2005 Nevada Revised Statutes - Chapter 119A — Time Shares

CHAPTER 119A - TIME SHARES

GENERAL PROVISIONS

NRS 119A.010 Definitions.

NRS 119A.020 Administratordefined.

NRS 119A.030 Affiliateof the developer defined.

NRS 119A.031 Affiliateof the manager defined.

NRS 119A.032 Associationdefined.

NRS 119A.033 Blanketencumbrance defined.

NRS 119A.034 Boarddefined.

NRS 119A.036 Commonarea defined.

NRS 119A.040 Developerdefined.

NRS 119A.041 Developersreserved rights defined.

NRS 119A.050 Divisiondefined.

NRS 119A.052 Limitedcommon area defined.

NRS 119A.054 Managerdefined.

NRS 119A.056 Ownerdefined.

NRS 119A.058 Permanentidentifying number defined.

NRS 119A.060 Permitdefined.

NRS 119A.070 Persondefined.

NRS 119A.080 Projectdefined.

NRS 119A.090 Projectbroker defined.

NRS 119A.100 Publicoffering statement defined.

NRS 119A.110 Purchaserdefined.

NRS 119A.120 Representativedefined.

NRS 119A.130 Salesagent defined.

NRS 119A.140 Timeshare defined.

NRS 119A.150 Time-shareinstrument defined.

NRS 119A.152 Time-shareplan defined.

NRS 119A.153 Time-shareresale defined.

NRS 119A.156 Time-shareresale broker defined.

NRS 119A.160 Unitdefined.

NRS 119A.170 Applicabilityof this chapter and chapter 645 of NRS.

NRS 119A.172 Applicabilityof provisions relating to real estate brokers and sales agents to certainowners who refer prospective purchasers to developer or employee or agent ofdeveloper.

NRS 119A.174 Applicabilityof local ordinances, regulations and building codes.

NRS 119A.180 Classificationof interest of purchaser.

NRS 119A.190 Regulations;professional consultants.

NRS 119A.195 Authorityfor Division to conduct business electronically; regulations; fees; use ofunsworn declaration; exclusions.

NRS 119A.200 Limitationon licensing by local governments.

LICENSES AND PERMITS

NRS 119A.210 Salesagents: Qualifications; fees; fingerprinting; exemptions from licensing;expiration and renewal of licenses; continuing education. [Effective until thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional, occupationaland recreational licenses for child support arrearages and for noncompliancewith certain processes relating to paternity or child support proceedings.]

NRS 119A.210 Salesagents: Qualifications; fees; fingerprinting; exemptions from licensing;expiration and renewal of licenses; continuing education. [Effective on thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional, occupationaland recreational licenses for child support arrearages and for noncompliancewith certain processes relating to paternity or child support proceedings.]

NRS 119A.220 Salesagents: Association with project broker.

NRS 119A.230 Salesagents: Disciplinary actions.

NRS 119A.240 Representatives:Qualifications for registration. [Effective until the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreational licensesfor child support arrearages and for noncompliance with certain processesrelating to paternity or child support proceedings.]

NRS 119A.240 Representatives:Qualifications for registration. [Effective on the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreational licensesfor child support arrearages and for noncompliance with certain processesrelating to paternity or child support proceedings.]

NRS 119A.250 Representatives:Expiration, renewal, reinstatement and transfer of registration. [Effectiveuntil the date of the repeal of the federal law requiring each state toestablish procedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings.]

NRS 119A.250 Representatives:Expiration, renewal, reinstatement and transfer of registration. [Effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional, occupationaland recreational licenses for child support arrearages and for noncompliancewith certain processes relating to paternity or child support proceedings.]

NRS 119A.260 Representatives:Prohibited acts; compliance with standards applied to real estate brokers andsalesmen.

NRS 119A.263 Paymentof child support: Statement by applicant for sales agents license orregistration as representative or manager; grounds for denial of license orregistration; duty of Administrator. [Expires by limitation on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 119A.266 Suspensionof sales agents license or registration as representative or manager forfailure to pay child support or comply with certain subpoenas or warrants;reinstatement of suspended license or registration. [Expires by limitation onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings.]

NRS 119A.270 Developers:Prohibited acts.

NRS 119A.280 Developers:Order to cease; hearing; agreement in lieu of order.

NRS 119A.290 Preliminarypermits.

NRS 119A.300 Requirementsfor issuance of public offering statement and permit.

NRS 119A.305 Termsand conditions of supporting documents: Description in public offeringstatement; conditions of permit.

NRS 119A.310 Groundsfor denial of permit; burden of proof.

NRS 119A.320 Periodfor action on application.

NRS 119A.330 Hearingon denial of application; expiration of order of denial.

NRS 119A.340 Issuanceof permit before completion of project.

NRS 119A.350 Investigationof applicants; expenses.

NRS 119A.355 Renewalof permit.

NRS 119A.360 Fees.

NRS 119A.365 Disciplinaryaction for failure to pay money to Division.

SALE OF TIME SHARES

NRS 119A.370 Filingof advertisement or offering.

NRS 119A.380 Requirementsfor time-share instruments.

NRS 119A.385 Descriptionof time share.

NRS 119A.390 Reservationto purchase time share.

NRS 119A.400 Prospectivepurchasers to be provided with public offering statement and permit.

NRS 119A.410 Rightto cancel contract of sale.

NRS 119A.420 Depositsto be placed in escrow.

