Ark. Code Ann. § 18-14-101 Title.
This chapter shall be known and may be cited as the “Arkansas Time-Share Act”.
Arkansas Time-Share Act
Ark. Code Ann. tit. 18, ch. 14
in effectArk. Code Ann. § 18-14-102 Definitions.
As used in this chapter:
(1) “Accommodation” means an apartment, condominium or cooperative unit, cabin, lodge, hotel or motel room, or other private or commercial structure that:
(A) Is affixed to real property;
(B) Is designed for occupancy or use by one (1) or more individuals; and
(C) Is part of a time-share plan;
(2) “Acquisition agent” means a person that by telephone, inducement, solicitation, or otherwise in the ordinary course of business directly tries to encourage a person in this state to attend a sales presentation for a time-share plan;
(3) “Amenities” means a recreational facility made available to purchasers in a time-share plan;
(4) “Association” means a council or an association composed of the owners of time-share interests in a time-share plan;
(5)(A) “Broker” means a person that sells or offers to sell in the ordinary course of business, time-share interests in a time-share plan to a purchaser.
(B) A broker and a sales agent conducting business from a location in this state, whether on a temporary or ongoing basis, are subject to the Real Estate Law, § 17-42-101 et seq.
(C) A violation that results from a time-share activity is not subject to the Real Estate Law, § 17-42-401 et seq.;
(6)(A) “Component site” means a specific geographic location where accommodations that are part of a multisite time-share plan are located.
(B) Separate phases of a single time-share property in a specific geographic location under common management are considered a single component site;
(7)(A) “Developer” means:
(i) A person who establishes a time-share plan, or is in the business of selling time-share interests or that uses a broker to sell time-share interests; or
(ii) A person that succeeds in the developer's interest by sale, lease, assignment, mortgage, or other transfer, if the person:
(a) Offers at least twelve (12) time-share interests in a particular time-share plan; and
(b) Is in the business of selling time-share interests or uses a broker to sell time-share interests.
(B) “Developer” does not include a broker who is in the business of selling time-share interests;
(8) “Exchange agent” means a person that owns or operates an exchange program;
(9) “Exchange program” means a method, arrangement, or procedure for the voluntary exchange of time-share interests among time-share owners;
(10) “Managing agent” means a person responsible for operating and maintaining a time-share property or time-share plan on behalf of the association;
(11)(A) “Offering” means an offer to sell, a solicitation, an inducement, or an advertisement made in this state, whether directly or indirectly or by radio, television, newspaper, magazine, mail, or electronic media, in which a person is given an opportunity or encouraged to acquire a time-share interest.
(B) “Offering” does not include a time-share owner that may refer a person to a developer if the time-share owner's activities are limited to the referral of a prospective purchaser to the developer, the time-share owner receives nominal consideration, and does not refer more than twenty (20) prospective purchasers to the developer annually;
(12) “Person” means one (1) or more natural persons, corporations, partnerships, associations, trusts, other entities, or any combination thereof;
(13) “Project instrument” means a time-share instrument or other applicable document that establishes a time-share plan that contains restrictions or covenants to regulate the use, occupancy, or disposition of a time-share plan, including a declaration, rule, or an amendment thereto, of a condominium, and the articles of incorporation, bylaws, rules of an association, or an amendment thereto;
(14) “Public offering statement” means the statement under § 18-14-404;
(15) “Purchaser” means a person other than a developer or lender who acquires an interest in a time-share plan;
(16)(A) “Reservation system” means the method, arrangement, or procedure where a purchaser is required to compete with other purchasers to reserve an accommodation of a multisite time-share plan for one (1) or more time-share periods regardless of whether the reservation system is operated and maintained by the multisite time-share plan, a managing entity, an exchange company, or other person.
(B) If a purchaser is required to use an exchange program as the principal means of reserving an accommodation and facility of the plan, the arrangement is a reservation system.
(C) If the exchange company uses a mechanism to exchange time-share periods among members of the exchange program, the use of the mechanism is not a reservation system in a multistate time-share plan;
(17)(A) “Time-share estate” means an arrangement by which the purchaser receives a right to occupy a time-share property, together with a real estate interest in the time-share property.
(B) “Time-share estate” includes real property interests held in a trust in which the owners or the owners' association of the time-share plan are the express beneficiaries of that trust and the trustee is independent of the developer.
(C) If the real property interests are held in a trust, the conveyance of the real property to the trust shall be free of financial liens and encumbrances or include a recorded nondisturbance agreement;
(18) “Time-share instrument” means a master deed, master lease, declaration, or other instrument used to establish a time-share plan;
(19) “Time-share interest” means a time-share estate or a time-share use;
(20)(A) “Time-share plan” means an arrangement, plan, scheme, or similar method, excluding an exchange program but including a membership agreement, sale, lease, deed, license, or right-to-use agreement, in which a purchaser, in exchange for consideration, receives an ownership right in or the right to use the accommodations for a period of time less than a year during a given year, but not necessarily consecutive years, regardless of whether the period of time is determined in advance.
(B) A time-share plan may be either a:
(i) “Single site time-share plan” which is the right to use an accommodation at a single time-share property; or
(ii) “Multisite time-share plan” which includes:
(a) A “specific time-share interest” which is the right to use an accommodation at a specific time-share property, together with the use rights in accommodations at one (1) or more other component sites established by or acquired through the reservation system of the time-share plan; or
(b) A “nonspecific time-share interest” which is the right to use accommodations at more than one (1) component site established by or acquired through the reservation system of the time-share plan but does not include the specific right to use any particular accommodations;
(21) “Time-share property” means:
(A) One (1) or more accommodations and related amenities that are subject to a time-share instrument; and
(B) Any other property or property rights appurtenant to the accommodations and amenities; and
(22) “Time-share use” means any arrangement under which the purchaser receives a right to occupy a time-share property but does not receive a time-share estate.
(23) "Consumer time-share reseller" means a purchaser who acquires a time-share interest for his or her own use and occupancy and later:
(A) Offers the time-share interest, or occupancy rights associated with the time-share interest, for resale or rental; or
(B) Engages a time-share interest transfer services provider to provide time-share interest transfer services;
(24) "Resale transfer agreement" means a contract or other agreement:
(A) Between a time-share interest transfer services provider and a consumer time-share reseller; and
(B) In which a time-share interest transfer services provider agrees to provide time-share interest transfer services;
(25) "Time-share interest transfer services" means any direct contact initiated with an Arkansas resident through telemarketing, mail, email, or any other means of communication relating to services to:
(A) Transfer ownership of a consumer time-share reseller's time-share interest;
(B) Assist or make a promise to assist with the transfer of ownership of a consumer time-share reseller's time-share interest; or
(C) Assist or make a promise to assist an owner of a time- share interest with a relinquishment or other voluntary disposition of the consumer time-share interest, which assistance:
(i) Has been or may be referred to as:
(a) "Time-share exit";
(b) "Time-share cancellation";
(c) "Time-share liquidation";
(d) "Time-share relief";
(e) "Cancellation of a time-share loan obligation"; or
(f) Any other similar references; and
(ii) Includes a reconveyance or other voluntary transfer to a developer or managing entity in lieu of any unpaid purchase money obligation or delinquent time-share plan assessment obligation; and
(26)(A) "Time-share interest transfer services provider" means a person:
(i) That offers to provide, or arranges for others to provide, time-share interest transfer services; or
(ii) Providing time-share interest transfer services from a location in this state whether on a temporary or ongoing basis and who is subject to the Real Estate License Law, § 17-42-101 et seq.
