Which clause provides protection for prior purchasers in case of a developer's default?

The non-disturbance clause is designed to protect prior purchasers in the event of a developer's default. This clause ensures that if the developer were to default or face foreclosure, the rights of the existing timeshare owners would still be upheld. Essentially, it guarantees that the purchasers can continue to occupy their purchased timeshare units without interference from new lenders or subsequent owners of the property. This is crucial support for buyers as it provides them with a secure interest in their investment and peace of mind regarding their ownership, reinforcing the commitment of the developer to honor their agreements with existing buyers.

The other options focus on different aspects of contractual and ownership rights. Indemnification clauses typically relate to the protection from liability in specific situations, cancellation clauses concern the ability to terminate agreements within a certain timeframe or under specific conditions, and termination clauses outline the conditions under which a contract can be legally ended. While all these clauses have their significance, they do not specifically address the protection of prior purchasers in the event of a developer's default like the non-disturbance clause does.