NRS 119A.430 Requirementsfor closing of escrow.

NRS 119A.450 Provisionin contract relieving purchaser of obligation upon foreclosure of lien againstproject; prohibition against sale or pledge of notes or contracts of sale bydefaulting developer.

NRS 119A.460 Requirementsfor trusts.

NRS 119A.470 Conveyanceof project to trustee before close of escrow for first sale.

NRS 119A.475 Actionby purchaser or Administrator for misrepresentation or other violation.

RESALE OF TIME SHARES

NRS 119A.4771 Registrationand licensing of person listing, advertising, soliciting or promoting sale of12 or more previously sold time shares on behalf of owner other than developer;exception.

NRS 119A.4773 Filingof advertisement or offering required.

NRS 119A.4775 Disclosureof certain information before resale; regulations.

NRS 119A.4777 Requirementsfor agreement for resale of time share; reseller to provide copy of agreementto owner.

NRS 119A.4779 Advancefee charged or collected by time-share resale broker.

RIGHTS OF OWNERS

NRS 119A.480 Requirementsif developer holds leasehold interest.

NRS 119A.490 Filingof amendment of time-share instrument required.

NRS 119A.495 Withdrawalof units from time-share plan.

NRS 119A.497 Relocationof boundaries between adjoining units.

NRS 119A.500 Partitionof unit.

NRS 119A.510 Replacementor compensation if unit unavailable.

MANAGEMENT OF TIME-SHARE PROJECT

NRS 119A.520 Membersof association for time-share plan; incorporation of association; proxies.

NRS 119A.522 Periodof developers control of association; representation of owners on board.

NRS 119A.524 Reservedrights of developer.

NRS 119A.526 Quorum.

NRS 119A.528 Removalof member of board; indemnification and defense of member of board.

NRS 119A.530 Writtenagreement for management of time-share plan and project; disclosure of annualrevenue received by manager.

NRS 119A.532 Registrationof managers; form for registration; fee. [Effective until the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 119A.532 Registrationof managers; form for registration; fee. [Effective on the date of the repealof the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

NRS 119A.534 Disclosurestatement to be submitted by certain managers; regulations.

NRS 119A.540 Annualbudget; assessments for unsold time shares.

NRS 119A.542 Conductand contents of study of reserves; review of study and necessary adjustments toreserves by board; regulations.

NRS 119A.550 Assessmentupon time share; notice of assessment; liens; enforcement of liens.

NRS 119A.552 Statementof unpaid assessments.

NRS 119A.560 Powerof sale; notice of sale.

NRS 119A.570 Insurance.

NRS 119A.580 Consentrequired for liens for labor, services or materials; when consent deemed given.

PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS

NRS 119A.590 Informationto be furnished to purchasers by developer.

NRS 119A.600 Informationto be furnished by company offering program.

NRS 119A.620 Informationto be furnished to Division and secretary of association; liability forinformation and representations.

HEARINGS

NRS 119A.630 Administratorto appoint hearing officer.

NRS 119A.640 Powersof Administrator or hearing officer.

NRS 119A.650 Districtcourt to enforce Administrators subpoenas.

ENFORCEMENT OF CHAPTER

NRS 119A.652 Inspectionsby Division; penalty for failure to cooperate; regulations.

NRS 119A.654 Disciplinaryaction against developer.

NRS 119A.655 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Complaint; hearing; notice.

NRS 119A.656 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Answer; limitation on proceeding.

NRS 119A.657 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Decision of hearing officer.

NRS 119A.658 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Appeal of decision of hearing officer.

NRS 119A.659 Expiration,revocation or surrender of license or permit does not prohibit disciplinaryaction against holder thereof.

NRS 119A.660 Enforcementof chapter and protection of purchasers by Administrator.

NRS 119A.665 Appointmentof receiver.

NRS 119A.670 Actionby Real Estate Commission against project broker.

NRS 119A.675 Administrativefine for engaging in certain conduct without license, permit, certificate,registration or authorization; procedure for imposition of fine; judicialreview; exceptions.

UNLAWFUL ACTS

NRS 119A.680 Actingas project broker, sales agent, representative, manager or time-share resalebroker without license or registration.

NRS 119A.690 Falsifyingapplication; failure to submit annual report.

NRS 119A.700 Falseor misleading advertising.

NRS 119A.702 Restrictionson promotional material; completion of improvements portrayed in promotionalmaterial.

NRS 119A.710 Unfairmethods of competition; deceptive or unfair acts.

_________

GENERAL PROVISIONS

NRS 119A.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS119A.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)

NRS 119A.020 Administratordefined. Administrator means the Real EstateAdministrator.

(Added to NRS by 1983, 977)

NRS 119A.030 Affiliateof the developer defined. Affiliate of the developermeans any person who controls, is controlled by or is under common control witha developer, including a person who:

1. Is a general partner, officer, director or employerof the developer;

2. Directly or indirectly or acting in concert withone or more other persons, or through one or more subsidiaries, owns, controls,holds with the power to vote, or holds proxies representing more than 20percent of the voting interest in the developer;

3. Controls the election of a majority of thedirectors of the developer; or

4. Has contributed more than 20 percent of the capitalof the developer.

(Added to NRS by 1983, 977; A 2001, 2499)

NRS 119A.031 Affiliateof the manager defined. Affiliate of the managermeans any person who controls, is controlled by or is under common control witha manager, including a person who:

1. Is a general partner, officer, director or employerof the manager;

2. Directly or indirectly or acting in concert withone or more persons, or through one or more subsidiaries, owns, controls, orholds with the power to vote more than 20 percent of the voting interest in themanager;

3. Controls the election of a majority of thedirectors of the manager; or

4. Has contributed more than 20 percent of the capitalof the manager.

(Added to NRS by 2001, 2494)

NRS 119A.032 Associationdefined. Association means an association ofowners established pursuant to NRS119A.520.

