§ 18-14-202 — Registration required

(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 account with an institution having trust powers; and (ii) Refundable to the purchaser at any time. (2) A reservation requires a subsequent affirmative act by the purchaser via a separate instrument to establish a binding obligation. (3) A developer shall not dispose of or transfer a time-share interest while an order revoking or suspending the registration of the time-share plan is in effect. (b) (1) An acquisition agent shall register the time-share plan for which it is providing prospective purchasers with the commission unless there is an effective registration of the plan filed with the commission by the developer. (2) An acquisition agent if other than the developer shall furnish to the commission: (A) Its principal office address and telephone number; (B) The name of its designated responsible managing employee; and (C) Any additional information the commission requires including evidence that a bond in an amount determined by the commission but not to exceed twenty-five thousand dollars ($25,000) has been placed with a surety company, corporate bond acceptable to the commission, or a cash bond with the commission to cover a violation of any solicitation ordinances, zoning ordinances, building codes, or other regulations governing the use of the premises in which the time-share plan is promoted. (3) Each acquisition agent shall renew the registration annually and pay a filing fee not to exceed one hundred fifty dollars ($150) for the registration and each renewal of the registration. (c) (1) A real estate principal broker shall register with the commission the time-share plan that it is selling unless there is an effective registration of the plan filed with the commission by the developer. (2) The real estate principal broker if other than the developer shall furnish to the commission: (A) Its principal office address and telephone number; (B) The name of its designated responsible managing employee; (C) Any special escrow accounts set up for the deposit and collection of purchasers' funds; and (D) Any additional information the commission requires, including evidence that a bond in an amount determined by the commission but not to exceed twenty-five thousand dollars ($25,000) has been placed with a surety company, corporate bond acceptable to the commission, or a cash bond with the commission to cover any defalcations of the real estate principal broker and any of its sales agents. (3) Each real estate principal broker shall renew its registration annually and pay a filing fee not to exceed one hundred fifty dollars ($150) for the registration and each renewal of the registration. (d) (1) A managing agent shall register with the commission the time-share plan that it is managing unless there is an effective registration of the plan filed with the commission by the developer. (2) The managing agent shall furnish to the commission: (A) Its principal office address and telephone number; (B) The name of its designated responsible managing employee; and (C) Any additional information the commission requires, including evidence that a bond in an amount determined by the commission but not to exceed twenty-five thousand dollars ($25,000) has been placed with a surety company, corporate bond acceptable to the commission, or a cash bond with the commission to cover any default of the managing agent of his or her duties and responsibilities. (3) Each managing agent shall renew the registration annually and pay a filing fee not to exceed one hundred fifty dollars ($150) for the registration and each renewal of the registration. (e) (1) If the acquisition agent, real estate principal broker, or management agent is under the control of, a subsidiary of, or affiliate of the developer, the bond of the broker or agent whether one (1) or more, can be consolidated and reduced to an amount determined by the commission but not to exceed seventy-five thousand dollars ($75,000) if there is a disclosure of the affiliation to the commission. (2) If the developer registers an additional time-share plan, including additional phases, in the existing time-share plan with the commission, the developer is not required to furnish an additional bond or increase the existing bond for the additional registration if the initial bond remains in effect. (f) (1) An exchange agent shall file a statement with the commission containing: (A) A list of the time-share plans or properties that it is offering exchange services for; (B) Its principal office address and telephone number; and (C) The name of its designated responsible managing employee or its contact person. (2) Each exchange agent shall renew his or her registration annually and pay a filing fee not to exceed one hundred fifty dollars ($150) for the registration and each renewal thereof of the registration. (g) The acquisition agent and real estate principal broker shall each maintain their respective records of any employees or independent contractors employed by them, their addresses, and the commissions paid for the immediately preceding two (2) calendar years. (h) Any interest earned on a bond or a bond substitute, whether cash, certificate of deposit, bank account, security, or other instrument, while on deposit with or for the benefit of the commission