Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S946 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 763 FILED ON: 1/18/2023
3	3	SENATE . . . . . . . . . . . . . . No. 946
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Julian Cyr
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 :Julian CyrCape and Islands 1 of 5
16	16	SENATE DOCKET, NO. 763 FILED ON: 1/18/2023
17	17	SENATE . . . . . . . . . . . . . . No. 946
18	18	By Mr. Cyr, a petition (accompanied by bill, Senate, No. 946) of Julian Cyr for legislation to
19	19	modernize time-share extension and termination procedures. The Judiciary.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1052 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 2020 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. (a) This section shall apply to time-share plans containing time-share estates.
34	34	5This section shall apply to time-share licenses only to the extent expressly provided by the time-
35	35	6share instrument.
36	36	7 (b) A time-share plan may be terminated in accordance with the following:
37	37	8 (1) After the occurrence of a duly noticed and called meeting of the association convened
38	38	9for the purpose of discussion of the possible termination of the time-share plan, all time-shares in 2 of 5
39	39	10a time-share property may be terminated by written agreement of the time-share owners having
40	40	11at least sixty per cent of all eligible beneficial interests.
41	41	12 (2) An agreement to terminate all time-shares in a time-share property shall be evidenced
42	42	13by the execution, in the same manner as a deed, of a termination agreement, or ratifications
43	43	14thereof, by the requisite number of time-share owners. The termination agreement shall specify a
44	44	15date after which it shall be void unless it is recorded on or before said date, and it may provide
45	45	16for the establishment of a termination trust to carry out its terms and effect a sale as hereinafter
46	46	17provided. A termination agreement and all ratifications thereof shall be recorded in the registry
47	47	18of deeds or land registration office in every district in which a portion of the time-share property
48	48	19is situated, and shall be effective only upon such recording.
49	49	20 (3) Unless the termination agreement sets forth the material terms of a contract or
50	50	21proposed contract under which an estate or interest in each time-share unit equal to the sum of
51	51	22the time-shares therein is to be sold and designates a trustee or board of trustees to effect the sale,
52	52	23title to an estate or interest in each time-share unit equal to the sum of the time-shares therein
53	53	24vests upon termination in the time-share owners thereof in proportion to the respective interests
54	54	25of the time-share owners as provided in subsections (7) and (8), and liens on the time-shares
55	55	26shall attach to and encumber said interests. Any co-owner of said estate or interest in a unit may
56	56	27thereafter maintain an action for partition or for allotment or sale in lieu of partition.
57	57	28 (4) If the termination agreement sets forth parameters for the material terms of a contract
58	58	29or proposed contract under which an estate or interest in each time-share unit equal to the sum of
59	59	30the time-shares therein is to be sold and designates the board of the time-share owners
60	60	31association as trustees, or other individual or group of individuals as trustees, to effect the sale, 3 of 5
61	61	32title to said estate or interest vests upon termination in the said trustees for the benefit of the
62	62	33time-share owners, to be transferred pursuant to the contract of sale. Net proceeds of the sale
63	63	34shall be distributed to time-share owners and lienholders as their interests may appear, as
64	64	35provided in subsections (7) and (8).
65	65	36 (5) If the time-share property is managed by an association that is separate from any
66	66	37underlying owners’ association, the termination of a time-share plan does not change the status
67	67	38of the underlying owners’ association. Upon termination of the time-share plan, the time-share
68	68	39association shall continue to exist, but only for the purposes of concluding its affairs, prosecuting
69	69	40and defending actions by or against it, collecting and discharging obligations, disposing of and
70	70	41conveying its property, collecting and dividing its assets, and otherwise complying with this
71	71	42section.
72	72	43 (6) All reasonable expenses incurred by the termination trustee(s) relating to the
73	73	44performance of its or their duties pursuant to this subsection, including the reasonable fees of
74	74	45attorneys and other professionals, must be paid by the termination trustee(s) .
75	75	46 (7) The termination trustee(s) shall adopt reasonable procedures to implement the sale of
76	76	47the former time-share property and comply with the requirements of this section.
77	77	48 (8) Except as otherwise provided in the termination agreement, so long as the former
78	78	49time-share owners or their termination trustee(s) hold title to an estate or interest equal to the
79	79	50sum of the time-shares, each former time-share owner and his successors in interest have the
80	80	51same rights with respect to occupancy in the former time-share unit that he would have had if
81	81	52termination had not occurred, together with the same liabilities and other obligations imposed by
82	82	53this chapter or the time-share instrument. 4 of 5
83	83	54 (9) After termination of all time-shares in a time-share property and adequate provision
84	84	55for the payment of the claims of the creditors for time-share expenses, distribution of (i) the
85	85	56proceeds of any sale pursuant to this section, (ii) the proceeds of any personalty held for the use
86	86	57and benefit of the former time-share owners, and (iii) any other funds held for the use and benefit
87	87	58of the former time-share owners, shall be made to the former time-share owners and their
88	88	59successors in interest in proportion to their respective interests as provided in subsection (8).
89	89	60Following termination, creditors of the association holding liens perfected against the time-share
90	90	61property prior to the termination may enforce said liens in the same manner as any other lien
91	91	62holder. All other creditors of the association shall be treated as if they had perfected liens on the
92	92	63time-share property immediately prior to termination.
93	93	64 (10) The time-share instrument may specify the respective fractional or percentage
94	94	65interest in the estate or interest in each unit or in the time-share property equal to the sum of the
95	95	66time-shares therein that will be owned by each former time-share owner upon termination of the
96	96	67time-shares. If the time-share instrument fails to so specify, then upon termination, each time-
97	97	68share owner’s beneficial interest in the termination trust shall be equal to such owner’s prior
98	98	69beneficial interest in the time-share property as set forth in the time-share instrument and any
99	99	70underlying condominium Master Deed.
100	100	71 (c) A time-share plan which is scheduled to expire, by its express terms, at a certain date,
101	101	72with the time-share owners each holding an undivided tenancy in common interest thereafter,
102	102	73may be extended in accordance with the following:
103	103	74 (1) After the occurrence of a duly noticed and called meeting of the association convened
104	104	75for the purpose of discussion of the proposed extension of the time-share plan, unless the time- 5 of 5
105	105	76share instrument specifically provides a lower percentage, the written consent, of at least sixty
106	106	77percent of all eligible beneficial interests of the association may, at any time, extend the term of
107	107	78the time-share plan. If the term of a time-share plan is extended pursuant to this subsection, all
108	108	79rights, privileges, duties, and obligations created under applicable law or the time-share
109	109	80instrument continue in full force to the same extent as if the extended termination date of the
110	110	81time-share plan were the original termination date of the time-share.
111	111	82 (d) In the event of a conflict between Section 15 and the time-share instrument, the
112	112	83condominium master deed, if applicable, or other governing documents of the time-share, and
113	113	84any amendment thereto, of any time-share submitted to the provisions of this chapter, the
114	114	85provisions of Section 15 shall control.
115	115	86 (e) Any action for damages or any other legal challenge arising out of the termination or
116	116	87extension of a time-share plan pursuant to Section 15 shall be commenced only within one year
117	117	88after the recording in the registry of deeds or land registration office of the termination
118	118	89agreement or the extension agreement, as the case may be.”
119	119	90 SECTION 2. This act shall apply to all time-share plans in the commonwealth existing
120	120	91before and subsequent to passage of this act.