(a)  For the purposes of this section, “substantially completed” means that all structural components and mechanical systems of all buildings constituting or containing any time-share units or portions thereof are finished in accordance with the plans, as evidenced by a recorded certificate of completion executed by an independent registered engineer, surveyor, or architect.

contract signature

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Terms Used In Rhode Island General Laws 34-41-5.03

  • agency: means the Rhode Island department of business regulation. See Rhode Island General Laws 34-41-5.01
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Contract: A legal written agreement that becomes binding when signed.
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Lien: A claim against real or personal property in satisfaction of a debt.

(b)  An application for registration must contain the information and be accompanied by any reasonable fees required by the agency. A developer shall promptly file amendments to report any actual or expected material change in any document or information contained in his or her application.

(c)  If a developer files with the agency the time-share instrument or proposed time-share instrument, or an amendment or proposed amendment to the time-share instrument, describing time-share units consisting in whole or in part of buildings or portions of buildings that have not been substantially completed, the developer shall also file with the agency:

(1)  A verified statement showing all costs involved in completing the time-share property;

(2)  A verified estimate of the time of completion of construction of the time-share property;

(3)  Satisfactory evidence that he or she has sufficient funds to cover all costs to complete the time-share property;

(4)  A copy of the executed construction contract and any other contracts for the completion of the time-share property;

(5)  If purchasers’ funds are to be utilized for the construction of the time-share property, the developer shall also file with the agency:

(i)  Proof of a hundred percent (100%) payment and performance bond running to the developer covering the cost of construction of the time-share property; and

(ii)  An executed copy of the escrow agreement with an escrow company or financial institution authorized to do business within the state which provides:

(A)  That disbursements of purchasers’ funds may be made from time to time to pay for construction of the time-share property, architectural, engineering, finance, marketing and legal fees, and other costs for the completion of the time-share property in proportion to the value of the work completed by the contractor as certified by an independent registered architect or engineer, on bills submitted and approved by the lender of construction funds or the escrow agent;

(B)  That disbursement of the balance of purchasers’ funds remaining after completion of the time-share property may be made only after the escrow agent or lender receives satisfactory evidence that the period for filing mechanics’ and materialmen’s liens has expired, the right to claim those liens has been waived, or adequate provision has been made for satisfaction of any claimed mechanic’s or materialman’s lien.

History of Section.
P.L. 1984, ch. 141, § 2; P.L. 1985, ch. 11, § 1.