076.00.93 Ark. Code R. 001
TITLE 17
CHAPTER 35
REAL ESTATE BROKERS AND SALESMEN
Upon petition of any member of the Arkansas Real Estate Commission, its secretary, or any holder of a license under subchapters 1, 2, and 3 of this chapter, the chancery court shall enjoin a violation of subchapters 1, 2, and 3 of this chapter if and when it shall appear that the action is necessary to protect the interest of those who have complied with the terms of subchapters 1, 2, and 3 of this chapter and who are operating legitimately.
Licenses shall be granted only to applicants who:
The commission may, upon its own motion, and shall, upon the verified complaint in writing of any person, provided the complaint or the complaint with evidence, documentary or otherwise, presented in connection therewith shall make out a prima facie case, investigate the actions of any real estate broker or real estate salesman or any person who shall assume to act in either capacity within this state. The commission shall have power to suspend or to revoke any license issued under the provisions of this chapter at any time where the licensee has by false or fraudulent representation obtained a license, or where the licensee in performing or attempting to perform any of the acts mentioned herein is deemed to be guilty of:
Every real estate broker shall maintain a place of business in this state and shall display a sign bearing the name of the firm and the words "real estate" or other words approved by the commission which clearly indicate to the public that the firm is engaged in the real estate business.
The provisions of this subchapter shall apply only to:
Nothing in this subchapter shall be construed to limit or restrict in any manner other civil or criminal remedies which may i be available to any person.
There is created and established the Real Estate Recovery Fund, which shall be maintained and administered by the Arkansas Real Estate Commission as provided in this subchapter.
Upon the payment by the commission of any amount of money under the provisions of § 17-35-406:
As used in this subchapter, unless the context otherwise requires:
The commission may promulgate such regulations as it deems necessary for the implementation of this subchapter.
The following do not qualify as continuing education:
RULES AND REGULATIONS
The applicant must also pass a written examination to show competency to act as a real estate broker in such a way as to safeguard the interests of the public. Minimum grades of 70 on the uniform portion of the examination and 75 on the Arkansas law part are required. A person who is licensed as a broker may not apply and may not be examined. A person who has passed the Arkansas real estate broker's examination but who is not licensed as a broker may apply. However, in addition to meeting other requirements, such a person will request in writing the reason for applying. Such a person may be examined only after being advised in writing by a representative of the Commission that permission is granted for him to be examined.
An applicant for broker's license is required upon being otherwise qualified to furnish a photograph of the front of the applicant's place of business displaying a sign bearing his name or the name of his firm, and the words "real estate" or "realty".
The licensing department shall accept no sign as meeting this requirement until and unless such sign is clearly visible to the public and displayed in such a manner as to clearly indicate to the public that the firm is engaged in the real estate brokerage business.
If a real estate firm shall establish an office within an office building, the licensing department shall require a photograph of the office building directory showing the real estate firm's name, and also a photograph of the firm's office entrance bearing the name of the firm.
If a real estate firm shall move any sign of which a photograph has been filed with the Commission, the firm shall notify the Commission office immediately in writing of the new location and furnish a photograph of the new sign. If the firm's business location shall also change, the broker shall be required to comply with Ark. Code Ann. § 17-35-308 as well.
Once an applicant has passed the Arkansas real estate salesman's examination, or the Arkansas broker's examination, and has paid the prescribed license fee, the license of the applicant will be automatically placed on inactive status. This license may be activated at any time if the applicant completes a "request for initial issuance of a broker's license" form, or a "request for initial issuance of a salesman's license" form, and files the form with the Commission office.
The applicant must also pass a written examination. Minimum grades of 70 on the uniform part of the examination and 70 on the Arkansas law part are required. A person who is licensed as a salesman or as a broker may not apply and may not be examined. A person who has passed the Arkansas real estate salesman's examination but who is not licensed as a salesman may apply. However, in addition to meeting other requirements, such a person will request in writing the reason for applying. Such a person may be examined only after being advised in writing by a representative of the Commission that permission is granted for him to be examined.
In addition to a written examination all applicants must bear a good reputation for honesty, truthfulness and fair dealing and be competent to transact the business of a real estate broker or a real estate salesman in such manner as to safeguard the interests of the public and the Commission may at any time require information pertaining thereto.
