Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
The amount of the money paid or advanced by a prospective buyer toward the purchase
of a time-share interest (Purchase Money) that must be deposited and retained in an
escrow depository or trust account pursuant to Section 11243 of the Code shall
ordinarily be the entire amount of the Purchase Money less disbursements made to
third parties for services enumerated in subdivision (b) of Regulation
2791.
(b) For purposes of compliance
with Section 11243 of the Code:
(1) A proper
release has not been obtained from a deed of trust encumbering time-share interests
or accommodations in a time-share plan unless an instrument has been duly recorded
unconditionally reconveying and releasing the interests being sold or leased from
the lien or charge of such deed of trust.
(2) As an alternative to obtaining a proper
release from the lien or charge of such deed of trust, it shall be deemed acceptable
by the commissioner pursuant to Section 11243 of the Code if:
(A) the holder of the deed of trust has duly
executed an agreement or demand ("release agreement") wherein the holder has agreed,
notwithstanding any provision to the contrary in the deed of trust, to promptly
perform any act reasonably necessary to record an instrument unconditionally
reconveying and releasing the time-share interests or accommodations in a time-share
plan being sold from the lien or charge of the deed of trust upon payment to the
holder of an amount or amounts specified in the release agreement as the release
price for the affected time-share interests or accommodations in a time-share plan,
and the holder has further agreed that specific performance of the terms and
provisions of the release agreement shall be compelled in favor of the purchaser of
the time-share interests or accommodations in a time-share plan;
(B) the release agreement has been deposited with
the escrow holder for the transaction(s);
(C) the developer has notified each purchaser that
the release agreement is available upon request from the escrow holder;
and
(D) each purchaser has been provided
a policy of title insurance insuring the purchaser or lessee against loss by reason
of the deed of trust.
1. Amendment moving
section 2807 from article 12.1 to article 12.2. and new section filed 5-5-2005;
operative 7-1-2005 (Register 2005, No. 18). For prior history, see Register 96, No.
48.
Note: Authority cited: Section
11281,
Business and Professions Code. Reference: Section
11243,
Business and Professions Code.
