| 1 | 1 | | SENATE . . . . . . . . . . . . . . No. 2591 |
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| 2 | 2 | | The Commonwealth of Massachusetts |
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| 3 | 3 | | _______________ |
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| 4 | 4 | | In the One Hundred and Ninety-Third General Court |
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| 5 | 5 | | (2023-2024) |
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| 6 | 6 | | _______________ |
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| 7 | 7 | | SENATE, March 4, 2024. |
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| 8 | 8 | | The committee on The Judiciary, to whom was referred the petitions (accompanied by |
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| 9 | 9 | | bill, Senate, No. 946) of Julian Cyr for legislation to modernize time-share extension and |
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| 10 | 10 | | termination procedures; and (accompanied by bill, House, No. 1715) of Sarah K. Peake relative |
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| 11 | 11 | | to time-share extension and termination procedures, report the accompanying bill (Senate, No. |
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| 12 | 12 | | 2591). |
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| 13 | 13 | | For the committee, |
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| 14 | 14 | | James B. Eldridge 1 of 4 |
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| 15 | 15 | | FILED ON: 2/5/2024 |
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| 16 | 16 | | SENATE . . . . . . . . . . . . . . No. 2591 |
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| 17 | 17 | | The Commonwealth of Massachusetts |
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| 18 | 18 | | _______________ |
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| 19 | 19 | | In the One Hundred and Ninety-Third General Court |
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| 20 | 20 | | (2023-2024) |
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| 21 | 21 | | _______________ |
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| 22 | 22 | | An Act modernizing time-share extension and termination procedures. |
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| 23 | 23 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 24 | 24 | | of the same, as follows: |
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| 25 | 25 | | 1 SECTION 1. Section 14 of chapter 183B of the General Laws, as appearing in the 2022 |
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| 26 | 26 | | 2Official Edition, is hereby amended by striking out, in line 3, the word “d” and inserting in place |
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| 27 | 27 | | 3thereof the word:- (b)(3) |
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| 28 | 28 | | 4 SECTION 2. Said chapter 183B of the General Laws is hereby amended by striking out |
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| 29 | 29 | | 5section 15 and inserting in place thereof the following section:- |
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| 30 | 30 | | 6 Section 15. (a) This section shall apply to time-share licenses only to the extent expressly |
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| 31 | 31 | | 7provided by the time-share instrument. |
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| 32 | 32 | | 8 (b) A time-share may be terminated in accordance with the following: |
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| 33 | 33 | | 9 (1) After the occurrence of a duly noticed and called meeting of the association convened |
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| 34 | 34 | | 10for the purpose of discussion of the possible termination of the time-share plan, all time-shares in |
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| 35 | 35 | | 11a time-share property may be terminated by written agreement of the time-share owners having |
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| 36 | 36 | | 12at least 60% of all eligible beneficial interests. 2 of 4 |
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| 37 | 37 | | 13 (2) An agreement to terminate all time-shares in a time-share property shall be evidenced |
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| 38 | 38 | | 14by the execution, in the same manner as a deed, of a termination agreement, or ratifications |
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| 39 | 39 | | 15thereof, by the requisite number of time-share owners. The termination agreement shall specify a |
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| 40 | 40 | | 16date after which it shall be void unless it is recorded on or before said date, and it may provide |
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| 41 | 41 | | 17for the establishment of a termination trust to carry out its terms and effect a sale as hereinafter |
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| 42 | 42 | | 18provided. A termination agreement and all ratifications thereof shall be recorded in the registry |
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| 43 | 43 | | 19of deeds or land registration office in every district in which a portion of the time-share property |
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| 44 | 44 | | 20is situated and shall be effective only upon such recording. |
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| 45 | 45 | | 21 (3) Unless the termination agreement sets forth the material terms of a contract or |
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| 46 | 46 | | 22proposed contract under which an estate or interest in each time-share unit equal to the sum of |
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| 47 | 47 | | 23the time-shares therein is to be sold and designates a trustee or board of trustees to effect the sale, |
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| 48 | 48 | | 24title to an estate or interest in each time-share unit equal to the sum of the time-shares therein |
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| 49 | 49 | | 25vests upon termination in the time-share owners thereof in proportion to the respective interests |
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| 50 | 50 | | 26of the time-share owners as provided in subsections (7) and (8), and liens on the time-shares |
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| 51 | 51 | | 27shall attach to and encumber said interests. Any co-owner of said estate or interest in a unit may |
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| 52 | 52 | | 28thereafter maintain an action for partition or for allotment or sale in lieu of partition. |
