USA Statutes : nevada
Title : Title 10 - PROPERTY RIGHTS AND TRANSACTIONS
Chapter : CHAPTER 119A - TIME SHARES
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 119A.020
to 119A.160 , inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1983, 977; A 1985, 1137; 1991, 96; 1999, 2688
; 2001, 2499 )
“Administrator” means the
Real Estate Administrator.
(Added to NRS by 1983, 977)
“Affiliate of
the developer” means any person who controls, is controlled by or is
under common control with a developer, including a person who:
1. Is a general partner, officer, director or employer of the
developer;
2. Directly or indirectly or acting in concert with one or more
other persons, or through one or more subsidiaries, owns, controls, holds
with the power to vote, or holds proxies representing more than 20
percent of the voting interest in the developer;
3. Controls the election of a majority of the directors of the
developer; or
4. Has contributed more than 20 percent of the capital of the
developer.
(Added to NRS by 1983, 977; A 2001, 2499 )
“Affiliate of
the manager” means any person who controls, is controlled by or is under
common control with a manager, including a person who:
1. Is a general partner, officer, director or employer of the
manager;
2. Directly or indirectly or acting in concert with one or more
persons, or through one or more subsidiaries, owns, controls, or holds
with the power to vote more than 20 percent of the voting interest in the
manager;
3. Controls the election of a majority of the directors of the
manager; or
4. Has contributed more than 20 percent of the capital of the
manager.
(Added to NRS by 2001, 2494 )
“Association” means an
association of owners established pursuant to NRS 119A.520 .
(Added to NRS by 2001, 2494 )
“Blanket encumbrance”
means any mortgage, deed of trust, option to purchase, mechanic’s lien,
vendor’s lien or interest under a contract or agreement for sale,
judgment lien, federal or state tax lien or other lien or encumbrance
which secures or evidences an obligation to pay money or to sell or
convey any property made available to purchasers by the developer or any
portion thereof and which authorizes, permits or requires the foreclosure
or other disposition of the property affected. The term does not include
a lien for taxes or assessments levied by any public authority which are
not due.
(Added to NRS by 1985, 1134)
“Board” means the governing body
designated in a time-share instrument to act on behalf of an association.
(Added to NRS by 2001, 2494 )
“Common area” means those
portions of a project other than the units. The term includes any
easement which benefits the project.
(Added to NRS by 2001, 2494 )
“Developer” means any person
who offers to dispose of or disposes of his interest in a time share.
(Added to NRS by 1983, 977)
“Developer’s
reserved rights” means any right reserved in a time-share instrument for
the benefit of the developer, the exercise of which does not require a
vote of the other owners.
(Added to NRS by 2001, 2495 )
“Division” means the Real Estate
Division of the Department of Business and Industry.
(Added to NRS by 1983, 977; A 1993, 1510)
“Limited common area”
means a portion of the common area allocated by a time-share instrument
for the exclusive use of at least one, but not all, of the units in a
project.
(Added to NRS by 2001, 2495 )
“Manager” means a person who
undertakes, directly or indirectly, the duties, responsibilities and
obligations of managing, in whole or in part, a time-share plan or a
project, or both, in accordance with an agreement entered into pursuant
to NRS 119A.530 .
(Added to NRS by 2001, 2495 )
“Owner” means a person, including a
developer, who has an equitable or legal interest in a time share. The
term does not include a person who has an interest in a time share solely
as security for an obligation.
(Added to NRS by 1991, 96; A 2001, 2499 )
“Permanent
identifying number” means a series of numbers or letters, or any
combination thereof, which identifies, for the duration of a time-share
plan, one time share in the plan.
(Added to NRS by 2001, 2495 )
“Permit” means the authorization
issued by the Administrator pursuant to the provisions of this chapter to
a developer to offer to sell or sell time shares.
(Added to NRS by 1983, 977)
“Person” includes a government, a
governmental agency and a political subdivision of a government.
(Added to NRS by 1983, 977; A 1985, 508)
“Project” means the real property
which, in whole or in part, is the subject of a time-share plan.
(Added to NRS by 1983, 977; A 1985, 1137; 2001, 2499 )
“Project broker” means any
person who coordinates the sale of time shares for a time-share plan and
to whom sales agents and representatives are responsible.
(Added to NRS by 1983, 977; A 2001, 2499 )
“Public
offering statement” means a report, issued by the Administrator pursuant
to the provisions of this chapter, which authorizes a developer to offer
to sell or sell time shares in the time-share plan which is the subject
of the report.
(Added to NRS by 1983, 977; A 2001, 2499 )
“Purchaser” means any person,
other than the developer or lender, who purchases a time share.
(Added to NRS by 1983, 978)
“Representative” means a
person who is not a sales agent and who, on behalf of a developer,
induces other persons to attend a sales presentation. The term does not
include a person who only performs clerical tasks, arranges appointments
set up by others or prepares or distributes promotional materials.
(Added to NRS by 1983, 978)
“Sales agent” means a person
who, on behalf of a developer, sells or offers to sell a time share to a
purchaser or who, if he is not registered as a representative, may act to
induce other persons to attend a sales presentation on the behalf of a
developer.
(Added to NRS by 1983, 978; A 2005, 1297 )
“Time share” means the right
to use and occupy a unit on a recurrent periodic basis according to an
arrangement allocating this right among various owners whether or not
there is an additional charge to the owner for occupying the unit.
(Added to NRS by 1983, 978; A 1985, 1137; 2001, 2499 )
“Time-share
instrument” means any document creating or regulating time shares,
excluding any law, ordinance or governmental regulation.
(Added to NRS by 1983, 978)
“Time-share plan” means
the rights to time shares and the obligations and interests appurtenant
thereto created by a time-share instrument.
(Added to NRS by 2001, 2495 )
“Time-share resale”
means the sale or transfer of a time share that was previously sold to a
purchaser.
(Added to NRS by 1999, 2686 )
“Time-share
resale broker” means a person who is registered as a time-share resale
broker pursuant to the provisions of this chapter.
(Added to NRS by 1999, 2686 )
“Unit” means that portion of a
project which is designated for separate occupancy.
(Added to NRS by 1983, 978; A 2001, 2500 )
1. The provisions of this chapter, except subsection 4, do not
apply to:
(a) The sale of 12 or fewer time shares in a project or the sale of
12 or fewer time shares in the same subdivision;
(b) The sale or transfer of a time share by an owner who is not the
developer, unless the time share is sold in the ordinary course of
business of that owner;
(c) Any transfer of a time share:
(1) By deed in lieu of foreclosure;
(2) At a foreclosure sale; or
(3) By the resale of a time share that has been acquired by
an association by deed in lieu of foreclosure or at a foreclosure sale;
(d) A gratuitous transfer of a time share;
(e) A transfer by devise or descent or a transfer to an inter vivos
trust; or
(f) The sale or transfer of the right to use and occupy a unit on a
periodic basis which recurs over a period of less than 5 years,
Ê unless the method of disposition is adopted to evade the provisions of
this chapter or chapter 645 of NRS.
2. Any campground or developer who is subject to the requirements
of chapter 119B of NRS and complies with
those provisions is not required to comply with the provisions of this
chapter.
3. The Division may waive any provision of this chapter if it
finds that the enforcement of that provision is not necessary in the
public interest or for the protection of purchasers.
4. The provisions of chapter 645 of NRS apply to the sale of time shares, except any sale of a time
share to which this chapter applies, and for that purpose the terms “real
property” and “real estate” as used in chapter 645 of NRS shall be deemed to include a time share, whether it is an
interest in real property or merely a contractual right to occupancy.
(Added to NRS by 1983, 978; A 1985, 1137; 1991, 96; 2001, 2500
)
The
provisions of this chapter and chapter 645 of NRS relating to real estate brokers and sales agents do not apply
to an owner, other than a developer, who, for compensation, refers
prospective purchasers to a developer or an employee or agent of the
developer, if the owner:
1. Refers to the developer or an employee or agent of the
developer, or any combination thereof, not more than 20 prospective
purchasers within any 1 calendar year; and
2. Does not show a unit to the prospective purchaser, discuss with
the prospective purchaser the terms and conditions of the purchase or
otherwise participate in negotiations relating to the sale of the time
share.
(Added to NRS by 2001, 2495 )
1. A building code may not impose any requirements upon any
structure in a project which it would not impose upon a physically
identical development under a different form of ownership.
2. Except as otherwise provided in subsection 1, the provisions of
this chapter do not invalidate or modify any provision of any building
code or zoning, subdivision or other law, ordinance, rule or regulation
governing the use of real estate.
(Added to NRS by 2001, 2495 )
1. A purchaser shall not be deemed to hold an investment contract,
nor shall his purchase be considered risk capital, because income derived
from the project and any personal property available for use by the
purchaser in conjunction therewith reduces the assessment for time-share
expenses, if the income inures directly to the benefit of the association
and not to his direct benefit.
2. An interest in a time share is not a security under the
provisions of chapter 90 of NRS.
(Added to NRS by 1983, 991; A 2001, 2500 )
The Division
may:
1. Adopt regulations which are necessary to carry out the
provisions of this chapter.
2. Employ such legal counsel, investigators and other professional
consultants as are necessary to carry out the provisions of this chapter.
(Added to NRS by 1983, 978)
1. The Administrator may adopt regulations which establish
procedures for the Division to conduct business electronically pursuant
to title 59 of NRS with persons who are regulated pursuant to this
chapter and with any other persons with whom the Division conducts
business. The regulations may include, without limitation, the
establishment of fees to pay the costs of conducting business
electronically with the Division.
2. In addition to the process authorized by NRS 719.280 , if the Division is conducting business electronically with a
person and a law requires a signature or record to be notarized,
acknowledged, verified or made under oath, the Division may allow the
person to substitute a declaration that complies with the provisions of
NRS 53.045 to satisfy the legal
requirement.
3. The Division may refuse to conduct business electronically with
a person who has failed to pay money which the person owes to the
Division.
(Added to NRS by 2003, 1306 )
Time
shares, time-share plans and projects to which this chapter applies are
subject to licensing by local governments for revenue but not for
regulation.
(Added to NRS by 1983, 996; A 2001, 2500 )
LICENSES AND PERMITS
[Effective until the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. The Administrator shall issue a sales agent’s license to each
applicant who submits an application to the Division, in the manner
provided by the Division, which includes:
(a) Satisfactory evidence, affirmed by the project broker or
another acceptable source, that the applicant has completed 14 hours of
instruction in:
(1) Ethics.
(2) The applicable laws and regulations relating to time
shares.
(3) Principles and practices of selling time shares.
(b) Satisfactory evidence that he has a reputation for honesty,
trustworthiness and competence.
(c) A designation of the developer for whom he proposes to sell
time shares.
(d) The social security number of the applicant.
(e) Any further information required by the Division, including the
submission by the applicant to any investigation by the police or the
Division.
2. In addition to or in lieu of the 14 hours of instruction
required by paragraph (a) of subsection 1, the applicant may be required
to pass an examination which may be adopted by the Division to examine
satisfactorily the knowledge of the applicant in those areas of
instruction listed in paragraph (a) of subsection 1.
