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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 27-32-260 SO AS TO PROVIDE FOR THE PREPARATION AND SUPERVISION OF THE CLOSING DOCUMENTS AND THE CLOSING OF A PURCHASE AND SALE OF AN INTEREST IN A VACATION TIME SHARING PLAN, AND TO EXEMPT THE TRANSACTION FROM THE ATTORNEY PREFERENCE REQUIREMENT IN THE CONSUMER PROTECTION CODE IF THE CLOSING DOCUMENTS CONTAIN A CONSPICUOUS DISCLOSURE TO A PARTY TO A PURCHASE AND SALE OF AN INTEREST IN A VACATION TIME SHARING PLAN OF THE NEED TO UNDERSTAND HIS RIGHTS AND OBLIGATIONS PURSUANT TO THE CLOSING DOCUMENTS; AND TO AMEND SECTION 27-32-10, AS AMENDED, RELATING TO DEFINITIONS IN CONNECTION WITH A VACATION TIME SHARING PLAN, SO AS TO REVISE THE DEFINITION OF "CONTRACT".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 32 of the 1976 Code is amended by adding:
"Section 27-32-260. (A) A document affecting rights and interests in real property must not be presented to a time share purchaser before the closing of an interest in a vacation time sharing plan in this State unless the form of the document is prepared under the supervision of an attorney licensed in this State. An attorney licensed in this State shall supervise the closing of a sale of an interest in a vacation time sharing plan located in this State by (i) supervising the examination of title to the interest, (ii) physically reviewing before closing the executed transaction documents including, but not limited to, the following, as applicable: the deed, installment sales contract, mortgage, and promissory note, and (iii) supervising the instructions given regarding the manner of recording an instrument involved in this closing. The closing is deemed to occur after the last of the following events: (i) the deed and other applicable instruments are submitted for recordation, (ii) six months after the execution of an installment sales contract, if applicable, and (iii) the closing date specified in the executed documents.
(B) Notwithstanding another provision of law, a credit sale or loan made by a seller to finance the purchase of an interest in a vacation time sharing plan is exempt from the requirements of Section 37-10-102 regarding the borrower's attorney preference if the seller provides to purchaser a conspicuous notice at or before the time of the execution of the purchase contract for an interest in a vacation time sharing plan, which notice may be included in the purchase contract, substantially in the following form:
YOU WILL BE REVIEWING, APPROVING, AND SIGNING IMPORTANT DOCUMENTS BEFORE THE CLOSING. LEGAL CONSEQUENCES FOLLOW FROM THE SELECTION AND USE OF THESE DOCUMENTS. THESE CONSEQUENCES AFFECT YOUR RIGHTS AND OBLIGATIONS. BEFORE THE EXPIRATION OF THE FIVE-DAY RESCISSION PERIOD PROVIDED TO YOU PURSUANT TO SECTION 27-32-40(A)(5)(a) OF THE VACATION TIME SHARING ACT, YOU SHOULD CONSULT AN ATTORNEY IF YOU HAVE QUESTIONS OR CONCERNS ABOUT THE TRANSACTION OR ABOUT ANY OF THE DOCUMENTS.
(C) Failure of a person to comply with the requirements of this section does not affect the validity of a consummated transaction.
(D) The provisions of this section apply only to the purchase and sale of an interest in a vacation time sharing plan and a closing related to it."
SECTION 2. Section 27-32-10(3) of the 1976 Code, as last amended by Act 84 of 2003, is further amended to read:
"(3) 'Contract' means any contract, promissory note, credit agreement, negotiable instrument, lease, use agreement, license, security, or other muniment conferring on the purchaser the rights, benefits, and obligations of a vacation time sharing plan the agreement between the seller and a purchaser: (a) setting forth the terms and conditions of the purchase and sale of an ownership interest in a vacation time sharing ownership plan, or (b) setting forth the terms and conditions of the purchase and sale of a lease or other right-to-use interest in a vacation time sharing lease plan."
SECTION 3. This act takes effect upon approval by the Governor.
This web page was last updated on Tuesday, June 23, 2009 at 2:10 P.M.