TIMESHARE FACTS:
FREQUENTLY ASKED QUESTIONS
What is a Timeshare?
A timeshare (also called vacation
ownership) is a unique kind of real-estate purchase. Instead of one person purchasing an entire
property, a group of people pay a share of the price for joint ownership. Under this agreement each owner gets to use the property for a certain period of time
every year.
What are the benefits of owning a Timeshare?
It offers persons the opportunity to enjoy luxury vacations
around the world at prices they can afford.
Why is Timeshare important to Jamaica?
Research shows that Timeshare is
one of the fastest growing sectors of global tourism and a significant driver
of business. It will enhance as well as
add a lucrative dimension to our tourism product.
What is the
Timeshare Vacations Act 2014?
The Act regulates the timeshare industry in
Jamaica. It provides for the
licensing of agents of proprietors of timeshare plans; the registering of the
timeshare plans under which the accommodation is offered; and standardizing of
information to be provided to purchasers before they enter into any timeshare
contract.
What types of accommodation are covered under the
Act?
The Act includes not only buildings or premises designed for overnight use but
also land for a campsite and any caravan, vehicle, boat, ship designed for
occupancy by one or more individuals for at least one night.
Who will
regulate time share vacations in Jamaica?
The Real Estate Board has been nominated as Regulator or the
Registrar of timeshare vacations in Jamaica and is responsible for determining all applications for
such licences, monitoring compliance with the provisions of the Act, and
providing the necessary regulatory guidance.
What are the
licensing requirements for timeshare agents?
Companies and individuals must be
registered and be in good standing under the Companies Act; qualified according to the prescribed requirements
of promoting timeshare accommodation; and who meet fit and proper standards to obtain the license by the Timeshare Registrar (Real Estate Board
of Jamaica).
How long is the
license for timeshare agents valid?
A license is valid for one year from the date of issue and is
renewable annually.
How is a
timeshare plan registered?
Applications with all required documents and fees must be
submitted to the Real Estate Board by the owner. Once an application is granted the Real Estate
Board issues a registration certificate to the property owner.
Once a certificate has been issued the owner must submit the following
to the Timeshare registrar to prevent
certification from becoming void:
·
Certificate of
Completion of Construction (which is issued by the parish council).
·
Certificate of
Occupancy indicating that the accommodation meets the standards and are ready for
use as timeshare accommodation or facility.
·
Proof that
arrangements have been put in place for public liability insurance.
·
Tourist Board
Act License.
Does registering
your property as a timeshare accommodation under the Act qualify the property
for registration exemption elsewhere?
Yes. A proprietor who develops property solely for use as
timeshare accommodation is exempt from any requirements for registration under
the Real Estate (Dealers and Developers) Act.
Can marketing
for reservations begin before the timeshare plan is registered?
Yes, it is
possible with the permission of the Real Estate Board to market for
reservations prior to registration. Before licensed proprietors can promote
timeshare contracts, however, they must also register what is called a
Timeshare Plan in accordance with the provisions set out in the Act.
The application for registration of a Timeshare
Plan should include:
·
Address and description
of the timeshare accommodation
·
Particulars of
the property owner
·
Evidence of the
licence
·
Evidence of
financial requirements prescribed by the Act
·
A copy of the
timeshare contract
·
Evidence that
the relevant property taxes have been paid.
What is
considered an offence in timeshare promotions?
Falsely advertising a timeshare plan with respect to the following
is considered an offence:
·
Location of
timeshare
·
Nature or scope
of accommodation, services or facilities.
·
Prediction of
increase in property value
·
Time in which
timeshare service or facility will be provided.
·
Business as
timeshare accommodation that isn’t registered, is suspended or in breach of the
Timeshare Vacations Act.
What should the
purchaser be given by the proprietor before executing a timeshare contract?
The property owner must provide the purchaser with
a written statement outlining all the relevant information relating to the
timeshare contract. Once this is
done, the contract may be issued (within thirty days) but must be accompanied
by the standard withdrawal form and a copy of each document issued to the
purchaser during the promotion and offering of the timeshare
accommodation. The purchaser will then
be required to complete and return a notice of acknowledgement within seven
days.
Can a purchaser
withdraw from a timeshare contract?
