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Address

Sovereign Corporate Centre


46 Fairwind St., Mt. Royal Ave.
P.O. Box CB-12762 Suite #407
Nassau, N.P., The Bahamas
mmccartney@lexjustis.com
www.lexjustis.com
www.lexjustis.com/blog

Telephone
[242] 326-1202

Facsimile
[242] 325-
4202
APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

MATTERS TO BE INCLUDED IN EVERY TIME SHARE AGREEMENT

The developing owner or its managing agent must apply to the


registrar of vacation plans and time-sharing for the purpose of registering
each purchaser's rights in the Register of Time-Sharing Interests within sixty
(60) days of execution of the purchaser’s time share agreement, and holds a
duty to inform the Registrar of changes in the ownership of time share
interests. The contract must be submitted and approved by
the Bahamas Investment Authority, and upon its execution, the developing
owner holds the obligation to provide each purchaser with a certificate or
other evidence of such purchaser's time share interest within sixty (60) days
of the execution of the contract in a form approved by the BIA. Legislative
commitments held by the time share developer may be delegated to
management agent provided that the developing owner will remain jointly
and severally liable for compliance with this requirement.

The Vacationing and Time Share Act provides an outline of conditions which
must be included in a purchaser’s time share agreement including the
disclosure of the purchaser's seven-day rescission right, and any variation to
the conditions of the time share agreement require the written approval of
the BIA. In accordance with the Vacationing and Time Share Act each seller
shall utilize and furnish each purchaser with a fully completed and executed
copy of a contract pertaining to the sale which shall include the following
information which can be found in the paragraphs below:

- Date of Contract: the actual date the contract is executed by


each party;

- Names and Address of Parties with Legal/ Equitable Interests: the


names and addresses of the developing owner, any holder of a
mortgage or other security instrument, and any owner or lessor of
any underlying estate in freehold or leasehold;

- Purchaser’s Financial Obligations: the total financial obligation of


the purchaser, including the initial purchase price and any
additional charges to which the purchaser may be subject, such as
Address
Sovereign Corporate Centre
46 Fairwind St., Mt. Royal Ave.
P.O. Box CB-12762 Suite #407
Nassau, N.P., The Bahamas
mmccartney@lexjustis.com
www.lexjustis.com
www.lexjustis.com/blog

Telephone
[242] 326-1202

Facsimile
[242] 325-
4202
APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

financing, reservation, maintenance, management and recreation


charges;

- Completion Date: the estimated date of completion of construction


of each accommodation or facility which is not completed at the
time the contract is executed;

- Description of Time Share Interests: a description of the nature and


duration of the time-sharing interests being sold and of the time-
share plan, including the specific number of years constituting the
term of the time-share plan;

- Representation Statement: immediately prior to the space reserved


in the contract for the signature of the purchaser, in conspicuous
type, substantially the following statement:

"YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR


OBLIGATION WITHIN SEVEN DAYS FROM THE DATE YOU SIGN THIS
CONTRACT, AND UNTIL SEVEN DAYS AFTER YOU RECEIVE THE PUBLIC
OFFERING STATEMENT, WHICHEVER IS LATER. IF YOU DECIDE TO CANCEL
THIS CONTRACT, YOU MUST NOTIFY THE DEVELOPING OWNER IDENTIFIED IN
THIS CONTRACT IN WRITING OF YOUR INTENT TO CANCEL. YOUR NOTICE OF
CANCELLATION SHALL BE EFFECTIVE UPON THE DATE SENT AND SHALL BE
SENT TO (NAME OF DEVELOPING OWNER) AT (ADDRESS OF DEVELOPING
OWNER). ANY ATTEMPT TO OBTAIN A WAIVER OF YOUR CANCELLATION
RIGHT IS UNLAWFUL. WHILE YOU MAY EXECUTE ALL COMPLETION
DOCUMENTS IN ADVANCE, THE COMPLETION, AS EVIDENCED BY DELIVERY
OF YOUR OWNERSHIP CERTIFICATE OR OTHER DOCUMENT, BEFORE
EXPIRATION OF YOUR SEVEN DAY CANCELLATION PERIOD, IS PROHIBITED.";

- Cancellation Statement: a statement that, in the event the


purchaser cancels the contract during the seven day cancellation
period, the developing owner will refund to the purchaser the total
amount of all payments made by the purchaser under the contract,
reduced by the proportion of any contract benefits (such as an
overnight stay at the time-sharing project), the purchaser has
actually received under the contract period prior to the effective
date of the cancellation; the statement shall further provide that the
refund will be made within twenty days after receipt of notice of
Address
Sovereign Corporate Centre
46 Fairwind St., Mt. Royal Ave.
P.O. Box CB-12762 Suite #407
Nassau, N.P., The Bahamas
mmccartney@lexjustis.com
www.lexjustis.com
www.lexjustis.com/blog

Telephone
[242] 326-1202

Facsimile
[242] 325-
4202
APPLYING FOR TIME SHARE LICENSE IN THE BAHAMAS

cancellation or within five days after receipt of funds from the


purchaser's cleared cheque, whichever is later; a seller and a
purchaser shall agree in writing on a specific value for each contract
benefit received by the purchaser for purposes of this paragraph;
the term "contract benefit" shall not include public offering
statements or other documentation or materials that must be
furnished to a purchaser pursuant to any law;

- Statement of Ownership Interests: unless the developing owner is at


the time of the sale of the time-sharing interest the owner in fee
simple absolute of all accommodations and facilities of which the
time-sharing project is comprised, free and clear of all liens and
encumbrances, a statement that the developing owner is not the
sole owner of the underlying fee of the said accommodations or
facilities without liens or encumbrances, which statement shall
include-

- the names and addresses of all persons or entities


having an ownership interest or other legal or
beneficial interest in the accommodations or
facilities, and

- the actual interest of the developing owner in the


said accommodations or facilities.

Mario L. McCartney [esq.], B.A [Hons], LLB [Hons.] practices as Founder and Principal of the
Chambers of LEX JUSTIS, a boutique law practice in Nassau, New Providence, The Bahamas. While
presently engaged in general legal practice, Mr. McCartney’s specialty lies in debt recovery and offshore
financial and corporate services, and is currently registered as a Compliance and Anti-Money
Laundering Reporting Officer (CMLRO) for his Chambers. Mr. McCartney is also the present editor and
main contributor of LEX JUSTIS blog site and welcomes all opinions and comments to his articles.

For further information on all legal services provided by Mr. McCartney please visit the LEX JUSTIS website
@ www.lexjustis.com or email him at mmccartney@lexjustis.com, mario.l.mccartney@gmail.com.