Title 18 — Property

This chapter shall be known and may be cited as the “Arkansas Time-Share Act”.

(1) 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 individual…

(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) y…

(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 super…

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.

(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) Cont…

(a) (1) (A) A developer shall not offer or dispose of a time-share interest unless the time-share plan is registered with the Arkansas Real Estate Commission.(B) However, a developer may accept a reservation together with a deposit if the deposit is:(i) Placed in an escrow accoun…

(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, …

(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…

(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 r…

(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…

(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 i…

A time-share plan may be established in any accommodation unless expressly prohibited by the project instruments.

(1) 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 prop…

(1) 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) Est…

(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-shar…

(1) 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) Identificatio…

(1) 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)…

An action for partition of an accommodation shall not be maintained unless permitted by the time-share instrument.

(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…

(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 durin…

(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…

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 o…

(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 f…

(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, no…

(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 …

(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 …

(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 subst…

(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…

(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 dev…

(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 t…

(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 Es…

(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 h…

(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 …

(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, pamphle…

(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…

(1) 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…

(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 ma…

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.

(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 tru…

(1) 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 agreem…

As used in this subchapter, “time-share plan” shall have the same meaning as used in § 18-14-102.

(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 Sun…

(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 rec…