person to whom a certificate or memorandum of insurance has been issued, at their last known address.

(g) Any portion of the time-share property damaged or destroyed shall be repaired or replaced promptly by the managing entity unless (i) another person repairs or replaces it, (ii) there is a termination, (iii) repair or replacement would be illegal, (iv) eighty per cent of the time-share owners, including every owner of a time-share in a time-share unit that will not be rebuilt, vote not to rebuild, or (v) a decision not to rebuild the damaged property is made by another person empowered to make said decision. The cost of repair or replacement in excess of insurance proceeds and reserves shall be a time-share expense. If the entire property need not be repaired or replaced, unless the time-share instrument provides otherwise, (i) the insurance proceeds attributable to the damaged area shall be used to restore the damaged area to a condition comparable to the remainder of the property, and (ii) the insurance proceeds attributable to time-share units that are not rebuilt shall be distributed as if said units constituted a time-share property in which all time-shares had been terminated under section fifteen.

(h) The provisions of this section may be varied or waived in the case of a time-share property in which none of the time-share units may be used as dwellings or for recreational purposes.

Section 27. Unless otherwise provided in the time-share instrument, the by-laws, rules or regulations of the time-share association or otherwise determined by the time-share owners at a meeting of time-share owners or pursuant to either section thirty-three or thirty-four, any surplus funds derived from the time-share owners or from property belonging to said time-share owners or their association and held by a managing entity remaining after payment of or provision for time-share expenses and any required reserves shall be paid to the time-share owners in proportion to their time-share expense liabilities or credited to them to reduce their future time-share expense assessments.

Section 28. (a) Until time-share expense assessments are made against the time-share owners, the developer shall pay all time-share expenses. After any time-share expense assessment has been made against the time-share owners, time-share expense assessments shall be made at least annually, based on a budget adopted at least annually by the managing entity. At the time the time-share owners are notified of the amount of the assessment for the current year, the time-share owners shall be provided with a copy of the budget prepared in accordance with the provisions of clause (6) of subsection (a) of section thirty-eight and an accounting of income and expenses for the preceding year.

(b) Except for assessments under subsections (c), (d) and (e), all time-share expenses shall be assessed against all the time-shares in accordance with the allocation set forth in the time-share instrument pursuant to section thirteen. Any past due assessment or installment thereof shall bear interest at the rate established by the managing entity or time-share instrument not exceeding eighteen per cent per annum.

(c) To the extent required by the time-share instrument any time-share expense directly related to a time-share unit and incurred in providing a service or facilities which are available to fewer than all of the time-share owners may be assessed exclusively against the time-share owners benefited.

(d) Assessments to pay a judgment against the association shall be made only against the time-shares in the time-share property at the time the judgment was entered, in proportion to their time-share expense liabilities.

(e) If any time-share expense is caused by the misconduct of any time-share owner, the association may assess said expense exclusively against his time-share.

(f) If time-share expense liabilities are reallocated, time-share expense assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated time-share expense liabilities.

(g) Any amount identified in the budget as an amount to be reserved for the repair or replacement of the time-share unit or the furnishings, equipment and appliances located therein, shall be segregated by the managing entity, held in trust and used only for the specified purpose for which the reserve was collected unless the time-share owners, at a meeting of time-share owners, or pursuant to either section thirty-three or thirty-four determine to spend said funds for other purposes. Any ballot for any proposal to spend reserve funds for purposes other than that for which they were collected shall be accompanied by an explanation in plain language of the reasons therefor and consequences if any of so doing.

Section 29. (a) A person who has a duty to make assessments for time-share expenses shall have a lien on a time-share for any assessment levied against that time-share or fines imposed against its owner from the time the assessment or fine becomes due. Said lien shall be enforced in the manner provided in section five of chapter two hundred and fifty-four. Unless the time-share instrument otherwise provides, fees, charges, late charges, fines, and interest charged pursuant to clauses (8) and (9) of subsection (a) of section twenty shall be enforceable as assessments under this section. If an assessment is payable in installments, the full amount of the assessment shall be a lien from the time the first installment thereof becomes due.

(b) A lien under this section shall be prior to all other liens and encumbrances on a time-share except (i) liens and encumbrances recorded before the recording of the time-share instrument, (ii) mortgages on the time-share securing first mortgage holders and recorded before the due date of the assessment or the due date of the first installment payable on the assessment (iii) liens for real estate taxes and other governmental assessments or charges against the time-share, and (iv) liens securing assessments or charges made by a person managing a project of which the time-share property is a part; provided, however, that said priority of said lien shall be limited to such portion of said assessment as becomes due within six months prior to the commencement of an action to enforce such lien. This subsection shall not affect the priority of mechanics' or materialmen's liens. The lien under this section shall not be subject to the provisions of chapter one hundred and eighty-eight.

(c) The lien shall be perfected upon the recording of a claim or notice of lien in the registry of deeds or land registration office for the district in which the time-share unit is situated.

(d) A lien for unpaid assessments shall be dissolved unless proceedings to enforce said lien are commenced within three years after the assessments become due and payable.

(e) This section shall not prohibit actions to recover sums for which subsection (a) creates a lien or preclude resort to any contractual or other remedy permitted by law.

(f) A judgment or decree in any action brought under this section may include costs and reasonable attorney's fees for the prevailing party.

(g) A person who has a duty to make assessments for time-share expenses shall furnish to a time-share owner upon written request a statement recordable in form setting forth the amount of unpaid assessments currently levied against his time-share. Said statement shall be furnished within ten business days after receipt of the request and shall be binding in favor of persons reasonably relying thereon.

Section 30. A person who has a duty to make assessments for time-share expenses shall keep financial records sufficiently detailed to enable him to comply with section forty-two. All financial and other records shall be made reasonably available for examination by any time-share owner or his authorized agent.

