Legal Disclosures and New State Statutes (721.20)
International Timeshare Network and all of its subsidiary websites and properties (to be abbreviated with "ITN") is a For Sale/Rent by owner timeshare marketing company that is not a real estate broker. Our unique marketing program involves proprietary methods designed to maximize exposure to potential buyers/renters of your vacation property. ITN is not involved in any negotiation for sale/rent, closing or procuring of buyers; and ITN forwards all inquiries about your vacation property directly to you and allows you to negotiate the sale/rental of your vacation property without the involvement of any broker and without any commission.
Section 721.11(4) states certain obligations of developers regarding representations to potential purchasers. They are as follows: No advertising or oral statement made by any seller or resale service provider shall: (a) Misrepresent a fact or create a false or misleading impression regarding the timeshare plan or promotion thereof. (b) Make a prediction of specific or immediate increases in the price or value of timeshare interests. (c) Contain a statement concerning future price increases by a seller which are nonspecific or not bona fide. (d) Contain any asterisk or other reference symbol as a means of contradicting or substantially changing any previously made statement or as a means of obscuring a material fact. (e) Describe any facility that is not required to be built or that is uncompleted unless the improvement is conspicuously labeled as "NEED NOT BE BUILT," "PROPOSED," or "UNDER CONSTRUCTION." If the facility is labeled "NEED NOT BE BUILT" or "PROPOSED," the seller may indicate the estimated date that such facility will be made part of the timeshare plan. If the facility is labeled "UNDER CONSTRUCTION," the estimated date of completion must be included. (f) Misrepresent the size, nature, extent, qualities, or characteristics of the offered accommodations or facilities. (g) Misrepresent the amount or period of time during which the accommodations or facilities will be available to any purchaser. (h) Misrepresent the nature or extent of any incidental benefit. (i) Make any misleading or deceptive representation with respect to the contents of the public offering statement and the contract or the rights, privileges, benefits, or obligations of the purchaser under the contract or this chapter. (j) Misrepresent the conditions under which a purchaser may exchange the right to use accommodations or facilities in one location for the right to use accommodations or facilities in another location. (k) Misrepresent the availability of a resale or rental program or resale or rental opportunity. (l) Contain an offer or inducement to purchase which purports to be limited as to quantity or restricted as to time unless the numerical quantity or time limit applicable to the offer or inducement is clearly stated. (m) Imply that a facility is available for the exclusive use of purchasers if the facility will actually be shared by others or by the general public. (n) Purport to have resulted from a referral unless the name of the person making the referral can be produced upon demand of the division. (o) Misrepresent the source of the advertising or statement by leading a prospective purchaser to believe that the advertising material is mailed by a governmental or official agency, credit bureau, bank, or attorney, if that is not the case. (p) Misrepresent the value of any prize, gift, or other item to be awarded in connection with any prize and gift promotional offer, as described in s. 721.111, or any incidental benefit. (q) Misrepresent or falsely imply that the resale service provider is affiliated with, or obtained personal contact information from, a developer, managing entity, or exchange company.
Nevertheless, Section 721.20(9)(a) was recently passed. It states as follows: "Prior to listing or advertising a timeshare interest for resale, a resale service provider shall provide to the timeshare interest owner a description of any fees or costs relating to the advertising, listing, or sale of the timeshare interest that the timeshare interest owner, or any other person, must pay to the resale service provider or any third party, when such fees or costs are due, and the ratio or percentage of the number of listings of timeshare interests for sale versus the number of timeshare interests sold by the resale service provider for each of the previous 2 calendar years." This Statute is ambiguous and unfair for many reasons. First, most of our transactions in this economy have been rentals. The statutory language does not mention disclosure of rental statistics. We believe that rentals are a prelude to purchases. The saying that we have is "try before you buy". The failure to address rentals seriously diminishes the value of the required "statistics" Further, the statute requires statistics for the prior 2 year period. As previously stated, owners do not call us before they sell their timeshare due to our program. Thus, it is impossible for us to know the number of timeshares that were sold through our program.
Also, we may lose contact with an owner after they advertise with us. If our program results in the rental of the owner’s timeshare property and they move their home and change their telephone number, we may lose contact with the owner. Nevertheless, they may have sold their timeshare as a result of our program and we would not be aware of this fact. Further, the Statute imposes a retroactive recordkeeping requirement during period when ITN did not keep the required records. Nevertheless, ITN is required to disclose a statistic for periods when it did not even keep any records of sales and rentals. Finally, although the Statute states that it is effective on July 1, 2009, it does not state if the recordkeeping requirement extends retroactively or not. We have assumed that it does for purposes of this disclosure, but we cannot be certain of this conclusion. If the effective date if the Statue is July 1, 2009, then how can the recordkeeping requirement be retroactive to before this date? As a result of the foregoing, we are truly unable to provide the statistics required by law with any degree of certainty and believe that the statistics that we provide will have no value for our advertisers. Thus, we have determined that for purposes of Section 721.20(9)(2) of the Florida Statutes, that our sale percentage for the prior 2 year period is less than 1/10th of 1%. We strongly feel that this statistic is grossly irrelevant. However, the ramifications of providing any other statistic is so difficult and time-consuming that we must use this statistic for purposes of this Statute. The foregoing statistic is being provided to you in advance of your advertisement by internet and will be mailed to every owner when they agree to advertise with us.
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