3. Each applicant must submit the statement required pursuant to
NRS 119A.263 and pay the fees
provided for in this chapter.
4. Each applicant must, as part of his application and at his own
expense:
(a) Arrange to have a complete set of his fingerprints taken by a
law enforcement agency or other authorized entity acceptable to the
Division; and
(b) Submit to the Division:
(1) A completed fingerprint card and written permission
authorizing the Division to submit the applicant’s fingerprints to the
Central Repository for Nevada Records of Criminal History for submission
to the Federal Bureau of Investigation for a report on the applicant’s
background and to such other law enforcement agencies as the Division
deems necessary; or
(2) Written verification, on a form prescribed by the
Division, stating that the fingerprints of the applicant were taken and
directly forwarded electronically or by another means to the Central
Repository and that the applicant has given written permission to the law
enforcement agency or other authorized entity taking the fingerprints to
submit the fingerprints to the Central Repository for submission to the
Federal Bureau of Investigation for a report on the applicant’s
background and to such other law enforcement agencies as the Division
deems necessary.
5. The Division may:
(a) Unless the applicant’s fingerprints are directly forwarded
pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit
those fingerprints to the Central Repository for submission to the
Federal Bureau of Investigation and to such other law enforcement
agencies as the Division deems necessary; and
(b) Request from each such agency any information regarding the
applicant’s background as the Division deems necessary.
6. A person who is licensed as a real estate salesman pursuant to
chapter 645 of NRS is not required to obtain a license pursuant to the
provisions of this section.
7. Each sales agent’s license issued pursuant to this section
expires 2 years after the last day of the calendar month in which it was
issued and must be renewed on or before that date. Each licensee who
submits the statement required pursuant to NRS 119A.263 and meets the requirements for renewal may
renew his license upon the payment of the renewal fee before his license
expires.
8. If a licensee fails to renew his license before it expires, the
license may be reinstated if the licensee submits the statement and pays
the renewal fee and the penalty specified in NRS 119A.360 within 1 year after the license expires.
9. The Administrator may adopt regulations establishing and
governing requirements for the continuing education of sales agents.
(Added to NRS by 1983, 984; A 1985, 1138, 2278, 2279; 1987, 893;
1997, 2038; 2003, 1307 ; 2005, 1297 )
[Effective on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. The Administrator shall issue a sales agent’s license to each
applicant who submits an application to the Division, in the manner
provided by the Division, which includes:
(a) Satisfactory evidence, affirmed by the project broker or
another acceptable source, that the applicant has completed 14 hours of
instruction in:
(1) Ethics.
(2) The applicable laws and regulations relating to time
shares.
(3) Principles and practices of selling time shares.
(b) Satisfactory evidence that he has a reputation for honesty,
trustworthiness and competence.
(c) A designation of the developer for whom he proposes to sell
time shares.
(d) Any further information required by the Division, including the
submission by the applicant to any investigation by the police or the
Division.
2. In addition to or in lieu of the 14 hours of instruction
required by paragraph (a) of subsection 1, the applicant may be required
to pass an examination which may be adopted by the Division to examine
satisfactorily the knowledge of the applicant in those areas of
instruction listed in paragraph (a) of subsection 1.
3. Each applicant must pay the fees provided for in this chapter.
4. Each applicant must, as part of his application and at his own
expense:
(a) Arrange to have a complete set of his fingerprints taken by a
law enforcement agency or other authorized entity acceptable to the
Division; and
(b) Submit to the Division:
(1) A completed fingerprint card and written permission
authorizing the Division to submit the applicant’s fingerprints to the
Central Repository for Nevada Records of Criminal History for submission
to the Federal Bureau of Investigation for a report on the applicant’s
background and to such other law enforcement agencies as the Division
deems necessary; or
(2) Written verification, on a form prescribed by the
Division, stating that the fingerprints of the applicant were taken and
directly forwarded electronically or by another means to the Central
Repository and that the applicant has given written permission to the law
enforcement agency or other authorized entity taking the fingerprints to
submit the fingerprints to the Central Repository for submission to the
Federal Bureau of Investigation for a report on the applicant’s
background and to such other law enforcement agencies as the Division
deems necessary.
5. The Division may:
(a) Unless the applicant’s fingerprints are directly forwarded
pursuant to subparagraph (2) of paragraph (b) of subsection 4, submit
those fingerprints to the Central Repository for submission to the
Federal Bureau of Investigation and to such other law enforcement
agencies as the Division deems necessary; and
(b) Request from each such agency any information regarding the
applicant’s background as the Division deems necessary.
6. A person who is licensed as a real estate salesman pursuant to
chapter 645 of NRS is not required to obtain a license pursuant to the
provisions of this section.
7. Each sales agent’s license issued pursuant to this section
expires 2 years after the last day of the calendar month in which it was
issued and must be renewed on or before that date. Each licensee who
meets the requirements for renewal may renew his license upon the payment
of the renewal fee before his license expires.
8. If a licensee fails to renew his license before it expires, the
license may be reinstated if the licensee pays the renewal fee and the
penalty specified in NRS 119A.360
within 1 year after the license expires.
9. The Administrator may adopt regulations establishing and
governing requirements for the continuing education of sales agents.
(Added to NRS by 1983, 984; A 1985, 1138, 2278, 2279; 1987, 893;
1997, 2038; 2003, 1307 ; 2005, 1297 , 1298 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
1. A sales agent may work for only one project broker at any one
time at the location designated in the license.
2. A project broker shall give written notice to the Division of a
change of association of any sales agent associated with him within 10
days after that change.
3. The project broker, upon the termination of the employment of
any sales agent associated with him, shall submit that agent’s license to
the Division.
4. If a sales agent changes his association with any project
broker or changes his location with the same project broker, he must
apply to the Division for the reissuance of his license for its unexpired
term. The application must be accompanied by a fee of $10.
5. A sales agent may only become associated with a project broker
who certifies to his honesty, trustworthiness and good reputation.
(Added to NRS by 1983, 985; A 1985, 1139)
1. The Administrator may impose a fine or suspend, revoke,
reissue, subject to conditions, or deny the renewal of any sales agent’s
license issued under the provisions of this chapter at any time if the
sales agent has, by false or fraudulent application or representation,
obtained a license or, whether or not acting as a sales agent, is found
guilty of:
(a) Making any material misrepresentation;
(b) Making any false promises of a character likely to influence,
persuade or induce;
(c) Engaging in any fraudulent, misleading or oppressive sales
techniques or tactics;
(d) Accepting a commission or valuable consideration as a sales
agent for the performance of any of the acts specified in this chapter
from any person except a licensed project broker with whom the sales
agent is associated or the developer by whom he is employed;
(e) Failing, within a reasonable time, to account for or remit or
turn over to the project broker any money which comes into his possession
and which belongs to others;
(f) Violating any of the provisions of this chapter or chapter 119B
of NRS or of any regulation adopted
pursuant to either chapter, or willfully aiding or abetting another to do
so; or
(g) A felony relating to the practice of a sales agent or other
crime of moral turpitude or has entered a plea of nolo contendere to a
felony relating to the practice of a sales agent or other crime of moral
turpitude.
2. The Administrator may investigate the actions of any sales
agent or any person who acts in such a capacity within the State of
Nevada.
(Added to NRS by 1983, 993; A 1985, 1139, 1672, 1673; 1987, 892;
2001, 529 ; 2003, 2690 )
[Effective until the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. The Administrator shall register as a representative each
applicant who:
(a) Submits proof satisfactory to the Division that he has a
reputation for honesty, trustworthiness and competence;
(b) Applies for registration in the manner provided by the Division;
(c) Submits the statement required pursuant to NRS 119A.263 ; and
(d) Pays the fees provided for in this chapter.
2. An application for registration as a representative must
include the social security number of the applicant.
(Added to NRS by 1983, 985; A 1997, 2039)
[Effective on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.] The Administrator shall
register as a representative each applicant who:
1. Submits proof satisfactory to the Division that he has a
reputation for honesty, trustworthiness and competence;
2. Applies for registration in the manner provided by the
Division; and
3. Pays the fees provided for in this chapter.
(Added to NRS by 1983, 985; A 1997, 2039, effective on the date of
the repeal of the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and
for noncompliance with certain processes relating to paternity or child
support proceedings)
[Effective until the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings.]
1. The registration of a representative issued pursuant to this
chapter expires 1 year after its issuance.
2. Each representative who submits the statement required pursuant
to NRS 119A.263 and meets the
requirements for renewal adopted by the Division may renew his
registration upon the payment of the annual renewal fee before his
registration expires.
3. If a representative fails to renew his registration before it
expires, the registration may be reinstated upon the submission of the
statement and the payment of the annual renewal fee and the penalty
specified in NRS 119A.360 within 1
year after the registration expires.
4. A representative issued a registration shall not change his
association to another developer unless he has obtained from the Division
a transfer of his registration for its unexpired term. An application to
the Division for the transfer of his registration for the unexpired term
must be accompanied by the fee specified in NRS 119A.360 for the transfer of registration.
(Added to NRS by 1983, 985; A 1993, 2295; 1997, 2039; 2001, 2501
; 2003, 1309 ; 2005, 1300 )
[Effective on the date of the repeal of the
federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance
with certain processes relating to paternity or child support
proceedings.]
1. The registration of a representative issued pursuant to this
chapter expires 1 year after its issuance.
2. Each representative who meets the requirements for renewal
adopted by the Division may renew his registration upon the payment of
the annual renewal fee before his registration expires.
3. If a representative fails to renew his registration before it
expires, the registration may be reinstated upon the payment of the
annual renewal fee and the penalty specified in NRS 119A.360 within 1 year after the registration expires.
4. A representative issued a registration shall not change his
association to another developer unless he has obtained from the Division
a transfer of his registration for its unexpired term. An application to
the Division for the transfer of his registration for the unexpired term
must be accompanied by the fee specified in NRS 119A.360 for the transfer of registration.
(Added to NRS by 1983, 985; A 1993, 2295; 1997, 2039; 2001, 2501
; 2003, 1309 ; 2005, 1300 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
1. A representative shall not negotiate or make representations
concerning the merits or value of a time-share plan or a project. He may
only induce and solicit persons to attend promotional meetings for the
sale of time shares and distribute information on behalf of a developer.
2. The representative’s activities must strictly conform to the
methods for the procurement of prospective purchasers which have been
approved by the Division.
3. The representative shall comply with the same standards for
conducting business as are applied to real estate brokers and salesmen
pursuant to chapter 645 of NRS and the regulations adopted pursuant thereto.
4. A representative shall not make targeted solicitations of
purchasers or prospective purchasers of time shares in another project. A
developer or project broker shall not pay or offer to pay a
representative a bonus or other type of special compensation to engage in
such activity.
(Added to NRS by 1983, 985; A 2001, 2501 )
[Expires by limitation on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. An applicant for the issuance or renewal of a sales agent’s
license or registration as a representative or manager shall submit to
the Administrator the statement prescribed by the Division of Welfare and
Supportive Services of the Department of Health and Human Services
pursuant to NRS 425.520 . The statement must be completed and signed by the applicant.
2. The Administrator shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of the license or registration; or
(b) A separate form prescribed by the Administrator.
