Arizona Laws 32-2197.21. Payment of finder fees; limits; prohibited activities; records; definition
A. Notwithstanding sections 32-2155, 32-2163 and 32-2165 or any other provision of this chapter, a developer or managing entity may pay a finder fee to a person who is not licensed pursuant to this chapter and who owns a timeshare interest in the developer’s timeshare plan or in the timeshare plan managed by that managing entity.
Terms Used In Arizona Laws 32-2197.21
- Compensation: means any fee, commission, salary, monies or other valuable consideration for services rendered or to be rendered as well as the promise of consideration whether contingent or not. See Arizona Laws 32-2101
- Developer: means either of the following:
(a) Any person, corporation, partnership, limited liability company, trust or other entity, other than a sales agent, that creates a timeshare plan or is in the business of selling timeshare interests or employs sales agents to sell timeshare interests. See Arizona Laws 32-2197
- Managing entity: means the association or other person that undertakes the duties, responsibilities and obligations of the management of a timeshare plan. See Arizona Laws 32-2197
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Person: means a natural person, corporation, limited liability company, partnership, joint venture, association, estate, trust, federal or state government, political subdivision or other legal entity or any combination of these entities. See Arizona Laws 32-2197
- Purchaser: means any person, other than a developer, who, by means of a voluntary transfer, acquires a legal or equitable interest in a timeshare plan other than a security for an obligation. See Arizona Laws 32-2197
- Timeshare interest: includes either a timeshare estate or a timeshare use. See Arizona Laws 32-2197
- Timeshare plan: means any arrangement, plan or similar device, other than an exchange program, whether by membership agreement, sale, lease, deed, license or right-to-use agreement or by any other means, in which a purchaser, in exchange for consideration, receives ownership rights in or the right to use accommodations for a period of time less than a full year during any given year, but not necessarily for consecutive years. See Arizona Laws 32-2197
B. A finder fee paid pursuant to this section shall not exceed one thousand dollars in credit or nonmonetary compensation during any twelve month period.
C. This section does not permit a person who is not licensed pursuant to this chapter to advertise or promote the person’s services in procuring or assisting to procure prospective timeshare interest purchasers.
D. The developer or managing entity shall keep records of all finder fees paid pursuant to this section for three years after the payment is made.
E. For purposes of this section, "finder fee" means credit or nonmonetary compensation paid to a person who is not licensed pursuant to this chapter, who owns a timeshare interest and who provides the name and address of a prospective purchaser to the developer or managing entity of the timeshare plan in which the owner previously purchased a timeshare interest.