(B) "Time-share interest transfer services provider" does not include:
(i) An attorney who is licensed to practice in the State of Arkansas;
(ii) A licensed title insurer agent in good standing with the State Insurance Department;
(iii) A developer or managing entity, or an agent or contractor of a developer or managing entity, to the extent that the developer or managing entity, or an agent or contractor of a developer or managing entity offers time-share interest transfer services to purchasers of time-share interests in his or her own time-share plans; or
(iv) A mortgagee or servicer or lienholder, or agent or contractor of a mortgagee or servicer or lienholder, to the extent that the mortgagee or servicer or lienholder, or agent or contractor of a mortgagee or servicer or lienholder offers time-share interest transfer services to a borrower or debtor related to a mortgage, lien, or encumbrance against the purchaser's time-share interest.
(C) A time-share interest transfer services provider does not qualify for exemptions to licensure listed in § 17-42-104.
Ark. Code Ann. § 18-14-103 Applicability.
(a) This chapter applies to a time-share plan established after February 25, 1983, under § 18-14-201 et seq., § 18-14-401 et seq., and § 18-14-501 et seq.
(b) This chapter does not apply to the offer or sale of a time-share interest if the use extends over a period of three (3) years or less, whether or not the accommodation is located in this state.
Ark. Code Ann. § 18-14-104 Legal status of time-share estates.
(a)(1) A time-share estate is an estate in real property and has the character and incidents of an estate in fee simple at common law, including an estate for years with a remainder over in fee simple or an estate for years with no remainder if a leasehold.
(2) This section supersedes any contrary rule at common law.
(b) A document transferring or encumbering a time-share estate in real property shall not be rejected for recordation because of the nature or duration of that estate or interest.
(c) For purposes of title, a time-share estate constitutes a separate estate or interest in property, except for real property tax purposes.
Ark. Code Ann. § 18-14-105 Regulatory discrimination prohibited.
A zoning, subdivision, or other ordinance or regulation shall not discriminate against the establishment of time-share interests or impose a requirement upon a time-share plan that it would not impose upon a similar development under a different form of ownership.
Ark. Code Ann. § 18-14-201 Powers and duties of the Arkansas Real Estate Commission.
(a) The Arkansas Real Estate Commission may:
(1) Set fees;
(2) Adopt, amend, and repeal rules;
(3) Issue orders consistent with this chapter;
(4) Prescribe forms and procedures for submitting information to the commission;
(5) Accept grants-in-aid from any governmental source;
(6) Contract with agencies charged with similar functions in this or other jurisdictions;
(7) Cooperate with agencies performing similar functions in this and other jurisdictions to develop uniform filing procedures and forms, uniform disclosure standards, and uniform administrative practices;
(8) Develop information that may be useful in the discharge of the duties of the commission;
(9) Initiate private investigations within or without this state;
(10) After notice and a hearing under this chapter and the Arkansas Administrative Procedure Act, § 25-15-201 et seq.:
(A) Issue a notice of suspension;
(B) Impose a civil penalty of no more than five thousand dollars ($5,000) per occurrence; and
(C) Assess costs against the person if:
(i) A representation in any document or information filed with the commission is false or misleading;
(ii) A developer or agent of a developer has engaged or is engaging in any unlawful act or practice;
(iii) A developer or agent of a developer has distributed, caused to be distributed, or is distributing, orally or in writing, false or misleading promotional materials concerning a time-share plan;
(iv) A developer or agent of a developer has concealed, diverted, or disposed of any funds or assets of a person in a way that impairs rights of purchasers of time-share interests in the time-share plan;
(v) A developer or agent of a developer has failed to perform a stipulation or agreement made to induce the commission to issue an order relating to that time-share plan; or
(vi) A developer or agent of a developer has otherwise violated this chapter or the rules or orders of the commission;
(11) Issue a cease and desist order if the developer has not registered the time-share plan under this chapter; and
(12) After notice and hearing, issue an order revoking the registration of a time-share plan upon a determination that a developer or agent of a developer has failed to comply with a notice of suspension issued by the commission, which order affects the time-share plan.
(b) In addition to the civil penalties under subdivision (a)(10) of this section, the commission may require the person found to have violated this chapter or the rules or orders of the commission to reimburse any compensation, fees, or other remuneration collected during the activity that resulted in the violation.
Ark. Code Ann. § 18-14-203 Abbreviated registration — Exemptions.
(a) An abbreviated registration with the Arkansas Real Estate Commission may be accepted if the developer is registered and has issued a public offering statement or similar disclosure document that is provided to purchasers under any of the following:
(1) Securities Act of 1933, 15 U.S.C. § 77a et seq.;
(2) Arkansas Securities Act, § 23-42-101 et seq.;
(3) Federal Interstate Land Sales Full Disclosure Act, 15 U.S.C. § 1701 et seq., if the time-share plan is made a part of the subdivision that is being registered; and
(4) Any federal or state act that requires a federal or state agency to review a public offering statement or similar disclosure document that must be distributed to purchasers if the commission determines that the federal or state public offering statement is substantially equivalent to that required by this chapter.
(b) Annually or when a public offering statement is amended, the public offering statement shall be submitted to the commission for recertification.
(c) An applicant filing an abbreviated registration shall pay:
(1) A filing fee not to exceed five hundred dollars ($500);
(2) Any necessary investigation expenses as stated in § 18-14-204(d); and
(3) A fee not to exceed three hundred dollars ($300) for each request for recertification under subsection (b) of this section.
(d) A registration with the commission is not required in the case of:
(1) A transfer of a time-share interest by any time-share interest owner other than the developer or its agent unless the transfer is made to evade this chapter;
(2) Any disposition under a court order;
(3) A disposition by a government or governmental agency;
(4) A disposition by foreclosure or deed in lieu of foreclosure;
(5) A developer's offer of additional time-share interests in a time-share plan located outside this state to owners that have previously purchased from the developer or a developer under common ownership or control with the developer, if the developer has had a registration or amendment approved by the commission within the preceding seven (7) years;
(6) A gratuitous transfer of a time-share interest;
(7) A time-share property that consists of a single accommodation and related amenities for which the developer or a person under the control of, a subsidiary of, or affiliate of the developer operates as the acquisition agent, broker, or exchange agent; or
(8) A disposition of a time-share interest owned by an owners' association of which the time-share interest is a part.
