§ 93A-42. Time shares deemed real estate. - North Carolina Statutes

§ 93A‑42.  Time sharesdeemed real estate.

(a)        A time share isdeemed to be an interest in real estate, and shall be governed by the law ofthis State relating to real estate.

(b)        A purchaser of atime share may in accordance with G.S. 47‑18 register the time shareinstrument by which the purchaser acquired the interest and upon suchregistration shall be entitled to the protection provided by Chapter 47 of theGeneral Statutes for the recordation of other real property instruments. A timeshare instrument transferring or encumbering a time share shall not be rejectedfor recordation because of the nature or duration of that estate, provided allother requirements necessary to make an instrument recordable are compliedwith.

(c)        The developer shallrecord or cause to be recorded a time share instrument:

(1)        Not less than sixdays nor more than 45 days following the execution of the contract of sale bythe purchaser; or

(2)        Not later than 180days following the execution of the contract of sale by the purchaser, providedthat all payments made by the purchaser shall be placed by the developer withan independent escrow agent upon the expiration of the 10‑day escrowperiod provided by G.S. 93A‑45(c).

(d)        The independentescrow agent provided by G.S. 93A‑42(c)(2) shall deposit and maintain thepurchaser's payments in an insured trust or escrow account in a bank or savingsand loan association located in this State. The trust or escrow account may beinterest‑bearing and the interest earned shall belong to the developer,if agreed upon in writing by the purchaser; provided, however, if the timeshare instrument is not recorded within the time periods specified in thissection, then the interest earned shall belong to the purchaser. Theindependent escrow agent shall return all payments to the purchaser at theexpiration of 180 days following the execution of the contract of sale by thepurchaser, unless prior to that time the time share instrument has beenrecorded. However, if prior to the expiration of 180 days following theexecution of the contract of sale, the developer and the purchaser providetheir written consent to the independent escrow agent, the developer'sobligation to record the time share instrument and the escrow period may beextended for an additional period of 120 days. Upon recordation of the timeshare instrument, the independent escrow agent shall pay the purchaser's fundsto the developer. Upon request by the Commission, the independent escrow agentshall promptly make available to the Commission inspection of records of moneyheld by the independent escrow agent.

(e)        In no event shallthe developer be required to record a time share instrument if the purchaser isin default of the purchaser's obligations.

(f)         Recordation underthe provisions of this section of the time share instrument shall constitutedelivery of that instrument from the developer to the purchaser. (1983, c. 814, s. 1; 1985, c.578, ss. 2, 3; 1989, c. 302; 2001‑487, s. 23(i).)