Ark. Code Ann. § 18-14-601 (2026)
Financing of time-share plans
- In the financing of a time-share plan, the developer and its successors in interest shall retain financial records of the schedule of payments required to be made and the payments made to a person or entity that is the lienholder of an underlying blanket mortgage, deed of trust, contract of sale, or other lien or encumbrance.
- Any transfer of the developer's interest in the time-share plan to a third person is subject to the obligations of the developer to the extent the obligations were originally established in written documents recorded in the real estate records and not existing solely from the offering of materials or filings with a governmental authority.
History. Acts 1983, No. 294, Art. 5, § 5-101; A.S.A. 1947, § 50-1332; Acts 2013, No. 710, § 6.
Amendments. The 2013 amendment substituted “plans” for “programs” in the section heading; and “plan” for “program” throughout the section; designated the existing paragraph as (a) and (b); inserted “and its successors in interest” in (a); and added “to the extent the obligations were originally established in written documents recorded in the real estate records and not existing solely from the offering of materials or filings with a governmental authority” at the end of (b).
Case Notes
Successors.
When a developer's interests in a project are transferred to a third party, the transferee must acquire not only the interest in the property, but also all the other obligations of the developer with respect to the time-share regime. Kessler v. National Enters., Inc., 238 F.3d 1006 (8th Cir. 2001).
In a dispute brought by condominium owners against corporations who were successors-in-interest to the original developers, the trial court did not err in ruling on the owner's cross-motion for summary judgment on the issue of liability before the class members were noticed as the corporations waived the issue of notice, and this section was quite clear that the obligations of the original developers remained in place. Nat'l Enters., Inc. v. Kessler, 363 Ark. 167, 213 S.W.3d 597 (2005), cert. denied, 546 U.S. 1174, 126 S. Ct. 1340, 164 L. Ed. 2d 55 (2006).
Developer was a successor-in-interest to the initial developer, and this section adhered to the purpose of the Time-Share Act by assuring that the original developer's obligations to the owners were not abandoned. Nat'l Enters., Inc. v. Kessler, 363 Ark. 167, 213 S.W.3d 597 (2005), cert. denied, 546 U.S. 1174, 126 S. Ct. 1340, 164 L. Ed. 2d 55 (2006).
Summary judgment was properly awarded to a title insurance company and a title company in property owner's action for breach of a title insurance policy where the loss in real estate value as a result of purchaser's potential liability as a successor-in-interest under the Arkansas Time-Share Act did not constitute a “defect” in title for purposes of title insurance. First United, Inc. v. Chicago Title Ins. Co., 366 Ark. 508, 237 S.W.3d 15 (2006).
Cited: National Enters., Inc. v. Rea, 329 Ark. 332, 947 S.W.2d 378 (1997).