Escrow agents

(1) Every developer shall appoint an escrow agent for the purposes of this Act. (2) The instrument of appointment of an escrow agent shall be deposited by the developer with the Registrar, who shall enter the name and address of the escrow agent in the appropriate part of the Register. (3) Except as otherwise provided in this Act, all monies payable by, and all documents and instruments signed by or on behalf of, a purchaser in respect of the acquisition of timeshare rights shall be deposited with an escrow agent pursuant to an escrow agreement executed by or on behalf of the developer, purchaser and escrow agent. (4) Monies, documents and instruments shall only be released from escrow for the following reasons, which shall be specified in the escrow agreement, (a) if a purchaser gives a valid notice of cancellation of the sales agreement under section 20 of this Act all payments, documents and instruments made by or on behalf of the purchaser, or the proceeds thereof, shall be returned promptly to the purchaser and in any event not later than fifteen days after receipt by the developer or the of the notice of (b) if the purchaser defaults in the performance of his obligations under the sales agreement, any payments, documents and instruments made by or on behalf of the purchaser or the proceeds thereof shall be returned to the purchaser in accordance with the provisions of the sales agreement, but the developer or escrow agent may exercise his rights under the purchase money lien; (c) subject to section 15(2) of this Act, upon the close of the escrow, payment, documents, and instruments made by or on behalf of the purchaser, or the proceeds thereof, shall be delivered to the developer. (5) Subject to section 15(2) of this Act and notwithstanding subsection (4)(c) of this section, no payments, documents or instruments made by or on behalf of a purchaser shall be delivered by an escrow agent to the developer unless, (a) the escrow agent has received written confirmation from the purchaser, given three days after the purchaser executed the sales agreement, evidencing that the purchaser did not exercise his rights of cancellation of the sales agreement; or (b) the escrow agent has not received any cancellation notice given within three days after the purchaser executed the sales agreement, and has received a notification from the developer that he has not received any such notice within the said period from the purchaser. (6) The Registrar shall have the right to inspect all books, records and documents of an escrow agent, or to call for reports on any aspect of the business of an escrow agent under this Act. 28 (7) The Registrar may suspend or cancel the registration of an escrow agent who fails to comply with the provisions of this Act.