Ark. Code Ann. § 18-14-204 Application for registration.
(a) An application for registration of a time-share plan shall contain:
(1) The public offering statement;
(2) A brief description of the time-share property;
(3) Copies of time-share instruments;
(4) Financial statements prepared according to generally accepted accounting principles and fully and fairly disclosing the current financial condition of the developer;
(5) Any other documents referred to in the registration application; and
(6) Other information as required by the Arkansas Real Estate Commission.
(b)(1) If the accommodation in the time-share plan is in a condominium development or other common-interest subdivision, the application for registration shall contain evidence that the use of the accommodation for time-share purposes is not prohibited by the project instruments.
(2) If the project instruments do not expressly authorize time-sharing, the application for registration shall contain evidence that purchasers in the condominium development or other common-interest subdivision were given written notice at least sixty (60) days before the application for registration was submitted that the accommodation would be used for time-share purposes.
(3) If the project instruments contain a prohibition against time-sharing, the board of directors of the association shall certify that the amendment procedures in the project instruments were followed and that the project instruments have been amended to permit time-sharing.
(c) The application shall be accompanied by a filing fee not to exceed one thousand dollars ($1,000).
(d)(1) The commission shall thoroughly investigate matters relating to the application and may require a personal inspection of the time-share property by a person designated by it.
(2) All direct expenses incurred by the commission in inspecting the time-share property are paid by the applicant, and the commission may require a deposit sufficient to cover the direct expenses before incurring them.
(e) An application for registration shall be renewed, annually, and the renewal filing fee shall not exceed five hundred dollars ($500).
Ark. Code Ann. § 18-14-205 Material changes.
(a) A developer shall amend or supplement its registration to report a material change in the information required by § 18-14-204.
(b)(1) If there is a material change in a registration document, the developer shall file an amendment with the Arkansas Real Estate Commission to report the material change no later than forty-five (45) days after the developer knows or reasonably should have known of the change.
(2) The developer may continue to offer and dispose of time-share interests under the existing registration pending review of the amendments by the commission if the developer discloses the material change to prospective purchasers.
(3) The commission may charge a fee not to exceed three hundred dollars ($300) to process an amendment.
Ark. Code Ann. § 18-14-206 Effectiveness of registration or amendment.
(a)(1) Except as otherwise provided, the effective date of the registration or any amendment is forty-five (45) days after its filing or such earlier date as the Arkansas Real Estate Commission may determine, having regard for the public interest and the protection of purchasers.
(2) If an amendment to a registration is filed before the effective date, the registration is considered to have been filed when the amendment was filed.
(b)(1) If it appears to the commission that the application for registration or an amendment to the registration is on its face incomplete or inaccurate in any material respect, the commission shall so advise the developer by listing each deficiency in writing before the date the registration would otherwise be effective.
(2) The notification of the deficiency serves to suspend the effective date of the filing until ten (10) days after the developer files the additional information as required by the commission.
(3)(A) Any developer, upon receipt of the notice of deficiencies, may request a hearing.
(B) The hearing shall be held within thirty (30) days of receipt of the request.
Ark. Code Ann. § 18-14-207 Regulation and use of public offering statement.
(a)(1) The Arkansas Real Estate Commission may require a developer to alter or supplement the form or substance of a public offering statement to assure adequate and accurate disclosure to prospective purchasers.
(2) The commission may require that certain disclosures contained in the public offering statement be in boldface type to protect the purchaser.
(b)(1) The public offering statement shall not be used for promotional purposes before registration and may be used afterwards only in its entirety.
(2) A person shall not advertise that the commission has approved or recommended the time-share plan, the disclosure statement, or any of the documents contained in the application for registration.
Ark. Code Ann. § 18-14-301 Time-share plans permitted.
A time-share plan may be established in any accommodation unless expressly prohibited by the project instruments.
Ark. Code Ann. § 18-14-302 Contents of instruments establishing time-share estates.
A project and time-share instrument that establishes a time-share estate located or offered in this state shall contain:
(1) The name of the county in which the property is situated;
(2) The legal description, street address, or other description sufficient to identify the property;
(3) Identification of time periods by letter, name, number, or combination thereof;
(4) Identification of time-share estates and, when applicable, the method by which additional time-share estates may be established;
(5) The formula, fraction, or percentage of the common expenses and any voting rights assigned to each time-share estate and, when applicable, to each accommodation in a project that is not subject to the time-share plan;
(6) Restrictions on the use, occupancy, alteration, or alienation of time-share interests;
(7) The ownership interest, if any, in personal property and for care and replacement;
(8) Any other matters the developer considers appropriate; and
(9)(A) Provisions concerning the establishment of a lien against an owner's time-share interest in favor of the association of time-share estate owners to secure payment of common expenses.
(B) This lien when provided for in the time-share instrument is enforceable and foreclosable in the way other statutory liens are enforceable and foreclosable under the laws of this state.
Ark. Code Ann. § 18-14-303 Provisions for management and operation of time-share estate plans.
The time-share instruments for a time-share estate plan offered in this state shall prescribe reasonable arrangements for management and operation of the time-share plan or time-share property and for the maintenance, repair, and furnishing of accommodations including:
(1) Establishment of an association of time-share estate owners;
(2) Adoption of bylaws for organizing and operating the association;
(3) Payment of costs and expenses of operating the time-share plan or time-share property and owning and maintaining the accommodations;
(4) Employment and termination of employment of the managing agent for the association;
(5) Preparation and dissemination to owners of information concerning the time-share plan or property, including:
(A) An annual budget;
(B) Operating statements; and
(C) Other financial information;
(6) Procedures for establishing the rights of owners for the use of accommodations by prearrangement or under a first-reserved, first-served system;
(7) Adoption of standards and rules of conduct for the use and occupancy of accommodations by owners;
(8) Collection of assessments from owners to defray the expenses of management of the time-share plan or time-share property and maintenance of the accommodation and amenities of the time-share plan or time-share property;
(9) Comprehensive general liability insurance for death, bodily injury, and property damage arising out of, or in connection with, the use of the accommodations by owners, their guests, and other users;
(10) Methods for providing compensating use periods or monetary compensation to an owner if an accommodation cannot be made available for the period to which the owner is entitled by schedule or by confirmed reservation; and
(11)(A) Procedures for imposing a monetary penalty or suspension of an owner's rights and privileges in the time-share plan for failure of the owner to comply with the time-share instruments or the rules of the association concerning the use of the accommodations and amenities.