Section 31. A third person dealing with a trustee, pursuant to the provisions of section fifteen or twenty-six, may assume without inquiry the existence of trust powers and the proper exercise thereof by the trustee. A third person shall not be bound to inquire whether the trustee has power to act as trustee or is properly exercising trust powers, and a third person without actual knowledge that the trustee is exceeding or improperly exercising his powers shall be fully protected in dealing with the trustee as if the trustee possessed and was properly exercising the powers he purports to exercise. A third person shall not be bound to assure the proper application of trust assets paid or delivered to the trustee in his capacity as trustee.

Section 32. (a) For the purposes of this section and sections thirty-three, thirty-four and thirty-five:

(1) "Owner" shall mean a person who is an owner or co-owner of a time-share estate or a time-share license or, in the case of a unit that is not a time-share unit, a person who is an owner or co-owner of said unit, other than as security for an obligation.

(2) A project is limited to one in which at least fifty per cent of the votes are allocated to time-shares other than time-share licenses.

(b) The managing entity shall keep reasonably available for inspection and copying by any time-share owner all addresses, known to it or to the developer, of all the time-share owners with the principal permanent residence address of each indicated if known. The managing entity shall revise continually the list of addresses in the light of any information it obtains, and the developer shall keep the managing entity advised of any information he has or obtains.

(c) Each ballot prepared pursuant to sections thirty-three, thirty-four and thirty-five shall contain:

(1) a statement that the ballot shall not be counted unless signed by an owner;

(2) the specification of a date, not less than thirty or more than one hundred and eighty days after the date the ballot is mailed, by which the ballot must be received by the person to whom it is to be returned, and a statement that the ballot shall not be counted unless received by said date;

(3) the name and address of the person to whom the ballot is to be returned; and

(4) only the material required by sections nineteen to thirty-five, inclusive.

(d) Each ballot mailed pursuant to sections thirty-three, thirty-four and thirty-five shall be mailed to the principal permanent residence of the owner to whom it is addressed, if known to the person responsible for mailing it, and said person shall procure and keep reasonably available for inspection for at least one year after the vote is calculated a certificate of mailing for each and the original or a copy of each ballot returned by the date specified pursuant to clause (2) of subsection (c).

(e) If the managing entity, the developer, or anyone on behalf of either of them communicates with any owner, other than as expressly provided by section thirty-three, thirty-four or thirty-five on the subject matter of any petition or ballot prepared pursuant to any of said sections, the expense of said communication shall not be assessed directly or indirectly in whole or in part to any owner other than the developer.

(f) The vote allocated to any time-share and to any unit other than a time-share unit shall be counted as having been cast in accordance with the ballot of any owner of that time-share or unit. If the ballots of different owners of the same time-share unit, or of the same unit other than a time-share unit, are not in accord with one another, the vote allocated to that time-share or unit shall be divided in proportion to the number of owners thereof voting each way and shall be counted accordingly. Any ballot that is not signed by an owner or is not received by the date specified pursuant to clause (2) of subsection (c) shall be void.

(g) The managing entity shall take action reasonably calculated to notify all owners of the resolution of any matters resolved by methods authorized by section thirty-three, thirty-four or thirty-five.

(h) An amendment to a project instrument adopted pursuant to section thirty-three or thirty-four shall be recorded in the appropriate registry of deeds or land registration office forthwith by the managing entity with a statement of the vote and shall become effective upon recording.

(i) No right or power of an owner under this section or section thirty-three, thirty-four or thirty-five may be waived, limited, or delegated by contract, power of attorney, proxy, or otherwise, in favor of the developer, an affiliate of a developer, a managing entity, or any person designated by any of them.

Section 33. (a) The owners may amend the project instrument or any unrecorded document governing the project, or approve or disapprove any proposed expenditure, in the manner provided by this section in addition to any manner permitted by law or by the instrument or document.

(b) Any owner may deliver to the managing entity a petition containing the language of any proposed amendment or proposal for the approval or disapproval of any proposed expenditure and signed by owners of at least one time-share or other estate or interest in each of a number of units to which at least ten per cent of the votes are allocated, or any smaller percentage specified by the document to be amended. The owner delivering said petition may attach to it a letter of not more than two pages to be mailed with the ballots. Within ten days after receiving said petition, the managing entity shall mail to each owner a ballot setting forth the language of the petition and affording an opportunity to indicate a preference between approval and disapproval of said proposed amendment or proposal, together with a copy of any letter of not more than two pages attached by the owner who delivered said petition. The ballot may also be accompanied by a letter of not more than two pages from the managing entity recommending approval or disapproval of said proposed amendment or proposal.

(c) On the date specified pursuant to clause (2) of subsection (c) of section thirty-two, the managing entity shall examine the ballots that have been returned and calculate the vote accordingly. A signature on the petition shall be treated for the purpose of subsection (f) of section thirty-two as a ballot from the signer indicating approval of the proposed amendment or proposal. A simple majority of the votes counted shall be sufficient for the adoption of the proposed amendment or proposal unless the law or the document to be amended specifies a larger majority or, in the case of a proposed expenditure, the project instruments specify a larger majority not exceeding sixty-six and two-thirds per cent. No document may specify more than a simple majority for any proposed amendment or proposal the managing entity could have effected unilaterally. No proposed amendment or proposal may be adopted by an initiative unless the ballots favoring the proposed amendment or proposal represent at least twenty-five per cent of the votes allocated to all owners.

(d) A proposed amendment or proposal adopted pursuant to this section may not be repealed or modified within two years except by another initiative pursuant to this section. After said two year period, the managing entity may not repeal or modify the result without the approval of the owners in a referendum. If the project instrument permits the managing entity to initiate a referendum for said purpose, no referendum may be initiated for said purpose more often than once every two years.

Section 34. (a) No amendment to the project instrument may be adopted except pursuant to this section or section thirty-three. The project instrument may specify other matters to be determined by referendum of the owners and may permit the managing entity to select matters to be determined in said manner.

