REAL ESTATE COMMISSION 11:5-9A.2
funds in accordance with the Act. If the escrow agent is not located in the State of New Jersey, then this person shall subject himself or herself to the jurisdiction of the Commission with respect to disputes that arise out of the provisions of the Act.
“Incidental benefit” means an accommodation, product, service, discount, or other benefit which is offered to a prospective purchaser of a timeshare plan or to a purchaser of a timeshare plan prior to the expiration of his or her rescission period pursuant to the Act and which is not an exchange program, provided that:
1. Use or participation in the incidental benefit is completely voluntary;
2. No costs of the incidental benefit are included as common expenses of the timeshare plan;
3. The good faith represented aggregate value of all incidental benefits offered by a developer to a purchaser shall not exceed 20 percent of the actual price paid by the purchaser for his or her timeshare interest; and
4. The purchaser is provided a disclosure that fairly describes the material terms of the incidental benefit.
The term “incidental benefit” shall not include an offer of the use of the accommodations of the timeshare plan on a free or discounted one-time basis.
“Managing entity” means the person who undertakes the duties, responsibilities and obligations of the management of the timeshare property.
“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, for gain or profit.
“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.
“Preliminary registration” means a procedure by which any applicant may obtain an authorization to commence a limited marketing program for the purpose of soliciting nonbinding reservations in a timeshare plan prior to completing an abbreviated or comprehensive registration.
“Promotion” means a plan or device, including one which creates the possibility of a prospective purchaser receiving a vacation, discount vacation, gift, or prize, that is used by a developer, or an employee of a developer, or an agent or independent contractor acting on behalf of the developer, in connection with the offering and sale of timeshare interests in a timeshare plan.
“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.
“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.
“Reservation system” means the method, arrangement or procedure by which a purchaser, in order to reserve the use or occupancy of any accommodation in 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 or any other person.
“Sales agent” means any person who performs within this State as an agent or employee of a developer any one or more of the services or acts as set forth in the Act, and includes any real estate broker, broker salesperson or salesperson licensed pursuant to N.J.S.A. 45:15-1 et seq., or any person who purports to act in any such capacity.
“Timeshare instrument” means one or more documents, by whatever name denominated, creating or governing the operation of a timeshare plan.
“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
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.
“Timeshare period” means the period or periods of time when the purchaser of an interest in 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, 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 on a recurring basis, 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
2. A “multi-site timeshare plan,” which includes: