Five-Day Cancellation Notice Requirements

PURPOSE: This rule is designed to ensure that each consumer is properly and sufficiently notified of the right to rescind a purchase contract in connection with the sale of a time-share period. In addition, this rule prescribes a specific period in which the purchaser can expect to receive a refund after the cancellation notice is made. (1) The seller, his/her sales agent or independent marketing contractor shall not misrepresent a purchaser’s rights of cancellation before, during or after consummation of the sales contract for the sale of a time-share period. (2) The seller shall provide written notice of cancellation as required by section 407.620, RSMo. This written notice must be provided on a separate sheet of paper which must be signed and dated by the purchaser and the seller or the seller’s agent or it must be included in the sales contract. The seller’s address to which notice of cancellation must be made shall be clearly stated on the contract as well as the Notice of Right to Cancel. (3) Full refund shall be made to the purchaser, including any deposit and any payment made toward the principal balance and interest, within sixty (60) days following receipt of the notice of cancellation by seller. AUTHORITY: section 407.145, RSMo 1986.* Original rule filed Nov. 14, 1986, effective May 11, 1987. *Original authority: 407.145, RSMo 1986.