A.R.S. § 33-2203 Management Of Timeshare Plan And Timeshare Property
A.R.S. § 33-2303 is part of Title 33, Chapter 20 of the Arizona Revised Statutes (A.R.S. § 33-2201-2211), the Timeshare Owners' Association and Management Act, which governs the various legal duties associated with timeshare ownership and timeshare management in Arizona. This section states:
A. For each timeshare plan and timeshare property in this state, the developer shall provide in the timeshare instrument for a managing entity. The managing entity may be the developer, a separate manager or management firm or an association. There may be different managing entities for the timeshare plan and the timeshare property or for portions of the timeshare property. This section applies to a managing entity only to the extent of its authority to manage the timeshare plan or timeshare property under the timeshare instrument.
B. The managing entity shall act in the capacity of a fiduciary to the owners of timeshare interests in the timeshare plan.
C. The association or other managing entity may enter into a contract with a manager or management firm to provide some or all of the management services to the timeshare plan or timeshare property, but the manager or management firm shall not be considered the managing entity of the timeshare plan or timeshare property.
D. For any management contract entered into during any period of time in which the developer or an affiliate of the developer is the managing entity or controls a majority of the voting interests in the association, the initial term of the management contract shall expire no later than at the end of five years.
E. Any management contract between the association and a manager or management firm may provide that it is automatically renewable for successive terms not exceeding five years each, unless the owners vote to discharge the manager or management firm. A discharge vote shall be conducted by the board of the association on written request of owners who hold at least two per cent of the voting interests in the association and who are not delinquent in assessments for common expenses, or such lower number as set forth in the timeshare instrument. The written request must be made no earlier than twelve months before the renewal date and no later than six months before the renewal date. The manager or management firm is deemed to be discharged if at least sixty-six per cent of the votes cast vote to discharge and those votes include at least fifty per cent of all votes allocated to owners, or such lesser percentages as are provided in the timeshare instrument.
F. The management contract shall contain the following provisions:
1. The management contract may be terminated for cause by a vote in favor of termination by a majority of the votes cast by owners concerning the issue and those votes include at least twenty-five per cent of all votes allocated to owners, or such lesser percentages as are provided in the timeshare instrument.
2. The resignation of the manager or management firm is not effective until one hundred twenty days after receipt of the written resignation by the board, or by the owners if there is no association, or such longer period after receipt as provided in the timeshare instrument except that the board or the owners may designate a shorter period in written notice to the manager or management firm.
G. The management contract may provide for other rights of termination by the association.
H. If a manager or management firm resigns or is discharged, the association, if any, or other managing entity shall remain responsible for operating and maintaining the applicable timeshare plan or timeshare property, or both, pursuant to the timeshare instrument and this chapter.
I. If the association or other managing entity fails to operate and maintain in any material respect the timeshare plan or timeshare property pursuant to the timeshare instrument and this chapter and that failure materially and adversely affects the timeshare plan, the timeshare property or the owners, any owner may apply to the superior court in the county in which the timeshare plan or any timeshare property is located for the appointment of a receiver to manage the affairs of the association, timeshare plan or timeshare property. At least thirty days before applying to the court, the owner shall mail by certified mail to the board of the association or other managing entity and post in a conspicuous place on the timeshare property a notice describing the intended action. During that thirty day period, the association or other managing entity may attempt to cure the alleged failure. If a receiver is appointed, the association or other managing entity is responsible, as a common expense of the timeshare plan, for payment of the salary and expenses of the receiver relating to the discharge of the receiver's duties and obligations, together with the receiver's court costs, and reasonable attorney fees. The receiver has all powers and duties of the managing entity and serves until discharged by the court.
Timeshares in Arizona need to be managed by a specific entity that is established by the developer in the timeshare instrument. Accordingly, the manager has certain duties and obligations to the members/owners of the timeshare interest. If you believe your timeshare is being mismanaged you should contact an Arizona attorney to determine your rights under Arizona law..