Having advance access to a real estate licensing examination which is administered (or scheduled to be administered), or giving or receiving unauthorized assistance during the course of an examination, shall create a presumption of a violation of the real estate license law, and may subject the guilty party to appropriate disciplinary action, including license revocation or suspension.
Failure of the Principal Broker or Executive Broker to so notify the Commission of such discharge or termination shall be cause for the suspension or revocation of his/her broker's license.
A real estate broker must maintain an office and display a real estate sign and his broker's license, and the licenses of any salesman licensed under him. If more than one office is maintained, a real estate sign and a duplicate broker's license shall be displayed at each branch office maintained. Brokers who wish to secure a branch office license shall furnish the Commission a photograph of the office sign bearing the name of the company and the words "Branch Office". If salesmen are to be assigned to that branch office, a second duly qualified and licensed full time broker, in addition to the main office broker, must be in charge of said branch office. Such broker shall be viewed as if he were a separate firm and shall be responsible for any salesman licensed with such branch office. Any salesman employed or affiliated with such branch office shall perform only the acts contemplated to be done as a salesman under a salesman's license and the preparation of instruments in connection with a real estate sale and the closing of such a sale are functions of a broker which must be performed by or under the constant supervision of either the branch office broker or the main office broker.
If such branch office shall be located outside the community of the main office, the branch office shall be required to maintain its own escrow account and the branch office broker shall be responsible for such account. The main office broker may, however, be a signatory on such an account, and may if desired direct handling of the account. It is further understood that a license will not be granted to a salesman who operates in a different county, city or town from that of his employing broker, and that if a salesman is assigned to operate in a different town other than that of the main office broker, then the provisions of this regulation with regard to the establishment of a branch office shall apply.
Upon any change of name or address shown on any license issued by the Commission, or upon the loss or misplacement of a license or pocket card, the licensee shall promptly notify the Commission of such change or loss on a form prescribed by the Commission. Failure to notify the Commission shall automatically cancel any license heretofore issued. Upon receipt of such notice and other information as may be necessary to issue a new license, the Commission shall issue a new license for the unexpired period of the license upon the payment of a $30 license reissuance fee.
If a real estate broker maintains more than one (1) place of business within the state, a duplicate license shall be issued to that broker upon payment of a $30 initial fee and thereafter payment of a $30 annual renewal fee. However, notwithstanding the payment of the required fee, such a duplicate license shall not be issued to a supervising broker for any additional office at which salesmen will be assigned unless such other office has another supervising broker responsible for any such salesmen.
A licensed broker who desires to be in the employ of another broker may do so either as a broker or as a salesman, but if it is as a salesman, he must file his or her broker's license and pocket card on inactive status with the Commission, and apply for a salesman's license under such broker.
It shall be the responsibility of any person who renews his license on inactive status to promptly notify the Commission in writing of any change of name or address.
In the event that an application for the renewal of a license, either active or inactive, is not filed prior to the renewal deadline, such license is deemed to have lapsed at the end of the renewal period. Upon reapplication within five (5) years, a person formerly licensed by the Commission may be relicensed without submitting to any examination if the applicant furnishes the information required in the Ark. Code Ann. § 17-35-304 and pays the required fees. The fee for renewal of a lapsed broker's license is $90 per year of lapse or fraction thereof and a $25 recovery fund fee; renewal of a lapsed salesman's license is $60 per year of lapse or fraction thereof and a $25 recovery fund fee. However, the payment of the $25 recovery fund fee shall be waived for any person who has previously paid such fee. A former licensee who fails to apply for renewal of a lapsed license within five (5) years shall be regarded as an original applicant.
No licensee may presume that a valid license has been issued by the Commission office until such time as the licensee shall actually receive a pocket card issued by the Commission, and it shall be unlawful for any person to act as a real estate broker or salesman in this state unless said person shall possess a current valid pocket card evidencing the fact that the person holds an active real estate license and stating the firm with which the licensee is affiliated. However, the Commission may issue a temporary interim license pending issuance of the permanent license and pocket card, which temporary interim license shall be valid for a period of not more than thirty (30) days.
If a Principal Broker or Executive Broker learns a salesperson, Associate Broker or Executive Broker licensed under him/her has, without his/her permission, engaged in real estate activities independently or through some other broker, it is his/her duty to immediately notify the Commission in writing and forward such licensee's license and pocket card to the Commission. The Commission may initiate disciplinary proceedings against the licensee under A.C.A. § 17-35-309(5), (6), (8), (10), and/or any other sections of the license law or regulations which may have been violated.
