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I just received a press release detailing a new bill proposed in the Cayman Islands:
Included in the proposed legislation is a requirement for property owners who sell units as time-shares to carry insurance of $2 million or higher at the direction of the Hotel Licensing Board. The new legislation carries a penalty of a $50,000 fine or two years’ imprisonment for proprietors who fail to properly insure their resorts in accordance with the law.
It also would effectively give time-share owners a “registered interest” in the resort, meaning timeshare owners would have to be notified before the property was sold, or if other major changes were being considered.
The Law Reform Commission, which is seeking public input on its draft bill, says the legislation aims to deal with the most frequent concerns expressed by time-share members. “Owners have complained of hearing about the sale of a resort in the press, poor maintenance of resort premises, bad record-keeping and the failure by a resort to notify owners of major developments in the resort,” the commission said in a statement.
Key requirements in the proposed legislation include:
The public is invited to respond to the matters provided for in the bill and discussed in the paper and to indicate whether there are other areas that should be reformed in order to improve the regulation of time-shares. The time-share bill and discussion paper are published at www.lawreformcommission.gov.ky. Public submissions should be made no later than Nov. 30.
Included in the proposed legislation is a requirement for property owners who sell units as time-shares to carry insurance of $2 million or higher at the direction of the Hotel Licensing Board. The new legislation carries a penalty of a $50,000 fine or two years’ imprisonment for proprietors who fail to properly insure their resorts in accordance with the law.
It also would effectively give time-share owners a “registered interest” in the resort, meaning timeshare owners would have to be notified before the property was sold, or if other major changes were being considered.
The Law Reform Commission, which is seeking public input on its draft bill, says the legislation aims to deal with the most frequent concerns expressed by time-share members. “Owners have complained of hearing about the sale of a resort in the press, poor maintenance of resort premises, bad record-keeping and the failure by a resort to notify owners of major developments in the resort,” the commission said in a statement.
Key requirements in the proposed legislation include:
- Minimum requirements for time-share contracts, including name and contact details for all interested parties and the conditions/dates which the consumer is legally entitled to occupy the property.
- New requirement for time-share operators to be licensed and subject to inspections by the Hotel Licensing Board.
- New “registration of consumers’ rights” giving time-share owners a legal stake in the resort, similar to the rights of shareholders in a business.
- Management agent of time-share resort to be legally responsible for management and maintenance, including ensuring books and records are up to date and open for inspection
Time-share resorts to be insured for a minimum of $2 million or greater, as determined by the Hotel Licensing Board.
The public is invited to respond to the matters provided for in the bill and discussed in the paper and to indicate whether there are other areas that should be reformed in order to improve the regulation of time-shares. The time-share bill and discussion paper are published at www.lawreformcommission.gov.ky. Public submissions should be made no later than Nov. 30.
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