(a) Before the signing of any agreement to purchase a timeshare interest in which
a prospective purchaser is also offered participation in any exchange program, the
developer shall also deliver to the prospective purchaser the exchange disclosure
statement of any exchange company whose service is advertised or offered by the developer
or other person in connection with the disposition.
(b) If participation in an exchange program is offered for the first time after a
disposition has occurred, any person offering that participation shall also deliver
an exchange disclosure statement to the purchaser before the execution by the purchaser
of any instrument relating to participation in the exchange program.
(c) In all cases, the person offering participation in the exchange program shall
obtain from the purchaser a written acknowledgement of receipt of the exchange disclosure
(d) The exchange disclosure statement must include the following information:
(1) the name and address of the exchange company;
(2) if the exchange company is not the developer, a statement describing the legal
relationship, if any, between the exchange company and the developer;
(3) a statement indicating the conditions under which the exchange program might terminate
or become unavailable;
(4) whether membership or participation or both in the exchange program is voluntary
(5) a complete description of the required procedure for executing an exchange of
(6) the fee required for membership or participation or both in the program and whether
the fee is subject to change;
(7) a statement to the effect that participation in the exchange program is conditioned
on compliance with the terms of a contract between the exchange company and the purchaser;
(8) a statement in conspicuous and bold-faced print to the effect that all exchanges
are arranged on a space-available basis and that neither the developer nor the exchange
company guarantees that a particular timeshare period can be exchanged; and
(9) a description of seasonal demand and unit occupancy restrictions employed in the
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