Protection of Purchasers From Developer's Underlying Blanket Encumbrance

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The developer whose project is subject to an underlying blanket lien or encumbrance shall protect nondefaulting purchasers from foreclosure by the lienholder by obtaining from the lienholder a nondisturbance clause, subordination agreements, partial release of the lien as the time-share intervals are sold, or an agreement in writing that the lienholder will purchase nondefaulting purchasers' intervals in an amount equal to the amount agreed to by the parties but in no event less than the amount actually paid by the purchaser toward the purchase price of the time-share interval.

(Code 1981, §44-3-190, enacted by Ga. L. 1983, p. 1255, § 1; Ga. L. 1984, p. 22, § 44; Code 1981, §44-3-189, as redesignated by Ga. L. 1995, p. 1260, § 1.)

Cross references.

- Purchase of time-share interval is free of liens, § 44-3-180.


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