Failure to notify the Commission of a change in business location shall automatically cancel any license heretofore issued. Notice of such cancellation will be sent by certified mail to the last address furnished the Commission, and if the license and pocket cards are not returned to the Commission immediately, such cancellation will be announced in at least one publication.
The procurement of or an attempt to procure a listing contract, either oral or written, without a real estate license is held by the Commission to be acting or assuming to act as a real estate broker or salesman and a violation of the real estate license law.
A licensee's failure to put a specific, determinable duration, or a specific expiration date on a written listing contract, or any extension thereof, shall be considered presumptive evidence of violation of Ark. Code Ann. § 17-35-309(8) and (10).
Regular meetings of the Arkansas Real Estate Commission shall generally be held on the Monday immediately preceding the second Tuesday of each month, and will continue in session until its business is completed insofar as is possible; provided, however, that any regular meeting of the Commission may be set forward, postponed, cancelled or adjourned to another day.
All regular meetings of the Arkansas Real Estate Commission shall be held in the Commission's offices unless otherwise specified.
Special meetings of the Commission may be called at any time by a majority of the Commission.
Any person desiring to appear before the Commission at any of its regular meetings, to take up any business within the jurisdiction of the Commission shall, at least 15 days prior to such meeting, file with the Secretary a written request therefor, in which the nature and purpose of the appearance shall be clearly and concisely stated with sufficient details to fully apprise the Commission of the basis and extent of such business. Provided, however, that a person may not appear before the Commission in connection with any matter pending before the Commission for administrative adjudication except upon notice and opportunity for all parties to participate.
The Secretary of the Commission shall arrange the order of business of all meetings of the Commission and shall at least ten days prior thereto, notify all persons who are to appear before any such meeting the place and approximate time he or she is to appear before the Commission.
Appearances before any special meeting of the Commission shall be voluntary on the part of any person and they must file with the Secretary, prior to any such appearance, a signed statement to the effect that such appearance is voluntary.
Any and all complaints within the jurisdiction of the Commission must be in writing, dated and signed by the complainant, notarized, and filed with the Secretary. The Secretary, upon receiving any such complaint, may proceed to investigate said complaint and may take statements from any person thought to have any knowledge of any facts pertaining thereto.
Any and every complaint which establishes reasonable cause to believe a violation of the real estate license law or Commission regulations has occurred shall be presented to and reasonably disposed of by the Commission, giving due consideration to sufficient and necessary time to investigate and consider the complaint. Any person whose complaint is dismissed by the Executive Secretary without a hearing may appeal such dismissal to the Commission in the following manner:
Upon submission of the appeal, the Commission shall review the written record and either uphold or overrule the Executive Secretary's decision. If the decision is overruled, the Commission may either order a hearing or request further investigation or documentation of the complaint. If the Commission review results in a hearing being ordered on the complaint, both the filing fee and the cost of preparing the record shall be refunded to the appellant.
Provided, however, that a person may not appear before the Commission in connection with any matter pending before the Commission for administrative adjudication except upon notice and opportunity for all parties to participate.
The Secretary shall notify, in writing, every licensee complained against, provided the complaint has been determined to have established reasonable cause to believe a violation of the real estate license law or Commission regulations has occurred.
Any and every Notice, Order or other instrument herein required to be forwarded or sent to any person shall be deemed sufficient if addressed to the person at his or her address as last furnished to the Commission, in a sealed envelope, and deposited in the United States Mail service, postage prepaid.
Any and every person appearing before the Commission at any of its hearings shall be first placed under oath. All testimony given or statements made to or before the Commission shall be stenographically reported and made a part of the record in such case.
The use of the term "REALTOR", "REALTIST" or any trade name or insignia of membership of any real estate organization of which the licensee is not a member shall be held by the Commission to be prima facie evidence of violation of Ark. Code Ann. § 17-35-309(1).
Principal Brokers and Executive Brokers have the duty and responsibility to instruct those brokers and salespersons licensed under them with regard to the fundamentals of real estate practice and the ethics of the profession, and to keep them informed and abreast of all changes and developments pertaining to the Arkansas Real Estate License Law and Commission Regulations. They shall also exercise strict supervision of the real estate activities of all those licensed under them and for whom they have supervisory responsibility.
