Providing Prospective Purchaser With Public Offering Statement and Resale Disclosures; Cancellation of Contract; Damages

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Section 41. (a) A person required to deliver a public offering statement pursuant to subsection (c) of section thirty-seven shall, before transfer of a time-share and no later than the date of a contract of sale, provide a prospective purchaser with (i) a copy of the public offering statement and all amendments, exhibits and supplements thereto, and (ii) the disclosures required in the case of resales pursuant to subsection (a) of section forty-two. Unless the purchaser has received said materials more than three business days before the date of execution of any contract of sale or the transfer of a time-share, the contract or transfer shall be voidable by him until he has received said materials and for three business days thereafter.

(b) If a purchaser elects to cancel a contract pursuant to subsection (a), he may do so by hand-delivering written notice thereof to the seller or to his agent for service of process, by mailing notice thereof to the seller or to his agent for service of process by registered mail, return receipt requested, by telegram or by courier service with guaranteed next day delivery. Notice shall be deemed given on the date of postmark or if by telegram or courier service on the date when transmitted from the place of origin. Cancellation shall be without penalty, and all payments made by the purchaser before cancellation shall be refunded immediately if the purchaser's deposit check shall not have been deposited in the seller's bank account or if it has been so deposited within seven days after receipt of the notice of cancellation, but in no event prior to the first business day following the date on which the amount of the deposit is finally and unconditionally credited to the seller's account or if such deposit was made by credit card, such refund shall be made by immediate issuance of a credit to the purchaser's credit card account.

(c) If a person required to deliver a public offering statement pursuant to subsection (c) of section thirty-seven fails to provide a purchaser to whom a time-share is transferred with information which satisfies in all material respects the requirements of 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 per cent of the sales price of the time-share.


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