Yes. The purchaser may withdraw from the timeshare
contract by giving the property owner written notice of the withdrawal within a
specified period (seven days from the day the
purchaser receives the contract). If the request is made during the withdrawal period the purchaser
will be entitled to a full refund within twenty-one days after a written withdrawal
is issued. No reason needs to be given for the withdrawal.
How does the purchaser receive a deed after he/she receives
certification?
Once the purchaser receives certification, the
proprietor may apply for a deed to be issued to the purchaser at the Registrar
of Titles. The application should
include the duplicate
certificate of title with the endorsement, the registration certificate, the
executed timeshare contract with the purchaser, together with the prescribed
fee.
What is the purchaser entitled to once he/she
has a deed to the timeshare accommodation/property?
The purchaser of a time share plan may assign and transfer those
rights and obligations by an assignment or transfer of deeds or even create a
mortgage, charge or security interest arising under the timeshare contract.
Can the mortgage be transferred to the purchaser?
Yes.
Written permission must first be given to the mortgager by the Real
Estate Board before the transfer can be entered in the Register Book of Titles.
The Real Estate Board will ensure that all parties have given written consent.
What is an
Escrow Account?
Before promoting or offering any
timeshare accommodation the proprietor must establish and maintain an escrow
account with an approved escrow agent. This includes: a reputable bank,
financial institution or a partnership of attorneys-at-law designated by the
Minister responsible for lands.
What is the
Purchasers Association?
The purchasers of accommodation in a timeshare plan become the
Purchasers Association for that plan. This association contributes to the
capital reserve fund which is designed for the maintenance of the buildings,
furniture and equipment.
What rights does
a proprietor have in the Purchasers Association?
A proprietor may have the
entitlements and obligations of a purchaser in respect to each unit including,
voting rights in the purchasers association as well as liability to the capital
reserve fund where their timeshare plan includes units of accommodation ,the
rights to occupation of which are not held by any purchaser.
Who is the
Management Agent?
A management agent (MA) is appointed in respect of each registered
timeshare plan. This MA has to be either a licensed real estate dealer under
the Real Estate (Dealers and Developers) Act or the Purchasers
Association. This decision is determined
by the holder of the majority of the voting rights in the purchasers
association . The MA must maintain an up-to-date list of each proprietor (and
their respective addresses) which is to be submitted to the Timeshare Registrar
upon request.
Are the rights
and powers of the purchaser of a timeshare plan transferable?
Yes. The purchaser of a timeshare plan may assign and transfer those
rights and obligations acquired by virtue of the timeshare contract by an
assignment and transfer of deeds or even create a mortgage, charge or security
interest arising under the timeshare contract.
What are the
rights of the purchaser should the proprietor become insolvent?
In the case of insolvency of the proprietor no legal claim can be
made regarding the right to occupy the timeshare accommodation affected,
without the purchaser’s consent.
Who can be
denied access of a timeshare accommodation?
The proprietor or management agent can deny the following persons
the right to make reservations:
a) A purchaser who has not paid all fees stipulated in the timeshare
contract.
b) A third party making claims on the purchaser’s behalf.
c) A third party who wants to exchange or use a timeshare
accommodation/facility with the purchaser.
Who is authorized to inspect timeshare properties and/or records?
Authorized officers include the Timeshare
Registrar, parish council representative, Ministry of Health Representative,
Jamaica Fire Brigade officer and Ministry of Tourism Representative. These individuals, who should always have a
valid ID, will conduct checks periodically but are required to give prior notice
of 48-hours.
What is the role of the proprietor, purchasers association and/or
management agent on the day of the inspection?
On the date of inspection, the proprietor,
purchasers association and/or management agent may be required to produce any
books, documents or any other information relating to the timeshare plan for
inspection. If it is found that there
was a misappropriation of the capital reserve fund or any other money/property
of the timeshare plan, this has a maximum penalty of a year in prison.
If a breach is found during the inspection, what enforcement
follows?
If there are any breaches, the Real Estate
Board will outline the corrective actions that must take place within a
specified time by the proprietor and purchasers association. The proprietor and purchasers association will
also be given an opportunity to be heard on the matter but the Board reserves
the right to suspend the registration of the timeshare plan. Suspension may be
lifted once the breaches have been remedied and an application for restoration
of the registration is carried out.