Protection of purchasers from subsequent underlying lien

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The developer whose project is subjected to an underlying blanket lien or encumbrance subsequent to the transfer of a time-share interest shall protect nondefaulting purchasers from foreclosure by:

  1. (1) Obtaining from the lienholder a nondisturbance clause, subordination agreement, or partial release of the lien for those time-share interests sold; or

  2. (2) Providing a surety bond or insurance against the lien from a company acceptable to the Arkansas Real Estate Commission.


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