Ark. Code § 18-14-102

Current with legislation from 2024 Fiscal and Special Sessions.

Section 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 License Law, § 17-42-101 et seq.

(C) A violation that results from a time-share activity is not subject to the Real Estate License Law, § 17-42-101 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) "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;

(8)

(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;

(9) "Exchange agent" means a person that owns or operates an exchange program;

(10) "Exchange program" means a method, arrangement, or procedure for the voluntary exchange of time-share interests among time-share owners;

(11) "Managing agent" means a person responsible for operating and maintaining a time-share property or time-share plan on behalf of the association;

(12)

(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;

(13) "Person" means one (1) or more natural persons, corporations, partnerships, associations, trusts, other entities, or any combination thereof;

(14) "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;

(15) "Public offering statement" means the statement under § 18-14-404;

(16) "Purchaser" means a person other than a developer or lender who acquires an interest in a time-share plan;

(17) "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;

(18)

(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;

(19)

(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;

(20) "Time-share instrument" means a master deed, master lease, declaration, or other instrument used to establish a time-share plan;

(21) "Time-share interest" means a time-share estate or a time-share use;

(22) "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;

(23)

(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;

(24)

(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;

(25) "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

(26) "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.

Ark. Code § 18-14-102

Amended by Act 2021, No. 733,§ 1, eff. 7/28/2021.

Amended by Act 2013, No. 710,§ 1, eff. 8/16/2013.

Acts 1983, No. 294, Art. 1, § 1-103; A.S.A. 1947, § 50-1303; Acts 1989, No. 45, § 1.