(Added to NRS by 2001, 2494)

NRS 119A.033 Blanketencumbrance defined. Blanket encumbrancemeans any mortgage, deed of trust, option to purchase, mechanics lien,vendors lien or interest under a contract or agreement for sale, judgmentlien, federal or state tax lien or other lien or encumbrance which secures orevidences an obligation to pay money or to sell or convey any property madeavailable to purchasers by the developer or any portion thereof and whichauthorizes, permits or requires the foreclosure or other disposition of theproperty affected. The term does not include a lien for taxes or assessmentslevied by any public authority which are not due.

(Added to NRS by 1985, 1134)

NRS 119A.034 Boarddefined. Board means the governing body designatedin a time-share instrument to act on behalf of an association.

(Added to NRS by 2001, 2494)

NRS 119A.036 Commonarea defined. Common area means thoseportions of a project other than the units. The term includes any easementwhich benefits the project.

(Added to NRS by 2001, 2494)

NRS 119A.040 Developerdefined. Developer means any person whooffers to dispose of or disposes of his interest in a time share.

(Added to NRS by 1983, 977)

NRS 119A.041 Developersreserved rights defined. Developers reservedrights means any right reserved in a time-share instrument for the benefit ofthe developer, the exercise of which does not require a vote of the otherowners.

(Added to NRS by 2001, 2495)

NRS 119A.050 Divisiondefined. Division means the Real Estate Divisionof the Department of Business and Industry.

(Added to NRS by 1983, 977; A 1993, 1510)

NRS 119A.052 Limitedcommon area defined. Limited common areameans a portion of the common area allocated by a time-share instrument for theexclusive use of at least one, but not all, of the units in a project.

(Added to NRS by 2001, 2495)

NRS 119A.054 Managerdefined. Manager means a person who undertakes,directly or indirectly, the duties, responsibilities and obligations ofmanaging, in whole or in part, a time-share plan or a project, or both, inaccordance with an agreement entered into pursuant to NRS 119A.530.

(Added to NRS by 2001, 2495)

NRS 119A.056 Ownerdefined. Owner means a person, including adeveloper, who has an equitable or legal interest in a time share. The termdoes not include a person who has an interest in a time share solely assecurity for an obligation.

(Added to NRS by 1991, 96; A 2001, 2499)

NRS 119A.058 Permanentidentifying number defined. Permanentidentifying number means a series of numbers or letters, or any combinationthereof, which identifies, for the duration of a time-share plan, one timeshare in the plan.

(Added to NRS by 2001, 2495)

NRS 119A.060 Permitdefined. Permit means the authorizationissued by the Administrator pursuant to the provisions of this chapter to adeveloper to offer to sell or sell time shares.

(Added to NRS by 1983, 977)

NRS 119A.070 Persondefined. Person includes a government, a governmentalagency and a political subdivision of a government.

(Added to NRS by 1983, 977; A 1985, 508)

NRS 119A.080 Projectdefined. Project means the real propertywhich, in whole or in part, is the subject of a time-share plan.

(Added to NRS by 1983, 977; A 1985, 1137; 2001, 2499)

NRS 119A.090 Projectbroker defined. Project broker means any personwho coordinates the sale of time shares for a time-share plan and to whom salesagents and representatives are responsible.

(Added to NRS by 1983, 977; A 2001, 2499)

NRS 119A.100 Publicoffering statement defined. Public offeringstatement means a report, issued by the Administrator pursuant to theprovisions of this chapter, which authorizes a developer to offer to sell orsell time shares in the time-share plan which is the subject of the report.

(Added to NRS by 1983, 977; A 2001, 2499)

NRS 119A.110 Purchaserdefined. Purchaser means any person, otherthan the developer or lender, who purchases a time share.

(Added to NRS by 1983, 978)

NRS 119A.120 Representativedefined. Representative means a person whois not a sales agent and who, on behalf of a developer, induces other personsto attend a sales presentation. The term does not include a person who onlyperforms clerical tasks, arranges appointments set up by others or prepares ordistributes promotional materials.

(Added to NRS by 1983, 978)

NRS 119A.130 Salesagent defined. Sales agent means a personwho, on behalf of a developer, sells or offers to sell a time share to apurchaser or who, if he is not registered as a representative, may act toinduce other persons to attend a sales presentation on the behalf of adeveloper.

(Added to NRS by 1983, 978; A 2005, 1297)

NRS 119A.140 Timeshare defined. Time share means the rightto use and occupy a unit on a recurrent periodic basis according to anarrangement allocating this right among various owners whether or not there isan additional charge to the owner for occupying the unit.

(Added to NRS by 1983, 978; A 1985, 1137; 2001, 2499)

NRS 119A.150 Time-shareinstrument defined. Time-share instrumentmeans any document creating or regulating time shares, excluding any law,ordinance or governmental regulation.

(Added to NRS by 1983, 978)

NRS 119A.152 Time-shareplan defined. Time-share plan means therights to time shares and the obligations and interests appurtenant theretocreated by a time-share instrument.

