Texas Property Code 221.034 – Exempt Offerings and Dispositions; Communications
(a) An offering or disposition is exempt from this chapter if it is:
(1) a gratuitous offering or disposition of a timeshare interest;
(2) a disposition pursuant to a court order;
(3) a disposition by a governmental agency;
(4) a disposition by foreclosure or deed in lieu of foreclosure;
(5) an offering or disposition by an association of its own timeshare interest acquired through foreclosure, deed in lieu of foreclosure, or gratuitous transfer;
(6) an offering or disposition of all timeshare interests in a timeshare plan to not more than five persons;
(7) an offering or disposition of a timeshare interest in a timeshare property situated wholly outside this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;
(8) an offering or disposition of a timeshare interest to a purchaser who is not a resident of this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;
(9) the offering or redisposition of a timeshare interest by a purchaser who acquired the interest for the purchaser’s personal use; or
(10) the offering or disposition of a rental of an accommodation for a period of three years or less.
(b) If a developer has a timeshare plan registered under this chapter and is subject to § 221.024, the developer may offer or dispose of an interest in a timeshare plan that is not registered under this chapter to a person who is the owner of a timeshare interest in a timeshare plan created by the developer. A developer under this subsection is exempt from Sections 221.021, 221.022, 221.023, 221.032, 221.041, 221.042, 221.043, 221.061, 221.071(a)(1) and (8), 221.074, and 221.075 if the developer:
(1) permits the purchaser to cancel the purchase contract before the sixth day after the date the contract is signed; and
(2) provides the purchaser all timeshare disclosure documents required by law to be provided in the jurisdiction in which the timeshare property is located.
Terms Used In Texas Property Code 221.034
- Accommodation: means any apartment, condominium or cooperative unit, hotel or motel room, cabin, lodge, or other private or commercial structure that:
(A) is affixed to real property;
(B) is designed for occupancy or use by one or more individuals; and
(C) is part of a timeshare plan. See Texas Property Code 221.002 - Advertisement: means any written, oral, or electronic communication that is directed to or targeted at individuals in this state and contains a promotion, inducement, or offer to sell a timeshare interest, including a promotion, inducement, or offer to sell:
(A) contained in a brochure, pamphlet, or radio or television transcript;
(B) communicated by electronic media or telephone; or
(C) solicited through direct mail. See Texas Property Code 221.002 - Association: means a council or association composed of all persons who have purchased a timeshare interest. See Texas Property Code 221.002
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Developer: means :
(A) any person, excluding a sales agent, who creates a timeshare plan or is in the business of selling timeshare interests or employs a sales agent to sell timeshare interests; or
(B) any person who succeeds in the developer's interest by sale, lease, assignment, mortgage, or other transfer if the person:
(i) offers at least 12 timeshare interests in a particular timeshare plan; and
(ii) is in the business of selling timeshare interests or employs a sales agent to sell timeshare interests. See Texas Property Code 221.002 - disposition: means a voluntary transfer of any legal or equitable timeshare interest but does not include the transfer or release of a real estate lien or of a security interest. See Texas Property Code 221.002
- Exchange company: means any person who owns or operates an exchange program. See Texas Property Code 221.002
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- offer: means any advertisement, inducement, or solicitation and includes any attempt to encourage a person to purchase a timeshare interest other than as a security for an obligation. See Texas Property Code 221.002
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Promotion: means any program, activity, contest, or gift, prize, or other item of value used to induce any person to attend a timeshare sales presentation. See Texas Property Code 221.002
- Property: means real and personal property. See Texas Government Code 311.005
- Purchaser: means any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a timeshare interest other than as a security for an obligation. See Texas Property Code 221.002
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
- Timeshare disclosure statement: means a written statement that includes the information required by § 221. See Texas Property Code 221.002
- Timeshare interest: means a timeshare estate or timeshare use. See Texas Property Code 221.002
- Timeshare plan: means any arrangement, plan, scheme, or similar method, excluding an exchange program but including a membership agreement, sale, lease, deed, license, or right-to-use agreement, by which a purchaser, in exchange for consideration, receives an ownership right in or the right to use accommodations for a period of time less than a year during a given year, but not necessarily consecutive years. See Texas Property Code 221.002
- Timeshare property: means :
(A) one or more accommodations and any related amenities subject to the same timeshare instrument; and
(B) any other property or property rights appurtenant to the accommodations and amenities. See Texas Property Code 221.002 - Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The following communications are not advertisements under this chapter:
(1) any stockholder communication, including an annual report or interim financial report, proxy material, registration statement, securities prospectus, timeshare disclosure statement, or other material required to be delivered to a prospective purchaser by a state or federal governmental entity;
(2) any oral or written statement disseminated by a developer to broadcast or print media, excluding:
(A) paid advertising or promotional material relating to plans for acquiring or developing timeshare property; and
(B) the rebroadcast or other dissemination of any oral statements by a developer to a prospective purchaser or the distribution or other dissemination of written statements, including newspaper or magazine articles or press releases, by a developer to prospective purchasers;
(3) the offering of a timeshare interest in a national publication or by electronic media that is not directed to or targeted at any individual located in this state;
(4) any audio, written, or visual publication or material relating to the availability of any accommodations for transient rental if:
(A) a sales presentation is not a term or condition of the availability of the accommodations; and
(B) the failure of the transient renter to take a tour of the timeshare property or attend a sales presentation does not result in a reduction in the level of services or an increase in the rental price that would otherwise be available to the renter; or
(5) any follow-up communication with a person relating to a promotion if the person previously received an advertisement relating to the promotion that complied with § 221.031.
(d) The following communications are exempt from this chapter if they are delivered to a person who has previously executed a contract for the purchase of or is an owner of a timeshare interest in a timeshare plan:
(1) any communication addressed to and relating to the account of the person; or
(2) any audio, written, or visual publication or material relating to an exchange company or program if the person is a member of that exchange company or program.