Section 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 this 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 funds 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.Added by Act 2021, No. 733,§ 4, eff. 7/28/2021.