(Added to NRS by 2001, 2495)

NRS 119A.153 Time-shareresale defined. Time-share resale means thesale or transfer of a time share that was previously sold to a purchaser.

(Added to NRS by 1999, 2686)

NRS 119A.156 Time-shareresale broker defined. Time-share resalebroker means a person who is registered as a time-share resale broker pursuantto the provisions of this chapter.

(Added to NRS by 1999, 2686)

NRS 119A.160 Unitdefined. Unit means that portion of aproject which is designated for separate occupancy.

(Added to NRS by 1983, 978; A 2001, 2500)

NRS 119A.170 Applicabilityof this chapter and chapter645 of NRS.

1. The provisions of this chapter, except subsection4, do not apply to:

(a) The sale of 12 or fewer time shares in a project orthe sale of 12 or fewer time shares in the same subdivision;

(b) The sale or transfer of a time share by an ownerwho is not the developer, unless the time share is sold in the ordinary courseof 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 beenacquired by an association by deed in lieu of foreclosure or at a foreclosuresale;

(d) A gratuitous transfer of a time share;

(e) A transfer by devise or descent or a transfer to aninter vivos trust; or

(f) The sale or transfer of the right to use and occupya unit on a periodic basis which recurs over a period of less than 5 years,

unless themethod 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 therequirements of chapter 119B of NRS andcomplies with those provisions is not required to comply with the provisions ofthis chapter.

3. The Division may waive any provision of thischapter if it finds that the enforcement of that provision is not necessary inthe public interest or for the protection of purchasers.

4. The provisions of chapter645 of NRS apply to the sale of time shares, except any sale of a timeshare to which this chapter applies, and for that purpose the terms realproperty and real estate as used in chapter 645of NRS shall be deemed to include a time share, whether it is an interest inreal property or merely a contractual right to occupancy.

(Added to NRS by 1983, 978; A 1985, 1137; 1991, 96; 2001, 2500)

NRS 119A.172 Applicabilityof provisions relating to real estate brokers and sales agents to certainowners who refer prospective purchasers to developer or employee or agent ofdeveloper. The provisions of this chapter and chapter 645 of NRS relating to real estatebrokers and sales agents do not apply to an owner, other than a developer, who,for compensation, refers prospective purchasers to a developer or an employeeor agent of the developer, if the owner:

1. Refers to the developer or an employee or agent ofthe developer, or any combination thereof, not more than 20 prospectivepurchasers 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 purchaseor otherwise participate in negotiations relating to the sale of the timeshare.

(Added to NRS by 2001, 2495)

NRS 119A.174 Applicabilityof local ordinances, regulations and building codes.

1. A building code may not impose any requirementsupon any structure in a project which it would not impose upon a physicallyidentical development under a different form of ownership.

2. Except as otherwise provided in subsection 1, theprovisions of this chapter do not invalidate or modify any provision of anybuilding code or zoning, subdivision or other law, ordinance, rule orregulation governing the use of real estate.

(Added to NRS by 2001, 2495)

NRS 119A.180 Classificationof interest of purchaser.

1. A purchaser shall not be deemed to hold aninvestment contract, nor shall his purchase be considered risk capital, becauseincome derived from the project and any personal property available for use bythe purchaser in conjunction therewith reduces the assessment for time-shareexpenses, if the income inures directly to the benefit of the association andnot to his direct benefit.

2. An interest in a time share is not a security underthe provisions of chapter 90 of NRS.

(Added to NRS by 1983, 991; A 2001, 2500)

NRS 119A.190 Regulations;professional consultants. The Division may:

1. Adopt regulations which are necessary to carry outthe provisions of this chapter.

2. Employ such legal counsel, investigators and otherprofessional consultants as are necessary to carry out the provisions of thischapter.

(Added to NRS by 1983, 978)

NRS 119A.195 Authorityfor Division to conduct business electronically; regulations; fees; use ofunsworn declaration; exclusions.

1. The Administrator may adopt regulations whichestablish procedures for the Division to conduct business electronicallypursuant to title 59 of NRS with persons who are regulated pursuant to thischapter and with any other persons with whom the Division conducts business.The regulations may include, without limitation, the establishment of fees topay the costs of conducting business electronically with the Division.

2. In addition to the process authorized by NRS 719.280, if the Division is conductingbusiness electronically with a person and a law requires a signature or recordto be notarized, acknowledged, verified or made under oath, the Division mayallow the person to substitute a declaration that complies with the provisionsof NRS 53.045 to satisfy the legalrequirement.

3. The Division may refuse to conduct businesselectronically with a person who has failed to pay money which the person owesto the Division.

(Added to NRS by 2003, 1306)

NRS 119A.200 Limitationon licensing by local governments. Timeshares, time-share plans and projects to which this chapter applies are subjectto licensing by local governments for revenue but not for regulation.

(Added to NRS by 1983, 996; A 2001, 2500)

LICENSES AND PERMITS

NRS 119A.210 Salesagents: Qualifications; fees; fingerprinting; exemptions from licensing;expiration and renewal of licenses; continuing education. [Effective until thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings.]

1. The Administrator shall issue a sales agentslicense to each applicant who submits an application to the Division, in themanner provided by the Division, which includes:

(a) Satisfactory evidence, affirmed by the projectbroker or another acceptable source, that the applicant has completed 14 hoursof instruction in:

(1) Ethics.

