32-2197.10
|
32-2197.10. Timeshare interest reservations A. The notice of intent required by section 32-2197.02 and the approval for use of a public report required by section 32-2197.08 are not required for any party to enter into a timeshare interest reservation. B. Before the approval for use of a public report for a timeshare plan, a deposit may be accepted from a prospective buyer for a timeshare interest reservation if all of the following requirements are met: 1. Before accepting any timeshare interest reservation the prospective seller shall mail or deliver, or provide in written, CD-ROM or other electronic format as approved by the commissioner, notice of the seller's intention to accept timeshare interest reservations to the department. The notice shall include: (a) The name, address and telephone number of the prospective seller. (b) The name, address and telephone number of any real estate broker retained by the prospective seller to promote the timeshare interest reservation program. (c) The name and location of the timeshare property for which timeshare interest reservations are to be offered. (d) The form to be used for accepting timeshare interest reservations subject to approval by the commissioner. (e) The name and address of the independent third party escrow or trust account agent responsible for holding the reservation deposits. 2. The reservation deposit for a single timeshare interest shall not exceed twenty per cent of the purchase price. 3. Within one business day after a reservation is accepted by the prospective seller, the reservation deposit shall be delivered to an independent third party escrow or trust account in a federally insured depository. The account may be interest bearing at the direction of either the prospective seller or prospective buyer. Payment of any account fees and payment of interest monies shall be as agreed to between the prospective buyer and prospective seller. All reservation deposits shall remain in the account until cancellation or termination of the timeshare interest reservation or execution of a purchase agreement. 4. Within fifteen calendar days after the prospective seller receives the public report approved for use by the commissioner relating to the reserved timeshare interest, the prospective seller shall provide the prospective buyer with a copy of the public report and a copy of the proposed purchase agreement for the sale of the timeshare interest. The prospective buyer and prospective seller shall have seven business days after the prospective buyer's receipt of the public report and the proposed purchase agreement to enter into a contract for the purchase of the timeshare interest. If the prospective buyer and prospective seller do not enter into a contract for the purchase of the timeshare interest within the seven business day period, the reservation automatically terminates. The prospective seller has no cancellation rights concerning a timeshare interest reservation other than as provided in this subsection. 5. A prospective buyer may cancel a timeshare interest reservation at any time before the execution of a purchase agreement by delivering written notice of termination to the prospective seller as provided in paragraph 9 of this subsection. 6. Within five business days after a timeshare interest reservation has been terminated for any reason the prospective seller shall refund to the prospective buyer all reservation deposits made by the prospective buyer including any interest monies earned less any account fees agreed on if applicable. The independent third party escrow account or trust account agent shall refund to the prospective buyer all reservation deposits made by the prospective buyer including any interest monies earned less any account fees agreed on if the prospective seller is not available. After the refund neither the prospective buyer nor the prospective seller has any obligation arising out of the timeshare interest reservation. 7. A prospective buyer may not transfer rights under a reservation without the prior written consent of the prospective seller, and any purported transfer without the consent of the prospective seller is voidable at the sole discretion of the prospective seller. 8. If the department denies an application for a public report on a timeshare plan on which timeshare interest reservations were taken, within five business days of notification by the department the prospective seller shall notify in writing each prospective buyer who entered into a timeshare interest reservation agreement. The prospective seller shall return any reservation deposits previously taken. 9. All notices required by this section to be given to the department, the prospective buyer or the prospective seller shall be in writing and either hand delivered or sent by certified mail, return receipt requested with postage fully prepaid. Notices sent by mail are deemed delivered on the earlier of actual receipt, as evidenced by the delivery receipt, or seven calendar days after being deposited in the United States mail. 10. Each timeshare interest reservation form shall contain the following statement in conspicuous type: The Arizona department of real estate has not inspected or approved this timeshare property and no public report has been issued for the timeshare plan. No offer to sell may be made and no offer to purchase may be accepted before issuance of a public report or pre-sale authorization for the timeshare plan. C. The commissioner may deny, suspend or revoke authorization to accept timeshare interest reservations under this section to any person who has violated any provision of this chapter. |