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SENATE DOCKET, NO. 763 FILED ON: 1/18/2023
SENATE . . . . . . . . . . . . . . No. 946
The Commonwealth of Massachusetts
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PRESENTED BY:
Julian Cyr
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act modernizing time-share extension and termination procedures.
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PETITION OF:
NAME:DISTRICT/ADDRESS :Julian CyrCape and Islands 1 of 5
SENATE DOCKET, NO. 763 FILED ON: 1/18/2023
SENATE . . . . . . . . . . . . . . No. 946
By Mr. Cyr, a petition (accompanied by bill, Senate, No. 946) of Julian Cyr for legislation to
modernize time-share extension and termination procedures. The Judiciary.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 1052 OF 2021-2022.]
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act modernizing time-share extension and termination procedures.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 183B of the General Laws, as appearing in the 2020 official
2edition, is hereby amended by striking out section 15 and inserting in place thereof the following
3section:-
4 “Section 15. (a) This section shall apply to time-share plans containing time-share estates.
5This section shall apply to time-share licenses only to the extent expressly provided by the time-
6share instrument.
7 (b) A time-share plan may be terminated in accordance with the following:
8 (1) After the occurrence of a duly noticed and called meeting of the association convened
9for the purpose of discussion of the possible termination of the time-share plan, all time-shares in 2 of 5
10a time-share property may be terminated by written agreement of the time-share owners having
11at least sixty per cent of all eligible beneficial interests.
12 (2) An agreement to terminate all time-shares in a time-share property shall be evidenced
13by the execution, in the same manner as a deed, of a termination agreement, or ratifications
14thereof, by the requisite number of time-share owners. The termination agreement shall specify a
15date after which it shall be void unless it is recorded on or before said date, and it may provide
16for the establishment of a termination trust to carry out its terms and effect a sale as hereinafter
17provided. A termination agreement and all ratifications thereof shall be recorded in the registry
18of deeds or land registration office in every district in which a portion of the time-share property
19is situated, and shall be effective only upon such recording.
20 (3) Unless the termination agreement sets forth the material terms of a contract or
21proposed contract under which an estate or interest in each time-share unit equal to the sum of
22the time-shares therein is to be sold and designates a trustee or board of trustees to effect the sale,
23title to an estate or interest in each time-share unit equal to the sum of the time-shares therein
24vests upon termination in the time-share owners thereof in proportion to the respective interests
25of the time-share owners as provided in subsections (7) and (8), and liens on the time-shares
26shall attach to and encumber said interests. Any co-owner of said estate or interest in a unit may
27thereafter maintain an action for partition or for allotment or sale in lieu of partition.
28 (4) If the termination agreement sets forth parameters for the material terms of a contract
29or proposed contract under which an estate or interest in each time-share unit equal to the sum of
30the time-shares therein is to be sold and designates the board of the time-share owners
31association as trustees, or other individual or group of individuals as trustees, to effect the sale, 3 of 5
32title to said estate or interest vests upon termination in the said trustees for the benefit of the
33time-share owners, to be transferred pursuant to the contract of sale. Net proceeds of the sale
34shall be distributed to time-share owners and lienholders as their interests may appear, as
35provided in subsections (7) and (8).
36 (5) If the time-share property is managed by an association that is separate from any
37underlying owners’ association, the termination of a time-share plan does not change the status
38of the underlying owners’ association. Upon termination of the time-share plan, the time-share
39association shall continue to exist, but only for the purposes of concluding its affairs, prosecuting
40and defending actions by or against it, collecting and discharging obligations, disposing of and
41conveying its property, collecting and dividing its assets, and otherwise complying with this
42section.
43 (6) All reasonable expenses incurred by the termination trustee(s) relating to the
44performance of its or their duties pursuant to this subsection, including the reasonable fees of
45attorneys and other professionals, must be paid by the termination trustee(s) .
46 (7) The termination trustee(s) shall adopt reasonable procedures to implement the sale of
47the former time-share property and comply with the requirements of this section.
48 (8) Except as otherwise provided in the termination agreement, so long as the former
49time-share owners or their termination trustee(s) hold title to an estate or interest equal to the
50sum of the time-shares, each former time-share owner and his successors in interest have the
51same rights with respect to occupancy in the former time-share unit that he would have had if
52termination had not occurred, together with the same liabilities and other obligations imposed by
53this chapter or the time-share instrument. 4 of 5
54 (9) After termination of all time-shares in a time-share property and adequate provision
55for the payment of the claims of the creditors for time-share expenses, distribution of (i) the
56proceeds of any sale pursuant to this section, (ii) the proceeds of any personalty held for the use
57and benefit of the former time-share owners, and (iii) any other funds held for the use and benefit
58of the former time-share owners, shall be made to the former time-share owners and their
59successors in interest in proportion to their respective interests as provided in subsection (8).
60Following termination, creditors of the association holding liens perfected against the time-share
61property prior to the termination may enforce said liens in the same manner as any other lien
62holder. All other creditors of the association shall be treated as if they had perfected liens on the
63time-share property immediately prior to termination.
64 (10) The time-share instrument may specify the respective fractional or percentage
65interest in the estate or interest in each unit or in the time-share property equal to the sum of the
66time-shares therein that will be owned by each former time-share owner upon termination of the
67time-shares. If the time-share instrument fails to so specify, then upon termination, each time-
68share owner’s beneficial interest in the termination trust shall be equal to such owner’s prior
69beneficial interest in the time-share property as set forth in the time-share instrument and any
70underlying condominium Master Deed.
71 (c) A time-share plan which is scheduled to expire, by its express terms, at a certain date,
72with the time-share owners each holding an undivided tenancy in common interest thereafter,
73may be extended in accordance with the following:
74 (1) After the occurrence of a duly noticed and called meeting of the association convened
75for the purpose of discussion of the proposed extension of the time-share plan, unless the time- 5 of 5
76share instrument specifically provides a lower percentage, the written consent, of at least sixty
77percent of all eligible beneficial interests of the association may, at any time, extend the term of
78the time-share plan. If the term of a time-share plan is extended pursuant to this subsection, all
79rights, privileges, duties, and obligations created under applicable law or the time-share
80instrument continue in full force to the same extent as if the extended termination date of the
81time-share plan were the original termination date of the time-share.
82 (d) In the event of a conflict between Section 15 and the time-share instrument, the
83condominium master deed, if applicable, or other governing documents of the time-share, and
84any amendment thereto, of any time-share submitted to the provisions of this chapter, the
85provisions of Section 15 shall control.
86 (e) Any action for damages or any other legal challenge arising out of the termination or
87extension of a time-share plan pursuant to Section 15 shall be commenced only within one year
88after the recording in the registry of deeds or land registration office of the termination
89agreement or the extension agreement, as the case may be.”
90 SECTION 2. This act shall apply to all time-share plans in the commonwealth existing
91before and subsequent to passage of this act.