(2) The applicable laws and regulations relatingto time shares.

(3) Principles and practices of selling timeshares.

(b) Satisfactory evidence that he has a reputation forhonesty, trustworthiness and competence.

(c) A designation of the developer for whom he proposesto 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 orthe Division.

2. In addition to or in lieu of the 14 hours ofinstruction required by paragraph (a) of subsection 1, the applicant may berequired to pass an examination which may be adopted by the Division to examinesatisfactorily the knowledge of the applicant in those areas of instructionlisted in paragraph (a) of subsection 1.

3. Each applicant must submit the statement requiredpursuant to NRS 119A.263 and pay thefees provided for in this chapter.

4. Each applicant must, as part of his application andat his own expense:

(a) Arrange to have a complete set of his fingerprintstaken by a law enforcement agency or other authorized entity acceptable to theDivision; and

(b) Submit to the Division:

(1) A completed fingerprint card and writtenpermission authorizing the Division to submit the applicants fingerprints tothe Central Repository for Nevada Records of Criminal History for submission tothe Federal Bureau of Investigation for a report on the applicants backgroundand to such other law enforcement agencies as the Division deems necessary; or

(2) Written verification, on a form prescribedby the Division, stating that the fingerprints of the applicant were taken anddirectly forwarded electronically or by another means to the Central Repositoryand that the applicant has given written permission to the law enforcementagency or other authorized entity taking the fingerprints to submit thefingerprints to the Central Repository for submission to the Federal Bureau ofInvestigation for a report on the applicants background and to such other lawenforcement agencies as the Division deems necessary.

5. The Division may:

(a) Unless the applicants fingerprints are directlyforwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submitthose fingerprints to the Central Repository for submission to the FederalBureau of Investigation and to such other law enforcement agencies as theDivision deems necessary; and

(b) Request from each such agency any informationregarding the applicants background as the Division deems necessary.

6. A person who is licensed as a real estate salesmanpursuant to chapter 645 of NRS is not requiredto obtain a license pursuant to the provisions of this section.

7. Each sales agents license issued pursuant to thissection expires 2 years after the last day of the calendar month in which itwas issued and must be renewed on or before that date. Each licensee whosubmits the statement required pursuant to NRS119A.263 and meets the requirements for renewal may renew his license uponthe payment of the renewal fee before his license expires.

8. If a licensee fails to renew his license before itexpires, the license may be reinstated if the licensee submits the statementand pays the renewal fee and the penalty specified in NRS 119A.360 within 1 year after thelicense expires.

9. The Administrator may adopt regulationsestablishing and governing requirements for the continuing education of salesagents.

(Added to NRS by 1983, 984; A 1985, 1138, 2278, 2279;1987, 893; 1997, 2038; 2003,1307; 2005, 1297)

NRS 119A.210 Sales agents: Qualifications; fees;fingerprinting; exemptions from licensing; expiration and renewal of licenses;continuing education. [Effective on the date of the repeal of the federal lawrequiring each state to establish procedures for withholding, suspending andrestricting the professional, occupational and recreational licenses for childsupport arrearages and for noncompliance with certain processes relating topaternity or child support proceedings.]

1. The Administrator shall issue a sales agentslicense to each applicant who submits an application to the Division, in themanner provided by the Division, which includes:

(a) Satisfactory evidence, affirmed by the projectbroker or another acceptable source, that the applicant has completed 14 hoursof instruction in:

(1) Ethics.

(2) The applicable laws and regulations relatingto time shares.

(3) Principles and practices of selling timeshares.

(b) Satisfactory evidence that he has a reputation forhonesty, trustworthiness and competence.

(c) A designation of the developer for whom he proposesto sell time shares.

(d) Any further information required by the Division,including the submission by the applicant to any investigation by the police orthe Division.

2. In addition to or in lieu of the 14 hours ofinstruction required by paragraph (a) of subsection 1, the applicant may berequired to pass an examination which may be adopted by the Division to examinesatisfactorily the knowledge of the applicant in those areas of instructionlisted in paragraph (a) of subsection 1.

3. Each applicant must pay the fees provided for inthis chapter.

4. Each applicant must, as part of his application andat his own expense:

(a) Arrange to have a complete set of his fingerprintstaken by a law enforcement agency or other authorized entity acceptable to theDivision; and

(b) Submit to the Division:

(1) A completed fingerprint card and writtenpermission authorizing the Division to submit the applicants fingerprints tothe Central Repository for Nevada Records of Criminal History for submission tothe Federal Bureau of Investigation for a report on the applicants backgroundand to such other law enforcement agencies as the Division deems necessary; or

(2) Written verification, on a form prescribedby the Division, stating that the fingerprints of the applicant were taken anddirectly forwarded electronically or by another means to the Central Repositoryand that the applicant has given written permission to the law enforcementagency or other authorized entity taking the fingerprints to submit thefingerprints to the Central Repository for submission to the Federal Bureau ofInvestigation for a report on the applicants background and to such other lawenforcement agencies as the Division deems necessary.

5. The Division may:

(a) Unless the applicants fingerprints are directlyforwarded pursuant to subparagraph (2) of paragraph (b) of subsection 4, submitthose fingerprints to the Central Repository for submission to the FederalBureau of Investigation and to such other law enforcement agencies as theDivision deems necessary; and

(b) Request from each such agency any informationregarding the applicants background as the Division deems necessary.