Whether or not a Principal Broker or Executive Broker has discharged these responsibilities for those licensed under him/her will depend on various factors and circumstances, including, without limitation, the following:
The holder of a real estate license may not advertise for sale or rent, or display a real estate sign without including in that advertisement or sign the name of the firm with whom that licensee is affiliated.
A licensee shall exert reasonable efforts to ascertain those facts which are material to the value or desirability of every property for which the licensee accepts the agency, so that in offering the property the licensee will be informed about its condition, and thus able to avoid intentional or negligent misrepresentation to the public concerning such property.
A licensee shall not be instrumental in introducing into a neighborhood a character of property or use which will clearly be detrimental to property values in that neighborhood.
Provided, however, that the Principal Broker shall not be responsible for the failure of those licensed under him/her to comply with this subsection (e) as long as he/she is in compliance with Regulation 133.
In accepting employment as an agent, a broker pledges himself to protect and promote, as he would his own, the interests of the client he had undertaken to represent; this obligation of absolute fidelity to the client's interest is primary, but does not relieve a broker from the equally binding obligation of dealing fairly with all parties to the transaction.
Since a broker presumptively is representing one or another party to a transaction, he shall not accept compensation from more than one party without the full knowledge of all parties to the transaction.
Licensees shall not buy or sell property for themselves or for a corporation or partnership in which they have an interest without first making full disclosure to the buyer or seller, as the case may be, of the exact facts that they are licensed as a real estate broker or salesperson and are buying the property for their own account or have an interest in the property which they are selling. All such disclosures must be made in writing before the contract of sale is entered into.
When acting as agent in the sale or management of property, a licensee shall not accept any commission, rebate, profit or payment from any source in connection with the property without full written disclosure to the party represented by the licensee.
When asked for a formal appraisal of real property, a licensee should never give an unconsidered answer; his counsel constitutes a professional service which he should render only after having ascertained and weighed the facts, and then in writing over his signature; for this service he should make a fair charge. A licensee must not undertake to make an appraisal on any property in which he is in any way financially interested, unless such interest is specifically disclosed in the appraisal report; under no circumstances should he undertake to make a formal appraisal when his employment is contingent upon the amount of his appraisal.
A broker shall not submit or advertise property without authority and in any offering the price quoted must not be other than that agreed upon with the owners as the offering price.
If a firm shall hold an exclusive listing contract on a parcel of property, all other firms shall present any offer they shall receive on that property to the firm holding the exclusive listing contract not later than the close of the next business day after the receipt of the offer. Likewise, all earnest moneys and deposits shall be forwarded to the listing firm for deposit in the listing firm's trust account. The listing firm shall then present the offer to the seller. The selling broker or salesperson may accompany the listing broker or salesperson with his/her permission, but he/she shall not contact the seller alone unless he/she shall have prior written permission from the listing broker. Under no circumstances may a broker or salesperson negotiate with a seller/owner who has an exclusive listing or management contract with another firm without prior permission from the listing/managing firm. A licensee who knowingly circumvents an exclusive listing or management contract or who negotiates directly with a seller/owner without permission will have presumptively violated Ark. Code Ann. § 17-35-309(8) and (10).
Signs offering or advertising a property may be on the property only during the existence of a listing agreement, unless otherwise authorized by the owner.
It is the duty of each licensee to report in writing to this Commission any information coming to his or her knowledge which is or may be (1) a violation of the real estate license law; or (2) a violation of the Commission rules and regulations.
Brokers who propose to engage in sales of a promotional nature in Arkansas of property located outside of Arkansas, must submit to the Commission full particulars regarding such property and the proposed terms of sale, and they and their salesmen must comply with such rules, restrictions, and conditions pertaining thereto as the Commission may impose. All expenses incurred by the Commission in investigating such property and the proposed sale thereof in Arkansas, shall be paid by the applying broker to the State of Arkansas. No broker or salesman shall in any manner refer to the Arkansas Real Estate Commission, or to any officer or employee thereof in selling, offering for sale, or advertising, or otherwise promoting the sale, mortgage or lease of any such property, nor make any representation whatsoever that such property has been inspected or approved or otherwise passed by said Commission or by Commission official or employee.
The Arkansas Real Estate Commission shall issue no broker's license to a firm where the issuance of such license shall be confusing to the public. It shall be the duty of the person requesting a broker's license to inquire of the Commission concerning the acceptability of the proposed company name.