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| 53 | 53 | | 29 (4) If the termination agreement sets forth parameters for the material terms of a contract |
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| 54 | 54 | | 30or proposed contract under which an estate or interest in each time-share unit equal to the sum of |
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| 55 | 55 | | 31the time-shares therein is to be sold and designates the board of the time-share owners |
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| 56 | 56 | | 32association as trustees, or other individual or group of individuals as trustees, to effect the sale, |
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| 57 | 57 | | 33title to said estate or interest vests upon termination in the said trustees for the benefit of the |
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| 58 | 58 | | 34time-share owners, to be transferred pursuant to the contract of sale. Net proceeds of the sale 3 of 4 |
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| 59 | 59 | | 35shall be distributed to time-share owners and lienholders as their interests may appear, as |
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| 60 | 60 | | 36provided in subsections (7) and (8). |
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| 61 | 61 | | 37 (5) The termination of a time-share plan does not change the status of the underlying |
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| 62 | 62 | | 38owners’ association. Upon termination of the time-share plan, the association shall continue to |
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| 63 | 63 | | 39exist, but only for the purposes of concluding its affairs, prosecuting and defending actions by or |
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| 64 | 64 | | 40against it, collecting and discharging obligations, disposing of and conveying its property, |
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| 65 | 65 | | 41collecting and dividing its assets, and otherwise complying with this section. |
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| 66 | 66 | | 42 (6) All reasonable expenses incurred by the termination trustee(s) relating to the |
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| 67 | 67 | | 43performance of its or their duties pursuant to this subsection, including the reasonable fees of |
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| 68 | 68 | | 44attorneys and other professionals, must be paid by the termination trustee(s). |
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| 69 | 69 | | 45 (7) The termination trustee(s) shall adopt reasonable procedures to implement the timely |
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| 70 | 70 | | 46sale of the former time-share property and comply with the requirements of this section. |
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| 71 | 71 | | 47 (8) Except as otherwise provided in the termination agreement, so long as the former |
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| 72 | 72 | | 48time-share owners or their termination trustee(s) hold title to an estate or interest equal to the |
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| 73 | 73 | | 49sum of the time-shares, each former time-share owner and his successors in interest have the |
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| 74 | 74 | | 50same rights with respect to occupancy in the former time-share unit that they would have had if |
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| 75 | 75 | | 51termination had not occurred, together with the same liabilities and other obligations imposed by |
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| 76 | 76 | | 52this chapter or the time-share instrument. |
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| 77 | 77 | | 53 (9) After termination of all time-shares in a time-share property and adequate provision |
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| 78 | 78 | | 54for the payment of the claims of the creditors for time-share expenses, distribution of (i) the |
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| 79 | 79 | | 55proceeds of any sale pursuant to this section, (ii) the proceeds of any personalty held for the use |
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| 80 | 80 | | 56and benefit of the former time-share owners, and (iii) any other funds held for the use and benefit 4 of 4 |
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| 81 | 81 | | 57of the former time-share owners, shall be made to the former time-share owners and their |
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| 82 | 82 | | 58successors in interest in proportion to their respective interests as provided in subsection (8). |
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| 83 | 83 | | 59Following termination, creditors of the association holding liens perfected against the time-share |
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| 84 | 84 | | 60property prior to the termination may enforce said liens in the same manner as any other lien |
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| 85 | 85 | | 61holder. All other creditors of the association shall be treated as if they had perfected liens on the |
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| 86 | 86 | | 62time-share property immediately prior to termination. |
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| 87 | 87 | | 63 (10) The time-share instrument may specify the respective fractional or percentage |
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| 88 | 88 | | 64interest in the estate or interest in each unit or in the time-share property equal to the sum of the |
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| 89 | 89 | | 65time-shares therein that will be owned by each former time-share owner upon termination of the |
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| 90 | 90 | | 66time-shares. If the time-share instrument fails to so specify, then upon termination, each time- |
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| 91 | 91 | | 67share owner’s beneficial interest in the termination trust shall be equal to such owner’s prior |
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| 92 | 92 | | 68beneficial interest in the time-share property as set forth in the time-share instrument, and any |
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| 93 | 93 | | 69underlying condominium Master Deed. |
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| 94 | 94 | | 70 SECTION 3. This act shall apply to all time-share plans in the commonwealth existing |
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| 95 | 95 | | 71before and subsequent to passage of this act. |
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