(B) Under these procedures an owner shall be given notice and the opportunity to refute or explain the charges against him or her in person or in writing to the governing body of the association before a decision to impose discipline is rendered.
(C) A monetary penalty may be secured by the lien in § 18-14-302.
Ark. Code Ann. § 18-14-304 Developer control period.
(a) The time-share instruments for a time-share estate plan may provide for a length of time, known as the “developer control period”, during which the developer, or a managing agent selected by the developer, may manage the time-share plan and the accommodations in the time-share plan.
(b) If the time-share instruments for a time-share estate plan provide for the establishment of a developer control period, the procedure shall ordinarily include:
(1) Termination of the developer control period by action of the association or by operation of the time-share instruments;
(2) Termination of contracts for goods and services for the time-share plan or for accommodations in the time-share plan during the developer control period; and
(3) A regular accounting by the developer to the association concerning matters that significantly affect the interests of owners in the time-share plan.
Ark. Code Ann. § 18-14-305 Instruments establishing time-share uses.
A project instrument or time-share instrument that establishes time-share uses containing accommodations located or offered in this state shall contain:
(1) Identification by name of the time-share plan and street address where the time-share plan is situated;
(2) Identification of the time periods, type of accommodations, the accommodations that are in the time-share plan and the length of time that the accommodations are committed to the time-share plan;
(3) In case of a time-share plan, identification of which accommodations are in the time-share plan and the method for adding, deleting, or substituting other accommodations; and
(4) Any other matters that the developer considers appropriate.
Ark. Code Ann. § 18-14-306 Provisions for management and operation of time-share use plans.
The time-share instruments for a time-share use plan containing accommodations offered in this state shall prescribe reasonable arrangements for the management and operation of the time-share plan and for the maintenance, repair, and furnishing of accommodations including:
(1) Standards and procedures for upkeep, repair, and interior furnishing of accommodations and for maid, cleaning, linen, and similar services to the accommodations during use periods;
(2) Adoption of standards and rules of conduct governing the use and occupancy of accommodations by owners;
(3) Payment of the costs and expenses of operating the time-share plan and owning and maintaining the accommodations;
(4) Selection of a managing agent;
(5) Preparation and dissemination to owners of an annual budget, operating statements, and other financial information concerning the time-share plan or time-share property;
(6) Procedures for establishing the rights of owners to the use of accommodations by prearrangement or under a first-reserved, first-served priority system;
(7) Organization of a management advisory board consisting of time-share use owners, including an enumeration of rights and responsibilities of the board;
(8) Procedures for imposing and collecting assessments or use fees from time-share use owners as necessary to defray costs of management of the time-share plan and providing materials and services to the accommodations;
(9) Comprehensive general liability insurance for death, bodily injury, and property damage arising out of, or in connection with, the use of accommodations by time-share use owners, their guests, and other users;
(10) Methods for providing compensating use periods or monetary compensation to an owner if an accommodation cannot be made available for the period to which the owner is entitled by schedule or by a confirmed reservation; and
(11)(A) Procedures for imposing a monetary penalty or suspension of an owner's rights and privileges in the time-share plan for failure of the owner to comply with the time-share instruments or the rules established by the developer concerning the use of the accommodations.
(B) The owner shall be given notice and the opportunity to refute or explain the charges, in person or in writing, to the management advisory board before a decision to impose discipline is rendered.
Ark. Code Ann. § 18-14-307 Partition of accommodations.
An action for partition of an accommodation shall not be maintained unless permitted by the time-share instrument.
Ark. Code Ann. § 18-14-308 Records.
(a) The association or managing agent shall maintain among its records a list of the names and post office addresses of the owners of time-share interests in the time-share plan.
(b) The list shall:
(1) Be updated every six (6) months; and
(2) Not be published or provided to owners or a third person to use or sell the list for commercial purposes.
(c)(1) If an owner of a time-share interest in the time-share plan provides a written request to the association to communicate with its membership, the association shall determine within thirty (30) days of the date of the request whether the communication advances legitimate association business and if so, provide a method to grant the request without disclosing the association membership list to the requesting owner.
(2)(A) The association shall notify the requesting owner of the costs to make the communication before the communication is made to the owners.
(B) The requesting owner shall pay the costs to the association before the association makes the communication.
(3) An alternative method that accomplishes the original purpose of the request made under subdivision (c)(1) of this section is a reasonable alternative.
(4)(A) If the association determines that a communication does not advance legitimate association business, the association shall notify the requesting owner in writing within thirty (30) days of the reasons for the rejection.
(B) An owner that is denied a request for information under subdivision (c)(4)(A) of this section may appeal the denial to the court in whose jurisdiction the association lies.
(C) If the court determines that the communication does advance legitimate association business, the court may order the association to pay the requesting owner's costs, including attorney's fees reasonably incurred to enforce the requesting owner's rights.
Ark. Code Ann. § 18-14-309 Supervisory authority.
(a) Notwithstanding the obligations imposed on other persons by this chapter, the developer shall supervise, manage, and control the aspects of the offering of a time-share plan, including the promotion, advertising, contracting, and closing.
(b) A violation of this section during the offering is a violation by the developer and the person that committed the violation.
Ark. Code Ann. § 18-14-310 Out-of-state time-share plan.
(a) A single site time-share plan and component sites of a multisite time-share plan that are located outside the state are to be established and governed by the applicable laws of the state in which the time-share property or component site is located.
(b) If there is a conflict between the affirmative standards stated in the laws of the state or jurisdiction that governs an out-of-state time-share plan and this subchapter, the law of the state or jurisdiction in which the time-share property is located controls.
(c) If the association and the time-share instruments provide for the matters contained in §§ 18-14-302 — 18-14-306, as applicable, the developer or association is considered to be in compliance with these sections and is not required to revise the time-share instruments to comply with this subchapter.
Ark. Code Ann. § 18-14-401 Penalties.
A developer or any other person subject to this chapter that offers or disposes of a time-share interest without complying with this chapter or that violates this chapter is guilty of a misdemeanor punishable by a fine not to exceed five thousand dollars ($5,000) per occurrence or by imprisonment not to exceed one (1) year, or both.
Ark. Code Ann. § 18-14-402 Civil remedies.
(a)(1) If a developer or any other person subject to this chapter violates this chapter or a project instrument, a person or class of persons adversely affected by the violation has a claim for appropriate relief.
(2) Punitive damages or attorney's fees, or both, may be awarded for willful violation of this chapter.
(b) Section 17-42-401 et seq. does not apply to any claims arising from or damages caused by a violation of this chapter, the Real Estate License Law, § 17-42-101 et seq., or rules by a licensee while engaged in a time-share activity.
