It is a violation of this chapter for any sales agent or acquisition agent of time share units or plans to:
(1) Fail to comply with the disclosure requirements set forth in § 514E-9 or any rule adopted pursuant thereto;
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Terms Used In Hawaii Revised Statutes 514E-11
Acquisition agent: means any person, other than a developer or sales agent, who, for compensation, solicits or encourages others to attend a time share sales presentation or to contact a time share sales agent or developer; provided that this term shall not include individuals who perform the stated activities and are employed by or in contract with:
(1) A real estate broker who is licensed under chapter 467; or
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
Person: includes an individual, partnership, joint venture, corporation, association, business, trust, or any organized group of persons or legal entities, or any combination thereof. See Hawaii Revised Statutes 514E-1
Project: means :
(1) An individual condominium project;
(2) Two or more contiguous condominium projects that have been merged and for administrative purposes operate as a single condominium project;
(3) An individual cooperative housing project;
(4) An individual subdivision of single-family homes subject to one or more project instruments; or
(5) An individual subdivision of townhomes subject to one or more project instruments. See Hawaii Revised Statutes 514E-1
Sales agent: means a person who sells or offers to sell for compensation a time share interest in a time share plan, except a person who acquired a time share interest for the person's own occupancy and later offers it for resale. See Hawaii Revised Statutes 514E-1
Time share interest: means any interest in a time share unit or plan which entitles the owner or holder thereof to the use, occupancy or possession of a time share unit on a periodically recurring basis. See Hawaii Revised Statutes 514E-1
Time share plan: means any plan or program in which the use, occupancy, or possession of one or more time share units circulates among various persons for less than a sixty-day period in any year, for any occupant. See Hawaii Revised Statutes 514E-1
Time share unit: means the actual and promised accommodations, and related facilities, which are the subject of a time share plan. See Hawaii Revised Statutes 514E-1
(2) Use any promotional device, including but not limited to entertainment, prizes, gifts, food and drinks, games, transportation, luaus, ocean recreational activities, land recreational activities, aerial recreational activities, or tours, or other inducements, or make any offer thereof, without fully disclosing orally and as provided in paragraph (3) that the device is being used or offered for the purpose of soliciting sales of time share units or interests;(3) Offer a prospective purchaser a prize or gift as part of any time share advertising or sales promotion plan, if in order to claim the prize, the prospective purchaser must attend and complete a sales presentation, unless written disclosure is furnished to the prospective purchaser at the time the prospective purchaser is notified of the prize or gift; provided that the written disclosure is written or printed in a size equal to at least ten-point bold type and contains all of the following:
(A) A full description of the exact prize or gift won by the prospective purchaser including its cash value;(B) All material terms and conditions attached to the prize or gift;(C) A statement that the consumer must attend and complete a sales presentation; and(D) An identification of the time share project to be offered for sale, including type of ownership and price ranges of the time share interests in that project;(4) Misrepresent or deceptively represent any material fact concerning the time share plan or time share unit;(5) Make any representation that a time share interest is an investment, including but not limited to the value of the interest at resale;(6) Fail to honor and comply with all provisions of a contract or reservation agreement with the purchaser;(7) Include, in any contract or reservation agreement, provisions purporting to waive any right or benefit provided for purchasers pursuant to this chapter;(8) Receive from any prospective purchaser any money, property (including but not limited to a credit card), or other valuable consideration prior to signing a contract or reservation agreement for the purchase of a time share plan or unit; provided that this paragraph shall not apply to sums paid by a purchaser or prospective purchaser for a tourist activity or for any other product or service offered to induce attendance at a time share sales presentation;(9) Make any agreement or contract with a purchaser before delivering, furnishing, or tendering to that prospective purchaser any promised promotional device or other instrument; provided that nothing herein or in the rules adopted by the director shall require that any promotional device or instrument be delivered, furnished, or tendered to the prospective purchaser prior to making a sales presentation;(10) Distribute any promotional or disclosure material separately if the material was filed in a consolidated form;(11) Use any unregistered time share booth, or fail to display at all times a conspicuous, clear, and unobstructed sign of a permanent nature:
(A) That contains the words “time share” or “time sharing” in letters at least three inches tall and in a color that distinctively contrasts with the background on which the words appear;(B) With minimum dimensions of nine inches by twenty-four inches, excluding any frame;(C) Posted on or in the booth in an upright position, perpendicular to the ground, and in a location that is easily visible to passersby; and(D) Consistent with such rules as the director may adopt pursuant to this chapter and consistent also with county ordinances.
No person shall post anything upon or adjacent to the sign, or include anything in the sign, which indicates that the booth is not being used for time share solicitation purposes. As used in this paragraph, “sign of a permanent nature” specifically excludes banners, grease boards, marker boards, handwritten signs, or signs constructed of temporary materials such as paper, poster board, or cardboard. The signage requirements of this paragraph shall not apply to a booth located within a project subject to a time share plan;
(12) Misrepresent the amount of fees to be charged, including management fees, or the structure for future fee increase; or(13) Sell, offer for sale, or advertise for sale, by any person, partnership, firm, corporation, joint stock company, or other association engaged in marketing time share plans within the State, any tourist activity, including but not limited to land, aerial, or water recreational activities, at less than the actual cost of the activity paid for by the licensee thereof to such vendor or give, offer to give, or advertise with the intent to give away any such tourist activity with the purpose or effect of inducing the prospective purchaser to purchase a time share plan or to attend a time share marketing event.
Any violation of this section shall also constitute an unlawful or deceptive practice within the meaning of section 480-2; provided that in addition violations of § 514E-31 or of paragraph (11) shall result in a fine of not less than $50 for each separate offense for a maximum aggregate amount of $500.