3. A sales agent’s license or registration as a representative or
manager may not be issued or renewed by the Administrator if the
applicant:
(a) Fails to complete or submit the statement required pursuant to
subsection 1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Administrator
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2037; A 2001, 2501 )
[Expires by limitation on the date of the repeal of the
federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance
with certain processes relating to paternity or child support
proceedings.]
1. If the Administrator receives a copy of a court order issued
pursuant to NRS 425.540 that provides for the suspension of all professional,
occupational and recreational licenses, certificates and permits issued
to a person who has been issued a sales agent’s license or has been
registered as a representative or manager, the Administrator shall deem
the license or registration to be suspended at the end of the 30th day
after the date on which the court order was issued unless the
Administrator receives a letter issued to the holder of the license or
registration by the district attorney or other public agency pursuant to
NRS 425.550 stating that the holder of the license or registration has
complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560 .
2. The Administrator shall reinstate a sales agent’s license or
the registration of a representative or manager that has been suspended
by a district court pursuant to NRS 425.540 if the Administrator receives a letter issued by the district
attorney or other public agency pursuant to NRS 425.550 to the person whose license or registration was suspended
stating that the person whose license or registration was suspended has
complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560 .
(Added to NRS by 1997, 2037; A 2001, 2502 )
A developer shall not:
1. Offer to sell any time shares in this state unless he holds
either a preliminary permit to sell time shares or a permit to sell time
shares issued by the Administrator.
2. Sell any time shares in this state unless he holds a permit to
sell time shares issued by the Administrator.
3. Offer to sell or sell a time share in this state unless he has
named a person to act as a project broker.
4. Offer to sell or sell a time share in this state except through
a project broker.
(Added to NRS by 1983, 979)
1. The Administrator may issue an order directing a developer to
cease engaging in activities for which the developer has not received a
permit under this chapter or conducting activities in a manner not in
compliance with the provisions of this chapter or the regulations adopted
pursuant thereto.
2. The order to cease must be in writing and must state that, in
the opinion of the Administrator, the developer has not been issued a
permit for the activity or the terms of the permit do not allow the
developer to conduct the activity in that manner. The developer shall not
engage in any activity regulated by this chapter after he receives such
an order.
3. Within 30 days after receiving such an order, a developer may
file a verified petition with the Administrator for a hearing. The
Administrator shall hold a hearing within 30 days after the petition has
been filed. If the Administrator fails to hold a hearing within 30 days,
or does not render a written decision within 45 days after the final
hearing, the cease and desist order is rescinded.
4. If the decision of the Administrator after a hearing is against
the person ordered to cease and desist, he may appeal that decision by
filing, within 30 days after the date on which the decision was issued, a
petition in the district court for the county in which he conducted the
activity. The burden of proof in the appeal is on the appellant. The
court shall consider the decision of the Administrator for which the
appeal is taken and is limited solely to a consideration and
determination of the question of whether there has been an abuse of
discretion on the part of the Administrator in making the decision.
5. In lieu of the issuance of an order to cease such activities,
the Administrator may enter into an agreement with the developer in which
the developer agrees to:
(a) Discontinue the activities that are not in compliance with this
chapter;
(b) Pay all costs incurred by the Division in investigating the
developer’s activities and conducting any necessary hearings; and
(c) Return to the purchasers any money or property which he
acquired through such violations.
Ê The terms of such an agreement are confidential unless violated by the
developer.
(Added to NRS by 1983, 994; A 1985, 1140)
1. The Administrator shall issue a preliminary permit to sell time
shares to each applicant who:
(a) Submits proof satisfactory to the Division that all of the
requirements for a permit to sell time shares will be met;
(b) Applies for the preliminary permit in the manner provided by
the Division; and
(c) Pays the fee provided for in this chapter.
2. A preliminary permit entitles the developer to solicit and
accept reservations to purchase time shares.
(Added to NRS by 1983, 979)
Except as otherwise provided in NRS 119A.310
, the Administrator shall issue a
public offering statement and a permit to sell time shares to each
applicant who:
1. Submits an application, in the manner provided by the Division,
which includes:
(a) The name and address of the project broker;
(b) A copy of each time-share instrument that relates to the
time-share plan;
(c) A preliminary title report for the project and copies of the
documents listed as exceptions in the report;
(d) Copies of any other documents which relate to the time-share
plan or the project, including any contract, agreement or other document
to be used to establish and maintain an association and to provide for
the management of the time-share plan or the project, or both;
(e) Copies of instructions for escrow, deeds, sales contracts and
any other documents that will be used in the sale of the time shares;
(f) A copy of any proposed trust agreement which establishes a
trust for the time-share plan or the project, or both;
(g) Documents which show the current assessments for property taxes
on the project;
(h) Documents which show compliance with local zoning laws;
(i) If the units which are the subject of the time-share plan are
in a condominium project, or other form of common-interest ownership of
property, documents which show that use of the units is in compliance
with the documents which created the common-interest ownership;
(j) Copies of all documents which will be given to a purchaser who
is interested in participating in a program for the exchange of occupancy
rights among owners and copies of the documents which show acceptance of
the time-share plan in such a program;
(k) A copy of the budget or a projection of the operating expenses
of the association, if applicable;
(l) A financial statement of the developer; and
(m) Such other information as the Division, by regulation,
requires; and
2. Pays the fee provided for in this chapter.
(Added to NRS by 1983, 979; A 1987, 1080; 2001, 2502 )
The
terms and conditions of the documents and agreements submitted pursuant
to NRS 119A.300 which relate to the
creation and management of the time-share plan and to the sale of time
shares and to which the applicant or an affiliate of the applicant is a
party must be described in the public offering statement and constitute
additional terms and conditions of the applicant’s permit to sell time
shares.
(Added to NRS by 1987, 1079; A 1991, 97; 2001, 2503 )
1. The Administrator shall deny an application for a permit to
sell time shares if he finds that:
(a) The developer failed to comply with any of the provisions of
this chapter or the regulations adopted by the Division; or
(b) The developer, any affiliate of the developer or any officer of
the developer or an affiliate of the developer, has:
(1) Been convicted of or pleaded nolo contendere to forgery,
embezzlement, obtaining money under false pretenses, larceny, extortion,
conspiracy to defraud or other crime involving moral turpitude;
(2) Been the subject of a judgment in any civil or
administrative action, including a proceeding to revoke or suspend a
license, involving fraud or dishonesty;
(3) Been permanently enjoined by a court of competent
jurisdiction from selling real estate, time shares or securities in an
unlawful manner;
(4) Had a registration as a broker-dealer in securities or a
license to act as a real estate broker or salesman, project broker or
sales agent revoked;
(5) Been convicted of or pleaded nolo contendere to selling
time shares without a license; or
(6) Had a permit to sell time shares, securities or real
estate revoked.
2. The Administrator may deny an application for a permit to sell
time shares if he finds that the developer, or any affiliate of the
developer, has failed to offer satisfactory proof that it has a good
reputation for honesty, trustworthiness, integrity and competence to
transact the business of a developer in a manner which safeguards the
interests of the public.
3. The burden of proof is on the developer to establish to the
satisfaction of the Division that he is qualified to receive a license.
(Added to NRS by 1983, 980; A 1985, 1141; 1991, 97; 2001, 2503
)
1. The Division shall issue an order, within 30 days after the
receipt of an application for a permit to sell time shares, notifying the
applicant of its decision to:
(a) Issue a preliminary permit to sell time shares, including a
list of all deficiencies, if any, which must be corrected before a permit
is issued; or
(b) Deny the application and list the reasons for denial.
2. The Division shall, within 45 days after:
(a) The receipt of evidence that the deficiencies in the
application for a permit to sell time shares are cured, issue a permit to
sell time shares or deny the application and list the reasons for denial;
or
(b) The issuance of a preliminary permit, issue a permit to sell
time shares.
(Added to NRS by 1983, 981)
1. If the Administrator denies an application for a permit to sell
time shares, the applicant may, within 30 days, file a written request
for a hearing. The Administrator shall set the matter for hearing to be
conducted within 90 days after receipt of the applicant’s request, unless
the applicant requests a postponement of the hearing at least 3 working
days before the date set for hearing. If such a request is made by the
applicant, the date of the hearing must be agreed upon between the
Division and the applicant.
2. If the Division fails to:
(a) Hold the hearing within 90 days or within the extended time if
a postponement is requested;
(b) Render its decision within 60 days after the hearing; or
(c) Notify the applicant in writing, by its order, within 15 days
after its decision was made,
Ê the order of denial expires and the Division shall issue, within 15
days, a permit to sell time shares to the developer.
(Added to NRS by 1983, 981)
If
a project has not been completed before the issuance of a permit to sell
time shares, the permit must state the estimated date of completion and:
1. The developer shall deliver to the agency a bond in an amount
and upon terms approved by the division to assure completion of the
project free of any liens, which is payable to the Division for the
benefit of the purchasers of the time-share property and which remains in
effect until the project is completed free of all liens;
2. A cash deposit to cover the estimated costs of completing the
project must be deposited with an escrow agent under an agreement which
is approved by the Division; or
3. The developer shall make any other arrangement which is
approved by the Division.
(Added to NRS by 1983, 981; A 2001, 2504 )
1. The Division shall, before issuing any permit or license
pursuant to the provisions of this chapter, fully investigate all
information submitted to it as required by this chapter and may, if
necessary, inspect the property which is the subject of any application.
All reasonable expenses incurred by the Division in carrying out the
investigation or inspection must be paid by the applicant and no license
or permit may be issued until those expenses have been paid.
2. Payments received by the Division pursuant to this section must
be deposited in the State Treasury for credit to the Real Estate
Investigative Account. The Administrator shall use the money in the
Account to pay the expenses of agents and employees of the Division
making the investigations pursuant to this section. The Administrator may
advance money to them for those expenses when appropriate.
(Added to NRS by 1983, 980; A 1991, 1753)
1. A permit must be renewed annually by the developer by filing an
application with and paying the fee for renewal to the Administrator. The
application must be filed and the fee paid not later than 30 days before
the date on which the permit expires. The application must include the
budget of the association and any change that has occurred in the
information previously provided to the Administrator or in a statement of
disclosure provided to a prospective purchaser pursuant to the provisions
of NRS 119A.400 .
2. The renewal is effective on the 30th day after the filing of
the application unless the Administrator:
(a) Denies the renewal pursuant to NRS 119A.654 or for any other reason; or
(b) Approves the renewal on an earlier date.
(Added to NRS by 1987, 1080; A 2001, 530 , 2504 )
1. The Division shall collect the following fees at such times and
upon such conditions as it may provide by regulation:
For each application for the registration of a
representative............................ $85
For each renewal of the registration of a
representative...................................... 85
For each transfer of the registration of a representative to a different
developer....... 20
For each penalty for a late renewal of the registration of a
representative....... 40
For each preliminary permit to sell time
shares.................................................... 275
For each permit to sell time shares, per
subdivision........................................... 500
For each amendment to a public offering statement after the issuance of
the report 150
For each renewal of a permit to sell time
shares.................................................. 500
For each original and annual registration of a
manager....................................... 75
For each application for an original license as a sales
agent............................ 175
For each renewal of a license as a sales
agent.................................................... 175
For each penalty for a late renewal of a license as a sales
agent........................ 75
For each change of name or
address....................................................................