Ark. Code Ann. § 18-14-403 Statute of limitations.
(a) A judicial proceeding in which the accuracy of the public offering statement or validity of a contract of purchase is in issue and a rescission of the contract or damages is sought shall be commenced not later than four (4) years after the date of the contract of purchase, notwithstanding that the purchaser's terms of payment may extend beyond the period of limitation.
(b) If the enforcement of provisions in the contract of purchase requires the continued furnishing of services and the reciprocal payments to be made by the purchaser, the period of bringing a judicial proceeding will continue for a period of four (4) years for each breach, but the parties may agree to reduce the period of limitation to not less than two (2) years.
Ark. Code Ann. § 18-14-404 Required contents of public offering statements for time-share interests.
(a) A public offering statement shall be provided to each purchaser of a time-share interest and may be delivered by hard copy or electronically, including a CD, DVD, thumb drive, or other electronic media agreeable to the purchaser. The public offering statement shall fully and accurately disclose:
(1) The name of the developer, its principal address, and the time-share plan offered in the statement;
(2) A general description of the accommodations, including, without limitation, the developer's schedule of commencement and completion of all buildings, accommodations, and amenities or, if completed, that the buildings, accommodations, and amenities have been completed;
(3) As to the accommodations offered by the developer in the time-share plan:
(A) The types and number of accommodations by location, if applicable;
(B) Identification of accommodations that are subject to time-share interests; and
(C) The estimated number of accommodations that may become subject to time-share interests;
(4) A brief description of the time-share plan;
(5)(A) If applicable, the current budget and a projected budget for the time-share interests for one (1) year after the date of the first transfer to a purchaser.
(B) The budget shall include, without limitation:
(i) A statement of the amount included in the budget as a reserve for repairs and replacement;
(ii) The projected common expense liability, if any, by category or expenditures for the time-share interests;
(iii) The total annual projected common expense liability for all time-share interests in the time-share plan; and
(iv) A statement of any services not shown in the budget that the developer provides or expenses that it pays;
(6) Any initial or special fee due from the purchaser at closing with a description of the purpose and method of calculating the fee;
(7) A description of any liens, defects, or encumbrances on or affecting the title to any of the time-share interests;
(8) A description of any financing offered by the developer;
(9) A statement that within five (5) days after execution of a contract of purchase a purchaser may cancel any contract for purchase of time-share interests from the developer;
(10) A statement of any pending suits material to the time-share interests of which the developer has actual knowledge;
(11) Any restraints on alienation of any number or part of any of the time-share interests;
(12) A description of the insurance coverage that is for the benefit of the owners of time-share interests;
(13) Any current or expected fees or charges to be paid by time-share interest owners for the use of any facilities related to any of the time-share property;
(14) The extent to which financial arrangements have been provided for completion of the promised improvements; and
(15) The extent to which a time-share accommodation may become subject to a tax or other lien arising out of claims against other owners of the accommodation.
(b)(1) If a purchaser is offered the opportunity to subscribe to any program that provides exchanges of time-shares among purchasers in either the same time-sharing plan or other time-sharing plans, or both, the developer shall deliver to the purchaser before the execution of a contract between the purchaser and the company offering the exchange program, written information concerning the exchange program, which information may be delivered by hard copy or electronically.
(2) The purchaser shall certify in writing to the receipt of the information that includes:
(A) The name and address of the exchange program;
(B) The names of the officers and directors;
(C) Whether the exchange program, or any of its officers or directors, has a legal or beneficial interest in any developer or managing agent for a time-share plan participating in the exchange program and, if so, the name and location of the time-share plan and the nature of the interest;
(D) Unless otherwise stated, a statement that the purchaser's contract with the exchange program is a contract separate and distinct from the purchaser's contract with the developer;
(E) Whether the purchaser's participation in the exchange program is dependent upon the continued affiliation of the time-share project with the exchange program;
(F) Whether the purchaser's membership or participation, or both, in the exchange program is voluntary or mandatory;
(G) A complete and accurate description of the terms and conditions of the purchaser's contractual relationship with the exchange program and the procedure by which changes may be made;
(H) A complete and accurate description of the procedure to qualify for and carry out exchanges;
(I) A complete and accurate description of the limitations, restrictions, or priorities used in the operation of the exchange program, including limitations on exchanges based on seasonality, accommodation size, or levels of occupancy that are expressed in bold-faced type and if limitations, restrictions, or priorities are not uniformly applied by the exchange program, a clear description of the way in which they are applied;
(J) Whether exchanges are arranged on a space-available basis and whether any guarantees of fulfillment of specific requests for exchanges are made by the exchange program;
(K) Whether and under what circumstances, a purchaser, in dealing with the exchange program, may lose the use and occupancy of his or her time-share in any exchange properly applied for without his or her being provided with substitute accommodations by the exchange program;
(L) The fees or range of fees for participation by purchasers in the exchange program, a statement whether such fees may be altered by the exchange company, and the circumstances under which alterations may be made;
(M) The name and address of the site of each accommodation or facility included in the time-share properties that are participating in the exchange program as of the last annual review or audit;
(N) The number of time-share accommodations in each time-share property that are available for occupancy, under the last annual review or audit, and that qualify for participation in the exchange program, expressed in numerical groupings: 1-5, 6-10, 11-20, 21-50, and 51 and over;
(O) The number of purchasers enrolled for each time-share plan participating in the exchange program, under the last annual review or audit, expressed in numerical groupings: 1-100, 101-249, 250-499, 500-999, and 1,000 and over, and a statement of the criteria used to determine those purchasers that are enrolled with the exchange program;
(P) The disposition made by the exchange company of time-shares deposited with the exchange program by purchasers enrolled in the exchange program and not used by the exchange company in making changes;
(Q) The information required in this subdivision (b)(2)(Q) shall be independently reviewed or audited by a certified public accountant or accounting firm according to the standards of the Financial Accounting Standards Board and annually reported:
(i) The number of purchasers currently enrolled in the exchange program;
(ii) The number of accommodations and facilities that have current written affiliation agreements with the exchange program;
(iii) The percentage of confirmed exchanges that are the number of exchanges confirmed by the exchange program divided by the number of exchanges properly applied for, together with a complete and accurate statement of the criteria used to determine whether an exchange request was properly applied for;
(iv) The number of time-share periods for which the exchange program has an outstanding obligation to provide an exchange to a purchaser who relinquished a time-share during the year in exchange for a time-share in any future year; and
(v) The number of exchanges confirmed by the exchange program during the year; and
(R)(i) A statement in boldface type to the effect that the percentage described in subdivision (b)(2)(Q)(iii) of this section is a summary of the exchange requests entered with the exchange program in the period reported.
(ii) The percentage does not indicate a purchaser's probabilities of being confirmed to a specific choice or range of choices, since availability at individual locations may vary.
