First and foremost: I am not a lawyer, so what follows are just impressions I got reading the Florida statutes. I'm looking forward other people feedback, especially someone with some experience in Florida timeshare laws.
The Florida statutes define a "Vacation Club" this way:
(8) “Vacation club” means a multisite timeshare plan. However, notwithstanding any other provision of this chapter, the use of the term “vacation club” by a person or entity as part of a company, brand, or product name shall not, in and of itself, subject the person, entity, or product being offered to the provisions of this part unless the product offered otherwise meets the definition of a “multisite timeshare plan” as defined in subsection (4).
[...]
4) “Multisite timeshare plan” means any method, arrangement, or procedure with respect to which a purchaser obtains, by any means, a recurring right to use and occupy accommodations or facilities of more than one component site, only through use of a reservation system, whether or not the purchaser is able to elect to cease participating in the plan. However, the term “multisite timeshare plan” shall not include any method, arrangement, or procedure wherein:
(a) The contractually specified maximum total financial obligation on the purchaser’s part is $3,000 or less, during the entire term of the plan; or
(b) The term is for a period of 3 years or less, regardless of the purchaser’s contractually specified maximum total financial obligation, if any. For purposes of determining the term of such use and occupancy rights, the period of any optional renewals which a purchaser, in his or her sole discretion, may elect to exercise, whether or not for additional consideration, shall not be included. For purposes of determining the term of such use and occupancy rights, the period of any automatic renewals shall be included unless a purchaser has the right to terminate the membership at any time and receive a pro rata refund or the purchaser receives a notice no less than 30 days and no more than 60 days prior to the date of renewal informing the purchaser of the right to terminate at any time prior to the date of automatic renewal.
Multisite timeshare plan does not mean an exchange program as defined in s. 721.05. Timeshare estates may only be offered in a multisite timeshare plan pursuant to s. 721.57.
[...]
721.57 Offering of timeshare estates in specific multisite timeshare plans; required provisions in the timeshare instrument.—
(1) In addition to meeting all the requirements of part I, timeshare estates offered in a specific multisite timeshare plan must meet the requirements of subsection (2). Any offering of timeshare estates in a specific multisite timeshare plan that does not comply with these requirements shall be deemed to be an offering of a timeshare license.
(2) The timeshare instrument of a specific multisite timeshare plan in which timeshare estates are offered must contain or provide for all of the following matters:
(a) The purchaser will receive a timeshare estate as defined in s. 721.05 in one of the component sites of the specific multisite timeshare plan. The use rights in the other component sites of the multisite timeshare plan shall be made available to the purchaser through the reservation system pursuant to the timeshare instrument.
(b) In the event that the reservation system is terminated or otherwise becomes unavailable for any reason prior to the expiration of the term of the specific multisite timeshare plan:
1. The purchaser will be able to continue to use the accommodations and facilities of the component site in which she or he has been conveyed a timeshare estate in the manner described in the timeshare instrument for that component site for the remaining term of the timeshare estate; and
2. Any use rights in that component site which had previously been made available through the reservation system to purchasers of the specific multisite timeshare plan who were not offered a timeshare estate at that component site will terminate when the reservation system is terminated or otherwise becomes unavailable for any reason.
(my emphasys)
The Florida law defines what is a Vacation Club and states that the term Vacation Club can be used only if certain requirements are met.
The major requirement is that a recurring right to use and occupy accommodations or facilities of more than one component site is offered. Also The use rights in the other component sites of the multisite timeshare plan shall be made available to the purchaser through the reservation system.
A possible interpretation is that the reservation system is not an addendum to the Vacation Club like an RCI exchange system, it is an integral part of belonging to a Vacation Club. And as such it cannot be taken away from resale purchasers.
The way the Riviera POS has been written, the reservation component is defined more like an exchange programm where DVD can decide in its own terms who can access and who cannot (liek RCI, Consierge collection, Disney collection...).
I'm not saying that Disney cannot sell Riviera this way. They can. But they cannot call it a Vacation Club, not according to the definition of the Florida law. Doing so is misleading for the potential purchasers. They get interested in a Vacation Club, go to the sale pitch and they're explained they're not buying a Vacation Club, they're buying a resort labelled as belonging to a Disney Vacation Club that allow them to exchange their points with the 14 original resorts that belong to a Vacation Club similarly called Disney Vacation Club.
Confusing? It is.
According to this interpretation, Disney couldn't sell Riviera as part of Disney Vacation Club. They can call it Disney Magic Vacations, Disney Pixy Dust Club or however they want, but not Vacation Club, because a Vacation club is something else.