(b) If an amendment to a project instrument proposed by the managing entity, or other matter, is to be determined by referendum, the managing entity shall prepare and, not less than thirty or more than one hundred and eighty days before the votes are to be counted, shall mail to each owner a ballot stating each matter to be determined and affording the opportunity to vote "yes" or "no" on each matter. The ballot may be accompanied by a letter from the managing entity recommending a particular decision.

(c) On the date specified pursuant to clause (2) of subsection (c) of section thirty-two, the managing entity shall examine the ballots that have been returned and calculate the vote accordingly. A simple majority of the votes counted shall determine each matter unless the project instrument specifies a larger majority, but no matter may be determined by referendum unless the ballots favoring the majority decision represent at least twenty-five per cent of the votes allocated to all owners.

Section 35. (a) During the period of time the developer appoints, controls or serves as the managing entity, the owners may discharge the manager with or without cause in the manner provided by this section in addition to any manner permitted by law or the project instrument.

(b) Any owner may prepare a ballot affording the opportunity to indicate a preference between retaining the present manager and discharging him in favor of a new manager; provided, however, that the owners of at least one time-share or other estate or interest in each of a number of units to which at least ten per cent of the votes are allocated sign a petition authorizing said owner to prepare said ballot on their behalf. A copy of said ballot and of any letter to be mailed with said ballot shall be delivered to the manager. Said ballot and a copy of any said letter, together with a copy of any written reply received from the manager containing no more pages than said letter, shall be mailed not less than ten or more than thirty days from the date of delivery to said manager to each owner by the owner who prepared the ballot.

(c) On the date specified pursuant to clause (2) of subsection (c) of section thirty-two, the person who receives the ballots shall examine the ballots that have been returned, calculate the vote accordingly, and forthwith notify the manager of the result. If at least sixty-six and two-thirds per cent of all of the votes allocated to all time-share owners, which votes represent at least thirty-three and one-third per cent of the votes allocated to all owners, favor discharging the manager, the developer also shall be notified of said result, the ballots or copies thereof shall be given forthwith to the manager, and the developer shall forthwith diligently attempt to procure offers for management contracts from prospective managers. Any owner also may attempt to procure such offers. If the developer or any owner obtains such an offer within sixty days after the date the vote was calculated, he shall forthwith notify the developer and the owner who was responsible for calculating the vote. If no offer is obtained from a prospective manager other than the current manager within said sixty days, said period shall be extended for successive intervals of thirty days each until such an offer is obtained. At the end of said period, the owner who prepared the ballot, or the developer if said owner so directs in a writing delivered to the developer, shall forthwith prepare and mail to each owner a second ballot stating at least the term and compensation provided by each offer that has been received and affording an opportunity to indicate a preference for any one of the offers or for retaining the current manager. A letter recommending that a particular offer be accepted or that the current manager be retained may accompany the ballot, and if the developer prepared the ballot he shall enclose a copy of any such letter submitted to him by the owner who was responsible for calculating the vote.

(d) On the date specified pursuant to clause (2) of subsection (c) of section thirty-two, the person who receives the ballots prepared pursuant to subsection (c) shall examine the ballots that have been returned, calculate the vote accordingly, forthwith notify the manager of the result, and hold the ballots available for inspection by the manager and any proposed manager for at least thirty days. If more votes favor accepting a particular offer than retaining the manager, the manager shall be discharged ninety days after he is notified of said result, but, if the ballot prepared pursuant to subsection (b) was delivered to the manager before the current term of the manager began, the manager shall be discharged immediately upon being notified of said result. The person who received the ballots prepared pursuant to subsection (c) shall forthwith accept on behalf of the owners the offer that received the largest number of votes. The expenses thereunder shall be thereafter part of the common expenses.

(e) A manager discharged pursuant to this section shall not be entitled by reason of his discharge to any penalty or other charge payable directly or indirectly in whole or in part by any owner other than the developer.

(f) The reasonable expenses incurred by any owner in obtaining offers and preparing and mailing ballots pursuant to this section, including reasonable attorney's fees, shall be promptly collected by the managing entity from all owners as a common expense and paid to said owner if a simple majority of the vote calculated pursuant to subsection (c) favors the discharge of the manager. Similar expenses incurred by the developer also shall be so collected and promptly paid to the developer.

Section 36. (a) Sections thirty-six to fifty-five, inclusive, shall apply to all time-shares subject to this chapter except as provided in subsection (b).

(b) Neither a public offering statement nor the materials required by section forty-two need be prepared or delivered in the case of:

(1) a gratuitous disposition of a time-share;

(2) a disposition pursuant to court order;

(3) a disposition by a government or governmental agency;

(4) a disposition by foreclosure or deed in lieu of foreclosure;

(5) a disposition that may be cancelled at any time and for any reason by the purchaser without penalty;

(6) a disposition of a time-share in a unit situated wholly outside the commonwealth pursuant to a contract executed wholly outside the commonwealth, if there has been no offering within the commonwealth;

(7) an offering by a developer of time-shares in no more than one time-share unit at any one time; or

(8) a disposition of a time-share property or all time-shares therein to one purchaser.

Section 37. (a) Except as provided in subsection (b), a developer, prior to the offering of any interest in a unit to the general public, shall prepare a public offering statement conforming to the requirements of sections thirty-eight, thirty-nine and forty.

(b) A developer may transfer responsibility for preparation of all or a part of the public offering statement to a successor developer or to a person in the business of selling real estate who intends to offer time-shares in the time-share property for his own account. In the event of said transfer of responsibility, the transferor shall provide the transferee with any information necessary to enable the transferee to fulfill the requirements of subsection (a).