.. 20
For each duplicate license, permit or registration where the original is
lost or destroyed, and an affidavit is made thereof 20
For each annual approval of a course of instruction offered in
preparation for an original license or permit 100
For each original accreditation of a course of continuing
education.............. 100
For each renewal of accreditation of a course of continuing
education........... 50
2. Each developer shall pay an additional fee for each time share
he sells in a time-share plan over 50 pursuant to the following schedule:
Amount to be
Number of time shares
paid
per time share
51—250.....................................................................
..................................... $5.00
251—500....................................................................
........................................ 4.00
501—750....................................................................
........................................ 3.00
751—1500...................................................................
......................................... 2.50
over
1500.......................................................................
..................................... 1.00
3. Except for the fees relating to the registration of a
representative, the Administrator may reduce the fees established by this
section if the reduction is equitable in relation to the costs of
carrying out the provisions of this chapter.
4. The Division shall adopt regulations which establish the fees
to be charged and collected by the Division to pay the costs of:
(a) Any examination for a license, including any costs which are
necessary for the administration of such an examination.
(b) Any investigation of a person’s background.
(Added to NRS by 1983, 985; A 1987, 1081; 1993, 2295; 2001, 2504
; 2003, 1309 ; 2005, 1300 )
In addition to any other remedy or penalty, the Administrator
may:
1. Refuse to issue a license, permit, certificate or registration
to a person who has failed to pay money which the person owes to the
Division.
2. Refuse to renew, or suspend or revoke, the license, permit,
certificate or registration of a person who has failed to pay money which
the person owes to the Division.
(Added to NRS by 2003, 1307 )
SALE OF TIME SHARES
1. A time share must not be advertised or offered for sale within
this state until the advertisement or offering is filed with the Division.
2. Each such filing must:
(a) Include the form and content of advertising to be used;
(b) Include the nature of the offer of gifts or other free benefits
to be extended;
(c) Include the nature of promotional meetings involving any person
or act described in NRS 119A.300 ; and
(d) Be accompanied by a filing fee of not more than $200, to be
established by the Division.
(Added to NRS by 1983, 996; A 1991, 97; 1993, 2296; 2001, 2505
)
1. Each time-share plan must be created by one or more time-share
instruments.
2. A time-share instrument must provide:
(a) A legal description and the physical address of the project;
(b) The name of the time-share plan;
(c) A system for establishing the permanent identifying numbers of
the time shares;
(d) For assessment of the expenses of the time-share plan and an
allocation of those expenses among the time shares;
(e) The voting rights which are assigned to each time share;
(f) If applicable, the procedure to add units and other real estate
to, and to withdraw units and other real estate from, the time-share
plan, and the method of reallocating expenses among the time shares after
any such addition or withdrawal;
(g) The maximum number of time shares that may be created under the
time-share plan;
(h) For selection of the trustee for insurance which is required to
be maintained by the association or the developer;
(i) For maintenance of the units;
(j) For management of the time-share plan;
(k) A procedure to amend the time-share instrument; and
(l) The rights of the purchaser relating to the occupancy of the
unit.
3. A time-share instrument may provide for:
(a) The developer’s reserved rights;
(b) Cumulative voting, but only for the purpose of electing the
members of the board; and
(c) The establishment of:
(1) Separate voting classes based on the size or type of
unit to which the votes are allocated; and
(2) A separate voting class for the developer during the
period in which the developer is in control.
4. The provisions of a time-share instrument are severable.
5. The rule against perpetuities and NRS 111.103 to 111.1039 , inclusive, do not apply to defeat any
provisions of a time-share instrument.
(Added to NRS by 1983, 978; A 2001, 2505 )
A description of a time
share is a legally sufficient description of the time share and all
rights, obligations and interests appurtenant to that time share that
were created by the time-share plan if the description includes, without
limitation:
1. The name under which the time-share plan is registered with the
Division;
2. The county in which the project is located;
3. Information which indicates where the time-share instruments
are recorded; and
4. The permanent identifying number of the time share as set forth
in the time-share instruments.
(Added to NRS by 2001, 2495 )
A reservation to
purchase a time share must:
1. Be on a form approved by the Division;
2. Include a provision which grants the prospective purchaser the
right to cancel the reservation at any time before the execution of the
contract of sale with the full refund of any deposit;
3. Provide for the placement of any deposit in escrow until a
permit is issued by the Administrator pursuant to NRS 119A.300 ;
4. Guarantee the purchase price for the time share for a certain
period after the issuance of the permit to sell time shares; and
5. Require that any interest earned on the deposit for the
reservation be paid to the prospective purchaser.
(Added to NRS by 1983, 979)
1. Each developer, through his project broker and sales agents,
shall provide each prospective purchaser with a copy of his public
offering statement which must contain a copy of his permit to sell time
shares.
2. The project broker or sales agent shall review the public
offering statement with each prospective purchaser before the execution
of any contract for the sale of a time share and obtain a receipt signed
by the purchaser for a copy of the public offering statement.
3. If a contract is signed by the purchaser, the signed receipt
for a copy of the public offering statement must be kept by the project
broker for 3 years and is subject to such inspections and audits as may
be prescribed by regulations adopted by the Division.
(Added to NRS by 1983, 981)
1. The purchaser of a time share may cancel, by written notice,
the contract of sale until midnight of the fifth calendar day following
the date of execution of the contract. The contract of sale must include
a statement of this right.
2. The right of cancellation may not be waived. Any attempt by the
developer to obtain a waiver results in a contract which is voidable by
the purchaser.
3. The notice of cancellation may be delivered personally to the
developer or sent by certified mail or telegram to the business address
of the developer.
4. The developer shall, within 15 days after receipt of the notice
of cancellation, return all payments made by the purchaser.
(Added to NRS by 1983, 982; A 1985, 1141; 1987, 894; 2003, 984
)
All money,
negotiable instruments or other deposits pertaining to the sale of a time
share must be placed in escrow, pursuant to an agreement approved by the
Division, with an escrow agent or a trustee.
(Added to NRS by 1983, 982)
Escrow may not
be closed unless the developer has provided satisfactory evidence to the
Administrator that:
1. The project is free and clear of any blanket encumbrance;
2. Each person who holds an interest in the blanket encumbrance
has executed an agreement, approved by the Administrator, to subordinate
his rights to the rights of the purchaser;
3. Title to the project has been conveyed to a trustee;
4. All holders of a lien recorded against the project have
recorded an instrument providing for the release and reconveyance of each
time share from the lien upon the payment of a specified sum or the
performance of a specified act;
5. The developer has obtained and recorded one or more binding
nondisturbance agreements acceptable to the Administrator, that:
(a) Are executed by the developer, all holders of a lien recorded
against the project and any other person whose interest in the project
could defeat the rights or interests of any purchaser under the
time-share instrument or contract of sale; and
(b) Provide that any person whose interest in the project could
defeat the rights or interests of any purchaser under the time-share
instrument or contract of sale takes title to the project subject to the
rights of the purchasers; or
6. Alternative arrangements have been made which are adequate to
protect the rights of the purchasers of the time shares and approved by
the Administrator.
(Added to NRS by 1983, 982; A 1985, 1141; 2001, 2506 )
1. A contract for the sale of a time share or any other evidence
of an obligation to purchase a time share must provide in 12-point bold
type that the purchaser is relieved of all obligations under the contract
if his interests are defeated because of the foreclosure of liens against
the project. The provisions of this subsection do not apply to any
project which meets any one of the requirements of subsections 1 to 5,
inclusive, of NRS 119A.430 .
2. If a developer or owner is in default on a blanket encumbrance,
he may not sell or pledge any of the notes or contracts of sale given in
payment of the time shares purchased from him.
(Added to NRS by 1983, 983; A 1985, 1142; 1991, 98; 2001, 2507
)
If a trust is created
pursuant to a requirement of this chapter, the:
1. Trustee must be approved by the Administrator.
2. Trust must be irrevocable, unless otherwise provided by the
Division.
3. Trustee must not be permitted to encumber the property unless
permission to do so has been given by the Division.
4. Association or each owner must be made a third-party
beneficiary.
5. Trustee must be required to give at least 30 days’ notice in
writing of his intention to resign to the association, if it has been
formed, and to the Division, and the Division must approve a substitute
trustee before the resignation of the trustee may be accepted.
(Added to NRS by 1983, 983; A 2001, 2507 )
1. If title to a project is conveyed to a trustee pursuant to
subsection 3 of NRS 119A.430 , before
escrow closes for the sale of the first time share, the developer must
provide the Division with satisfactory evidence that:
(a) Title to the project has been conveyed to the trustee.
(b) All proceeds received by the developer from the sales of time
shares are being delivered to the trustee and deposited in a fund which
has been established to provide for the payment of any taxes, costs of
insurance or the discharge of any lien recorded against the project.
2. The trustee shall pay the charges against the trust in the
following order:
(a) Trustee’s fees and costs.
(b) Payment of taxes.
(c) Payments due any holder of a lien recorded against the project.
(d) Any other payments authorized by the document creating the
trust.
3. The Administrator may inspect the records relating to the trust
at any reasonable time.
(Added to NRS by 1983, 983; A 1985, 1142; 2001, 2507 )
1. Where any part of the statement of record, when that part
became effective, contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein, the
Administrator or any person acquiring a time share from the developer or
his agent during the period the public offering statement remained
uncorrected (unless it is proved that at the time of the acquisition he
knew of the untruth or omission) may sue the developer in any court of
competent jurisdiction.
2. Any developer or agent who sells a time share:
(a) In violation of this chapter; or
(b) By means of a public offering statement which contained an
untrue statement of a material fact required to be stated therein,
Ê may be sued by the Administrator or purchaser of the time share.
3. If a suit authorized under subsection 1 or 2 is brought by the
purchaser, he is entitled to recover such damages as represent the
difference between the amount paid for the time share and the reasonable
cost of any permanent improvements thereto, and the lesser of:
(a) The value thereof as of the time the suit was brought;
(b) The price at which the time share has been disposed of in a
bona fide market transaction before suit; or
(c) The price at which the time share has been disposed of after
suit in a bona fide market transaction but before judgment,
Ê or to rescission of the contract of sale and the refund of any
consideration paid by him.
4. If a suit authorized under subsection 1 or 2 is brought by the
Administrator, he may seek a declaration of the court that any person
entitled to sue the developer or his agent under this section is entitled
to the right of rescission and the refund of any consideration paid by
him.
5. Every person who becomes liable to make any payment under this
section may recover contribution as in cases of contract from any person
who, if sued separately, would have been liable to make the same payment.
6. Reasonable attorney’s fees may be awarded to the prevailing
party in any action brought under this section. Any action to rescind a
contract of sale under this section must be brought within 1 year after
the date of purchase or within 1 year after the date of the discovery of
the misrepresentation giving rise to the action for rescission.
7. The provisions of this section are in addition to and not a
substitute for any other right of a person to bring an action in any
court for any act involved in the offering or sale of time shares or the
right of the state to punish any person for any violation of any law.
