2807. Purchase Money Impounds.
(a) The amount of the money paid or advanced by a prospective buyer toward the purchase of a time-share interest
(Purchase Money) that must be deposited and retained in an escrow depository or trust account pursuant to Section
11243 of the Code shall ordinarily be the entire amount of the Purchase Money less disbursements made to third parties
for services enumerated in subdivision (b) of Regulation 2791.
(b) For purposes of compliance with Section 11243 of the Code:
(l) A proper release has not been obtained from a deed of trust encumbering time-share interests or accommodations
in a time-share plan unless an instrument has been duly recorded unconditionally reconveying and releasing the
interests being sold or leased from the lien or charge of such deed of trust.
(2) As an alternative to obtaining a proper release from the lien or charge of such deed of trust, it shall be deemed
acceptable by the commissioner pursuant to Section 11243 of the Code if:
(A) the holder of the deed of trust has duly executed an agreement or demand (“release agreement”) wherein
the holder has agreed, notwithstanding any provision to the contrary in the deed of trust, to promptly perform
any act reasonably necessary to record an instrument unconditionally reconveying and releasing the time-share
interests or accommodations in a time-share plan being sold from the lien or charge of the deed of trust upon
payment to the holder of an amount or amounts specified in the release agreement as the release price for the
affected time-share interests or accommodations in a time-share plan, and the holder has further agreed that
specific performance of the terms and provisions of the release agreement shall be compelled in favor of the
purchaser of the time-share interests or accommodations in a time-share plan;
(B) the release agreement has been deposited with the escrow holder for the transaction(s);
(C) the developer has notified each purchaser that the release agreement is available upon request from the
escrow holder; and
(D) each purchaser has been provided a policy of title insurance insuring the purchaser or lessee against loss by
reason of the deed of trust.