2817. Prospective Purchaser Disclosure Form.
(a) To inform a prospective purchaser of an interest in a qualified resort vacation club of the requirements under Section
10260(e), the notice set forth in subdivision (b) hereof printed in not less than 12-point bold-face capital letters and
numerals shall be contained in and immediately follow the face page of every subdivision permit issued for a qualified
resort vacation club.
(b) The form and the content of the notice shall be as follows:
NOTICE
IF YOU DECIDE TO PURCHASE AN INTEREST IN THIS QUALIFIED RESORT VACATION CLUB YOU
SHOULD BASE YOUR PURCHASE ON THE VALUE OF THE INTEREST AS A VACATION OR LEISURE
TIME EXPERIENCE AND NOT AS AN APPRECIATING INVESTMENT OR ON AN EXPECTATION OF
RESALE. BEFORE CONTRACTING TO PURCHASE YOU SHOULD CONSIDER THE FOLLOWING:
1. A QUALIFIED RESORT VACATION CLUB PROJECT IS AN OFFERING OF TIME SHARES.
2. AS A GENERAL RULE, A SIGNIFICANT PORTION OF THE PURCHASE PRICE OF AN INTEREST
IN A TIME-SHARE PROJECT REPRESENTS THE DEVELOPER’S PROMOTIONAL AND
MARKETING COSTS.
3. INDIVIDUAL RESALE OF TIME-SHARE INTERESTS HAVE PROVEN TO BE DIFFICULT FOR
OWNERS PRIMARILY BECAUSE TIME-SHARE OWNERS HAVE TO COMPETE WITH HIGHLY
SOPHISTICATED SALES PROMOTIONS OF THE DEVELOPER.
4. BECAUSE THE ORIGINAL PURCHASE PRICE REPRESENTS A SIGNIFICANT PART OF THE
DEVELOPER’S MARKETING COSTS, A TIME-SHARE OWNER MAY RECOUP ONLY A PORTION
OF THE PURCHASE PRICE IF A RESALE BUYER CAN BE FOUND.
5. SINCE MOST TIME-SHARE OWNERS RESIDE SOME DISTANCE FROM THE RESORT OR
RESORTS INCLUDED IN THE OFFERING, IT IS USUALLY INCONVENIENT FOR SUCH OWNERS
TO SHOW THE DWELLING UNITS TO PROSPECTIVE RESALE BUYERS AND USUALLY THIS CAN
ONLY BE DONE DURING THE PERIODS OF USE.
6. LICENSED REAL ESTATE AGENTS HAVE NOT ENTERED INTO THE TIME-SHARE RESALE
MARKET IN GREAT NUMBERS, AND THOSE WHO HAVE OFTEN CHARGE A COMMISSION
THAT SIGNIFICANTLY EXCEEDS THE NORMAL COMMISSION FOR SALE OF A SINGLE-
FAMILY DWELLING.
Article 15. Trust Fund Accounts