Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1715 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2351 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1715
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Sarah K. Peake
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act modernizing time-share extension and termination procedures.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Sarah K. Peake4th Barnstable1/11/2023 1 of 5
16	16	HOUSE DOCKET, NO. 2351 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 1715
18	18	By Representative Peake of Provincetown, a petition (accompanied by bill, House, No. 1715) of
19	19	Sarah K. Peake relative to time-share extension and termination procedures. The Judiciary.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE HOUSE, NO. 1830 OF 2021-2022.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act modernizing time-share extension and termination procedures.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Chapter 183B of the General Laws, as appearing in the 2016 official
31	31	2edition, is hereby amended by striking out section 15 and inserting in place thereof the following
32	32	3section:-
33	33	4 “Section 15.
34	34	5 (a) This section shall apply to time-share plans containing time-share estates. This
35	35	6section shall apply to time-share licenses only to the extent expressly provided by the time-share
36	36	7instrument.
37	37	8 (b) A time-share plan may be terminated in accordance with the following: 2 of 5
38	38	9 (1) After the occurrence of a duly noticed and called meeting of the association convened
39	39	10for the purpose of discussion of the possible termination of the time-share plan, all time-shares in
40	40	11a time-share property may be terminated by written agreement of the time-share owners having
41	41	12at least sixty per cent of all eligible beneficial interests.
42	42	13 (2) An agreement to terminate all time-shares in a time-share property shall be evidenced
43	43	14by the execution, in the same manner as a deed, of a termination agreement, or ratifications
44	44	15thereof, by the requisite number of time-share owners. The termination agreement shall specify a
45	45	16date after which it shall be void unless it is recorded on or before said date, and it may provide
46	46	17for the establishment of a termination trust to carry out its terms and effect a sale as hereinafter
47	47	18provided. A termination agreement and all ratifications thereof shall be recorded in the registry
48	48	19of deeds or land registration office in every district in which a portion of the time-share property
49	49	20is situated, and shall be effective only upon such recording.
50	50	21 (3) Unless the termination agreement sets forth the material terms of a contract or
51	51	22proposed contract under which an estate or interest in each time-share unit equal to the sum of
52	52	23the time-shares therein is to be sold and designates a trustee or board of trustees to effect the sale,
53	53	24title to an estate or interest in each time-share unit equal to the sum of the time-shares therein
54	54	25vests upon termination in the time-share owners thereof in proportion to the respective interests
55	55	26of the time-share owners as provided in subsections (7) and (8), and liens on the time-shares
56	56	27shall attach to and encumber said interests. Any co-owner of said estate or interest in a unit may
57	57	28thereafter maintain an action for partition or for allotment or sale in lieu of partition.
58	58	29 (4) If the termination agreement sets forth parameters for the material terms of a contract
59	59	30or proposed contract under which an estate or interest in each time-share unit equal to the sum of 3 of 5
60	60	31the time-shares therein is to be sold and designates the board of the time-share owners
61	61	32association as trustees, or other individual or group of individuals as trustees, to effect the sale,
62	62	33title to said estate or interest vests upon termination in the said trustees for the benefit of the
63	63	34time-share owners, to be transferred pursuant to the contract of sale. Net proceeds of the sale
64	64	35shall be distributed to time-share owners and lienholders as their interests may appear, as
65	65	36provided in subsections (7) and (8).
66	66	37 (5) If the time-share property is managed by an association that is separate from any
67	67	38underlying owners’ association, the termination of a time-share plan does not change the status
68	68	39of the underlying owners’ association. Upon termination of the time-share plan, the time-share
69	69	40association shall continue to exist, but only for the purposes of concluding its affairs, prosecuting
70	70	41and defending actions by or against it, collecting and discharging obligations, disposing of and
71	71	42conveying its property, collecting and dividing its assets, and otherwise complying with this
72	72	43section.
73	73	44 (6) All reasonable expenses incurred by the termination trustee(s) relating to the
74	74	45performance of its or their duties pursuant to this subsection, including the reasonable fees of
75	75	46attorneys and other professionals, must be paid by the termination trustee(s) .
76	76	47 (7) The termination trustee(s) shall adopt reasonable procedures to implement the sale of
77	77	48the former time-share property and comply with the requirements of this section.
78	78	49 (8) Except as otherwise provided in the termination agreement, so long as the former
79	79	50time-share owners or their termination trustee(s) hold title to an estate or interest equal to the
80	80	51sum of the time-shares, each former time-share owner and his successors in interest have the
81	81	52same rights with respect to occupancy in the former time-share unit that he would have had if 4 of 5
82	82	53termination had not occurred, together with the same liabilities and other obligations imposed by
83	83	54this chapter or the time-share instrument.
84	84	55 (9) After termination of all time-shares in a time-share property and adequate provision
85	85	56for the payment of the claims of the creditors for time-share expenses, distribution of (i) the
86	86	57proceeds of any sale pursuant to this section, (ii) the proceeds of any personalty held for the use
87	87	58and benefit of the former time-share owners, and (iii) any other funds held for the use and benefit
88	88	59of the former time-share owners, shall be made to the former time-share owners and their
89	89	60successors in interest in proportion to their respective interests as provided in subsection (8).
90	90	61Following termination, creditors of the association holding liens perfected against the time-share
91	91	62property prior to the termination may enforce said liens in the same manner as any other lien
92	92	63holder. All other creditors of the association shall be treated as if they had perfected liens on the
93	93	64time-share property immediately prior to termination.
94	94	65 (10) The time-share instrument may specify the respective fractional or percentage
95	95	66interest in the estate or interest in each unit or in the time-share property equal to the sum of the
96	96	67time-shares therein that will be owned by each former time-share owner upon termination of the
97	97	68time-shares. If the time-share instrument fails to so specify, then upon termination, each time-
98	98	69share owner’s beneficial interest in the termination trust shall be equal to such owner’s prior
99	99	70beneficial interest in the time-share property as set forth in the time-share instrument and any
100	100	71underlying condominium Master Deed.
101	101	72 (c) A time-share plan which is scheduled to expire, by its express terms, at a certain date,
102	102	73with the time-share owners each holding an undivided tenancy in common interest thereafter,
103	103	74may be extended in accordance with the following: 5 of 5
104	104	75 (1) After the occurrence of a duly noticed and called meeting of the association convened
105	105	76for the purpose of discussion of the proposed extension of the time-share plan, unless the time-
106	106	77share instrument specifically provides a lower percentage, the written consent, of at least sixty
107	107	78percent of all eligible beneficial interests of the association may, at any time, extend the term of
108	108	79the time-share plan. If the term of a time-share plan is extended pursuant to this subsection, all
109	109	80rights, privileges, duties, and obligations created under applicable law or the time-share
110	110	81instrument continue in full force to the same extent as if the extended termination date of the
111	111	82time-share plan were the original termination date of the time-share.
112	112	83 (d) In the event of a conflict between Section 15 and the time-share instrument, the
113	113	84condominium master deed, if applicable, or other governing documents of the time-share, and
114	114	85any amendment thereto, of any time-share submitted to the provisions of this chapter, the
115	115	86provisions of Section 15 shall control.
116	116	87 (e) Any action for damages or any other legal challenge arising out of the termination or
117	117	88extension of a time-share plan pursuant to Section 15 shall be commenced only within one year
118	118	89after the recording in the registry of deeds or land registration office of the termination
119	119	90agreement or the extension agreement, as the case may be.”
120	120	91 SECTION 2. This act shall apply to all time-share plans in the commonwealth existing
121	121	92before and subsequent to passage of this act.