The Texas Real Estate Commission (TREC) adopts an amendment to §543.2, concerning timeshare registration amendments, with changes to the proposed text as published in the January 26, 2001, issue of the Texas Register (26 TexReg 875). TREC adopts amendments to §543.1 and §§543.3-543.6, concerning timeshare registration and regulation, without changes to the proposed text.

The amendments are necessary to bring the sections into conformity with the language used in other TREC rules, update statutory citations, and adopt by reference revised forms to be used by timeshare developers when registering a timeshare property or amending a registration.

The amendments to §543.1 and §543.2 revise language to be consistent with that used in other TREC rules and up-date a citation to the Texas Administrative Procedure Act, Texas Government Code, §2001. A comment suggested §543.2 needed language to clarify that registrants were only obligated to report a material or adverse change in the information provided with the original registration after the change had occurred. TREC concurred, but because many registrants file their amendments before a change occurs, TREC added language to clarify that a registrant may file the amendment before the change occurs. The amendment to §543.3 clarifies that fees may also be paid in the form of a check, not only by a cashier's check or money order. The amendment to §543.4 adopts by reference revised application forms for the registration and amendment of registration of a timeshare property. The amendments to §543.5 and §543.6 make the language used consistent with the language used in other TREC rules and updates statutory citations.

A comment suggested that the application to register a project should be modified to renumber the questions referring to corporations and limited liability companies and to clarify the photograph requirements for incomplete projects. The commission concurred and made the requested changes. Language was added to permit the applicant to submit artist's drawings or plans for an incomplete project if the applicant determined that the submitted materials would be adequate to depict the project fairly. A comment noted that a question relating to future development of the project could be reworded to clarify whether the project instruments permit further development. The commission concurred and made the requested change. Another comment urged the commission to modify §543.2 and the application to amend a registration to increase the amount of the change in assessments from 10% to 15% before the registrant was required to report the change, following the approach taken in Florida. The commission concurred and made the requested change to §543.2 and to the amendment application form. A comment also suggested changes in the application to register a project to permit the certificate from the secretary of state to be more than 30 days old, to clarify that a question relating to management only applies to properties located in Texas and that language regarding condominiums and similar developments could be rewritten for clarity. The commission determined that the questions were written appropriately and clearly and declined to make the requested changes; the application forms are intended to be used by registrants from many different states, and the questions must be written broadly to encompass variations in the laws affecting the timeshare developments.

The amendments are adopted under the Texas Government Code, §221.024, which authorizes the Texas Real Estate Commission to prescribe and publish forms and adopt rules necessary to carry out the provisions of The Texas Timeshare Act.