(c) Any developer, agent of a developer or person in the business of selling real estate who offers a time-share for his own account to a purchaser shall deliver a public offering statement in the manner prescribed in subsection (a) of section forty-one. The person who prepared all or a part of the public offering statement shall be liable under sections forty-one and forty-nine for any false or misleading statement set forth therein or for any omission of material fact therefrom with respect to that portion of the public offering statement which he prepared. If a developer, agent of a developer or said person in the business of selling real estate did not prepare any part of a public offering statement that he delivers, he shall not be liable for any false or misleading statement set forth therein or for any omission of material fact therefrom unless he had actual knowledge of the statement or omission, or in the exercise of reasonable care, should have known of the statement or omission.

(d) If a time-share property is part of any other real estate multi-location plan in connection with the sale of which the delivery of a public offering statement is required, a single public offering statement conforming to the requirements of sections thirty-eight, thirty-nine and forty as said requirements relate to all real estate multi-location plans in which the time-share property is located, and to any other requirements imposed by law, may be prepared and delivered in lieu of providing two or more public offering statements.

Section 38. (a) A public offering statement shall be written in clear and concise language and shall be furnished to the purchaser at the time of the signing of a contract to purchase and shall contain or fully and accurately disclose:

(1) the name and principal address of the developer and the location of the time-share property;

(2) a general description of the time-share property and the time-share units, including without limitation the number of units in the time-share property and in any project of which said time-share property is a part, and the schedule of commencement and completion of all improvements, and a copy of the current price list;

(3) as to all units owned or offered by the developer in the same project:

(i) the types and number of units;

(ii) identification of units that are time-share units;

(iii) the types and durations of the time-shares;

(iv) the maximum number of units that may become part of the time-share property; and

(v) a statement of the maximum number of time-shares that may be created or that there is no maximum;

(4) copies of and a brief narrative description of the significant features of the time-share instrument and any documents referred to therein, other than any plats and plans, copies of any contracts or leases to be signed by purchasers at closing, and a brief narrative description of any contracts or leases subject to cancellation by the time-share owners under section twenty-three;

(5) the identity of the managing entity and the manner, if any, whereby the developer or the owners of the time-share units may change the managing entity or its control;

(6) a current balance sheet and a projected budget for the association, if there is an association, either within or as an exhibit to the public offering statement, for one year after the date of the first transfer to a purchaser, and thereafter the current budget, a statement of who prepared the budget, and a statement of the budgetary assumptions concerning occupancy and inflation factors. The budget shall include, without limitation:

(i) a statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement;

(ii) a statement of any other reserves;

(iii) the projected time-share expense liability by category of expenditures for the time-share units; and

(iv) the projected time-share expense liability for each time-share;

(7) a description of (i) the nature and purposes of all charges, dues, maintenance fees, and other expenses that may be assessed, (ii) the current amounts assessed, (iii) the method and formula for changes, and (iv) the method and formula for allocating said expenses between the time-share owners and the developer or managing entity or any affiliate of either of them and the method and formula for allocating said expenses between time-share property and the person who owns or controls any property in the project which is not a time-share unit or used solely as an appurtenance thereto;

(8) any services which the developer provides or expenses he pays and which he expects may become at any subsequent time a time-share expense of the time-shares, and the projected time-share expense liability attributable to each of said services or expenses for each time-share;

(9) any initial or special fee due from the purchaser at closing, together with a description of the purpose of the fee and the method of its calculation;

(10) a statement describing the existence of and the effect on the time-share owners of liens, defects, or encumbrances on or affecting the title to the time-share units;

(11) a statement as to whether or not title insurance is available, the charge for title insurance, if available and a copy of a specimen title insurance policy, if available;

(12) a description of any financing offered by the developer;

(13) the terms and significant limitations of any warranties provided by the developer, including statutory warranties and limitations on the enforcement thereof or on damages;

(14) a statement that:

(i) within three business days after the date of receipt of a public offering statement, a purchaser may cancel any contract for purchase of a time-share from a developer;

(ii) if a developer fails to provide a public offering statement to a purchaser at least five business days before the delivery of a deed, notice of time-share lease or time-share license, whichever is applicable, the purchaser is entitled, in addition to any other remedy, to recover from the developer an amount equal to ten per cent of the sales price of the time-share;

(iii) if a purchaser receives the public offering statement more than five business days before the date of signing a contract, he cannot cancel the contract for failure timely to receive the public offering statement;

(iv) the creation, management and sale of time-share units and the contents of this public offering statement are regulated by this chapter and a violation of the provisions of this chapter shall give a purchaser a right of action as provided in section forty-nine. Said statement shall be printed in bold face type; and

(v) a time-share deed or notice of a time-share lease or time-share license shall be recorded in the registry of deeds or land registration office for the district in which the time-share property is located in order to protect the purchaser.

(15) a statement of any unsatisfied judgments against the developer or the managing entity, the status of any pending actions involving the sale or management of real estate to which the developer or an affiliate of the developer or the managing entity or an affiliate of the managing entity is a defending party, and the status of any pending actions of which the developer has actual knowledge, of significance to the time-share units;

(16) a statement that any deposit made in connection with the purchase of a time-share shall be held in an escrow account until expiration of the time for rescission or cancellation or any later time specified in the contract to purchase the time-share, and shall be returned to the purchaser if the purchaser cancels the contract pursuant to section forty-one;

(17) any restraints on transfer of time-shares or portions thereof;

(18) a description of the insurance coverage provided for the benefit of time-share owners;

(19) any current or expected fees or charges to be paid by time-share owners for the use of any facilities related to the project;

(20) a reasonable description of the furnishings, equipment or appliances provided with each time-share unit or a statement that no furnishings, equipment or appliances shall be provided; and the charge, if any, therefor;

(21) a description of all real estate and facilities owned by the developer, other than time-share units, the rights of time-share owners, if any, to use and occupy said real estate or facilities and the charge if any, therefor;

(22) the extent to which financial arrangements have been provided for completion of all promised improvements pursuant to section fifty-one;

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

(24) a description of the rights and remedies provided in the time-share instrument of a time-share owner who is prevented from enjoying exclusive occupancy of a time-share unit by others, or a statement that no such rights and remedies are provided in said instrument; and

(25) all unusual or material circumstances, features and characteristics of the project.

