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1 New Section; Trade and Commerce; Fair Housing; Business Entity-Owned Residential Arrangements. Amend RSA 354-A by inserting after section 15 the following new section:
354-A:15-a Business Entity-Owned Residential Arrangements.
I. In this section:
(a) "Business entity" means a partnership, corporation, joint venture, limited liability company, or other business organization or business association, however organized.
(b) "Managing entity" means a business entity that owns residential property used in a residential arrangement.
(c) "Residential arrangement" means an arrangement in which the purchaser of an interest in a business entity is entitled to exclusive possession of residential property owned by the entity as long as the purchaser holds the interest in the business entity.
(d) "Residential property" means the real property and improvements for a single-family house, duplex, triplex, or quadruplex.
(e) "Timeshare plan" means any arrangement, plan, scheme, or similar method, excluding an exchange program, but including a membership agreement, sale, lease, deed, license, or right-to-use agreement, by which a purchaser, in exchange for consideration, receives an ownership right in or the right to use accommodations for a period of time less than a year during a given year, but not necessarily consecutive years.
II. This section shall not apply to any timeshare plan.
III.(a) An agreement for the purchase of an interest in a managing entity shall disclose to the purchaser that the agreement is for the purchase of an interest in the entity and not in any residential property itself.
(b) The purchase agreement and any other agreement or rules governing the residential arrangement or the ownership interest in the entity shall not require that a dispute concerning the arrangement or interest be brought before a tribunal other than a court established under the laws of this state or the United States.
IV. A managing entity shall not take an action with respect to an interest in the entity in a manner that would be a violation of RSA 354-A if the interest in the entity were an interest in real property, including:
(a) Restricting the transfer of the interest;
(b) Imposing requirements to maintain the interest; or
(c) Refusing to grant an interest to an otherwise qualified person.
V. Notwithstanding any provision in an agreement between the owner and a managing entity, an owner of an interest in a managing entity may transfer the interest without approval from the managing entity.
VI. A managing entity shall not charge a fee for or share in the proceeds of the transfer of an interest in the managing entity from an owner to a subsequent purchaser.
VII. A violation of this section shall constitute a deceptive trade practice under RSA 358-A.
2 Effective Date. This act shall take effect 60 days after its passage.
Text to be added highlighted in green.
1 New Section; Trade and Commerce; Fair Housing; Business Entity-Owned Residential Arrangements. Amend RSA 354-A by inserting after section 15 the following new section:
354-A:15-a Business Entity-Owned Residential Arrangements.
I. In this section:
(a) "Business entity" means a partnership, corporation, joint venture, limited liability company, or other business organization or business association, however organized.
(b) "Managing entity" means a business entity that owns residential property used in a residential arrangement.
(c) "Residential arrangement" means an arrangement in which the purchaser of an interest in a business entity is entitled to exclusive possession of residential property owned by the entity as long as the purchaser holds the interest in the business entity.
(d) "Residential property" means the real property and improvements for a single-family house, duplex, triplex, or quadruplex.
(e) "Timeshare plan" means any arrangement, plan, scheme, or similar method, excluding an exchange program, but including a membership agreement, sale, lease, deed, license, or right-to-use agreement, by which a purchaser, in exchange for consideration, receives an ownership right in or the right to use accommodations for a period of time less than a year during a given year, but not necessarily consecutive years.
II. This section shall not apply to any timeshare plan.
III.(a) An agreement for the purchase of an interest in a managing entity shall disclose to the purchaser that the agreement is for the purchase of an interest in the entity and not in any residential property itself.
(b) The purchase agreement and any other agreement or rules governing the residential arrangement or the ownership interest in the entity shall not require that a dispute concerning the arrangement or interest be brought before a tribunal other than a court established under the laws of this state or the United States.
IV. A managing entity shall not take an action with respect to an interest in the entity in a manner that would be a violation of RSA 354-A if the interest in the entity were an interest in real property, including:
(a) Restricting the transfer of the interest;
(b) Imposing requirements to maintain the interest; or
(c) Refusing to grant an interest to an otherwise qualified person.
V. Notwithstanding any provision in an agreement between the owner and a managing entity, an owner of an interest in a managing entity may transfer the interest without approval from the managing entity.
VI. A managing entity shall not charge a fee for or share in the proceeds of the transfer of an interest in the managing entity from an owner to a subsequent purchaser.
VII. A violation of this section shall constitute a deceptive trade practice under RSA 358-A.
2 Effective Date. This act shall take effect 60 days after its passage.