Arizona Laws 32-2197.19. Civil liabilities; prohibitions; limitations
A. If any part of the notice of intention filed pursuant to Section 32-2197.02 contains an untrue statement of a material fact or omits a material fact required to be stated in such notice, the developer or agent is liable as provided in this section to any person who acquires a timeshare interest in the timeshare plan covered by the notice of intention during the period the notice of intention remained uncorrected, unless it is proved that at the time of such acquisition the person acquiring the timeshare interest knew of such untruth or omission.
Terms Used In Arizona Laws 32-2197.19
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Developer: means either of the following:
(a) Any person, corporation, partnership, limited liability company, trust or other entity, other than a sales agent, that creates a timeshare plan or is in the business of selling timeshare interests or employs sales agents to sell timeshare interests. See Arizona Laws 32-2197
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Fraud: Intentional deception resulting in injury to another.
- lease: includes every disposition, transfer, option or offer or attempt to dispose of or transfer real property, or an interest, use or estate in the real property, including offering the property as a prize or gift if a monetary charge or consideration for whatever purpose is required. See Arizona Laws 32-2101
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- leasing: includes any lease, whether it is the sole, the principal or any incidental part of a transaction. See Arizona Laws 32-2101
- offering: means any marketing, promotion, solicitation or advertising of any kind that is intended to interest prospective customers in the sale, lease or use of a timeshare interest in a timeshare plan, other than as security for an obligation, whether now or in the future. See Arizona Laws 32-2197
- Person: means a natural person, corporation, limited liability company, partnership, joint venture, association, estate, trust, federal or state government, political subdivision or other legal entity or any combination of these entities. See Arizona Laws 32-2197
- Property: includes both real and personal property. See Arizona Laws 1-215
- Purchaser: means any person, other than a developer, who, by means of a voluntary transfer, acquires a legal or equitable interest in a timeshare plan other than a security for an obligation. See Arizona Laws 32-2197
- Timeshare interest: includes either a timeshare estate or a timeshare use. See Arizona Laws 32-2197
- Timeshare plan: means any arrangement, plan or similar device, other than an exchange program, whether by membership agreement, sale, lease, deed, license or right-to-use agreement or by any other means, in which a purchaser, in exchange for consideration, receives ownership rights in or the right to use accommodations for a period of time less than a full year during any given year, but not necessarily for consecutive years. See Arizona Laws 32-2197
B. A developer or agent who sells or leases a timeshare interest in a timeshare plan in violation of Section 32-2197.09 or by means of a public report which contains an untrue statement of a material fact, or omits a material fact required to be stated in such report, is liable to the purchaser of such timeshare interest as provided in this section.
C. No developer or agent shall, in selling or leasing, or offering to sell or lease, any timeshare interest in a timeshare plan:
1. Employ any device, scheme or artifice to defraud.
2. Obtain money or property by means of a material misrepresentation with respect to any information included in the notice of intention or the public report or with respect to any other information pertinent to the timeshare interest or timeshare plan and upon which the purchaser relies.
3. Engage in any transaction, practice or course of business which operates or would operate as a fraud or deceit upon a purchaser.
D. Damages in any suit brought pursuant to this section are the difference between the amount paid for the timeshare interest, together with the reasonable cost of improvements to such timeshare interest, and whichever of the following amount is less:
1. The value of the timeshare interest and improvements as of the time such suit was brought.
2. The price at which the timeshare interest was disposed of in a bona fide market transaction prior to the suit.
3. The price at which the timeshare interest was disposed of in a bona fide market transaction after suit was brought, but prior to judgment.
E. In any action in which a violation of this section is established, the purchaser is also entitled to recover reasonable attorney fees as determined by the court. If a violation is not established, the court may award reasonable attorney fees to the defendant.
F. Every person who becomes liable to make any payment pursuant to this section may recover contribution as in cases of contract from any person who, if sued separately, would have been liable to make the same payment.
G. The amount recoverable pursuant to this section shall not exceed the sum of the purchase price of the timeshare interest, the reasonable cost of improvements installed by the purchaser and reasonable court costs and attorney fees.
H. This section does not preclude any other remedies that may exist at law or in equity.
I. An action shall not be maintained to enforce any liability created pursuant to subsection A or B of this section unless brought within one year after the discovery of the untrue statement or the omission, or after such discovery should have been made by the exercise of reasonable diligence. An action shall not be maintained to enforce any liability created pursuant to subsection C of this section unless brought within two years after the violation upon which it is based. Any such action under subsection C of this section shall not be brought by a purchaser more than three years after the sale or lease to such purchaser.