(26) a description of any contractual arrangement requiring a developer to offer its time-share purchasers affiliation with any specific exchange company and the duration of any such requirement.

(b) A developer shall promptly amend (i) the public offering statement to report any material or adverse change in the information required by subsection (a) and section thirty-nine and (ii) the public offering statement or any supplement thereto to report any material or adverse change known to him in the information required by sections fifty-three and fifty-four.

Section 39. (a) If a conversion building that includes or is to include one or more time-share units is more than ten years old and the developer or any affiliates of the developer own or control more than fifty per cent of all units in the project, the public offering statement shall contain, in addition to the information required by section thirty-eight:

(1) a statement by the developer, based on a report prepared by an independent registered architect or engineer, describing the present condition of all structural components and mechanical and electrical installations material to the use and enjoyment of the time-share units;

(2) a statement by the developer of the expected useful life of each item reported on in clause (1) or a statement that no representations shall be made in that regard; and

(3) a list of any outstanding notices of uncured violations of building codes or other municipal regulations, together with the estimated cost of curing said violations;

(b) This section shall apply only to units in which use as a dwelling or for recreational purposes, or both, is permissible.

Section 39A. The units created or constructed under this chapter shall conform to the regulations promulgated pursuant to section thirteen A of chapter twenty-two.

Section 40. If a time-share is currently registered with the securities and exchange commission of the United States, a developer satisfies all requirements of this chapter relating to the preparation of a public offering statement if he delivers to the purchaser a copy of the public offering statement filed with said securities and exchange commission.

Section 41. (a) A person required to deliver a public offering statement pursuant to subsection (c) of section thirty-seven shall, before transfer of a time-share and no later than the date of a contract of sale, provide a prospective purchaser with (i) a copy of the public offering statement and all amendments, exhibits and supplements thereto, and (ii) the disclosures required in the case of resales pursuant to subsection (a) of section forty-two. Unless the purchaser has received said materials more than three business days before the date of execution of any contract of sale or the transfer of a time-share, the contract or transfer shall be voidable by him until he has received said materials and for five business days thereafter.

(b) If a purchaser elects to cancel a contract pursuant to subsection (a), he may do so by hand-delivering written notice thereof to the seller or to his agent for service of process, by mailing notice thereof to the seller or to his agent for service of process by registered mail, return receipt requested, by telegram or by courier service with guaranteed next day delivery. Notice shall be deemed given on the date of postmark or if by telegram or courier service on the date when transmitted from the place of origin. Cancellation shall be without penalty, and all payments made by the purchaser before cancellation shall be refunded immediately if the purchaser's deposit check shall not have been deposited in the seller's bank account or if it has been so deposited within seven days after receipt of the notice of cancellation, but in no event prior to the first business day following the date on which the amount of the deposit is finally and unconditionally credited to the seller's account or if such deposit was made by credit card, such refund shall be made by immediate issuance of a credit to the purchaser's credit card account.

(c) If a person required to deliver a public offering statement pursuant to subsection (c) of section thirty-seven fails to provide a purchaser to whom a time-share is transferred with information which satisfies in all material respects the requirements of subsection (a), the purchaser, in addition to any rights to damages or other relief, is entitled to receive from the seller an amount equal to ten per cent of the sales price of the time-share.

Section 42. (a) Except in the case of a sale where delivery of a public offering statement is required, or unless exempt under subsection (b) of section thirty-six, a seller of a time-share shall furnish to the purchaser before execution of any contract of sale, or before the transfer of title whichever first occurs, a copy of the time-share instrument, other than any plats or plans, and a certificate containing:

(1) a statement disclosing the effect on the proposed transfer of any right of first refusal or other restraint on transfer of the time-share or any portion thereof;

(2) a statement setting forth the amount of the periodic time-share expense liability and any unpaid time-share expense or special assessment or other sums currently due and payable from the seller;

(3) a statement of any other fees payable by time-share owners; and

(4) a statement of any judgments or other matters that are or may become liens against the time-share or the time-share unit and the status of any pending actions that may result in said liens.

(b) A managing entity, within ten days after a request by a time-share owner, shall furnish a certificate containing the information necessary to enable the time-share owner to comply with this section. A time-share owner providing a certificate pursuant to subsection (a) shall not be liable to the purchaser for any erroneous information provided by the managing entity and included in said certificate, other than for judgment liens against the time-share or the time-share unit.

(c) A purchaser shall not be liable for any unpaid time-share expense liability or fees in an amount greater than the amount set forth in a certificate prepared by a managing entity. A time-share owner shall not be liable to a purchaser for the failure or delay of a managing entity to provide the certificate in a timely manner, but the contract of sale shall be voidable by the purchaser until the certificate has been provided and for five days thereafter or until transfer, whichever first occurs.

Section 43. (a) Any deposit made in connection with the purchase or reservation in the commonwealth of a time-share from a person required to deliver a public offering statement pursuant to subsection (c) of section thirty-seven shall be placed in escrow, either in the commonwealth or in the state where the time-share project is located, in an account designated solely for said purpose by a licensed title insurance company, an attorney, a licensed real estate broker or an institution whose accounts are insured by a governmental agency or instrumentality until (i) delivered to said person required to deliver a public offering statement at the expiration of the time for cancellation or any later time specified in any contract of sale, (ii) delivered to said person because of the purchaser's default under a contract to purchase the time-share, or (iii) refunded to the purchaser. The interest, if any, earned on the deposit while it is held in escrow shall be credited to the account of the purchaser.

