Chapter 141

2005 -- H 5503 SUBSTITUTE B

Enacted 07/02/05

A N A C T

RELATING TO PROPERTY - RHODE ISLAND REAL ESTATE TIME-SHARE ACT

Introduced By: Representatives Kennedy, Crowley, Jackson, Rice, and Lewiss

Date Introduced: February 15, 2005

It is enacted by the General Assembly as follows:

     SECTION 1. Section 34-41-4.06 of the General Laws in Chapter 34-41 entitled "Rhode

Island Real Estate Time-Share Act" is hereby amended to read as follows:

34-41-4.06. Purchaser's right to cancel. -- (a) A person required to deliver a public

offering statement pursuant to section 34-41-4.02(c) shall, before transfer of title to a time share

and no later than the date of any contract of sale, provide a prospective purchaser with (1) a copy

of the public offering statement and all amendments and supplements thereto, and (2) the

disclosures required in the case of resales by section 34-41-4.07(a). Unless the purchaser has

received those materials more than three (3) days excluding Sundays and holidays before

execution of any contract of sale, the contract is voidable by him or her until he or she has

received those materials and for three (3) days excluding Sundays and holidays thereafter or until

transfer of title, whichever first occurs.

A purchaser has the right to cancel the contract until midnight of the fifth (5th) business

day (specifically excluding therefrom Saturdays, Sundays and legal holidays) following

whichever of the following days occurs later:

(i) The execution date; or

(ii) The day on which the purchaser received the last of all documents required to be

provided to him or her.

This right of cancellation may not be waived by any purchaser or by any other person on

behalf of the purchaser. Furthermore, no closing may occur until the cancellation period of the

time-share purchaser has expired. Any attempt to obtain a waiver of the cancellation right of the

time-share purchaser, or to hold a closing prior to the expiration of the cancellation period, is

unlawful and such closing is voidable at the option of the purchaser for a period of one (1) year

after the expiration of the cancellation period.

      (b) If a purchaser elects to cancel a contract pursuant to subsection (a), he or she may do

so by hand-delivering notice thereof to the seller or by mailing notice thereof by certified or

registered mail return receipt requested to the developer or to his or her agent for service of

process. Cancellation is without penalty, and all payments made by the purchaser before

cancellation must be refunded within fifteen (15) days after receipt of the notice of cancellation.

Any notice of cancellation shall be considered given on the date postmarked if mailed, or

when transmitted from the place or origin if telegraphed, so long as the notice is actually received

by the developer or escrow agent. If given by means of a writing transmitted other than by mail or

telegraph, the notice of cancellation shall be considered given at the time of delivery at the place

of business of the developer.

      (c) If a person required to deliver a public offering statement pursuant to section 34-41-

4.02(c) fails to provide a purchaser to whom title to a time share is transferred with the materials

as required by subsection (a), the purchaser, in addition to any rights to damages or other relief, is

entitled to receive from the seller an amount equal to ten percent (10%) of the sales price of the

time share.

In the event of a timely preclosing cancellation, the developer shall honor the right of any

purchaser to cancel the contract which granted the time-share purchaser rights in and to the plan.

Upon such cancellation, the developer shall refund to the purchaser the total amount of all

payments made by the purchaser under the contract, reduced by the proportion of any contract

benefits the purchaser has actually received under the contract prior to the effective date of the

cancellation. Such refund shall be made within twenty (20) days of demand therefore by the

purchaser or within five (5) days after receipt of funds from the purchaser's cleared check,

whichever is later.

SECTION 2. This act shall take effect upon passage.     

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LC01962/SUB B

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