Utah Code 57-19-11. Disclosure required

(1)

Except as provided in Section 57-19-26, any person who sells or offers to sell an interest in a development located in this state, or who sells or offers to sell in this state an interest in a development located outside of this state, shall provide to a prospective purchaser, before the prospective purchaser signs an agreement to purchase an interest in the development or gives any item of value for the purchase of an interest in the development, a written statement that provides a full and fair disclosure of information regarding the development and the purchaser’s rights and obligations associated with the purchase of an interest in the development.

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Terms Used In Utah Code 57-19-11

Camp resort: means an enterprise that has as its primary purpose the offering of a camp resort interest. See Utah Code 57-19-2
Developer: means a person that:

(a)	establishes, owns, offers, sells, or operates a timeshare development or camp resort; or

(b)

engages one or more other persons to establish, own, offer, sell, or operate a timeshare development or camp resort on the person's behalf. See Utah Code 57-19-2

Development: includes :

(i)	a single-site development; or

(ii)

a multiple-site development. See Utah Code 57-19-2

Director: means the director of the division. See Utah Code 57-19-2

Division: means the Division of Real Estate of the Department of Commerce. See Utah Code 57-19-2

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}

Fraud: Intentional deception resulting in injury to another.

Interest: includes a membership agreement, sale, lease, deed, license, or right-to-use agreement. See Utah Code 57-19-2

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 a solicitation solely intended to result in a person purchasing an interest in a development. See Utah Code 57-19-2

Person: means :Utah Code 68-3-12.5

Property report: means the form of a written disclosure described in Section 57-19-11. See Utah Code 57-19-2

Purchaser: means a person who purchases an interest in a development. See Utah Code 57-19-2

real estate: means any right, title, estate, or interest in land, including all nonextracted minerals located in, on, or under the land, all buildings, fixtures and improvements on the land, and all water rights, rights-of-way, easements, rents, issues, profits, income, tenements, hereditaments, possessory rights, claims, including mining claims, privileges, and appurtenances belonging to, used, or enjoyed with the land or any part of the land. See Utah Code 57-1-1

sell: means selling an interest in a development for value. See Utah Code 57-19-2

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(2)

The written disclosure described in Subsection (1):

(a)	may include electronic files; and

(b)

shall:

(i)	be on the property report form required by the division; and

(ii)

include:

(A)	the name and address of the developer;

(B)	a statement regarding whether the developer has ever been convicted of a felony or any misdemeanor involving theft, fraud, or dishonesty, or enjoined from, assessed any civil penalty for, or found to have engaged in the violation of any law designed to protect consumers;

(C)	a brief description of the developer’s experience in timeshare, camp resort, or any other real estate development;

(D)	a brief description of the interest that is being offered in the development;

(E)	a description of any provisions to protect the purchaser’s interest from loss due to foreclosure on any underlying financial obligation of the development;

(F)	a statement that the development will not issue more interests during a 12-month period than the development can accommodate during the 12-month period;

(G)	any event that has occurred since the date of the offer that may have a material adverse effect on the operation of the development; and

(H)	any other information the director considers necessary for the protection of purchasers.

Amended by Chapter 255, 2016 General Session

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