(b) A seller may hold until the receipt of a notice of cancellation, or the fifteenth day following the cancellation period provided for in section forty-one, an instrument of payment, including but not limited to a credit account authorization, made by a purchaser which is payable to the escrow agent. After expiration of said fifteen days, if no notice of cancellation is received, said instrument shall be deposited as provided in subsection (a).

Section 44. (a) In the case of a sale of a time-share where delivery of a public offering statement is required pursuant to subsection (c) of section thirty-seven, a seller shall, before transferring a time-share, record in the appropriate registry of deeds or land registration office or furnish to the purchaser releases of all liens affecting said time-share which the purchaser does not expressly agree to take subject to or assume, or shall provide a surety bond as provided in section fourteen of chapter two hundred and fifty-four.

(b) If a lien other than a mortgage becomes effective against more than one time-share estate, any time-share owner is entitled to a release of his time-share estate from said lien upon payment of his proportionate liability for said lien in accordance with time-share expense liability unless he or his predecessor in interest agreed otherwise with the lienor. After payment, the managing entity shall not assess or have a lien against said time-share estate for any portion of the time-share expenses incurred in connection with said lien.

(c) If a lien is to be foreclosed or enforced against all time-shares in a time-share property, service of process shall be made upon the managing entity, if any, and shall constitute service thereof upon all the time-share owners for the purposes of foreclosure or enforcement. The managing entity shall forward promptly, by registered mail, a copy thereof to each time-share owner at his last address known to the managing entity. The cost of said forwarding shall be paid in advance by the holder of the lien and may be taxed as a cost of the enforcement proceeding. Said notice shall not be sufficient for the entry of a deficiency or other personal judgment against any time-share owner.

Section 45. (a) Express warranties made by any seller to a purchaser of a time-share shall be created as follows:

(1) any affirmation of fact or promise which relates to the time-share, the time-share unit, rights appurtenant to either, area improvements that would directly benefit the time-share, or the right to use or have the benefit of facilities not located on the time-share unit, creates an express warranty that the time-share, the time-share unit, and related rights and uses shall conform to the affirmation or promise;

(2) any model or description of the physical characteristics of the time-share property, including plans and specifications of or for improvements, creates an express warranty that the property shall conform to the model or description, provided, however, that this paragraph shall not preclude the substitution of items of substantially the same kind, function and quality as those in the model or description;

(3) any description of the quantity or extent of the real estate constituting the time-share property, including plats or surveys, creates an express warranty that the property shall conform to the description, subject to customary tolerances; and

(4) a provision that a purchaser may put a time-share unit only to a specified use is an express warranty that the specified use is lawful.

(b) Neither formal words, such as "warranty" or "guarantee", nor a specific intention to make a warranty, shall be necessary to create an express warranty of quality, but a statement purporting to be merely an opinion or commendation of the time-share, the time-share unit, or the value of either shall not create a warranty.

(c) Any transfer of a time-share transfers to the purchaser all express warranties of quality made by previous sellers.

Section 46. (a) A developer and any person in the business of selling real estate for his own account warrants that a time-share unit shall be in at least as good condition at the earlier of the time of the transfer or of the delivery of possession as it was at the time of contracting, reasonable wear and tear excepted.

(b) A developer and any person in the business of selling real estate for his own account impliedly warrants that a time-share unit and any other real property the time-share owners have a right to use in conjunction therewith shall be suitable for the ordinary uses of real estate of its type and that any improvements made or contracted for by him, or made by any person before transfer, shall be:

(1) free from defective materials; and

(2) constructed in accordance with applicable law, according to sound engineering and construction standards, and in a workmanlike manner.

(c) A developer and any person in the business of selling real estate for his own account warrants to a purchaser of a time-share that an existing use of the time-share unit, continuation of which is contemplated by the parties, does not violate applicable law at the earlier of the time of transfer or of the delivery of possession.

(d) Warranties imposed by this section may be excluded or modified as provided in section forty-seven.

(e) For purposes of this section, improvements made or contracted for by an affiliate of a developer are made or contracted for by the developer.

(f) Any transfer of a time-share transfers to the purchaser all implied warranties of quality, of any developer and any person in the business of selling real estate for his own account.

Section 47. (a) Except as limited by subsection (b) implied warranties of quality:

(1) may be excluded or modified by agreement of the parties; and

(2) shall be excluded by expressions of disclaimer, such as "as is", "with all faults", or other language that in common understanding calls the purchaser's attention to the exclusion of warranties.

(b) With respect to a purchaser of a time-share in a time-share unit that may be used as a dwelling or for recreational purposes, no general disclaimer of implied warranties of quality shall be effective, but a developer may disclaim liability in an instrument signed by the purchaser for a specified defect or specified failure to comply with applicable law if the existence of the defect or failure entered into and became a part of the basis of the bargain.

Section 48. (a) A judicial proceeding for breach of any obligation arising under section forty-five or forty-six shall be commenced within four years after the cause of action accrues, but the parties may agree to reduce the period of limitation to not less than two years. With respect to a time-share unit that may be used as a dwelling or for recreational purposes, an agreement to reduce the period of limitation shall be evidenced by a separate instrument executed by the purchaser.

(b) Subject to subsection (c), a cause of action for breach of warranty of quality, regardless of the purchaser's lack of knowledge of the breach accrues, unless extended by agreement:

(1) as to a unit, at the time of the first transfer of a time-share therein by the seller to a bona fide purchaser; and

(2) as to other improvements, at the time each is completed.

(c) If a warranty of quality explicitly extends to future performance or duration of any improvement or component of the property, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever first occurs.

Section 49. If a developer or any other person subject to this chapter fails to comply with any provision of this chapter or of the time-share instrument, any person or class of persons adversely affected by the failure to comply shall have a claim for appropriate relief. A failure to comply with the provisions of this chapter shall be deemed an unfair or deceptive act or practice under chapter ninety-three A.

