(765 ILCS 101/Art. 1 heading)
Article 1.
General Provisions
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(765 ILCS 101/1-1)
Sec. 1-1.
Short title.
This Act may be cited as the Real Estate Timeshare Act of 1999.
(Source: P.A. 91-585, eff. 1-1-00.)
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(765 ILCS 101/1-5)
Sec. 1-5.
Intent.
The intent of the General Assembly in enacting this
Act is
to regulate the business of timeshare plans, exchange programs, and resale
agents for the
protection of the public.
(Source: P.A. 91-585, eff. 1-1-00.)
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(765 ILCS 101/1-10)
Sec. 1-10. Scope of Act.
(a) This Act applies to all of the following:
(1) Timeshare plans with an accommodation or
| | component site in Illinois.
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(2) Timeshare plans without an accommodation or
| | component site in Illinois, if those timeshare plans are sold or offered to be sold to any individual located within Illinois.
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(3) Exchange programs as defined in this Act.
(4) Resale agents as defined in this Act.
(b) Exemptions. This Act does not apply to the following:
(1) Timeshare plans, whether or not an accommodation
| | is located in Illinois, consisting of 7 or fewer timeshare periods, the use of which extends over any period of less than 3 years; or
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(2) Timeshare plans, whether or not an accommodation
| | is located in Illinois, under which the prospective purchaser's total financial obligation will be less than $1,500 during the entire term of the timeshare plan.
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(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/1-15)
Sec. 1-15. Definitions. In this Act, unless the context otherwise
requires:
"Accommodation" means any apartment, condominium or cooperative unit,
cabin, lodge, hotel or motel room, or other private or commercial structure
containing
toilet facilities therein that is designed and available, pursuant to
applicable law, for use
and occupancy as a residence by one or more individuals, or any unit or berth
on a
commercial cruise line ship, which is included in the offering of a timeshare
plan.
"Acquisition agent" means a person who, directly or through the person's
employees,
agents, or independent contractors, induces or attempts to induce by means of a
promotion or an advertisement any
individual located
within the State of Illinois to attend a sales presentation for a timeshare
plan.
"Advertisement" means any written, oral, or electronic communication that is
directed to or targeted to persons within the State of Illinois and contains a
promotion,
inducement, or offer to sell a timeshare plan, including but not limited to
brochures,
pamphlets, radio and television scripts, electronic media, telephone and
direct mail
solicitations, and other means of promotion.
"Association" means the organized body consisting of the purchasers of
interests
in a timeshare plan.
"Assessment" means the share of funds required for the payment of common
expenses which is assessed from time to time against each purchaser by the
managing
entity.
"Component site" means a specific geographic location where accommodations
which are part of a multi-site timeshare plan are located. Separate phases of
a
single
timeshare property in a specific geographic location and under common
management
shall be deemed a single component site.
"Department" means the Department of Financial and Professional Regulation.
"Developer" means and includes any person or entity, other than a sales
agent,
acquisition agent, or resale agent, who creates a timeshare plan or is in the
business of
selling timeshare interests, or employs agents to do the same, or any person or
entity who
succeeds to the interest of a developer by sale, lease, assignment, mortgage,
or other
transfer, but the term includes only those persons who offer timeshare
interests for
disposition in the ordinary course of business.
"Dispose" or "disposition" means a voluntary transfer or assignment of any
legal
or equitable interest in a timeshare plan, other than the transfer, assignment,
or release of
a security interest.
"Exchange company" means any person owning or operating, or both owning and
operating, an exchange program.
"Exchange program" means any method, arrangement, or procedure for the
voluntary exchange of timeshare interests or other property interests. The
term does not
include the assignment of the right to use and occupy accommodations to
owners of
timeshare interests within a single-site timeshare plan. Any method,
arrangement, or
procedure that otherwise meets this definition, wherein the purchaser's total
contractual
financial obligation exceeds $3,000 per any individual, recurring timeshare
period, shall
be regulated as a timeshare plan in accordance with this Act.
"Managing entity" means the person who undertakes the duties,
responsibilities,
and obligations of the management of a timeshare plan.
"Managing entity lien" means a lien created pursuant to Section 10-45.
"Offer" means any inducement, solicitation, or other attempt, whether by
marketing, advertisement, oral or written presentation, or any other means, to
encourage a
person to acquire a timeshare interest in a timeshare plan, other than as
security for an
obligation.
"Person" means a natural person, corporation, limited liability company,
partnership, joint venture, association, estate, trust, government,
governmental
subdivision or agency, or other legal entity, or any combination thereof.
"Promotion" means a plan or device, including one involving the possibility
of a
prospective purchaser receiving a vacation, discount vacation, gift, or prize,
used by a
developer, or an agent, independent contractor, or employee of any of the same
on behalf
of the developer, in connection with the offering and sale of timeshare
interests in a
timeshare plan.
"Purchaser" means any person, other than a developer, who by means of a
voluntary transfer acquires a legal or equitable interest in a timeshare plan
other than as
security for an obligation.
"Purchase contract" means a document pursuant to which a person becomes
legally obligated to sell, and a purchaser becomes legally obligated to buy, a
timeshare
interest.
"Resale agent" means a person who, for another and for compensation, or with the intention or expectation of receiving compensation, either directly or indirectly sells, offers to sell, or advertises to sell within this State any timeshare interest previously sold to a purchaser or solicits within this State any owner of a timeshare interest to list the owner's timeshare interest, wherever located, for sale.
