State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_93A > GS_93A-45

§ 93A‑45.  Purchaser'sright to cancel; escrow; violation.

(a)        A developer shall,before transfer of a time share and no later than the date of any contract ofsale, provide a prospective purchaser with a copy of a public offeringstatement containing the information required by G.S. 93A‑44. Thecontract of sale is voidable by the purchaser for five days after the executionof the contract. The contract shall conspicuously disclose the purchaser'sright to cancel under this subsection and how that right may be exercised. Thepurchaser may not waive this right of cancellation. Any oral or writtendeclaration or instrument that purports to waive this right of cancellation isvoid.

(b)        A purchaser mayelect to cancel within the time period set out in subsection (a) by handdelivering or by mailing notice to the developer or the time share salesperson.Cancellation under this section is without penalty and upon receipt of thenotice all payments made prior to cancellation must be refunded immediately.

(c)        Any paymentsreceived by a time share developer or time share salesperson in connection withthe sale of the time share shall be immediately deposited by such developer orsalesperson in a trust or escrow account in an insured bank or savings and loanassociation in North Carolina and shall remain in such account for 10 days orcancellation by the purchaser, whichever occurs first. Payments held in suchtrust or escrow accounts shall be deemed to belong to the purchaser and not thedeveloper. In lieu of such escrow requirements, the Commission shall have theauthority to accept, in its discretion, alternative financial assurancesadequate to protect the purchaser's interest during the contract cancellationperiod, including but not limited to a surety bond, corporate bond, cashdeposit or irrevocable letter of credit in an amount equal to the escrowrequirements.

(d)        If a developerfails to provide a purchaser to whom a time share is transferred with thestatement as required by subsection (a), the purchaser, in addition to anyrights to damages or other relief, is entitled to receive from the developer anamount equal to ten percent (10%) of the sales price of the time share not toexceed three thousand dollars ($3,000). A receipt signed by the purchaserstating that the purchaser has received the statement required by subsection(a) is prima facie evidence of delivery of the statement. (1983, c. 814, s. 1; 1985, c.578, s. 4.; 2000‑140, s. 19(b); 2001‑487, s. 23(j).)