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March 28, 2024 Mist | 47°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 2: Definitions

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.

''Consumer resale time-share'', (i) a time-share owned by a consumer time-share reseller; or (ii) 1 or more reserved occupancy rights relating to a time-share owned by a purchaser.

''Consumer time-share reseller'', a purchaser who acquires a time-share for the purchaser's own use and occupancy and offers the time-share for resale or rental.

''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.

''Forfeiture'', full termination of any and all rights at law or in equity of a time-share owner, and of the heirs, executors, administrators, successors or assigns of the time-share owner in or arising out of the ownership of a time-share estate or a time-share license, including all rights of redemption or any other rights to cure.

''Forfeiture proceedings'', shall include the process of terminating or foreclosing the rights of a time-share owner, or exercising the rights of a secured party, under a mortgage, trust deed or other security instrument which encumbers a time-share pursuant to section 29A, or the process of foreclosing a lien for assessments on a time-share pursuant to section 29 or section 29B, or both.

''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.

''Recorded'', recorded or filed in the registry of deeds or land registration office for the county or registry district wherein the property is located.

''Registry of deeds'', the registry of deeds or land registration office for the county or registry district wherein the property is located.

''Resale advertiser'', a person who offers, personally or through an agent, resale advertising services to consumer time-share resellers for compensation or valuable consideration, regardless of whether the offer is made in person, by mail, by telephone, through the internet or by any other medium of communication; provided, however, that ''resale advertiser'' shall not include: (i) a resale broker to the extent that resale advertising services are offered in connection with time-share resale brokerage services and no fee for the resale advertising service is collected in advance; (ii) a developer or managing entity to the extent that either offers resale advertising services to owners of time-shares in the developer's or managing entity's own time-share plans; or (iii) a newspaper, periodical or website owner, operator or publisher, unless the newspaper, periodical or website owner, operator or publisher derives more than 10 per cent of its gross revenue from providing resale advertising services; provided, however, that for purposes of this clause, the calculation of gross revenue derived from providing resale advertising services shall include revenue of any affiliate, parent, agent and subsidiary of the newspaper, periodical or website owner, operator or publisher, so long as the resulting percentage of gross revenue is not decreased by the inclusion of such affiliate, parent, subsidiary or agent in the calculation.

''Resale advertising service'', a good or service relating to, or a promise of assistance in connection with, advertising or promoting the resale or rental of a consumer resale time-share located or offered within the commonwealth, including an offer to advertise or promote the sale or purchase of any such interest.

''Resale broker'', a person or an agent or employee of a person who is licensed pursuant to section 87RR of chapter 112 and who offers or provides resale brokerage services to consumer time-share resellers for compensation or valuable consideration, regardless of whether the offer is made in person, by mail, by telephone, through the Internet or by any other medium of communication.

''Resale brokerage services'', with respect to a consumer resale time-share in a time-share property located or offered within the commonwealth, any activity that qualifies one as a real estate broker, as defined in section 87PP of chapter 112.

''Resale service provider'', any resale advertiser or other person or entity, including any agent or employee of such person or entity, who offers or uses telemarketing, direct mail, e-mail or any other means of communication in connection with the offering of resale brokerage or resale advertising services to consumer time-share resellers; provided, however, that ''resale service provider'' shall not include: (i) developers or managing entities to the extent they offer resale brokerage or resale advertising services to owners of time-shares in the developer's or managing entity's own time-share plans; (ii) resale brokers to the extent that resale advertising services are offered in connection with resale brokerage services and no fee for the advertising service is collected in advance; or (iii) a consumer time-share reseller who has made 5 or fewer time-shares available for rent or resale in the previous 12 months.

''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'', 1 or more documents, by whatever name denominated, creating or governing time-shares including, without limitation, a declaration or plan establishing a time-share regime, articles of organization and by-laws of a time-share association, rules and regulations, offering materials, sales documents, and instruments of conveyance or transfer.

''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 transfer services'', a good or service relating to an offer or agreement to transfer ownership of a consumer resale time-share or assistance with or a promise of assistance in connection with the transfer of ownership of a consumer resale time-share; provided, however, that ''time-share transfer services'' shall not include resale advertising services.

''Time-share transfer services agreement'', a contract or other agreement between a person offering time-share transfer services and a consumer time-share reseller, in which the person offering time-share transfer services agrees to provide the services as described in section 56.

''Time-share transfer services provider'', a person or entity, including an agent or employee of such person or entity, who offers or uses telemarketing, direct mail, e-mail or any other means of communication in connection with the offering of time-share transfer services to consumer time-share resellers; provided, however, that ''time-share transfer services provider'' shall not include developers or managing entities to the extent they offer time-share transfer services to owners of time-shares in the developer's or managing entity's own time-share plans.

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

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