becomes the separate property of the commission and is deposited into the Real Estate Recovery Fund in § 17-42-403 . (i) A filing fee may be discounted for an applicant that submits the required filings using the Association of Real Estate License Law Officials' web-based document management program. (j) (1) A time-share interest transfer services provider shall: (A) Register with the commission on forms prescribed by the commission; (B) Furnish to the commission: (i) The time-share interest transfer services provider's principal office address and telephone number; (ii) The name of the time-share interest transfer services provider's designated responsible managing employee; (iii) Any special escrow accounts set up for the deposit and collection of funds received from a consumer time-share reseller; (iv) (a) Unless the time-share interest transfer services provider is a broker with a permanent office in the state, the dates when and locations where the time-share interest transfer services provider plans to meet with a consumer time-share reseller and the names of all the representatives of the time-share interest transfer services provider who will be at the meeting. (b) The information required under subdivision (j)(1)(B)(iv) (a) of this section shall be provided no later than fifteen (15) days before the date of the meeting; and (v) (a) Any additional information the commission requires, including without limitation evidence of a: (1) Bond in an amount determined by the commission not to exceed twenty-five thousand dollars ($25,000) has been placed with a surety company; (2) Corporate bond acceptable to the commission; or (3) Cash bond with the commission to cover any misappropriations of funds of the time-share interest transfer services provider and any of the time-share interest transfer services provider's employees or associates. (b) A broker that provides time-share interest transfer services may provide proof of errors and omissions insurance in lieu of a bond. (c) This subsection shall not apply to a broker that maintained a place of business inside the state under § 17-42-309 before July 28, 2021; and (C) Pay a filing fee not to exceed one hundred fifty dollars ($150) to register as required by subdivision (j)(2) of this section and for each annual renewal of the registration. (2) (A) It is unlawful to perform the activities of a time-share interest transfer services provider individually or as an officer, agent, employee, or member of a firm, corporation, partnership, copartnership, association, limited liability company, or other entity without registering with the commission under this subsection. (B) A commissioner of the commission, the Executive Director of the Arkansas Real Estate Commission, a commissioner's designee, the executive director's designee, or any licensee residing in the county where the violation occurred may by affidavit institute criminal proceedings for a violation of this subsection without filing a bond for costs. (C) The prosecuting attorney for each county shall prosecute any violation of this subsection that occurs in his or her county. (D) A time-share interest transfer services provider, an agent, or a third-party services provider for the time-share interest transfer services provider that violates this subsection is guilty of a Class D felony. (E) This subsection does not apply to the transfer of ownership of a time-share interest from a consumer time-share reseller to: (i) The developer or managing agent of that time-share plan without the assistance of a time-share interest services provider; or (ii) A consumer time-share reseller who acquires a time-share interest or time-share interests for his or her own use and occupancy and who later offers the time-share interest or time-share interests for rent or offers for resale in a given calendar year seven (7) or fewer of the time-share interests that he or she acquired for his or her own use and occupancy. (F) Only an attorney who is licensed to practice in the State of Arkansas may offer services to a consumer time-share reseller in connection with an involuntary transfer, or proposed involuntary transfer, of a consumer time-share reseller's time-share interest. (G) The commission, upon learning that an unregistered person or entity has arranged to provide time-share interest transfer services at a location in the state, shall attempt to notify any person that is providing a physical location for the activity that the planned activity may be unlawful and that law enforcement or regulatory officials may appear on-site before or during the event. (k) (1) A violation of this section shall constitute an unfair or deceptive act or practice under the Deceptive Trade Practices Act, § 4-88-101 et seq. (2) All remedies, penalties, and authority granted to the Attorney General under the Deceptive Trade Practices Act, § 4-88-101 et seq., are available to the Attorney General for the enforcement of this section. (3) The prosecuting attorneys of the various districts and counties of this state shall also have full authority to enforce the provisions of this section.

Legislative History

Amended by Act 2021, No. 733,§ 2, eff. 7/28/2021. Amended by Act 2013, No. 710,§ 2, eff. 8/16/2013. Acts 1983, No. 294, Art. 4, § 4-102; 1983, No. 765, § 2; A.S.A. 1947, § 50-1326; Acts 1989, No. 44, § 1.