California Business and Professions Code

§ 11243

BPC § 11243 Effective Jan 1, 2023Div. 4 · Part 2 · Ch. 2 · Art. 2

Statute text

The developer shall comply with the following escrow requirements:

(a)A developer of a time-share plan shall deposit into an escrow account in an acceptable escrow depository 100 percent of all funds that are received during the purchaser’s rescission period. An acceptable escrow depository includes, when qualified to do business in this state, escrow agents licensed by the Commissioner of Financial Protection and Innovation, banks, trust companies, savings and loan associations, title insurers, and underwritten title companies. The deposit of these funds shall be evidenced by an executed escrow agreement between the escrow agent and the developer that shall include provisions that state the following:

(1)Funds may be disbursed to the developer by the escrow agent from the escrow account only after expiration of the purchaser’s rescission period and in accordance with the purchase contract, subject to subdivision (b).

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Legislative history

Amended by Stats. 2022, Ch. 452, Sec. 14. (SB 1498) Effective January 1, 2023.