(c) Each exchange company offering an exchange program to purchasers in this state shall include the statement in subdivision (b)(2)(R) of this section on all promotional brochures, pamphlets, advertisements, or other materials distributed by the exchange company that contains the percentage in subdivision (b)(2)(Q)(iii) of this section.
(d)(1) A developer may satisfy the requirements of this section by delivery to purchasers of materials furnished to the developer by the exchange program if the exchange program has certified to the developer that the materials satisfy the requirements of this section.
(2) A developer has no liability to a person if the materials furnished by the exchange program fail to comply with this section.
Ark. Code Ann. § 18-14-405 Material changes.
(a) The developer shall amend or supplement the public offering statement to report any material change in the information required by § 18-14-404.
(b) The developer shall use the written materials that are supplied to it by an exchange program for distribution to the time-share interest owners as the materials are received.
Ark. Code Ann. § 18-14-406 Other statutes not applicable.
(a) A time-share plan in which a public offering statement is prepared under this chapter does not require registration under any of the following:
(1) Arkansas Securities Act, § 23-42-101 et seq.; or
(2) Any other Arkansas statute that requires a public offering statement or substantially similar document for distribution to purchasers.
(b)(1) A time-share plan that fails to restrict the price at which an owner may sell or exchange his or her time-share interest does not by that failure cause the time-share interest to become a security under the Arkansas Securities Act, § 23-42-101 et seq.
(2) An exchange agent offering a time-share interest for exchange is not considered to be offering a security under the Arkansas Securities Act, § 23-42-101 et seq.
Ark. Code Ann. § 18-14-407 Escrow accounts — Other financial assurances.
(a) Any deposit made with the purchase or reservation of a time-share interest from a developer shall be placed in a noninterest-bearing escrow account and held in this state, or other jurisdiction that is acceptable to the Arkansas Real Estate Commission, in a designated account by an independent bonded escrow company or in an institution whose accounts are insured by a governmental agency or instrumentality until:
(1) Delivered to the developer at the end of the time for rescission or a later time specified in a contract or sale;
(2) Delivered to the developer because of the purchaser's default under a contract to purchase the time-share interest; or
(3) Refunded to the purchaser.
(b)(1) In lieu of any escrows required by this section, the commission has the discretion to accept other financial assurances, including a surety bond, or a cash deposit in an amount equal to the escrow requirements of this section.
(2) Interest earned on a surety bond or other deposit while deposited with, or for the benefit of, the commission becomes the property of the commission and is deposited into the Real Estate Recovery Fund in § 17-42-403.
Ark. Code Ann. § 18-14-408 Guarantees for completion of time-share properties.
(a)(1) If a developer contracts to sell a time-share interest and the construction, furnishings, and landscaping of the time-share property have not been substantially completed according to the representations made by the developer in the disclosures under this chapter, the developer shall pay into an escrow account established and held in this state, in an account designated solely for the purpose, by an independent bonded escrow company, or in an institution whose accounts are insured by a governmental agency or instrumentality, a payment received by the developer from the purchaser towards the sale price until the time-share property is substantially complete.
(2) The escrow agent may invest the escrow funds in securities for the United States, any agency thereof, or in savings or time deposits in institutions insured by an agency of the United States.
(3) Funds are released from escrow as follows:
(A) If a purchaser properly terminates the contract under its terms or this chapter, the funds shall be paid to the purchaser, together with any interest earned;
(B) If the purchaser defaults in the performance of his or her obligations under the contract of purchase and sale, the funds shall be paid to the developer, together with any interest earned; or
(C) If the funds of a purchaser have not been previously disbursed under subdivision (a)(1) of this section, they may be disbursed to the developer by the escrow agent upon substantial completion of the time-share property.
(4)(A) The developer is not required to comply with subdivision (a)(1) of this section if the commission is satisfied that all of the following conditions are met:
(i) The developer is an Arkansas corporation or a foreign corporation qualified to do business in Arkansas;
(ii) The corporation has been in existence and operated in this state for at least three (3) years; and
(iii) The corporation has net assets within this state of at least three (3) times the cost to complete the time-share property.
(B) The commission may require other assurances as may reasonably be required either to assure completion of the time-share property or to reimburse the purchaser the funds paid to the developer, together with any interest earned.
(5)(A) In lieu of the escrow required by subdivision (a)(1) of this section, the commission may accept other financial assurances, including a performance bond equal to the cost to finish the time-share property.
(B) Interest earned on the performance bond under subdivision (a)(5)(A) of this section, deposit, or other instrument while deposited with or for the benefit of the commission shall become the separate property of the commission and be deposited into the Real Estate Recovery Fund under § 17-42-403.
(b) For the purpose of this section, “substantially completed” means that the amenities, furnishings, appliances, and structural components and mechanical systems of buildings on the real property dedicated to the time-share plan and subject to the project instruments are completed and provided as represented in the public offering statement, that the premises are ready for occupancy, and that the proper governmental authority has issued a certificate of occupancy or its equivalent.
Ark. Code Ann. § 18-14-409 Mutual rights of cancellation.
(a)(1) Before transfer of a time-share interest and no later than the date of the sales contract, the developer shall provide the intended purchaser with a copy of the public offering statement and any amendments and supplements to the statement.
(2) The contract is voidable by the purchaser until he or she has received the public offering statement.
(3) The contract is voidable by the purchaser for five (5) days after execution of the contract of sale.
(4) Cancellation is without penalty, and all payments made by the purchaser before cancellation shall be refunded within a reasonable time after receipt of the notice of cancellation under subsection (c) of this section.
(b) Up to five (5) days after execution of the contract of sale, the developer may cancel the contract of purchase without penalty to either party and shall return all payments made within a reasonable time.
(c) If either party elects to cancel a contract under subsection (a) or subsection (b) of this section, he or she may do so by hand-delivering the notice to the other party or by mailing the notice by regular mail to the other party or to his or her agent for service of process, which notice is considered given when deposited in the mail.
Ark. Code Ann. § 18-14-410 Liens.
(a)(1) Before a transfer of a time-share interest, the developer shall record or furnish to the purchaser releases of all liens affecting that time-share interest or shall provide a surety bond or other insurance against the lien from a company acceptable to the Arkansas Real Estate Commission; or
(2) An underlying lien shall contain a provision in which the lienholder subordinates its rights to that of a time-share purchaser who fully complies with the contract of sale.
(b)(1) If a lien other than a mortgage or deed of trust becomes effective against more than one (1) time-share interest in a time-share property, a time-share interest owner may get a release of his or her time-share interest from the lien upon payment of the amount of the lien attributable to his or her time-share interest unless a time-share interest owner or his or her predecessor in title agrees otherwise with the lienor.
