We are not attorneys and are expressing our experienced
opinions within these answers.
If you are concerned, please contact an attorney for clarification.
CC&Rs, membership agreements, association rules and regulations, bylaws, declarations, etc. generally refer to documents concerning use of the property. These are documents that all new owners should have received at the time they received title or bought their property. Sometimes the new owner doesn’t know this and signs or initials a part of their purchase contract that they are available and can be read at a specific location like the seller’s office. However, when asked, most seller’s offices will send copies to owners.
The key elements a title company, new owner, and the current owner need to be aware of are found somewhere in those documents without any common location IF THEY ARE TO BE FOUND. If they are not there, they can’t be brought up and\or applied in the future. The first condition is Restrictions on Ownership such as no corporations, must be individuals, must be legal residents, etc. The second condition is the First Right of Refusal which gives a time limit of usually 30 to 60 days for the previous seller to match any sales contract between the current owner and buyer or waive this right if they don’t act within that time limit. This requires the owner to send a copy of the completed purchase contract to the previous seller to give them a chance to match it.
Both of these protect the association community from dealing with someone as an owner they don’t want to deal with. However, ONLY if they are in one or more of those documents can they be exercised. If they are exercised, the previous seller has the right to negate or reverse the deed transfer, return the ownership to the original owner as if it never happened and make the original owner liable for any and all bills from that original date on AND prevent the use by the supposed new owner. If they are present there is no time limit to exercising those rights.
Experience has found that these are in about 5% of real estate ownership documents.
Other than that, the resort can only refuse use of the timeshare to the new owner. Unless these clauses are there at the time of deed transfer, they can not be applied in the future.