6. A person who is licensed as a real estate salesmanpursuant to chapter 645 of NRS is not requiredto obtain a license pursuant to the provisions of this section.

7. Each sales agents license issued pursuant to thissection expires 2 years after the last day of the calendar month in which itwas issued and must be renewed on or before that date. Each licensee who meetsthe requirements for renewal may renew his license upon the payment of therenewal fee before his license expires.

8. If a licensee fails to renew his license before itexpires, the license may be reinstated if the licensee pays the renewal fee andthe penalty specified in NRS 119A.360within 1 year after the license expires.

9. The Administrator may adopt regulationsestablishing and governing requirements for the continuing education of salesagents.

(Added to NRS by 1983, 984; A 1985, 1138, 2278, 2279;1987, 893; 1997, 2038; 2003,1307; 2005, 1297,1298, effectiveon the date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 119A.220 Salesagents: Association with project broker.

1. A sales agent may work for only one project brokerat any one time at the location designated in the license.

2. A project broker shall give written notice to theDivision of a change of association of any sales agent associated with himwithin 10 days after that change.

3. The project broker, upon the termination of theemployment of any sales agent associated with him, shall submit that agents licenseto the Division.

4. If a sales agent changes his association with anyproject broker or changes his location with the same project broker, he mustapply 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 aproject broker who certifies to his honesty, trustworthiness and goodreputation.

(Added to NRS by 1983, 985; A 1985, 1139)

NRS 119A.230 Salesagents: Disciplinary actions.

1. The Administrator may impose a fine or suspend,revoke, reissue, subject to conditions, or deny the renewal of any salesagents license issued under the provisions of this chapter at any time if thesales agent has, by false or fraudulent application or representation, obtaineda 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 toinfluence, persuade or induce;

(c) Engaging in any fraudulent, misleading oroppressive sales techniques or tactics;

(d) Accepting a commission or valuable consideration asa sales agent for the performance of any of the acts specified in this chapterfrom any person except a licensed project broker with whom the sales agent isassociated or the developer by whom he is employed;

(e) Failing, within a reasonable time, to account foror remit or turn over to the project broker any money which comes into hispossession and which belongs to others;

(f) Violating any of the provisions of this chapter or chapter 119B of NRS or of any regulationadopted pursuant to either chapter, or willfully aiding or abetting another todo so; or

(g) A felony relating to the practice of a sales agentor other crime of moral turpitude or has entered a plea of nolo contendere to afelony relating to the practice of a sales agent or other crime of moralturpitude.

2. The Administrator may investigate the actions ofany sales agent or any person who acts in such a capacity within the State ofNevada.

(Added to NRS by 1983, 993; A 1985, 1139, 1672, 1673;1987, 892; 2001, 529;2003, 2690)

NRS 119A.240 Representatives:Qualifications for registration. [Effective until the date of the repeal of thefederal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

1. The Administrator shall register as arepresentative each applicant who:

(a) Submits proof satisfactory to the Division that hehas a reputation for honesty, trustworthiness and competence;

(b) Applies for registration in the manner provided bythe 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 representativemust include the social security number of the applicant.

(Added to NRS by 1983, 985; A 1997, 2039)

NRS 119A.240 Representatives: Qualifications forregistration. [Effective on the date of the repeal of the federal law requiringeach state to establish procedures for withholding, suspending and restrictingthe professional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.] TheAdministrator shall register as a representative each applicant who:

1. Submits proof satisfactory to the Division that hehas a reputation for honesty, trustworthiness and competence;

2. Applies for registration in the manner provided bythe Division; and

3. Pays the fees provided for in this chapter.

(Added to NRS by 1983, 985; A 1997, 2039, effectiveon the date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 119A.250 Representatives:Expiration, renewal, reinstatement and transfer of registration. [Effectiveuntil the date of the repeal of the federal law requiring each state toestablish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings.]

1. The registration of a representative issuedpursuant to this chapter expires 1 year after its issuance.

2. Each representative who submits the statementrequired pursuant to NRS 119A.263 andmeets the requirements for renewal adopted by the Division may renew hisregistration upon the payment of the annual renewal fee before his registrationexpires.

3. If a representative fails to renew his registrationbefore it expires, the registration may be reinstated upon the submission ofthe statement and the payment of the annual renewal fee and the penaltyspecified in NRS 119A.360 within 1year after the registration expires.

4. A representative issued a registration shall notchange his association to another developer unless he has obtained from theDivision a transfer of his registration for its unexpired term. An applicationto the Division for the transfer of his registration for the unexpired termmust be accompanied by the fee specified in NRS119A.360 for the transfer of registration.

(Added to NRS by 1983, 985; A 1993, 2295; 1997, 2039;2001, 2501; 2003, 1309; 2005, 1300)

NRS 119A.250 Representatives: Expiration, renewal,reinstatement and transfer of registration. [Effective on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. The registration of a representative issuedpursuant to this chapter expires 1 year after its issuance.

2. Each representative who meets the requirements forrenewal adopted by the Division may renew his registration upon the payment ofthe annual renewal fee before his registration expires.

3. If a representative fails to renew his registrationbefore it expires, the registration may be reinstated upon the payment of theannual renewal fee and the penalty specified in NRS 119A.360 within 1 year after the registrationexpires.

