HAR §16-106-46. Practices prohibited

(a) It shall be a violation of chapter 514E, HRS, and this chapter for any sales agent or acquisition agent for any time share plan or unit to: (1) Fail to comply with the disclosure requirements set forth in section 514E-9, HRS, or any rule adopted pursuant thereto; (2) Use any promotional device without fully disclosing that the device is being used for the purpose of soliciting sales of any interest or interests in time share units or a time share plan; (3) Offer a prospective purchaser a prize or gift, in writing, as part of any time share advertising or sales promotion plan if in order to claim the prize or gift the prospective purchaser must attend a sales presentation, unless the written disclosure set forth in section 514E-11(3), HRS, and section 16-106-39(b) is provided at the time the prospective purchaser is notified of the prize or gift; (4) Misrepresent or deceptively represent any material fact concerning the time share unit offered or sold, including, but not limited to: (A) The amount of time or period of time the unit will be available to any purchaser; (B) The location or locations of the time share unit; (C) The size, nature, extent, qualities, or characteristics of the time share unit; (D) The nature or extent of any services incident to the time share unit; (E) The rights of a purchaser, if any, to exchange the purchaser’s occupancy rights to a unit in one location for occupancy rights to a unit in another location; or (F) The contents of the contract or other document or the purchaser’s rights, privileges, or benefits thereunder; (5) Fail to honor or comply with all provisions of a contract or reservation agreement with the purchaser; (6) Include, in any contract or reservation agreement, provisions purporting to waive any right or benefit provided for purchasers pursuant to chapter 514E, HRS; (7) Receive from any prospective purchaser any money, property (including but not limited to a credit card), or other valuable consideration prior to signing a contract or reservation agreement for the purchase of a time share unit; and (8) Make a sales presentation to a prospective purchaser before delivering, furnishing, or tendering to that prospective purchaser any promised promotional device or other instrument. 106-45 (b) An acquisition agent operating in the State is prohibited from selling or offering to sell or discussing price or terms of sale of any interest or interests in a time share plan with prospective purchasers. The function of an acquisition agent shall be limited to soliciting or encouraging others to attend a time share sales presentation or to contact a time share sales agent or developer. (c) A sales agent operating in the State shall not sell or offer to sell any interest or interests in a time share plan unless the sales agent has an active real estate broker’s license issued by the State real estate commission, and all of the sales agent’s employees and independent contractors engaged in sales activities with respect to the time share plan have an active real estate broker or salesperson’s license issued by the state real estate commission. [Eff 11/15/80; am and comp 3/28/85; comp 8/30/85; comp 11/29/85; comp 6/5/87; comp 3/7/88; comp 9/15/90] (Auth: HRS §514E-13) (Imp: HRS §§514E-2.5, 514E-11)