8. For the purposes of this section, “statement of record” means
the information submitted to the Administrator by the developer in its
application for a permit to offer to sell or sell time shares.
(Added to NRS by 1987, 1078)
RESALE OF TIME SHARES
1. A person who, on behalf of an owner other than a developer,
wishes to list, advertise or promote for resale, or solicit prospective
purchasers of, 12 or more time shares that were previously sold must:
(a) Be licensed as a real estate broker pursuant to the provisions
of chapter 645 of NRS; and
(b) Register as a time-share resale broker with the Division by
completing a form for registration provided by the Division.
2. A time-share resale broker shall renew his registration with
the Division annually on a form provided by the Division.
3. Unless the method of resales of time shares is made to evade
the provisions of this chapter, a person is not required to register as a
time-share resale broker if the person:
(a) Has acquired fewer than 12 time shares and later resells or
offers to resell one or more of those time shares; or
(b) Is a project broker who resells or offers to resell a time
share in a project as an agent for a developer who holds a permit for the
project.
(Added to NRS by 1999, 2687 ; A 2001, 2507 )
1. A time share must not be advertised or offered for resale
within this state until the advertisement or offering is filed with the
Division.
2. Each such filing must include:
(a) The form and content of advertising to be used;
(b) The nature of the offer of gifts or other free benefits to be
extended; and
(c) The nature of promotional meetings involving any person or act
described in NRS 119A.300 .
(Added to NRS by 1999, 2688 ; A 2001, 2508 )
1. Before a purchaser signs any contract to purchase a time share
that is offered for resale, the person who is reselling the time share,
other than a developer, shall disclose by a written document separate
from the contract to purchase a time share:
(a) The period during which the purchaser may use the time share;
(b) A legal description of the interest in the time share;
(c) The earliest date that the prospective purchaser may use the
time share;
(d) The name, address and telephone number of the agent managing
the time-share plan and the project;
(e) The place where the documents of formation of the association
and documents governing the time-share plan and the project may be
obtained;
(f) The amount of the annual assessment of the association of the
time share for the current fiscal year, if any;
(g) Whether all assessments against the time share are paid in
full, and the consequences of failure to pay any assessment;
(h) Whether participation in any program for the exchange of
occupancy rights among owners or with the owners of time shares in other
time-share plans is mandatory; and
(i) Any other information required to be disclosed pursuant to the
regulations adopted by the Administrator pursuant to subsection 2.
2. The Administrator shall adopt regulations prescribing the form
and contents of the disclosure statement described in this section.
(Added to NRS by 1999, 2687 ; A 2001, 2508 )
1. An agreement for a time-share resale entered into by an owner
and a person who resells a time share must:
(a) Be in writing; and
(b) Contain a disclosure that sets forth:
(1) Whether any person other than the purchaser may use the
time share during the period before the time share is resold;
(2) Whether any person other than the purchaser may rent the
use of the time share during the period before the time share is resold;
(3) The name of any person who will receive any rents or
profits generated from the use of the time share during the period before
the time share is resold; and
(4) A detailed description of any relationship between the
person who resells the time share and any other person who receives any
benefit from the use of the time share.
2. A person who resells a time share shall provide a fully
executed copy of the written agreement described in subsection 1 to the
owner on the date that the owner signs the agreement.
3. A person who resells a time share shall make the disclosures
required pursuant to paragraph (b) of subsection 1 before accepting
anything of value from the owner.
(Added to NRS by 1999, 2686 )
In addition to the provisions of NRS 645.322 , 645.323 and 645.324 , a time-share resale broker who charges or collects an advance
fee shall place 80 percent of that fee into his trust account. If the
time-share resale broker closes escrow on the time-share resale, he shall
be deemed to have earned the advance fee. If the listing of the time
share expires before the time-share resale broker closes escrow on the
time-share resale, he must return the money held in the trust account to
the owner of the time share within 10 days after the date of the
expiration of the listing.
(Added to NRS by 1999, 2687 )
RIGHTS OF OWNERS
1. If the interest of the developer is a leasehold interest, the
lease, unless otherwise determined by the Division, must provide that:
(a) The lessee must give notice of termination of the lease for any
default by the lessor to the association.
(b) The lessor, upon any default of the lessee including bankruptcy
of the lessee, shall enter into a new lease with the association upon the
same terms and conditions as the lease with the developer.
2. The Division may require the developer to execute a bond or
other type of security for the payment of the rental obligation.
(Added to NRS by 1983, 991; A 1985, 1143)
1. Any proposed amendment by the developer of the provisions of a
time-share instrument must be filed with the Division.
2. Unless the Division notifies the developer of its disapproval
within 15 days, the amendments shall be deemed to be approved by the
Division.
(Added to NRS by 1983, 993; A 1985, 1143; 2001, 2509 )
If a
time-share instrument authorizes the developer to withdraw units from the
time-share plan, any unit that is subject to withdrawal may not be
withdrawn if a time share attributable to that unit is owned by a
purchaser.
(Added to NRS by 2001, 2495 )
1. Except as otherwise provided in subsection 2 and subject to the
provisions of the time-share instrument and other provisions of law, a
developer may, with the prior approval of the Division, relocate the
boundaries between adjoining units by amending the provisions of the
time-share instrument and any recorded map or plat relating thereto.
2. A developer may relocate the boundaries between adjoining units
without the prior approval of the Division if:
(a) The relocation is necessary to comply with the law; or
(b) No time share attributable to either of the adjoining units is
owned by a purchaser.
(Added to NRS by 2001, 2495 )
No action for partition of a unit
may be maintained except as provided in the time-share instrument. If a
time share is owned by two or more persons, an action may be brought for
the judicial sale of the time share. A provision for the waiver or
subordination of the right of partition or any other right characteristic
of a tenancy in common is valid.
(Added to NRS by 1983, 995; A 2001, 2509 )
If
a unit is unavailable for a period to which the owner is entitled by
schedule or by confirmed reservation, the owner is entitled to be
provided by the association:
1. A comparable unit; or
2. Monetary compensation for the loss of such use.
(Added to NRS by 1983, 990; A 1985, 1143; 1991, 98; 2001, 2509
)
MANAGEMENT OF TIME-SHARE PROJECT
1. Each owner is a member of the association for the time-share
plan. The association may be incorporated.
2. The state of incorporation may be:
(a) This state;
(b) The state in which the project is located; or
(c) Any state where the developer has obtained a permit to sell
time shares under statutes which govern the sale of time shares.
3. The association may adopt and amend bylaws, rules and
regulations.
4. Except as otherwise provided in NRS 82.321 , any proxy which is executed by an owner to an
association is valid for an indefinite period if the owner may revoke his
proxy, by written notice to the association, to vote at a particular
meeting.
(Added to NRS by 1983, 989; A 1985, 1143; 1993, 2378; 2001, 2509
)
1. Except as otherwise provided in this section, a time-share
instrument may provide for a period of the developer’s control of an
association during which the developer, or a person designated by him,
may appoint and remove the officers of the association and the members of
the board. Regardless of the period provided in the time-share
instrument, the period of the developer’s control of the association
terminates no later than:
(a) One hundred and twenty days after conveyance of 80 percent of
the time shares that may be created by the time-share instrument to
owners other than the developer;
(b) Five years after the developer has ceased to offer time shares
for sale in the ordinary course of business; or
(c) Five years after any right to add new time shares was last
exercised,
Ê whichever occurs earlier.
2. A developer may voluntarily surrender the right to appoint and
remove officers and members of the board before the end of the period
provided for in subsection 1 by executing and recording with the
time-share instrument a written instrument declaring the surrender. If
such an instrument is recorded, the developer may require that, for the
duration of the period of the developer’s control, specified actions of
the association or board, as described in the recorded instrument, be
approved by the developer before they become effective.
3. Not later than 60 days after conveyance of 25 percent of the
time shares that may be created pursuant to the time-share instrument to
owners other than the developer, at least one member and not less than 25
percent of the members of the board must be elected by owners other than
the developer. Not later than 60 days after conveyance of 50 percent of
the time shares that may be created pursuant to the time-share instrument
to owners other than the developer, not less than 33 1/3 percent of the
members of the board must be elected by owners other than the developer.
(Added to NRS by 2001, 2496 )
A developer’s reserved
rights may include, without limitation, the right to:
1. Add units or real estate to, and withdraw units or real estate
from, a time-share plan.
2. Create units, a common area or a limited common area within the
project.
3. Subdivide units or convert units into a common area.
4. Make and complete improvements to the project.
5. Maintain sales offices, management offices and signs for
advertising the time-share plan, project and models.
6. Enter into a subsidy agreement with the association in lieu of
paying the assessments allocated to the time shares owned by the
developer.
7. Provide for the establishment of a master association, as
defined in NRS 116.063 .
8. Merge or consolidate a time-share plan with another time-share
plan which has the same form of ownership.
9. Relocate boundaries between adjoining units in accordance with
the provisions of this chapter.
(Added to NRS by 2001, 2497 )
1. Unless the bylaws of an association specify a larger
percentage, a quorum is present throughout any meeting of the association
if persons entitled to cast 10 percent of the votes that may be cast are
present in person or by proxy at the beginning of the meeting.
2. Unless the bylaws of an association provide otherwise, a quorum
shall be deemed to be present throughout a meeting of the board if
persons entitled to cast a majority of the votes on that board are
present at the beginning of the meeting.
(Added to NRS by 2001, 2497 )
1. Notwithstanding any provision of a time-share instrument or the
bylaws of an association to the contrary, the owners, by a two-thirds
vote of all persons present, in person or by proxy, who are entitled to
vote at any meeting of the owners at which a quorum is present, may
remove any member of the board, with or without cause, other than a
member appointed by the developer.
2. If a member of the board is sued for liability for actions
undertaken in his role as a member of the board, the association shall
indemnify him for his losses or claims, and undertake all costs of
defense, unless it is proven that he acted with willful or wanton
misfeasance or with gross negligence. After such proof, the association
is no longer liable for the costs of defense, and may recover from the
member of the board who so acted, costs already expended. Members of the
board are not personally liable to the victims of crimes occurring on the
project. Punitive damages may not be recovered against the association,
but may be recovered from persons whose activity gave rise to the damages.
(Added to NRS by 2001, 2496 )
1. A developer or an affiliate of the developer shall provide for
the management of the time-share plan and the project, by a written
agreement with the association or, if there is no association, with the
owners. The initial term of the agreement must expire upon the first
annual meeting of the members of the association or at the end of 5
years, whichever comes first. All succeeding terms of the agreement must
be renewed annually unless the manager refuses to renew the agreement or
a majority of the members of the association who are entitled to vote,
excluding the developer, notifies the manager of its refusal to renew the
agreement.
2. The agreement must provide that:
(a) The manager or a majority of the owners may terminate the
agreement for cause.
(b) The resignation of the manager will not be accepted until 90
days after receipt by the association, or if there is no association, by
the owners, of the written resignation.
(c) A fidelity bond must be delivered by the manager to the
association.
3. An agreement entered into or renewed on or after October 1,
2001, must contain a detailed, itemized schedule of all fees,
compensation or other property that the manager is entitled to receive
for services rendered to the association or any member of the association
or otherwise derived from the manager’s affiliation with the time-share
plan or the project, or both, unless the manager is the developer or an
affiliate of the developer. Upon the request of the association, the
manager shall disclose to the association annual revenue received by the
manager from the manager’s affiliation with the time-share plan or the
project, or both.
