Texas Property Code 221.110 – Deceptive Trade Practices
Terms Used In Texas Property Code 221.110
- 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.
- 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 - Managing entity: means the person responsible for operating and maintaining a timeshare property. See Texas Property Code 221.002
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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
- Timeshare interest: means a timeshare estate or timeshare use. See Texas Property Code 221.002
A person subject to this subchapter commits a false, misleading, or deceptive act or practice within the meaning of Sections 17.46(a) and (b), Business & Commerce Code, by engaging in any of the following acts:
(1) failing to disclose information as required by this subchapter;
(2) making false or misleading statements concerning:
(A) the existence of an offer related to the purchase or rent of a timeshare interest;
(B) the likelihood of the completion or the time necessary to complete any sale, rental, transfer, or termination of a timeshare interest;
(C) the value of a timeshare interest;
(D) the current or future costs, including assessments, maintenance fees, or taxes, of owning a timeshare interest;
(E) the method by which or source from which a timeshare interest owner’s name, address, telephone number, or other contact information was obtained;
(F) the identity of the person providing services to facilitate the transfer or termination of a timeshare interest or any affiliate, agent, or third-party representative of that person;
(G) the terms and conditions under which services to facilitate a transfer or termination of a timeshare interest are offered;
(H) the willingness of a developer, association, or managing entity to:
(i) agree to the transfer or termination of a timeshare interest; or
(ii) execute instruments necessary to transfer or terminate the timeshare interest; or
(I) the manner in which consideration or reimbursements paid by a timeshare interest owner will be used or applied;
(3) encouraging or inducing a timeshare interest owner to stop paying the developer, the association, or the managing entity in violation of a contract with or any other legally enforceable obligation to the developer, the association, or the managing entity before the completion of a transfer or termination; or
(4) receiving or collecting consideration for or reimbursement related to the facilitation of the transfer of a timeshare interest before the timeshare interest owner receives the documents described by Sections 221.105(1) and (2).