No broker who is gainfully employed, or who is engaged in a non-real estate related field, may employ any salesman to work under the broker's license issued to such broker. A broker who is employed or who is engaged in any field other than real estate will be presumed to be gainfully employed, or engaged in a non-real estate related field. This presumption may be overcome by proof that such employment, or the affiliation is (1) proven to be in a real estate related field; and (2) conducted in the same office as the broker's real estate business.
Any applicant or licensee who shall submit to the Commission a check or bank draft which is not honored by the bank shall not be eligible to take any examination, or receive any grade or license from the Commission until such time as such check is honored. The Commission in its discretion may order any such applicant or licensee to appear before it for the purpose of determining whether or not he/she has the necessary qualifications for licensure, including a good reputation for truthfulness and fair dealing and competency to act in such manner as to safeguard the interests of the public.
The Commission shall charge a fee not to exceed $25.00 for a dishonored check or bank draft and shall also require such check or bank draft to be made good immediately by the maker. If such person shall be a real estate salesperson, Associate Broker or Executive Broker, and shall fail to make such check or bank draft good, the Commission may require such funds from the Principal Broker under whom such person is licensed.
In the event that an applicant or licensee shall submit to the Commission any funds which are in excess of the funds required by the Commission pursuant to Commission rule or state law, the Commission shall refund such overpayment according to the following schedule: If the overpayment is at least $0.01, and not more than $10.00, no refund shall be made; if the overpayment shall exceed $10.00, the Commission shall first deduct $10.-00 for processing the refund check, and shall refund the remainder of the overpayment.
A real estate license does not empower the bearer to engage in the business of syndication of real estate or marketing of real estate securities, or to act as a securities broker dealer in this state. Similarly, a real estate license does not empower the bearer to act as mortgage loan company or a mortgage loan broker in this state. Any real estate licensee wishing to engage in such practices shall be properly registered or exempted from registration with the Arkansas Securities Department. Any finding by a court of competent jurisdiction or the Arkansas Securities Commissioner that a real estate licensee has violated either the Arkansas Securities Act or the Arkansas Mortgage Loan Brokers Act shall be taken by the Commission to be presumptive evidence of violation of Ark. Code Ann. § 17-35-309(8) and (10).
It is generally the responsibility of the Principal Broker of the listing firm to ensure that the real estate closing is conducted properly and in accordance with the agreement of the buyer and seller. In those cases where the listing Principal Broker is excluded from participating in the closing, he/she must nevertheless make all reasonable efforts to fulfill this responsibility.
Upon the death or incapacity of a principal broker or the closing of a real estate company for any reason, including bankruptcy, the Commission may in its discretion, based upon the merits and circumstances of each case, permit the real estate company to continue operating for a period of time not to exceed one hundred eighty (18 0) days under the supervision of a person approved by the Commission and subject to conditions prescribed by the Commission.
CONTINUING EDUCATION REGULATIONS
The Commission may delegate any of its authority or responsibility under Act 453 of 1987 and these regulations to its Secretary. Any person who considers himself aggrieved by any decision of the Secretary may, upon written request, appeal such decision to the Commission. The Commission shall then review the written record and sustain or overrule the Secretary's decision.
Each request for a waiver shall be in writing and shall be supported by clear and convincing evidence. The Commission shall acknowledge each such request and shall announce its decision in writing, along with any terms and conditions to which the waiver, if granted, is subject.
A person who applies to renew a lapsed license under Ark. Code Ann. § 17-35-307(c) will be considered to be in the same status as a person holding an inactive license.
The certificate of attendance required by Section 8 of Act 453 of 1987 [Ark. Code Ann. § 17-35-508 ] shall be in such form and shall contain such information as the Commission shall prescribe.
Only those courses which are approved by the State Board of Private Career Education or which are exempted from such approval by Section 5(a) of Act 814 of 1991 [Ark. Code Ann. § 17-35-506(a) ] shall be accepted by the Commission for continuing education credit.
TITLE 18
CHAPTER 14
REAL ESTATE TIME-SHARING
This chapter shall be known and may be cited as the "Arkansas Time-Share Act. "
As used in this chapter, unless the context otherwise requires:
This chapter shall apply to any time-share program created or commenced after February 25, 1983, and ninety (90) days thereafter as to any time-share program heretofore created or commenced with respect to the requirements of subchapters 2, 4, and 5 of this chapter.