4. Except as otherwise provided in this subsection, if the
developer retains a property interest in the project, the parties to such
an agreement must include the developer, the manager and the association.
In addition to the provisions required in subsections 1 and 2, the
agreement must provide:
(a) That the project will be maintained in good condition. Except
as otherwise provided in this paragraph, any defect which is not cured
within 10 days after notification by the developer may be cured by him.
In an emergency situation, notice is not required. The association must
repay the developer for any cost of the repairs plus the legal rate of
interest. Each owner must be assessed for his share of the cost of
repairs.
(b) That, if any dispute arises between the developer and the
manager or association, either party may request from the American
Arbitration Association or the Nevada Arbitration Association a list of
seven potential fact finders from which one must be chosen to settle the
dispute. The agreement must provide for the method of selecting one fact
finder from this list.
(c) For the collection of assessments from the owners to pay
obligations which may be due to the developer for breach of the covenant
to maintain the premises in good condition and repair.
Ê If the developer is not made a party to this agreement, he shall be
considered to be a third-party beneficiary of such an agreement.
(Added to NRS by 1983, 989; A 1985, 1461; 2001, 2509 )
[Effective until the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. A person who wishes to engage in the business of, act in the
capacity of, advertise or assume to act as a manager shall register with
the Division on a form prescribed by the Division.
2. The form for registration must include, without limitation:
(a) The registered name of the time-share plan or the project, or
both, that the manager will manage;
(b) The address and telephone number of the manager’s principal
place of business;
(c) The social security number of the manager; and
(d) The name of the manager’s responsible managing employee.
3. The form for registration must be accompanied by:
(a) Satisfactory evidence, acceptable to the Division, that the
manager and his employees have obtained fidelity bonds in accordance with
regulations adopted by the Division; and
(b) The statement required pursuant to NRS 119A.263 .
4. The Division shall collect the fee specified in NRS 119A.360
upon registering the manager and
annually thereafter to maintain the registration.
5. As used in this section, “responsible managing employee” means
the person designated by the manager to:
(a) Make technical and administrative decisions in connection with
the manager’s business; and
(b) Hire, superintend, promote, transfer, lay off, discipline or
discharge other employees or recommend such action on behalf of the
manager.
(Added to NRS by 2001, 2498 ; A 2003, 1310 )
[Effective on the date of the repeal of the federal law requiring each
state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating
to paternity or child support proceedings.]
1. A person who wishes to engage in the business of, act in the
capacity of, advertise or assume to act as a manager shall register with
the Division on a form prescribed by the Division.
2. The form for registration must include, without limitation:
(a) The registered name of the time-share plan or the project, or
both, that the manager will manage;
(b) The address and telephone number of the manager’s principal
place of business; and
(c) The name of the manager’s responsible managing employee.
3. The form for registration must be accompanied by satisfactory
evidence, acceptable to the Division, that the manager and his employees
have obtained fidelity bonds in accordance with regulations adopted by
the Division.
4. The Division shall collect the fee specified in NRS 119A.360
upon registering the manager and
annually thereafter to maintain the registration.
5. As used in this section, “responsible managing employee” means
the person designated by the manager to:
(a) Make technical and administrative decisions in connection with
the manager’s business; and
(b) Hire, superintend, promote, transfer, lay off, discipline or
discharge other employees or recommend such action on behalf of the
manager.
(Added to NRS by 2001, 2498 ; A 2001, 2517 ; 2003, 1310 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
1. A manager who enters into or renews an agreement that must
comply with the provisions of subsection 3 of NRS 119A.530 shall submit to the association and to the
Division a disclosure statement that contains a description of any
arrangement made by the manager or an affiliate of the manager relating
to:
(a) The resale of time shares on behalf of the association or its
members;
(b) Actions taken for the collection of assessments and the
foreclosure of liens on behalf of the association or its members;
(c) The exchange or rental of time shares owned by the association
or its members; and
(d) The use of the names of the members of the association for
purposes unrelated to the duties of the association as set forth in the
time-share instrument and this chapter.
2. The disclosure statement must be:
(a) Submitted annually at a time designated by the Administrator
and at least 120 days before any date on which the agreement is
automatically renewed.
(b) Signed by the manager or an authorized representative of the
manager under penalty of perjury.
3. The Administrator shall adopt regulations prescribing the form
and contents of the disclosure statements required by this section.
(Added to NRS by 2001, 2498 )
1. The association or, if there is no association, the developer
shall adopt an annual budget for revenues, expenditures and reserves and
collect assessments for the expenses of the time-share plan and the
project from the owners. The annual budgets of the association must be
submitted to and approved by the Division until such time as the
association is controlled by members other than the developer.
2. The Administrator may require that the association or, if there
is no association, the developer provide, at the association’s or the
developer’s expense, an opinion from an independent professional
consultant as to the sufficiency of the budget to sustain the time-share
plan offered by the association or the developer. The association or the
developer shall place any money collected for assessments and any other
revenues received by or on behalf of the association in an account
established by the association.
3. The developer shall pay assessments for any time shares which
are unsold or enter into an agreement with the association, in a form
approved by the Division, to pay the difference between the actual
expenses incurred by the association and the sum of the amounts payable
to the association as assessments by owners, other than the developer,
and other revenues received by the association. The Division may require
the developer to provide a surety bond or other form of security which is
satisfactory to the Division, to guarantee payment of the developer’s
obligation.
(Added to NRS by 1983, 990; A 1985, 1143; 1987, 1081; 2001, 2510
)
1. The board of an association shall:
(a) Cause to be conducted at least once every 5 years, a study of
the reserves required to repair, replace and restore the major components
of the project;
(b) Review the results of that study at least annually to determine
if those reserves are sufficient; and
(c) Make any adjustments it deems necessary to maintain the
required reserves.
2. The study required by subsection 1 must be conducted by a
person qualified by training and experience to conduct such a study,
including a member of the board or the manager of the time-share plan or
the project, or both, who is so qualified. The study must include,
without limitation:
(a) A summary of an inspection of the major components of the
project;
(b) An identification of the major components of the project which
have a remaining useful life of less than 30 years;
(c) An estimate of the remaining useful life of each major
component identified pursuant to paragraph (b);
(d) An estimate of the cost of repair, replacement or restoration
of each major component identified pursuant to paragraph (b) during and
at the end of its useful life; and
(e) An estimate of the total annual assessment that may be required
to cover the cost of repairing, replacing or restoring the major
components identified pursuant to paragraph (b), after subtracting the
reserves of the association as of the date of the study.
3. The Administrator shall adopt by regulation the qualifications
required for conducting a study required by subsection 1.
(Added to NRS by 2001, 2497 )
1. The developer or the association may levy and enforce a
reasonable assessment upon any time share in accordance with the
time-share instrument, which is a debt of the owner thereof at the time
the assessment is made. The amount of the assessment plus any other
charges thereon, such as interest, costs, attorney’s fees and penalties,
as may be provided for in the time-share instrument is a lien upon the
time share assessed when the developer or the association causes to be
recorded with the county recorder of the county in which the project is
located a notice of assessment, which must state:
(a) The amount of the assessment and such other charges thereon as
may be authorized by the time-share instrument;
(b) A description of the time share against which the lien has been
assessed; and
(c) The name of the owner.
Ê The notice must be signed by an authorized representative of the
developer or the association or as otherwise provided in the time-share
instrument. Upon payment of the assessment and charges in connection with
which the notice has been so recorded, or other satisfaction thereof, the
developer or the association shall cause to be recorded a further notice
stating the satisfaction and the release of the lien thereof.
2. The lien is prior to all other liens recorded after the
recordation of the notice of assessment except that the time-share
instrument may provide for the subordination thereof to any other liens
and encumbrances. Unless sooner satisfied and released or the enforcement
thereof initiated as provided in subsection 3, the lien expires and has
no further force or effect 1 year after the date of recordation of the
notice of assessment, but the 1-year period may be extended by the
developer or the association for a period not to exceed 1 additional year
by recording a written extension thereof.
3. The lien may be enforced by sale by the developer or the
association, its agent or attorney, after failure of the owner to pay
such an assessment in accordance with the terms of the time-share
instrument. The sale must be conducted in accordance with the provisions
of Covenants Nos. 6, 7 and 8 of NRS 107.030 , and NRS 107.090 insofar as they are consistent with the
provisions of NRS 119A.560 , or in any
other manner permitted by law. Unless otherwise provided in the
time-share instrument, the developer or the association, if it is a
corporation, cooperative association, partnership or natural person, may
bid at foreclosure sale and hold, lease, mortgage and convey the time
share.
(Added to NRS by 1983, 991; A 2001, 2511 )
An association,
upon the receipt of a written request, shall furnish to an owner or any
lender who has a security interest in a time share or the project, a
statement setting forth the amount of unpaid assessments made against the
owner’s time share. The statement must be furnished within 10 business
days after receipt of the request and is binding on the association, the
board and every owner.
(Added to NRS by 2001, 2497 )
1. The power of sale may not be exercised until:
(a) The developer or the association, its agent or attorney has
first executed and caused to be recorded with the recorder of the county
wherein the project is located a notice of default and election to sell
the time share or cause its sale to satisfy the assessment lien; and
(b) The owner or his successor in interest has failed to pay the
amount of the lien, including costs, fees and expenses incident to its
enforcement for 60 days computed as prescribed in subsection 2.
2. The 60-day period provided in subsection 1 begins on the first
day following the day upon which the notice of default and election to
sell is recorded and a copy of the notice is mailed by certified or
registered mail with postage prepaid to the owner or to his successor in
interest at his address if that address is known, otherwise to the
address of the project. The notice must describe the deficiency in
payment.
3. The developer or the association, its agent or attorney shall,
after expiration of the 60-day period and before selling the time share,
give notice of the time and place of the sale in the manner and for a
time not less than that required for the sale of real property upon
execution, except that a copy of the notice of sale must be mailed on or
before the first publication or posting required by NRS 21.130 by certified or registered mail with postage
prepaid to the owner or to his successor in interest at his address if
that address is known, otherwise to the address of the project. The sale
may be made at the office of the developer or the association if the
notice so provided, whether the project is located within the same county
as the office of the developer or the association or not.
4. Every sale made under the provisions of NRS 119A.550 vests in the purchaser the title of the
owner without equity or right of redemption.
(Added to NRS by 1983, 992; A 2001, 2511 )
1. The developer or the association, if it has been formed, shall
maintain:
(a) Property insurance on the project and any personal property
available for use by the owners in conjunction therewith, other than
personal property separately owned by an owner, insuring against all
risks of direct physical loss commonly insured against, with a provision
agreed to by the lender, that the proceeds must be disbursed for the
repair or restoration of the property, and that the owners and
lienholders are not entitled to receive payment of any portion of the
proceeds unless there is a surplus of proceeds after the property has
been completely repaired or restored;
(b) Liability insurance, including insurance for medical payments,
in an amount not less than $1,000,000 per occurrence, covering all
occurrences commonly insured against for death, bodily injury and
property damage arising out of or in connection with the use, ownership
or maintenance of the time-share property and units; and
(c) Insurance covering the costs of temporary quarters for the
owners and other losses commonly insured against.
