Section 1812.314 - Deposit of money received in advance of completion of resale in escrow account(a) All money received from the owner of a membership camping contract or the prospective purchaser thereof, by a membership camping contract broker in advance of the completion of any membership camping contract resale, including, but not limited to, listing fees, and fees for services, shall be deposited into an escrow account. The money shall not be disbursed until the transaction is complete, or until the escrow agent has received written instructions to disburse the funds signed by the owner of the membership camping contract or the prospective purchaser and the broker. For purposes of this section, a transaction is complete when ownership of the membership camping contract has been transferred from the prior purchaser to the new purchaser in the manner required by the terms of the membership camping contract, all documents necessary to complete the transfer have been fully executed, and the new purchaser has not exercised the right to cancel provided in paragraph (2) of subdivision (c).(b) The broker shall inform the new purchaser in writing of the following: (1) The risks of purchasing a membership camping contract without visiting at least one of the membership camping operator's campgrounds.(2) That the membership camping operator may have a valid reason for not transferring the contract to the new purchaser such as a default in payment on contract or annual dues, or that the new purchaser does not meet the same credit standards applied to other new purchasers.(3) That there may have been changes in the rules or regulations concerning the rights and obligations of the membership camping operator or its members including changes with respect to annual dues, fees, assessments, use restrictions or that some campgrounds may have been withdrawn.(4) Any material changes or risks to the purchaser known to the broker.(c)(1) Every broker shall provide in writing the following notice of cancellation to the new purchaser: "You may cancel your contract of purchase, without any penalty or obligation, within 10 business days from the above date of purchase by mailing notice of cancellation together with the membership camping contract, if any, any contract for transfer, membership card or other evidence of membership to
_____ (Name and address of broker) _____ , |
the membership camping operator |
_____ (Name and address of membership camping operator) _____ |
and the escrow company |
_____ (Name and address of escrow company) _____ , |
if any, not later than midnight of (Date). |
I hereby cancel this transaction _____ (Purchaser's signature) _____ |
(Date). |
Notice by ordinary mail is adequate but certified mail return receipt requested is recommended."
(2) Any escrow company which receives a notice of cancellation from a purchaser shall, within 72 hours of receipt of the notice, notify the membership camping operator of the cancellation and shall refund any sums paid by the purchaser of the contract within 10 days of receipt of the notice of the cancellation and other documents. The escrow company shall incur no liability to the seller, purchaser, or broker as a result of its compliance with this section.Added by renumbering Section 1812.307 by Stats. 1990, Ch. 1529, Sec. 9.