(2) The payment shall be proportionate to the ratio that the time-share interest owner's liability bears to the liabilities of all time-share interest owners whose interests are subject to the lien.
(3) Upon receipt of payment, the lienholder shall promptly deliver to the time-share interest owner a release of the lien covering that time-share interest.
(4) After payment, the managing entity shall not assess or have a lien against that time-share interest for any part of the expenses incurred with that lien.
Ark. Code Ann. § 18-14-411 Financial records — Examination.
(a) The person or entity responsible for making or collecting common expense assessments or maintenance assessments shall keep detailed financial records.
(b) All financial and other records shall be made reasonably available for examination by any time-share interest owner and his or her authorized agents.
(c)(1) An escrow agent that receives funds related to time-share interest transfer services provided to a consumer time-share reseller shall retain all resale transfer agreements, escrow account records, and affidavits received under this chapter for a period of four (4) years.
(2) An escrow agent who intentionally fails to comply with the provisions of the chapter concerning the establishment of an escrow account, deposits of funds into escrow, withdrawal therefore, and maintenance of records is guilty of a Class D felony.
Ark. Code Ann. § 18-14-412 Required contents of resale transfer agreements.
(a) In the course of offering time-share interest transfer services, a person shall not:
(1) Engage in any time-share interest transfer services for consideration, or the expectation of receiving consideration, without first obtaining a written resale transfer agreement signed by the consumer time- share reseller that complies with this section; or
(2) Fail to provide both the consumer time-share reseller and the escrow agent required by the chapter with an executed copy of the resale transfer agreement.
(b) Each resale transfer agreement shall contain:
(1) A statement that no fee, cost, or other compensation may be paid to the time-share interest transfer services provider before the delivery to the consumer time-share reseller of written evidence that all promised time-share interest transfer services have been performed, including without limitation the delivery to:
(A) Both the consumer time-share reseller and the time- share plan managing agent of a copy of the recorded instrument or other legal document evidencing the transfer of ownership of or legal title to the consumer time-share reseller's time-share interest to the transferee, accompanied by the full name, address, and other known contact information of the transferee;
(B) Both the consumer time-share reseller and the time- share plan managing agent of a copy of the certification or other legal documents documenting the transfer or assignment of the time-share interest contract of membership evidencing the use rights and other privileges and obligations associated with the consumer time-share reseller's time-share interest, accompanied by the full name, address, and other known contact information of the transferee; or
(C) The consumer time-share reseller of a copy of the legal document executed by the vendor or obligor evidencing the cancellation of the time-share interest contract or time-share loan obligation relating to the consumer time-share reseller's time-share interest;
(2) The name, address, current phone number, and current email address of the escrow agent required by § 18-14-408;
(3) A specific, detailed description of the time-share interest transfer services to be provided and a statement that the time-share interest transfer services provider will provide the consumer time-share reseller with written notice of the full performance of the time-share interest transfer services, together with a copy of the recorded instrument or other legal document evidencing the transfer of ownership of or legal title to the time- share interest from the consumer time-share reseller to a transferee; and
(4) A statement in substantially the following form in conspicuous type immediately preceding the space in the resale transfer agreement provided for the consumer time-share reseller's signature.
"(Name) has agreed to provide you with time-share interest transfer services under this resale transfer agreement. After those services have been fully performed, (Name) is obligated to provide you with written notice of the full performance and a copy of the recorded instruments or other legal document evidencing the transfer, assignment, or cancellation of the consumer time-share reseller's time-share interest. Any fee or other compensation paid by you under this agreement before the full performance by (Name) must be held in escrow by the escrow agent specified in this agreement, and (Name) is prohibited from receiving any fee or other compensation until all promised time-share interest transfer services have been performed."
(c)(1)(A) Before entering into a resale transfer agreement, a time- share interest services provider shall establish an escrow account with an escrow agent for the purpose of protecting the funds or other property of consumer time-share resellers required to be escrowed by this chapter.
(B) An attorney who is licensed to practice in the State of Arkansas, a broker in good standing, or a title insurer or agent in good standing, that also provides time-share interest transfer services as described in this chapter, may serve as escrow agent under this section.
(2) The escrow agent shall:
(A) Maintain the escrow account in a manner as to be under the direct supervision and control of the escrow agent; and
(B) Have a fiduciary duty to each consumer time-share reseller to maintain the escrow account in accordance with good accounting practices and to release the consumer time-share reseller's fund or other property from escrow only in accordance with this section.
(3)(A) All funds or other property that are received from or on behalf of a consumer time-share reseller under a resale transfer agreement shall be deposited into an escrow account required under this section.
(B) A fee, cost, or other compensation that is due or that will be paid to the time-share interest transfer services provider shall be held in the escrow account until the time-share interest transfer services provider has fully complied with all of his or her obligations under the resale transfer agreement and under this section.
(4) The funds or other property required to be escrowed under this section may only be released from escrow as follows:
(A) On the order of the time-share interest transfer services provider, upon presentation of an affidavit by the time-share interest transfer services provider that all promised time-share interest transfer services have been performed, including delivery to both the consumer time-share reseller and the time-share plan managing agent of a copy of the recorded instrument or other legal document evidencing the transfer of ownership of or legal title to the consumer resale time-share interest to the transferee; or
(B)(i) To a managing agent to pay any assessments, transfer fees, or other money owed with respect to the time-share interest or to pay a governmental agency for the purpose of completing and perfecting the transfer.
(ii) A managing agent shall accept any funds remitted to it by an escrow agent under this section.
Ark. Code Ann. § 18-14-501 Filing of advertising materials.
(a) All advertising materials proposed for use or used in this state by a person with the offer or sale of a time-share property are subject to the review of the Arkansas Real Estate Commission upon its request.
(b) Advertising materials include:
(1) Promotional brochures, pamphlets, advertisements, or other materials to be distributed to the public concerning the sale of time-shares;
(2) Transcripts of all radio and television advertisements;
(3) Offers of travel, accommodations, meals, or entertainment at no cost or reduced cost;
(4) Direct mail solicitation;
(5) Advertising, including testimonials or endorsements;
(6) Scripts or standardized narrative for use in making telephone solicitations; and
(7) Websites or other electronic media.
Ark. Code Ann. § 18-14-502 False advertising declared unlawful.
(a) It is unlawful for a person with intent, directly or indirectly, to offer for sale or sell time-shares in this state or to authorize, use, direct, or aid in the publication, distribution, or circulation of an advertisement, radio broadcast, telecast, or other electronic media concerning the time-share plan in which the time-share properties are offered that contains a statement, pictorial representation, or sketch that is false or misleading.
(b) This section does not hold the publisher or employee of a newspaper, a job printer, a broadcaster or telecaster, or a magazine publisher, or an employee thereof, liable for the publication referred to in this section unless the publisher, employee, or printer has actual knowledge of its falsity or has an interest as an owner or agent in the time-share plan advertised.