"Reservation system" means the method, arrangement, or procedure by which a
purchaser, in order to reserve the use or occupancy of any accommodation of a
multi-site
timeshare plan for one or more timeshare periods, is required to compete with
other
purchasers in the same multi-site timeshare plan, regardless of whether the
reservation
system is operated and maintained by the multi-site timeshare plan managing
entity, an
exchange company, or any other person. In the event that a purchaser is
required to use
an exchange program as the purchaser's principal means of obtaining the right
to use and
occupy accommodations, that arrangement shall be deemed a reservation system.
When
an exchange company utilizes a mechanism for the exchange of use of timeshare
periods
among members of an exchange program, that utilization is not a reservation
system of a
multi-site timeshare plan.
"Sales agent" means a person, other than a resale agent, who, directly or
through the person's employees,
agents,
or
independent contractors, sells or offers to sell timeshare interests in a
timeshare plan to
any individual located in the State of Illinois.
"Timeshare instrument" means one or more documents, by whatever name
denominated, creating or governing the operation of a timeshare plan.
"Secretary" means the Secretary of the Department of Financial and Professional Regulation, or a natural person authorized by the Secretary, the Department of Financial and Professional Regulation, or this Act to act in the Secretary's stead.
"Timeshare interest" means and includes either:
(1) a "timeshare estate", which is the right to
| | occupy a timeshare property, coupled with a freehold estate or an estate for years with a future interest in a timeshare property or a specified portion thereof; or
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(2) a "timeshare use", which is the right to occupy
| | a timeshare property, which right is neither coupled with a freehold interest, nor coupled with an estate for years with a future interest, in a timeshare property.
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"Timeshare period" means the period or periods of time when the purchaser of
a
timeshare plan is afforded the opportunity to use the accommodations of a
timeshare
plan.
"Timeshare plan" means any arrangement, plan, scheme, or similar device,
other
than an exchange program, whether by membership agreement, sale, lease, deed,
license,
or right-to-use agreement or by any other means, whereby a purchaser, in
exchange for
consideration, receives ownership rights in or the right to use accommodations
for a
period of time less than a full year during any given year, but not necessarily
for
consecutive years. A timeshare plan may be:
(1) a "single-site timeshare plan", which is the
| | right to use accommodations at a single timeshare property; or
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(2) a "multi-site timeshare plan", which includes:
(A) a "specific timeshare interest", which is the
| | right to use accommodations at a specific timeshare property, together with use rights in accommodations at one or more other component sites created by or acquired through the timeshare plan's reservation system; or
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(B) a "non-specific timeshare interest", which is
| | the right to use accommodations at more than one component site created by or acquired through the timeshare plan's reservation system, but including no specific right to use any particular accommodations.
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"Timeshare property" means one or more accommodations subject to the same
timeshare instrument, together with any other property or rights to property
appurtenant
to those accommodations.
(Source: P.A. 96-738, eff. 8-25-09.)
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(765 ILCS 101/1-20)
Sec. 1-20.
Estates and interests in property.
Each timeshare estate
constitutes,
for purposes of title, a separate estate or interest in property except for
real property tax
purposes.
(Source: P.A. 91-585, eff. 1-1-00.)
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(765 ILCS 101/1-25)
Sec. 1-25.
Local powers; construction.
(a) Except as specifically provided in this Section, the regulation of
timeshare
plans and exchange programs is an exclusive power and function of the State. A
unit of
local government, including a home rule unit, may not regulate timeshare plans
and
exchange programs. This subsection is a denial and limitation of home rule
powers and
functions under subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
(b) Notwithstanding subsection (a), no provision of this Act invalidates or
modifies any provision of any zoning, subdivision, or building code or other
real estate
use law, ordinance, or regulation.
Further, nothing in this Act shall be construed to affect or impair the
validity of
Section 11-11.1-1 of the Illinois Municipal Code or to deny to the corporate
authorities of
any municipality the powers granted in that Code to enact ordinances (i)
prescribing fair
housing practices, (ii) defining unfair housing practices, (iii) establishing
fair housing or
human relations commissions and standards for the operation of such commissions
in the
administration and enforcement of such ordinances, (iv) prohibiting
discrimination based
on age, ancestry, color, creed, mental or physical handicap, national origin,
race, religion,
or sex in the listing, sale, assignment, exchange, transfer, lease, rental, or
financing of
real property for the purpose of the residential occupancy thereof, and (v)
prescribing
penalties for violations of such ordinances.
(Source: P.A. 91-585, eff. 1-1-00.)
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(765 ILCS 101/1-30)
Sec. 1-30.
Creation of timeshare plans.
A timeshare plan may be created
in
any accommodation unless otherwise prohibited. All timeshare plans must
maintain a
one-to-one purchaser-to-accommodation ratio, which means the ratio of the
number of
purchasers eligible to use the accommodations of a timeshare plan on a given
day to the
number of accommodations available for use within the plan on that day, such
that the
total number of purchasers eligible to use the accommodations of the timeshare
plan
during a given calendar year never exceeds the total number of accommodations
available for use in the timeshare plan during that year. For purposes of
the calculation under
this Section, each purchaser must be counted at least once, and no individual
accommodation may be counted more than 365 times per calendar year (or more
than 366
times per leap year). A purchaser who is delinquent in the payment of timeshare
plan
assessments shall continue to be considered eligible to use the accommodations
of the
timeshare plan for purposes of calculating the one-to-one
purchaser-to-accommodation
ratio.
(Source: P.A. 91-585, eff. 1-1-00.)
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