4. A representative issued a registration shall notchange his association to another developer unless he has obtained from theDivision a transfer of his registration for its unexpired term. An applicationto the Division for the transfer of his registration for the unexpired termmust be accompanied by the fee specified in NRS119A.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 toestablish procedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 119A.260 Representatives:Prohibited acts; compliance with standards applied to real estate brokers andsalesmen.

1. A representative shall not negotiate or makerepresentations concerning the merits or value of a time-share plan or aproject. He may only induce and solicit persons to attend promotional meetingsfor the sale of time shares and distribute information on behalf of adeveloper.

2. The representatives activities must strictlyconform to the methods for the procurement of prospective purchasers which havebeen approved by the Division.

3. The representative shall comply with the samestandards for conducting business as are applied to real estate brokers andsalesmen pursuant to chapter 645 of NRS andthe regulations adopted pursuant thereto.

4. A representative shall not make targetedsolicitations of purchasers or prospective purchasers of time shares in anotherproject. A developer or project broker shall not pay or offer to pay arepresentative a bonus or other type of special compensation to engage in suchactivity.

(Added to NRS by 1983, 985; A 2001, 2501)

NRS 119A.263 Paymentof child support: Statement by applicant for sales agents license orregistration as representative or manager; grounds for denial of license orregistration; duty of Administrator. [Expires by limitation on the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. An applicant for the issuance or renewal of a salesagents license or registration as a representative or manager shall submit tothe Administrator the statement prescribed by the Division of Welfare andSupportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completedand signed by the applicant.

2. The Administrator shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license or registration; or

(b) A separate form prescribed by the Administrator.

3. A sales agents license or registration as arepresentative or manager may not be issued or renewed by the Administrator ifthe applicant:

(a) Fails to complete or submit the statement requiredpursuant to subsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Administrator shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 1997, 2037; A 2001, 2501)

NRS 119A.266 Suspensionof sales agents license or registration as representative or manager forfailure to pay child support or comply with certain subpoenas or warrants;reinstatement of suspended license or registration. [Expires by limitation onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings.]

1. If the Administrator receives a copy of a courtorder issued pursuant to NRS 425.540that provides for the suspension of all professional, occupational and recreationallicenses, certificates and permits issued to a person who has been issued asales agents license or has been registered as a representative or manager,the Administrator shall deem the license or registration to be suspended at theend of the 30th day after the date on which the court order was issued unlessthe Administrator receives a letter issued to the holder of the license orregistration by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of thelicense or registration has complied with the subpoena or warrant or hassatisfied the arrearage pursuant to NRS425.560.

2. The Administrator shall reinstate a sales agentslicense or the registration of a representative or manager that has beensuspended by a district court pursuant to NRS425.540 if the Administrator receives a letter issued by the districtattorney or other public agency pursuant to NRS425.550 to the person whose license or registration was suspended statingthat the person whose license or registration was suspended has complied withthe subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NRS by 1997, 2037; A 2001, 2502)

NRS 119A.270 Developers:Prohibited acts. A developer shall not:

1. Offer to sell any time shares in this state unlesshe holds either a preliminary permit to sell time shares or a permit to selltime shares issued by the Administrator.

2. Sell any time shares in this state unless he holdsa permit to sell time shares issued by the Administrator.

3. Offer to sell or sell a time share in this stateunless he has named a person to act as a project broker.

4. Offer to sell or sell a time share in this stateexcept through a project broker.

(Added to NRS by 1983, 979)

NRS 119A.280 Developers:Order to cease; hearing; agreement in lieu of order.

1. The Administrator may issue an order directing adeveloper to cease engaging in activities for which the developer has notreceived a permit under this chapter or conducting activities in a manner notin compliance with the provisions of this chapter or the regulations adoptedpursuant thereto.

2. The order to cease must be in writing and muststate that, in the opinion of the Administrator, the developer has not beenissued a permit for the activity or the terms of the permit do not allow thedeveloper to conduct the activity in that manner. The developer shall notengage in any activity regulated by this chapter after he receives such anorder.

3. Within 30 days after receiving such an order, adeveloper may file a verified petition with the Administrator for a hearing.The Administrator shall hold a hearing within 30 days after the petition hasbeen filed. If the Administrator fails to hold a hearing within 30 days, ordoes not render a written decision within 45 days after the final hearing, thecease and desist order is rescinded.

4. If the decision of the Administrator after ahearing is against the person ordered to cease and desist, he may appeal thatdecision by filing, within 30 days after the date on which the decision wasissued, a petition in the district court for the county in which he conductedthe activity. The burden of proof in the appeal is on the appellant. The courtshall consider the decision of the Administrator for which the appeal is takenand is limited solely to a consideration and determination of the question ofwhether there has been an abuse of discretion on the part of the Administratorin making the decision.

5. In lieu of the issuance of an order to cease suchactivities, the Administrator may enter into an agreement with the developer inwhich the developer agrees to:

(a) Discontinue the activities that are not incompliance with this chapter;

(b) Pay all costs incurred by the Division ininvestigating the developers activities and conducting any necessary hearings;and

(c) Return to the purchasers any money or propertywhich he acquired through such violations.

The terms ofsuch an agreement are confidential unless violated by the developer.

(Added to NRS by 1983, 994; A 1985, 1140)

NRS 119A.290 Preliminarypermits.

1. The Administrator shall issue a preliminary permitto sell time shares to each applicant who:

(a) Submits proof satisfactory to the Division that allof the requirements for a permit to sell time shares will be met;

(b) Applies for the preliminary permit in the mannerprovided by the Division; and

(c) Pays the fee provided for in this chapter.