Section 50. If any improvement in the time-share property is not required to be built, no promotional material may be displayed or delivered to prospective purchasers which describes or portrays said improvement unless the description or portrayal of the improvement shall be conspicuously labeled or identified as "NEED NOT BE BUILT".

Section 51. (a) The developer shall complete all promised improvements described in the time-share instrument and promotional materials.

(b) Unless the purchaser of a time-share agrees in writing to record the evidence of his ownership of the time-share, the developer or the managing entity shall record the time-share deed or notice of time-share lease or time-share license, on behalf of the purchaser in the appropriate registry of deeds or land registration office for the district in which the time-share property is located within five days after the performance of the terms and conditions of the purchase and sale agreement or within six months of the date of contract to purchase whichever shall occur earlier. All representations made by the developer as of the date of delivery of the time-share deed or notice of time-share lease or license shall be true and correct on the date of recording said deed or notice by the developer.

Section 52. Any advertisement of a time-share property which includes the offer of a prize or other inducement shall prominently disclose the approximate fair market value, number of, and criteria to qualify for, each prize or inducement offered.

Section 53. (a) If a purchaser may participate in any exchange program, the developer, agent of a developer or person in the business of selling real estate for his own account shall, except as provided in subsection (b), deliver to the purchaser at the time of delivery of the public offering statement required by section thirty-seven, written information regarding said exchange program and the purchaser shall certify in writing to the receipt thereof. Said information shall include the following:

(1) the name and address of the exchange company;

(2) the names of all officers, directors, and shareholders owning five per cent or more of the outstanding stock of the exchange company;

(3) a statement indicating whether the exchange company or any of its officers or directors has any legal or beneficial interest in any developer or managing entity for any time-share plan participating in the exchange program and, if so, the name and location of the time-share property and the nature of the interest;

(4) unless the exchange company is also the developer or an affiliate of a developer, a statement that the purchaser's contract with the exchange company is a contract separate and distinct from the contract of sale;

(5) a statement indicating whether the purchaser's participation in the exchange program is dependent upon the continued affiliation of the time-share plan with the exchange program and the readmission fees, dues and other charges which shall be required to be paid by the purchaser if he initially becomes a member of the exchange program, allows the membership to lapse and then seeks reinstatement or readmission;

(6) a statement indicating whether the purchaser's membership or participation in the exchange program is voluntary or mandatory;

(7) a complete and accurate description of the terms and conditions of the purchaser's contractual relationship with the exchange company and the procedure by which changes thereto may be made;

(8) a complete and accurate description of the procedure to qualify for and effectuate exchanges;

(9) a complete and accurate description in boldface type of all restrictions, limitations or priorities employed in the operation of the exchange program and the manner of application thereof, including, without limitation, any restrictions, limitations or priorities based on seasonality, unit size, or levels of occupancy;

(10) a statement indicating whether exchanges are arranged on a space-available basis and whether any guarantees of specific requests for exchanges are made by the exchange program, and if so, the nature thereof;

(11) a complete and accurate description of the circumstances, if any, in which a time-share owner may lose the use and occupancy of his time-share in any properly applied for exchange without being provided with substitute accommodations by the exchange company;

(12) the fees for participation by time-share owners in the exchange program, a statement whether any such fees may be altered by the exchange company, and the circumstances under which alterations may be made;

(13) the name and location of each time-share property, accommodation or facility participating in the exchange program;

(14) the number of units in each property which qualify for participation in the exchange program and which are available for occupancy expressed within the following numerical groupings: 1-5; 6-10; 11-20; 21-50; and 51 and over;

(15) with respect to each time-share plan or other property the number of owners who are eligible to participate in the exchange program expressed within the following numerical groupings: 1-100; 101-249; 250-499; 500-999; and 1,000 and over; and the criteria used to determine current eligibility to participate in the exchange program;

(16) the disposition made by the exchange company of time-shares deposited by eligible owners with the exchange program and not used by the exchange company in effecting exchanges;

(17) a statement indicating the following information, which, except as provided in subsection (b), shall be independently audited by a certified public accountant or accounting firm and reported for each year no later than July first, of the succeeding year:

(i) the number of the time-share owners enrolled in the exchange program, the number of said owners who are fee paying and the number of said owners who are enrolled gratuitously;

(ii) the number of time-share properties, accommodations or facilities eligible to participate in the exchange program categorized by those having a contractual relationship between the developer or the association and the exchange company and those having a contractual relationship between the exchange company and time-share owners directly;

(iii) the percentage of confirmed exchanges, which shall be the number of exchanges confirmed by the exchange company divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for. An exchange shall be confirmed when an eligible time-share owner applies for and receives the right to occupy an exchanged time-share for a time period during the year reported;

(iv) the number of exchanges confirmed by the exchange company during the year;

(v) the number of time-shares for which the exchange company has an outstanding obligation to provide an exchange to a time-share owner who relinquished a time-share during the year in exchange for a time-share in any future year;

(18) a statement in boldface type that the percentage described in subclause (iii) of clause (17) of subsection (a) does not indicate a purchaser's or owner's probabilities of being confirmed to any specific choice, as availability at individual locations may vary.

(b) The information required by subsection (a) shall be accurate as of a date which is not more than thirty days prior to the date on which the information is delivered to the purchaser, except that the information required by clauses (2), (3), (13), (14), (15) and (17) of subsection (a) shall be accurate as of December thirty-first of the preceding year if the information is delivered between July first and December thirty-first of any year; information delivered between January first and June thirtieth of any year shall be accurate as of December thirty-first of the year prior to the preceding year. All references in this section to the word "year" shall mean calendar year.

(c) In the event an exchange company offers an exchange program directly to the purchaser or time-share owner, the exchange company shall deliver to each purchaser or time-share owner, prior to such offering or the execution of any contract between the purchaser or time-share owner and said company the information set forth in subsection (a). This section shall not apply to the renewal of any contract between the purchaser or time-share owner and the exchange company offering the exchange program.

