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HB 2261 seeks to address deceptive practices in the timeshare transfer industry by requiring increased notice and disclosure from the transferer and transferee.
Increased disclosure under HB 2261 calls for more general information to be reported upon entry to the contract, names of those authorized to use the timeshare interest, and for payment of transfer service fees. Notice is required both transfer and termination services.
HB 2261 makes it a deceptive trade practice for failing to disclose required information, making false or misleading statements, and/or encouraging or inducing a timeshare owner to end payment of a contract before the completion of transfer or termination of a timeshare interest.
The bill exempts from its provisions a broker or salesperson licensed under
The Real Estate License Act acting as a broker, agent, or salesperson under that person's license
in connection with the transfer or termination of a timeshare interest; a developer, timeshare
interest association, or managing entity for a timeshare interest to be transferred or terminated;
and an attorney, title agent, title company, or escrow company that provides only closing,
settlement, or other specific transaction services in connection with the transfer or termination of
a timeshare interest and does not otherwise engage in the specified activities of a person to
whom the bill's provisions apply.