2. Each insurance policy carried pursuant to subsection 1 must
provide that:
(a) Each owner is an insured person under the policy whether
designated as an insured by name individually or as part of a named group
or otherwise, as his interest may appear;
(b) The insurer waives its right to subrogation under the policy
against any owner or members of his household; and
(c) No act or omission by any owner, unless acting within the scope
of his authority on behalf of an association, will void the policy or be
a condition to recovery by any other person under the policy.
(Added to NRS by 1983, 990; A 1985, 1144; 2001, 2512 )
No labor performed or services or
materials furnished with the consent of or at the request of an owner may
be the basis for the filing of a lien against the time share of any other
owner, or against any part thereof, or against any other property of any
other owner, unless the other owner has expressly consented to or
requested the performance of such labor or furnishing of such materials
or services. Express consent shall be deemed to have been given by the
owner of any time share in the case of emergency repairs thereto. Labor
performed or services or materials furnished for the insured property, if
authorized by the association and provided for in the time-share
instrument, shall be deemed to be performed or furnished with the express
consent of each owner. An owner may remove his time share from a lien
against two or more time shares or any part thereof by payment to the
holder of the lien of the fraction of the total sum secured by such lien
which is attributable to his time share.
(Added to NRS by 1983, 993; A 2001, 2513 )
PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS
1. A developer who offers a program for the exchange of occupancy
rights among owners or with the owners of time shares in other time-share
plans, or both, shall give to the purchaser the following information:
(a) The name and address of the company offering the program.
(b) The names of the officers, directors and shareholders owning at
least 5 percent of the outstanding stock of that company.
(c) A statement indicating whether the company or any of its
officers or directors has any legal or beneficial interest in any
interest of the developer or managing agent in any time-share plan
included in the program and, if so, the name, location and nature of the
interest.
(d) A statement that the purchaser’s contract with the company is a
contract separate and distinct from the contract to purchase the time
share, unless the company and the developer or an affiliate of the
developer are the same.
(e) A statement indicating whether the purchaser’s participation in
the program is dependent upon the continued inclusion of the time-share
plan in the program.
(f) A statement indicating whether the purchaser’s membership or
participation in the program is voluntary or mandatory.
(g) A complete and accurate description of:
(1) The terms and conditions of the purchaser’s contractual
relationship with the company and the procedure by which changes thereto
may be made.
(2) The procedure to qualify for and make exchanges.
(3) All limitations, restrictions or priorities of the
program, including, but not limited to, limitations on exchanges based on
the seasons of the year, the size of units or levels of occupancy,
printed in boldface type, and, if such limitations, restrictions or
priorities are not uniformly applied by the program, a clear description
of the manner in which they are applied.
(h) A statement indicating whether exchanges are arranged on the
basis of available space and whether there are any guarantees of
fulfilling specific requests for exchanges.
(i) A statement indicating whether and under what circumstances an
owner, in dealing with the company, may lose the right to use and occupy
a unit in any properly applied for exchange without being provided with
substitute accommodations by the company.
(j) The fees to be paid by owners in the program, including a
statement indicating whether any fees may be changed by the company and,
if so, the circumstances under which those changes may be made.
(k) The name and address of the site of each project included in
the program.
(l) The number of units in each time-share plan included in the
program which are available for occupancy, expressed in numerical
groupings of from 1 to 5, 6 to 10, 11 to 20, 21 to 50 and over 50.
(m) The number of owners with respect to each time-share plan or
other property who are eligible to participate in the program, expressed
in numerical groupings of from 1 to 100, 101 to 249, 250 to 499, 500 to
999 and at least 1,000, and a statement of the criteria used to determine
those owners who are eligible to participate in the program.
(n) The disposition made by the company of time shares deposited
with the program by owners who are eligible to participate in the program
and not used by the company in effecting exchanges.
(o) An annual report completed on or before July 1 of the
succeeding year which must be independently certified by a certified
public accountant or accounting firm in accordance with the standards of
the Accounting Standards Board of the American Institute of Certified
Public Accountants, as those standards exist on May 19, 1983. The report
must include:
(1) The number of owners who are enrolled to participate in
the program, including an indication of whether the relationship between
the company and the owners is based on the payment of a fee or is
gratuitous.
(2) The number of time-share plans included in the program,
categorized by those plans which are the subject of a contract between
the developer or the association and the company and those plans which
are the subject of a contract between the company and owners directly.
(3) The number of time shares for which the company has an
outstanding obligation to provide an exchange to an owner who
relinquished a time share during the year in exchange for a time share in
any future year.
(4) The number of exchanges confirmed by the company during
the year.
2. The information required by subsection 1 must be delivered to
the purchaser before the execution of any contract between the purchaser
and the company or the contract to purchase the time share.
3. Upon receipt of the information, the purchaser shall certify in
writing that he has received the information from the developer.
4. Except as otherwise provided in this subsection, the
information required by subsection 1 must be periodically revised to
reflect any material changes in that information. The information
required by paragraphs (b), (c), (k), (l), (m) and (o) of subsection 1
must be consistent with the latest audited statement of the company which
is prepared not more than 18 months before the information is delivered.
(Added to NRS by 1983, 986; A 1985, 1144; 2001, 2513 )
If a company intends to offer a program for the exchange of
occupancy rights among owners or with the owners of time shares in other
time-share plans, or both, directly to a purchaser or owner, the company
shall deliver to him, before the offering or the execution of any
contract between the purchaser or owner and the company offering the
program, the information set forth in subsection 1 of NRS 119A.590 . The requirements of this section do not
apply to any renewal of a contract between an owner and such a company.
(Added to NRS by 1983, 988; A 2001, 2515 )
1. A company whose program for the exchange of occupancy rights
among owners or with the owners of time shares in other time-share plans,
or both, is offered to purchasers of time shares in this state shall, on
or before July 1 of each year, file with the Division and secretary of
the association the information required by subsection 1 of NRS 119A.590
as it relates to that plan.
2. No developer is liable for the use, delivery or publication of
information provided to it by the company.
3. Except as otherwise provided in this subsection, no company is
liable for:
(a) Any representation made by the developer relating to the
program or company.
(b) The use, delivery or publication by the developer of any
information relating to the program or company.
Ê Such a company is liable only for the written information provided to
the developer by the company.
(Added to NRS by 1983, 988; A 2001, 2515 )
HEARINGS
For any
proceeding held pursuant to a provision of this chapter, except a hearing
to impose a fine or revoke, suspend or deny the renewal of a license or
permit, the Administrator may appoint a hearing officer from the staff of
the Department of Business and Industry who shall act as his agent and
conduct any hearing or investigation which may be conducted by the
Administrator pursuant to this chapter. The Administrator shall appoint a
hearing officer to conduct a hearing to impose a fine or revoke, suspend
or deny the renewal of a license or permit.
(Added to NRS by 1983, 994; A 1987, 892; 1993, 1510; 2001, 530
)
The
Administrator or his hearing officer may:
1. Take testimony and other evidence concerning all matters within
the jurisdiction of the Division pursuant to this chapter;
2. Administer oaths;
3. Certify to all official acts; and
4. For cause, issue subpoenas for the attendance of witnesses and
the production of books and papers.
(Added to NRS by 1983, 994)
1. The district court in the county in which a hearing is to be
held may compel the attendance of witnesses, the giving of testimony and
the production of books and papers as requested by any subpoena issued by
the Administrator.
2. If a witness refuses to attend, testify or produce any papers
required by a subpoena, the Administrator may report to the district
court in the county in which the hearing is pending by petition, setting
forth that:
(a) Due notice has been given of the time and place of attendance
of the witness or the production of the books and papers;
(b) The witness has been subpoenaed in the manner prescribed in
this chapter; and
(c) The witness has failed and refused to attend or produce the
papers required by subpoena before the Administrator in the cause or
proceeding named in the subpoena or has refused to answer questions
propounded to him in the course of the hearing, and asking an order of
the court compelling the witness to attend and testify or produce the
books or papers before the Administrator.
3. The court, upon petition of the Administrator, may enter an
order directing the witness to appear before the court at a time and
place to be fixed by the court in the order. The time fixed must not be
more than 10 days after the date of the order. The order must command the
respondent to show cause why he has not attended, testified or produced
the books or papers before the Administrator. A certified copy of the
order must be served upon the witness. If it appears to the court that
the subpoena was regularly issued by the Administrator, the court may
enter an order that the witness appear before the Administrator at the
time and place fixed in the order and testify or produce the required
books or papers. If the witness fails or refuses to obey the order, the
witness may be held in contempt of court.
(Added to NRS by 1983, 995)
ENFORCEMENT OF CHAPTER
1. The Division shall regularly inspect the files of transactions,
records of trusts and relevant accounts of all project brokers and
developers.
2. If a project broker or developer fails to allow or cooperate
fully with such an inspection, the Division may:
(a) Impose a fine or suspend or revoke the license or permit of the
project broker or developer; or
(b) Deny the renewal of the license of the project broker.
3. The Division shall adopt regulations specifying the procedure
for such inspections.
(Added to NRS by 1985, 1134; A 2001, 530 )
The
Administrator may impose a fine or suspend, revoke, deny the renewal of
or place conditions upon the permit of a developer at any time if the
developer:
1. Obtained the permit by false or fraudulent representation; or
2. Violates any of the terms or conditions of the permit, the
provisions of this chapter or the regulations adopted pursuant thereto.
(Added to NRS by 1985, 1135; A 1991, 98; 2001, 531 )
1. The procedure set forth in this section must be followed before
the Administrator or Division imposes a fine or revokes, suspends or
denies the renewal of any license or permit issued pursuant to this
chapter.
2. Upon the initiation of a complaint by the Administrator, the
matter must be set for a hearing by the Administrator, who shall schedule
a hearing before the hearing officer, and the licensee or permittee is
entitled to be heard thereon in person or by counsel.
3. The hearing officer shall hold the hearing within 90 days after
the filing of a complaint by the Administrator. The time of the hearing
may be continued at the discretion of the hearing officer, upon the
written request of the licensee or permittee or of the Administrator for
good cause shown.
4. The licensee or permittee must be given at least 30 days’
notice in writing by the Administrator of the date, time and place of the
hearing together with a copy of the complaint and copies of all
communications, reports, affidavits or depositions in possession of the
Division relevant to the complaint. The Administrator may present
evidence obtained after the notice only if he shows that the evidence was
not available after diligent investigation before the time notice was
given to the licensee or permittee and that the evidence was given or
communicated to the licensee or permittee immediately after it was
obtained.
5. Notice is complete upon delivery personally to the licensee or
permittee or upon mailing by certified mail to the last known address of
the licensee or permittee. If the licensee is a sales agent, the
Administrator shall also notify the broker with whom he is associated, or
the developer by whom he is employed, by mailing an exact statement of
the charges and the date, time and place of the hearing by certified mail
to the developer’s or broker’s last known address.
