A South Carolina timeshare developer collects a $3,000 deposit from purchaser Helen at the time she signs the purchase contract. Helen validly exercises her five-day rescission right on the fourth calendar day. The developer informs Helen that the deposit will be refunded within 45 days after processing. Under the SC Vacation Time Sharing Plans Act, which of the following is the most accurate statement about the refund obligation?
Correct Answer
C) The developer must refund the full deposit promptly, and any unreasonable delay constitutes a violation of the Act
Under S.C. Code Ann. § 27-32-170, when a purchaser timely exercises the right of rescission, the developer is obligated to refund all payments made by the purchaser promptly. The Act does not authorize the developer to impose a lengthy processing delay such as 45 days. An unreasonable delay in refunding the deposit after a valid rescission constitutes a violation of the SC Vacation Time Sharing Plans Act, exposing the developer to regulatory action by SCREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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