What do you think, is this interpretation reasonable? Looking forward your objections.
Link to the Florida Statutes: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0721/0721.html
The Florida statutes define a "Vacation Club" this way:
(8) “Vacation club” means a multisite timeshare plan. However, notwithstanding any other provision of this chapter, the use of the term “vacation club” by a person or entity as part of a company, brand, or product name shall not, in and of itself, subject the person, entity, or product being offered to the provisions of this part unless the product offered otherwise meets the definition of a “multisite timeshare plan” as defined in subsection (4).
[...]
4) “Multisite timeshare plan” means any method, arrangement, or procedure with respect to which a purchaser obtains, by any means, a recurring right to use and occupy accommodations or facilities of more than one component site, only through use of a reservation system, whether or not the purchaser is able to elect to cease participating in the plan. However, the term “multisite timeshare plan” shall not include any method, arrangement, or procedure wherein:
(a) The contractually specified maximum total financial obligation on the purchaser’s part is $3,000 or less, during the entire term of the plan; or
(b) The term is for a period of 3 years or less, regardless of the purchaser’s contractually specified maximum total financial obligation, if any. For purposes of determining the term of such use and occupancy rights, the period of any optional renewals which a purchaser, in his or her sole discretion, may elect to exercise, whether or not for additional consideration, shall not be included. For purposes of determining the term of such use and occupancy rights, the period of any automatic renewals shall be included unless a purchaser has the right to terminate the membership at any time and receive a pro rata refund or the purchaser receives a notice no less than 30 days and no more than 60 days prior to the date of renewal informing the purchaser of the right to terminate at any time prior to the date of automatic renewal.
Multisite timeshare plan does not mean an exchange program as defined in s. 721.05. Timeshare estates may only be offered in a multisite timeshare plan pursuant to s. 721.57.
[...]
721.57 Offering of timeshare estates in specific multisite timeshare plans; required provisions in the timeshare instrument.—
(1) In addition to meeting all the requirements of part I, timeshare estates offered in a specific multisite timeshare plan must meet the requirements of subsection (2). Any offering of timeshare estates in a specific multisite timeshare plan that does not comply with these requirements shall be deemed to be an offering of a timeshare license.
(2) The timeshare instrument of a specific multisite timeshare plan in which timeshare estates are offered must contain or provide for all of the following matters:
(a) The purchaser will receive a timeshare estate as defined in s. 721.05 in one of the component sites of the specific multisite timeshare plan. The use rights in the other component sites of the multisite timeshare plan shall be made available to the purchaser through the reservation system pursuant to the timeshare instrument.
(b) In the event that the reservation system is terminated or otherwise becomes unavailable for any reason prior to the expiration of the term of the specific multisite timeshare plan:
1. The purchaser will be able to continue to use the accommodations and facilities of the component site in which she or he has been conveyed a timeshare estate in the manner described in the timeshare instrument for that component site for the remaining term of the timeshare estate; and
2. Any use rights in that component site which had previously been made available through the reservation system to purchasers of the specific multisite timeshare plan who were not offered a timeshare estate at that component site will terminate when the reservation system is terminated or otherwise becomes unavailable for any reason.
(my emphasys)
The Florida law defines what is a Vacation Club and states that the term Vacation Club can be used only if certain requirements are met.
The major requirement is that a recurring right to use and occupy accommodations or facilities of more than one component site is offered. Also The use rights in the other component sites of the multisite timeshare plan shall be made available to the purchaser through the reservation system.
A possible interpretation is that the reservation system is not an addendum to the Vacation Club like an RCI exchange system, it is an integral part of belonging to a Vacation Club. And as such it cannot be taken away from resale purchasers.
The way the Riviera POS has been written, the reservation component is defined more like an exchange programm where DVD can decide in its own terms who can access and who cannot (liek RCI, Consierge collection, Disney collection...).
I'm not saying that Disney cannot sell Riviera this way. They can. But they cannot call it a Vacation Club, not according to the definition of the Florida law. Doing so is misleading for the potential purchasers. They get interested in a Vacation Club, go to the sale pitch and they're explained they're not buying a Vacation Club, they're buying a resort labelled as belonging to a Disney Vacation Club that allow them to exchange their points with the 14 original resorts that belong to a Vacation Club similarly called Disney Vacation Club.
Confusing? It is.
According to this interpretation, Disney couldn't sell Riviera as part of Disney Vacation Club. They can call it Disney Magic Vacations, Disney Pixy Dust Club or however they want, but not Vacation Club, because a Vacation club is something else.
What do you think, is this interpretation reasonable? Looking forward your objections.
Link to the Florida Statutes: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0721/0721.html