A zoning, subdivision, or other ordinance or regulation may not discriminate against the creation of time-share intervals or impose any requirement upon a time-share program which it would not impose upon a similar development under a different form of ownership.
A developer shall amend or supplement its registration to report any material change in the information required by § 18-14-204.
A time-share program may be created in any unit, unless expressly prohibited by the project instruments.
Project instruments and time-share instruments creating time-share estates must contain the following:
The time-share instruments for a time-share estate program shall prescribe reasonable arrangements for management and operation of the time-share program and for the maintenance, repair, and furnishing of units, which shall ordinarily include, but need not be limited to, provisions for the following:
Project instruments and time-share instruments creating time-share uses must contain the following:
The time-share instruments for a time-share use program shall prescribe reasonable arrangements for management and operation of the time-share program and for the maintenance, repair, and furnishing of units which shall ordinarily include, but need not be limited to, provisions for the following:
No action for partition of a unit may be maintained except as permitted by the time-share instrument.
Any developer or any other person subject to this chapter who offers or disposes of a time-share interval without having complied with this chapter or who violates any provision of this chapter shall be guilty of a misdemeanor punishable by a fine not exceeding five thousand dollars ($5,000) or by imprisonment in the state prison or in the county jail not exceeding one (1) year, or by both fine and imprisonment.
A judicial proceeding where the accuracy of the public offering statement or validity of any contract of purchase is in issue and a rescission of the contract or damages is sought must be commenced within four (4) years after the date of the contract of purchase, notwithstanding that the purchaser's terms of payments may extend beyond the period of limitation. However, with respect to the enforcement of provisions in the contract of purchase which require 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.
The developer shall amend or supplement the public offering statement to report any material change in the information required by § 18-14-404. As to any exchange program, the developer shall use the' current written materials that are supplied to it for distribution to the time-share interval owners as it is received.
No advertising for the offer or sale of time-shares shall:
Whenever the agency determines from evidence available to it that a person is violating or failing to comply with the requirements of this subchapter, the agency may order the person to desist and refrain from such violations and may take enforcement action under the provisions of subchapter 2 of this chapter.
In the financing of a time-share program, the developer shall retain financial records of the schedule of payments required to be made and the payments made to any person or entity which is the lienholder of any underlying blanket mortgage, deed of trust, contract of sale, or other lien or encumbrance. Any transfer of the developer's interest in the time-share program to any third person shall be subject to the obligations of the developer.
The developer whose project is subjected to an underlying blanket lien or encumbrance subsequent to the transfer of a time-share interval shall protect nondefaulting purchasers from foreclosure by the lienholder by obtaining from the lienholder a nondisturbance clause, subordination agreement, or partial release of the lien as to those time-share intervals sold or shall provide a surety bond or insurance against the lien from a company acceptable to the agency.
TIME-SHARE REGULATIONS
Each application for a Time-Share Program shall be made on a form furnished by the Arkansas Real Estate Commission and shall be accompanied by a filing fee of three hundred dollars ($300) plus five dollars ($5) for each twenty-five (25) time-share intervals or portions thereof, provided however, the filing fee shall not exceed the sum of five hundred dollars ($500).
Each registration shall be renewed annually pursuant to Ark. Code Ann. §§ 18-14-204(e) and 18-14-206(b) and shall be filed no later than July 1. Such renewal shall be made on a form prescribed by the Commission and accompanied by a fee of one-half (1/2) the amount of the original filing fee.
Each Developer, Acquisition Agent, Managing Agent, Sales Agent and Exchange Agent shall register with the Commission each fictitious name, if any, under which that person conducts business. No person shall conduct business which is regulated by the provisions of the Arkansas Time-Share Act under any names other than those registered with the Commission.
"IMPORTANT NOTICE
I UNDERSTAND THAT IF I SIGN A CONTRACT FOR THE PURCHASE OF A TIME-SHARE INTERVAL I HAVE THE RIGHT TO CANCEL THE CONTRACT WITHIN FIVE (5) DAYS AFTER SIGNING THE CONTRACT. I UNDERSTAND THAT CANCELLATION IS WITHOUT PENALTY AND ALL PAYMENTS MADE BY ME BEFORE CANCELLATION SHOULD BE REFUNDED WITHIN THIRTY (30) DAYS OF RECEIPT OF THE NOTICE OF CANCELLATION. IF THE FIFTH DAY AFTER THE SIGNING OF THIS CONTRACT IS A SATURDAY, SUNDAY, OR LEGAL HOLIDAY MY RIGHT TO CANCEL IS EXTENDED TO THE NEXT DAY WHICH IS NOT A SATURDAY, SUNDAY, OR LEGAL HOLIDAY.