(d) Each exchange company offering an exchange program to purchasers in the commonwealth shall include the statement set forth in paragraph (18) of subsection (a) on all promotional brochures, pamphlets, advertisements or other materials which contain the percentage of confirmed exchanges described in subclause (iii) of clause (17) of subsection (a) and which are disseminated by the exchange company.

(e) No developer shall have any liability arising out of the use, delivery or publication by the developer of written or printed information or audio-visual materials provided to it by the exchange company pursuant to this section. Except as otherwise provided in this subsection, no exchange company shall have any liability with respect to (i) any representation made by the developer relating to the exchange program or exchange company, or (ii) the use, delivery or publication by the developer of any information relating to the exchange program or exchange company. An exchange company shall be liable for written or printed information or audio-visual materials provided to the developer or to a purchaser or time-share owner by the exchange company. The failure of the exchange company to comply with the provisions of this section, or the use by it of any unfair or deceptive act or practice in connection with the operation of the exchange program, shall constitute a violation of this chapter.

Section 54. (a) A multi-location developer shall, except as provided in subsection (b), deliver to the purchaser, prior to the execution of the contract of sale the following written information which the purchaser shall certify in writing to the receipt thereof:

(1) a complete and accurate description of the procedure to qualify for and effectuate use rights in time-share units in the multi-location plan;

(2) a complete and accurate description in boldface type of all restrictions, limitations or priorities employed in the operation of the multi-location plan and the manner of application thereof, including, without limitation, any restrictions, limitations or priorities on reservations, use or entitlement rights based on seasonality, unit size, levels of occupancy or class of owner;

(3) a statement indicating whether use is arranged on a space-available basis and whether any guarantees of specific requests for use are made by the multi-location developer and if so, the nature thereof and the number, type and description of units available at each property;

(4) the name and address of each time-share property included in the multi-location plan;

(5) the number of time-share units in each time-share property which are available for occupancy, the interest which the multi-location developer has in each of said time-share units, and if less than fee ownership the relevant terms of said interest and whether each of said time-share units may be withdrawn from the mutli-location plan;

(6) the following information which, except as provided in subsection (b), shall be independently audited by a certified public accountant or accounting firm and reported for each year on or before July first, of the succeeding year: (i) the number of owners in the multi-location plan;

(ii) for each time-share property in the multi-location plan, the number of properly made requests for use of time-share units in said time-share property;

(iii) for each time-share property, the percentage of owners who properly requested use of a time-share unit in said time-share property who received the right to use a time-share unit in said time-share property;

(7) a statement in boldface type that the percentage described in clause (6) of subsection (a) does not indicate a purchaser's or owner's probabilities of being able to use any time-share unit since availability at individual locations may vary.

(b) The information required by subsection (a) shall be accurate as of a date which is no more than thirty days prior to the date on which the information is delivered to the purchaser, except that the information required by paragraphs (4), (5) and (6) of subsection (a) shall be accurate as of December thirty-first of the preceding year if the information is delivered between July first and December thirty-first of any year; information delivered between January first and June thirtieth of any year shall be accurate as of December thirty-first of the year prior to the preceding year. All references in this section to the word "year" shall mean calendar year.

(c) The failure of a multi-location developer to comply with the provisions of this section, or the use by it of any unfair or deceptive act or practice in connection with the operation of the exchange program, shall constitute a violation of this chapter.

Section 55. (a) It shall be unlawful for any person to sell or offer to sell a time-share in the commonwealth unless the developer of the time-share property in which the time-share is located has designated a person as a project broker and said person is then serving as the project broker for the time-share property. The time-share property shall be considered a separate real estate office for purposes of the real estate licensing laws.

(b) It is unlawful for any person to engage in the business, act in the capacity of or advertise or assume to act as a project broker within the commonwealth unless such person is a licensed real estate broker under the laws of the commonwealth.

SECTION 2. Section 5 of chapter 254 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- A lien upon land for the erection, alteration, repair or removal of a building or other structure or a lien established under section seventy-six of chapter sixty-three, under section six of chapter one hundred and eighty-three A, or under section twenty-nine of chapter one hundred and eighty-three B shall be enforced by a civil action brought in the superior court for the county where such land lies.

SECTION 3. The provisions of this act shall apply to all time-shares created in units in the commonwealth on or after the effective date of this act. The provisions of sections three, five, six, seven, eight, ten, fourteen, clauses (1) to (9), inclusive, of subsection (a) of section twenty, clauses (14) to (16), inclusive, of subsection (a) of section twenty, subsection (b) of section twenty, sections twenty-three, twenty-five, twenty-six, twenty-seven, twenty-eight, twenty-nine, thirty, thirty-one, thirty-two, thirty-three, thirty-four, thirty-five, forty-two, forty-three, forty-four, forty-five, forty-eight, forty-nine, fifty and fifty-one of chapter one hundred and eighty-three B of the General Laws, inserted by section one of this act, and section two of said chapter to the extent necessary to construe any of said sections, shall apply to all time-shares created in units in the commonwealth before the effective date of this act, but only with respect to events and circumstances occurring on or after the effective date. The provisions of said section shall not affect the validity of, or rights or obligations created before the effective date of this act by a time-share instrument, document transferring an estate or interest in real property, or contract.

The time-share instrument of any time-share property created before the effective date of this act may be amended to accomplish any result permitted by this act if the amendment is adopted in conformity with applicable law and with the procedures and requirements specified by the instrument. If the amendment grants to any person any rights, powers, or privileges permitted by this act, all correlative obligations, liabilities, and restrictions in this act shall also apply to said person.

The provisions of this act shall not apply to time-shares in units located outside the commonwealth with the exception of sections thirty-seven to forty-one, inclusive, which shall apply to all dispositions of such time-share units offered to the general public or signed in the commonwealth by any party, unless exempt under subsection (b) of section thirty-six.