(Added to NRS by 1985, 1135; A 2001, 531 )
1. Within 20 days after service of the notice upon him, the
licensee or permittee shall file an answer to the charges with the
Division. The answer must contain an admission or denial of the
allegations contained in the complaint and any defenses upon which the
licensee or permittee will rely.
2. The answer may be served by delivery to the Administrator, or
by mailing the answer by certified mail to the principal office of the
Division.
3. No proceeding to impose a fine or suspend, revoke or deny the
renewal of any license or permit may be maintained unless it is commenced
by the giving of notice to the licensee or permittee within 3 years after
the time of the act charged, whether of commission or omission, except:
(a) If the charges are based upon a failure to disclose or
misrepresentation, the period does not commence until the discovery of
facts which do or should lead to the discovery of the failure to disclose
or misrepresentation; and
(b) Whenever any action or proceeding is instituted to which the
Division, licensee or permittee is a party and which involves the conduct
of the licensee or permittee in the transaction with which the charges
are related, the running of the 3-year period with respect to the
institution of a proceeding under this chapter to impose a fine or
suspend, revoke or deny the renewal of the license or permit is suspended
during the pendency of the action or proceeding.
(Added to NRS by 1985, 1136; A 2001, 531 )
1. The hearing officer shall render a decision on any complaint
within 60 days after the final hearing thereon and shall give notice in
writing of the ruling or decision to the applicant, licensee or permittee
affected thereby by certified mail to the last known address of the
person to whom the notice is sent.
2. If the ruling is adverse to the licensee or permittee, the
hearing officer shall also state in the notice the date upon which the
ruling or decision becomes effective, which date must not be less than 30
days after the date of the notice.
3. The decision of the hearing officer may not be stayed by any
appeal unless the district court so orders upon motion of the licensee or
permittee, notice to the Division of the motion and opportunity for the
Division to be heard.
4. An appeal from a decision of the district court affirming the
imposition of a fine or the revocation, suspension or denial of the
renewal of a license or permit does not stay the order of the hearing
officer unless the district or appellate court upon petition of the
licensee or permittee after notice and hearing orders such stay, and upon
the filing of a bond for costs in the amount of $1,000.
(Added to NRS by 1985, 1136; A 2001, 532 )
1. A ruling or decision of the hearing officer in any disciplinary
action is final when in favor of the licensee or permittee.
2. If a ruling or decision is against the licensee or permittee,
the licensee or permittee may within 30 days after the date of the
decision appeal therefrom to the district court for the county in which
the party adversely affected by the decision resides or has his place of
business under the terms of this chapter, by filing in the district court
and serving upon the Administrator personally or by certified mail a
notice of the appeal, a written petition for review and a demand in
writing for a certified transcript and copies of all the papers on file
in the office of the Division affecting or relating to the decision and
the evidence taken at the hearing. Thereupon, the Division shall, within
30 days, make and certify the transcript and the copies and file them
with the clerk of the court. The petition for review need not be verified
but must set forth in specific detail any ground for the appeal,
including any errors which the licensee or permittee contends that the
hearing officer committed at the hearing.
3. The appellant’s opening brief must be filed in the district
court within 30 days after the date on which the transcript is filed with
the court. The respondent’s answering brief must be filed within 30 days
after the appellant’s opening brief is filed. If the appellant chooses to
file a reply brief, it must be filed within 10 days after the
respondent’s answering brief is filed. Failure to file a brief within the
time prescribed in this section constitutes a waiver of the right to file
that brief, unless the court grants an extension for good cause shown.
4. The burden of proof in the appeal is on the appellant. The
court shall consider the action of the Administrator upon which the
decision of the hearing officer was based, and is limited solely to a
consideration and determination of the question of whether there has been
an abuse of discretion on the part of the Administrator in making that
decision.
(Added to NRS by 1985, 1136; A 2001, 532 )
The
expiration or revocation of a license or permit by operation of law or by
order or decision of a hearing officer or a court of competent
jurisdiction, or the voluntary surrender of a license or permit by a
sales agent, project broker or developer does not:
1. Prohibit the Administrator, Division or Real Estate Commission
from initiating or continuing an investigation of, or action or
disciplinary proceeding against, the sales agent, project broker or
developer; or
2. Prevent the imposition or collection of any fine or penalty
authorized pursuant to the provisions of this chapter against the sales
agent, project broker or developer.
(Added to NRS by 2001, 529 )
1. Whenever the Administrator believes that any person has
violated any order, regulation, permit, decision, demand or requirement,
or any of the provisions of this chapter, he may bring an action in the
district court in the county in which the person resides or maintains his
principal place of business or, if the person resides outside the State,
in any court of competent jurisdiction within or outside the State,
against the person to enjoin him from continuing the violation.
2. The Administrator may intervene in any action involving a
time-share plan, a project or a time share if intervention is necessary
in the public interest and for the protection of purchasers.
(Added to NRS by 1983, 994; A 2001, 2515 )
1. When the Administrator ascertains that an association or a
developer, if there is no association, is insolvent or in imminent danger
of insolvency, or the association’s or developer’s affairs are being
mismanaged, he may file a complaint in the district court of the county
in which the principal office of the association or developer is located
for the appointment of a receiver.
2. Upon appointment, the receiver shall take possession of all the
property, business and assets of the association or developer which are
located within this state and retain possession of them until further
order of the court. The receiver shall make or cause to be made an
inventory of the assets and known liabilities of the association or
developer. Upon approval of the court, the receiver shall take such other
actions as appear necessary and reasonable for the conduct of the
business of the association or developer.
3. The inventory made by the receiver and all claims filed by
creditors are open at all reasonable times for inspection and any action
taken by the receiver upon any of the claims is subject to the approval
of the court before which the cause is pending.
4. The expenses of the receiver and compensation of counsel, as
well as all expenditures required in any liquidation proceeding, must be
fixed by the receiver, subject to the approval of the court, and, upon
certification of the receiver, must be paid out of the assets he controls
as receiver.
(Added to NRS by 1987, 1079; A 2001, 2515 )
The Real Estate Commission may take action pursuant to NRS
645.630 against any project broker who fails to adequately supervise
the conduct of any sales agent or representative with whom he is
associated.
(Added to NRS by 1983, 994)
1. In addition to any other remedy or penalty, the Administrator
may impose an administrative fine against any person who knowingly:
(a) Engages or offers to engage in any activity for which a
license, permit, certificate or registration or any type of authorization
is required pursuant to this chapter, or any regulation adopted pursuant
thereto, if the person does not hold the required license, permit,
certificate or registration or has not been given the required
authorization; or
(b) Assists or offers to assist another person to commit a
violation described in paragraph (a).
2. If the Administrator imposes an administrative fine against a
person pursuant to this section, the amount of the administrative fine
may not exceed the amount of any gain or economic benefit that the person
derived from the violation or $5,000, whichever amount is greater.
3. In determining the appropriate amount of the administrative
fine, the Administrator shall consider:
(a) The severity of the violation and the degree of any harm that
the violation caused to other persons;
(b) The nature and amount of any gain or economic benefit that the
person derived from the violation;
(c) The person’s history or record of other violations; and
(d) Any other facts or circumstances that the Administrator deems
to be relevant.
4. Before the Administrator may impose the administrative fine,
the Administrator must provide the person with notice and an opportunity
to be heard.
5. The person is entitled to judicial review of the decision of
the Administrator in the manner provided by chapter 233B of NRS.
6. The provisions of this section do not apply to a person who
engages or offers to engage in activities within the purview of this
chapter if:
(a) A specific statute exempts the person from complying with the
provisions of this chapter with regard to those activities; and
(b) The person is acting in accordance with the exemption while
engaging or offering to engage in those activities.
(Added to NRS by 2003, 1307 )
UNLAWFUL ACTS
1. It is unlawful for any person to engage in the business of, act
in the capacity of, advertise or assume to act as a:
(a) Project broker or sales agent within the State of Nevada
without first obtaining a license from the Division pursuant to chapter
645 of NRS or NRS 119A.210 .
(b) Representative, manager or time-share resale broker within the
State of Nevada without first registering with the Division.
2. Any person who violates subsection 1 is guilty of a gross
misdemeanor.
(Added to NRS by 1983, 984; A 1985, 1147, 2280; 1999, 2688 ; 2001, 2516 )
Any person who willfully submits, in the application for a
permit to sell time shares or an application for a sales agent’s license,
any materially false or misleading information or fails to submit an
annual report on a program for the exchange of occupancy rights among
owners or with the owners of time shares in other time-share plans, or
both, is guilty of a misdemeanor.
(Added to NRS by 1983, 995; A 1985, 1147; 2001, 2516 )
1. It is unlawful for any person to use false or misleading
information to advertise the sale of time shares.
2. Unless a person has actual knowledge of the false or misleading
information, the owner, publisher, licensee or operator of any newspaper,
magazine, television or radio broadcasting station or their agents or
employees are not liable under this chapter for any advertising of any
time share carried in the newspaper, magazine or by the television or
radio broadcasting station nor are any of them liable under this chapter
for the contents of any advertisement.
(Added to NRS by 1983, 996)
1. It is unlawful for any person to display or deliver to
prospective purchasers of time shares promotional material that describes
or portrays an improvement that has not been made to the project unless
the improvement is conspicuously labeled or identified with the phrase
“MUST BE BUILT” or “NEED NOT BE BUILT” or with other similar language
approved by the Division.
2. A developer shall construct and complete any improvement to a
project that is described or portrayed in promotional material for the
sale of time shares unless the improvement is labeled or identified as
“NEED NOT BE BUILT” or with other similar language approved by the
Division.
(Added to NRS by 2001, 2499 )
It is unlawful to engage in unfair methods of competition or
deceptive or unfair acts in the offer to sell or sale of a time share
including, without limitation:
1. Misrepresenting or failing to disclose any material fact
concerning a time share.
2. Including in an agreement for the purchase of a time share
provisions purporting to waive any right or benefit provided for
purchasers under this chapter.
3. Receiving from a prospective purchaser any money or other
valuable consideration before the purchaser has received a statement of
public offering.
4. Misrepresenting the amount of time or period of time the unit
will be available to a purchaser.
5. Misrepresenting the location or locations of the unit.
6. Misrepresenting the size, nature, extent, qualities or
characteristics of the unit.
7. Misrepresenting the nature or extent of any services incident
to the unit.
8. Misrepresenting the conditions under which a purchaser may
exchange occupancy rights to a unit in one location for occupancy rights
to a unit in another location.
9. Failing to disclose initially that any promised entertainment,
food or other inducements are being offered to solicit the sale of a time
share.
10. Conducting or participating in, without prior approval by the
Division, any type of lottery or contest, or offering prizes or gifts to
induce or encourage a person to visit a project, attend a meeting at
which a time share will be discussed, attend a presentation or purchase a
time share.
11. Failing to disclose initially to a prospective purchaser any
agreement between the project broker or sales agent and the developer
that results in a sharing of sales proceeds in excess of a minimum sales
price for a time share.
12. Any act or practice considered an unfair method of competition
or an unfair or deceptive act or practice under NRS 207.170 , 207.171 or
598.0915 to 598.0925 , inclusive, or chapter 598A or 599A of NRS.
(Added to NRS by 1985, 1134; A 1989, 650; 1991, 98; 2001, 2516
)
