Title 34
Property

Chapter 41
Rhode Island Real Estate Time-Share Act

Article I
General Provisions

R.I. Gen. Laws § 34-41-1.02

§ 34-41-1.02. Definitions.

In any time-share instrument, unless specifically provided otherwise or the context otherwise requires, and in this chapter:

(1) “Affiliate of a developer” means any person who controls, is controlled by, or is under common control with a developer. A person “controls” a developer if the person (i) is a general partner, officer, director, or employer of the developer, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent (20%) of the voting interest in the developer, (iii) controls in any manner the election of a majority of the directors of the developer, or (iv) has contributed more than twenty percent (20%) of the capital of the developer. A person “is controlled by” a developer if the developer (i) is a general partner, officer, director, or employer of the person, (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent (20%) of the voting interest in the person, (iii) controls in any manner the election of a majority of the directors of the person, or (iv) has contributed more than twenty percent (20%) of the capital of the person. Control does not exist if the powers described in this subdivision are held solely as security for an obligation and are not exercised.

(2) “Association” means the association organized under § 34-41-3.01(a).

(3) “Conversion building” means a building that at any time before the disposition of any time share was occupied wholly or partially by persons other than purchasers and persons who occupied with the consent of purchasers.

(4) “Developer” means any person who (i) offers to dispose of or disposes of his or her interest in a time share not previously disposed of, or (ii) succeeds under § 34-41-3.04 to any special developer right, or (iii) applies for registration of the time share under Article V of this chapter.

(5) “Dispose” or “disposition” means a voluntary transfer of any legal or equitable interest in a time share, but does not include the transfer or release of a security interest.

(6) “Manager” means any person, other than all time-share owners or the association, designated in or employed pursuant to the time-share instrument or project instrument to manage the time-share units.

(7) “Managing entity” means the manager or, if there is no manager, the association.

(8) “Offering” means any advertisement, inducement, solicitation, or attempt to encourage any person to acquire a time share, other than as security for an obligation. An advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of a time share in a unit not located in this state, is not an offering if the advertisement states that an offering may be made only in compliance with the law of the jurisdiction in which the unit or units are located; such offering shall contain the following language in bold-faced print “THIS IS NOT AN OFFERING PROTECTED BY THE RHODE ISLAND REAL ESTATE TIME-SHARE ACT;” provided, however, if the subject time-share property is registered pursuant to Article V of this chapter, such language need not be printed on the offering.

(9) “Person” means a natural person, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, joint venture, or other legal or commercial entity. (In the case of a land trust, however, “person” means the beneficiary of the trust rather than the trust or the trustee.)

(10) “Project” means real property, subject to a project instrument, containing more than one unit. A project may include units that are not time-share units.

(11) “Project instrument” means one or more recordable documents, by whatever name denominated, applying to the whole of a project and containing restrictions or covenants regulating the use, occupancy, or disposition of units in a project, including any amendments to the document but excluding any law, ordinance, or governmental regulation.

(12) “Purchaser” means any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a time share other than as security for an obligation.

(13) “Time share” means a time-share estate or a time-share license.

(14) “Time share estate” means a right to occupy a unit or any of several units during five (5) or more separated time periods over a period of at least five (5) years, including renewal options, coupled with a freehold estate or an estate for years in a time-share property or a specified portion thereof.

(15) “Time-share expenses” means expenditures, fees, charges, or liabilities (i) incurred with respect to the time shares by or on behalf of all time-share owners in one time-share property, and (ii) imposed on the time-share units by the entity governing a project of which the time-share property is a part, together with any allocations to reserves, but excluding purchase money payable for time shares.

(16) “Time-share instrument” means one or more documents, by whatever name denominated, creating or regulating time shares.

(17) “Time-share liability” means the liability for time-share expenses allocated to each time share pursuant to § 34-41-2.02(a)(4).

(18) “Time-share license” means a right to occupy a unit or any of several units during five (5) or more separated time periods over a period of at least five (5) years, including renewal options, not coupled with a freehold estate or an estate for years.

(19) “Time-share owner” means a person who is an owner or co-owner of a time share other than as security for an obligation.

(20) “Time-share property” means one or more time-share units subject to the same time-share instrument, together with any other real estate or rights therein appurtenant to those units.

(21) “Time-share unit” means a unit in which time shares exist.

(22) “Unit” means real property, or a portion thereof, designated for separate use.

(23) “Venue and jurisdiction” means that jurisdiction is conferred on the superior court and the general rules of venue are unaffected by this chapter.

History of Section.
P.L. 1984, ch. 141, § 2.