I REALIZE THAT TO CANCEL THIS CONTRACT I MUST MAIL OR DELIVER A WRITTEN NOTICE OF CANCELLATION TO (NAME OF DEVELOPER) AT (DEVELOPERS ADDRESS).
I UNDERSTAND THAT THE ARKANSAS REAL ESTATE COMMISSION NEITHER RECOMMENDS NOR APPROVES THIS OR ANY OTHER TIMESHARE PROGRAM.
I HEREBY ACKNOWLEDGE RECEIPT OF THE ATTACHED PUBLIC OFFERING STATEMENT.
____________________________________________________________________
(Purchaser's Signature)
DATE:____________________________________________________________"
The original executed notice shall be retained by the Developer and the duplicate copy shall be given to the purchaser. This notice shall contain no other printing or writing thereon.
"NOTICE TO PURCHASER
YOU HAVE THE RIGHT TO CANCEL THIS CONTRACT WITHIN FIVE (5) DAYS AFTER YOU SIGN THE CONTRACT. FOR FURTHER INFORMATION, SEE "IMPORTANT NOTICE" ATTACHED TO THE PUBLIC OFFERING STATEMENT."
Notice of cancellation shall be properly addressed with sufficient postage prepaid to assure delivery and notice shall be deemed given when postmarked by the United States Postal Service.
Each Developer shall assure that any records required to be maintained pursuant to the Arkansas Time-Share Act or regulations promulgated thereunder shall be maintained and made available to the Arkansas Real Estate Commission upon request.
Advertising materials required to be submitted to the Commission under Ark. Code Ann. § 18-14-501 shall not be used in this State until either ten (10) days after such material has been received by the Commission or such earlier date as the Commission may determine in writing. Each separate filing of advertising materials shall be accompanied by a filing fee of ten dollars ($10).
Financial statements required to be submitted to the Commission under Ark. Code Ann. § 18-14-204(a) shall be certified by a certified public accountant or a registered public accountant who shall state that in his/her opinion the financial statement presents fairly the financial position of the entity for which the certification is rendered. The accountant shall state that he/she has examined the entity's financial statement, that the examination was made in accordance with generally accepted auditing standards, and that the financial statement presents fairly the financial position of the entity in conformity with generally accepted accounting principles.
"Reasonable time" as used in Ark. Code Ann. § 18-14-409(a) shall be presumed to be thirty (30) days.
Should the parties agree to reduce the period of limitation as stated in Ark. Code Ann. § 18-14-403, such agreement to reduce shall be a separate and distinct paragraph of the contract and shall be initialed by the parties as though the paragraph were an alteration of the original agreement.
Upon receipt of a deposit and acceptance of a reservation pursuant to Ark. Code Ann. § 18-14-202(a), the Developer shall notify the purchaser in writing that the deposit is refundable at any time at the purchaser's option and that the acceptance of the deposit does not create a binding obligation.
Rules and Regulations of the Arkansas Real Estate Commission 120 through 131(k) inclusive shall regulate the practice and procedure for the Commission for enforcement of the Arkansas Time-Share Act and are hereby adopted and incorporated by reference as though included herein word for word; provided that, for purposes of the Arkansas Time-Share Act Regulations, reference to the real estate license law or Commission regulations, and/or reference to licensees, shall be deemed to include the Arkansas Time-Share Act and Time-Share Regulations; and reference to licensees shall be deemed to include registrants under the Arkansas Time-Share Act.
Whenever the Commission determines on the basis of the facts presented that no affirmative action is necessary to protect the public interest or prospective purchasers, a letter stating that no action will be taken by the Commission may be issued. Any letter by the Commission that action shall not be taken shall not bind the Commission with regard to its future actions relating to such matters unless the Commission shall specifically set forth in writing its determination to be so bound and the extent and nature thereof. Any such no-action letter shall not affect any right which any purchaser may have under the Arkansas Time-Share Act.
The effective date of the Regulations adopted herein shall be the first day of the fourth month following adoption. [Adopted 11-27-84; effective 3-1-85.]
076.00.93 Ark. Code R. 001