HB1834 Summary

• Adds definitions to Arkansas Time-Share Act for "consumer time-share reseller," "resale transfer agreement," "time-share interest transfer services," and "time-share interest transfer services provider" to regulate the time-share resale and exit industry.

• Requires time-share interest transfer services providers to register with the Arkansas Real Estate Commission, provide principal office address and responsible managing employee information, and pay a registration fee not to exceed $150, with annual renewal requirements.

• Mandates providers obtain a bond up to $25,000, corporate bond, or cash bond with the commission to cover misappropriations of consumer funds; exempts brokers with permanent state offices and allows errors and omissions insurance as alternative.

• Establishes that violations of registration requirements constitute a Class D felony and prohibits unregistered persons from providing time-share transfer services; exempts attorneys, licensed title insurers, developers offering services to their own plan purchasers, and lienholders.

• Requires all resale transfer agreements to include specific terms prohibiting payment before service completion, establishing escrow accounts with qualified escrow agents, and mandating written notice and legal documentation of completed transfers to consumers and time-share plan managing agents.