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Rule 8.12 Management
- Before the first sale of a timeshare period, the developer shall create or provide for a managing entity, which may be the developer, a separate management firm, or an owner’s association, or some combination thereof.
- The management entity shall act in the capacity of fiduciary to the purchasers of the timeshare plans.
- The duties of the management entity shall include, but are not limited to:
- Management and maintenance of all accommodations constituting the timeshare plan.
- Preparing an itemized annual operating and reserve budget.
- The assessment and collection of funds for common expenses.
- The assessment and collection of property taxes and casualty insurance and liability insurance against the owners, for which managing entity shall he primarily liable.
- Maintenance of all books and records concerning the timeshare plan and making all of them reasonably available for inspection by any purchaser, or the authorized agent of such purchaser.
- Arranging for an annual independent audit to be conducted of all the books and financial records of the timeshare plan by a certified public accountant. A copy of the audit shall be forwarded to the officers of the owner’s association; or, if no association exists, the owner of each timeshare period shall be notified in writing that such audit is available upon request.
- Scheduling occupancy of the timeshare units so that all purchasers will be provided the use and possession of the accommodations for which they have contracted.
- Notifying purchasers of common assessments and the identity of the managing entity.
- Performing any other functions and duties that are necessary and proper to maintain the accommodations and operate the owner’s association as provided in the contract or the timeshare instruments.
- Maintaining appropriate insurance as required by Rule 8.9 of these rules.
- The managing entity shall not be required to provide a reserve budget for any timeshare plan or accommodation for which a timeshare instrument has been approved prior to adoption of these rules.