House Bill 1476

AN ACT TO CREATE NEW SECTION 75-24-103, MISSISSIPPI CODE OF 1972, TO REQUIRE A SELLER OF A TIMESHARE INTEREST TO PROVIDE TO PROSPECTIVE PURCHASERS WHO ARE RESIDENTS OF MISSISSIPPI A COPY OF THE PROSPECTUS/PUBLIC OFFERING STATEMENT (POS) NO LESS THAN 30 DAYS BEFORE A CLOSING ON A TIMESHARE INTEREST; TO REQUIRE A SELLER AND PURCHASER TO SIGN SEPARATE DOCUMENTS AT A CLOSING RELATING TO THE PURCHASER'S TIMELY RECEIPT OF THE POS, MAINTENANCE AND OTHER FEES THAT MAY BE ASSESSED AGAINST THE PURCHASER IN THE FUTURE, AND THE RESCISSION PROCESS; TO REQUIRE THE OFFICE OF CONSUMER PROTECTION IN THE ATTORNEY GENERAL'S OFFICE TO INVESTIGATE ALLEGED VIOLATIONS OF THIS ACT; TO DECLARE SALES CONTRACTS ENTERED INTO IN VIOLATION OF THIS ACT VOID AB INITIO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following shall be codified as Section 75-24-103, Mississippi Code of 1972:

75-24-103. (1) A seller, including a developer and its employees, agents or other authorized representatives, of a timeshare plan within or outside the State of Mississippi who sells or offers to sell to a resident of this state a timeshare interest must provide to the prospective purchaser an exact and complete copy of the Prospectus/Public Offering Statement (POS) contemporaneously with any promotional device or other invitation attempting to solicit a sale which is sent to the prospective purchaser, and in no event, less than thirty (30) days before the date on which the sales transaction of a timeshare interest occurs.

(2) During a closing transaction on the purchase of a timeshare interest by a resident of this state, in addition to the other documents that are part of the transaction, the following documents must be signed by both the seller or the seller's authorized agent and the purchaser and included in the purchaser's closing packet:

(a) A separate document providing the date on which the Prospectus/Public Offering Statement (POS) was provided to the purchaser and the date of the closing, which may not be less than thirty (30) days after the date on which the POS was provided to the purchaser;

(b) A separate document acknowledging that the seller or seller's agent, during the closing, has reviewed and highlighted language in the POS with the purchaser setting forth any maintenance fees or other charges of any type that may be assessed against the purchaser and the authority granted to the seller to increase those fees or charges after the date of sale; and

(c) A separate document providing, in plain and concise language, the rescission time period and instructions for rescission of the sales contract, including the latest date on which a sales contract may be rescinded, the process by which a purchaser may rescind a sales contract, and the address to which a written rescission, if required, must be sent by the purchaser.

(3) The Office of Consumer Protection in the Office of the Attorney General shall investigate alleged violations of this section. A violation of this section is considered an unfair or deceptive act in the conduct of trade or commerce, and a purchaser is entitled to all rights and remedies afforded under this chapter. Further, any sales contract entered into in violation of this section is considered void ab initio and unenforceable against the purchaser.

SECTION 2. This act shall take effect and be in force from and after July 1, 2019.