Ark. Code Ann. § 18-14-503 Prohibited advertising.
An advertisement for the offer or sale of time-shares shall not:
(1) Contain a representation concerning the availability of a resale program or rental program offered by or on behalf of the developer or its affiliate unless the resale program or rental program has been made a part of the offering and submitted to the Arkansas Real Estate Commission;
(2) Contain an offer or inducement to purchase that limits the quantity or time of availability, unless the numerical quantity or time applicable to the offer or inducement is clearly and conspicuously disclosed;
(3) Contain a statement concerning the investment merit or profit potential of the time-share, unless the commission has determined that the representation is neither false nor misleading;
(4) Make a prediction of or imply specific or immediate increases in the price or value of the time-share property, nor shall a price increase of a time-share property be promoted unless the developer has authorized and announced the price increase;
(5) Contain statements concerning the availability of time-share interests at a particular minimum price if the number of time-share interests available at that price comprises less than ten percent (10%) of the unsold inventory of the developer, unless the number of time-share interests then for sale at the minimum price is stated in the advertisement;
(6) Contain a statement that the time-share interest being offered for sale can be further divided, unless a full disclosure is included concerning the legal requirements for further division of the time-share interest;
(7) Contain an asterisk or other reference symbol as a means of contradicting or changing the ordinary meaning of a previously made statement in the advertisement;
(8) Misrepresent the size, nature, extent, qualities, or characteristics of the accommodations or facilities that comprise the time-share plan;
(9) Misrepresent the nature or extent of a service incident to the time-share project;
(10) Misrepresent or imply that a facility or service is available for the exclusive use of purchasers or owners if a public right of access or of use of the facility or service exists;
(11) Make a misleading or deceptive representation concerning the contents of the time-share permit, the purchase contract, the purchaser's rights, privileges, benefits, or obligations under the purchase contract or this chapter;
(12) Misrepresent the conditions under which a purchaser or owner may participate in an exchange program; or
(13) Describe a proposed or unfinished private facility over which the developer has no control, unless the estimated date of completion is stated and evidence has been presented to the commission that the completion and operation of the facilities are reasonably assured within the time represented in the advertisement.
Ark. Code Ann. § 18-14-504 Unfair acts or practices.
(a) It is unlawful for a person to offer by mail, telephone, electronic media, or in person a prize or gift, with the intent to offer a sales presentation for a time-share plan, without also disclosing in a clear and unequivocal way that there will be a sales presentation when making the offer of the prize or gift.
(b) The following unfair acts or practices undertaken by, or omissions of, a person in the operation of a prize or gift promotional offer for a time-share plan are prohibited:
(1) Failing to clearly and conspicuously disclose the rules, terms, and conditions of the promotional program, a description of the prizes offered, if any, and the date that the prize or gift offer will terminate or expire;
(2)(A) Failing to disclose the retail value of the gift or prize and the odds of winning.
(B) The person making the offer shall maintain a sufficient inventory of the gift or prize to be able to equal the reasonable response to the offer;
(3) Failing to obtain the express written or oral consent of individuals before their names are used for a promotional purpose with a mailing to a third person;
(4)(A) Failing to award and distribute at least one (1) of each prize or gift of the value and type represented in the promotional program by the day and year specified in the promotion.
(B) If a promotion promises the award of a prescribed number of each prize, this number of prizes shall be awarded by the date and year specified in the promotion; or
(5) Misrepresenting in any way the odds of receiving a prize or gifts or the rules, terms, or conditions of participation in the promotional program.
Ark. Code Ann. § 18-14-505 Enforcement.
If the Arkansas Real Estate Commission determines that a person is violating or failing to comply with the requirements of this subchapter, the commission may order the person to cease and desist from the violations and may take enforcement action under § 18-14-201 et seq.
Ark. Code Ann. § 18-14-601 Financing of time-share plans.
(a) In the financing of a time-share plan, the developer and its successors in interest shall retain financial records of the schedule of payments required to be made and the payments made to a person or entity that is the lienholder of an underlying blanket mortgage, deed of trust, contract of sale, or other lien or encumbrance.
(b) Any transfer of the developer's interest in the time-share plan to a third person is subject to the obligations of the developer to the extent the obligations were originally established in written documents recorded in the real estate records and not existing solely from the offering of materials or filings with a governmental authority.
Ark. Code Ann. § 18-14-602 Protection of purchasers from subsequent underlying lien.
The developer whose project is subjected to an underlying blanket lien or encumbrance subsequent to the transfer of a time-share interest shall protect nondefaulting purchasers from foreclosure by:
(1) Obtaining from the lienholder a nondisturbance clause, subordination agreement, or partial release of the lien for those time-share interests sold; or
(2) Providing a surety bond or insurance against the lien from a company acceptable to the Arkansas Real Estate Commission.
Ark. Code Ann. § 18-14-701 Definition.
As used in this subchapter, “time-share plan” shall have the same meaning as used in § 18-14-102 .
Ark. Code Ann. § 18-14-702 Camping site — Buyer's right to cancel.
(a) In addition to any other right to revoke an offer, the buyer has the absolute right to cancel a contract or offer for the purchase of a camping site under a time-share plan until midnight of the fifth calendar day after the day that the buyer signs an agreement, excluding Sundays and the holidays under § 1-5-101.
(b) Cancellation occurs if the buyer returns to the seller the notice of cancellation provided by the seller.
(c) The notice of cancellation may be sent by registered mail.
Ark. Code Ann. § 18-14-703 Seller to provide notice of cancellation — Form.
(a) The seller of a camping site under a time-share plan shall furnish to the buyer at the time the buyer signs the sales contract or otherwise agrees to buy the camping site a complete form in duplicate captioned “NOTICE OF CANCELLATION”, which is attached to the contract or receipt, is easily detachable, and contains in 10-point bold-face type, the following information and statements:
(b) If seller fails to give both oral and written notice of the buyer's right to cancellation, the cooling-off period does not begin to run until actual notice is given.
“NOTICE OF CANCELLATION
Enter date of transaction You are entitled to cancel the agreement or offer at any time before midnight of the fifth day, excluding Sundays and holidays, after the day you signed the agreement or offer. If you cancel, the seller must return to you (1) any payments made; (2) any goods or other property (or a sum equal to the amount of the trade-in allowance given therefore); and (3) any note or other evidence of indebtedness, given by you to the seller under or with the agreement or offer. TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE TO
(Name of seller) (Address of seller's place of business) NOT LATER THAN MIDNIGHT OF
(Date) I HEREBY CANCEL THIS TRANSACTION
(Date) (Buyer's signature)”.
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Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.18.htmlFetched: 11/8/2026