2. A preliminary permit entitles the developer tosolicit and accept reservations to purchase time shares.

(Added to NRS by 1983, 979)

NRS 119A.300 Requirementsfor issuance of public offering statement and permit. Exceptas otherwise provided in NRS 119A.310,the Administrator shall issue a public offering statement and a permit to selltime shares to each applicant who:

1. Submits an application, in the manner provided bythe Division, which includes:

(a) The name and address of the project broker;

(b) A copy of each time-share instrument that relatesto the time-share plan;

(c) A preliminary title report for the project andcopies of the documents listed as exceptions in the report;

(d) Copies of any other documents which relate to thetime-share plan or the project, including any contract, agreement or otherdocument to be used to establish and maintain an association and to provide forthe management of the time-share plan or the project, or both;

(e) Copies of instructions for escrow, deeds, salescontracts and any other documents that will be used in the sale of the timeshares;

(f) A copy of any proposed trust agreement whichestablishes a trust for the time-share plan or the project, or both;

(g) Documents which show the current assessments forproperty taxes on the project;

(h) Documents which show compliance with local zoninglaws;

(i) If the units which are the subject of thetime-share plan are in a condominium project, or other form of common-interestownership of property, documents which show that use of the units is incompliance with the documents which created the common-interest ownership;

(j) Copies of all documents which will be given to apurchaser who is interested in participating in a program for the exchange ofoccupancy rights among owners and copies of the documents which show acceptanceof the time-share plan in such a program;

(k) A copy of the budget or a projection of theoperating expenses of the association, if applicable;

(l) A financial statement of the developer; and

(m) Such other information as the Division, byregulation, requires; and

2. Pays the fee provided for in this chapter.

(Added to NRS by 1983, 979; A 1987, 1080; 2001, 2502)

NRS 119A.305 Termsand conditions of supporting documents: Description in public offeringstatement; conditions of permit. The terms andconditions of the documents and agreements submitted pursuant to NRS 119A.300 which relate to the creationand management of the time-share plan and to the sale of time shares and towhich the applicant or an affiliate of the applicant is a party must be describedin the public offering statement and constitute additional terms and conditionsof the applicants permit to sell time shares.

(Added to NRS by 1987, 1079; A 1991, 97; 2001, 2503)

NRS 119A.310 Groundsfor denial of permit; burden of proof.

1. The Administrator shall deny an application for apermit to sell time shares if he finds that:

(a) The developer failed to comply with any of theprovisions of this chapter or the regulations adopted by the Division; or

(b) The developer, any affiliate of the developer orany officer of the developer or an affiliate of the developer, has:

(1) Been convicted of or pleaded nolo contendereto 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 civilor administrative action, including a proceeding to revoke or suspend alicense, involving fraud or dishonesty;

(3) Been permanently enjoined by a court ofcompetent jurisdiction from selling real estate, time shares or securities inan unlawful manner;

(4) Had a registration as a broker-dealer insecurities or a license to act as a real estate broker or salesman, projectbroker or sales agent revoked;

(5) Been convicted of or pleaded nolo contendereto selling time shares without a license; or

(6) Had a permit to sell time shares, securitiesor real estate revoked.

2. The Administrator may deny an application for apermit to sell time shares if he finds that the developer, or any affiliate ofthe developer, has failed to offer satisfactory proof that it has a goodreputation for honesty, trustworthiness, integrity and competence to transact thebusiness of a developer in a manner which safeguards the interests of thepublic.

3. The burden of proof is on the developer toestablish to the satisfaction of the Division that he is qualified to receive alicense.

(Added to NRS by 1983, 980; A 1985, 1141; 1991, 97; 2001, 2503)

NRS 119A.320 Periodfor action on application.

1. The Division shall issue an order, within 30 daysafter the receipt of an application for a permit to sell time shares, notifyingthe 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 apermit is issued; or

(b) Deny the application and list the reasons fordenial.

2. The Division shall, within 45 days after:

(a) The receipt of evidence that the deficiencies inthe application for a permit to sell time shares are cured, issue a permit tosell time shares or deny the application and list the reasons for denial; or

(b) The issuance of a preliminary permit, issue apermit to sell time shares.

(Added to NRS by 1983, 981)

NRS 119A.330 Hearingon denial of application; expiration of order of denial.

1. If the Administrator denies an application for apermit to sell time shares, the applicant may, within 30 days, file a writtenrequest for a hearing. The Administrator shall set the matter for hearing to beconducted within 90 days after receipt of the applicants request, unless theapplicant requests a postponement of the hearing at least 3 working days beforethe date set for hearing. If such a request is made by the applicant, the dateof 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 theextended time if a postponement is requested;

(b) Render its decision within 60 days after thehearing; or

(c) Notify the applicant in writing, by its order,within 15 days after its decision was made,

the order ofdenial expires and the Division shall issue, within 15 days, a permit to selltime shares to the developer.

(Added to NRS by 1983, 981)

NRS 119A.340 Issuanceof permit before completion of project. If aproject has not been completed before the issuance of a permit to sell timeshares, the permit must state the estimated date of completion and:

1. The developer shall deliver to the agency a bond inan amount and upon terms approved by the division to assure completion of theproject free of any liens, which is payable to the Division for the benefit ofthe purchasers of the time-share property and which remains in effect until theproject is completed free of all liens;

2. A cash deposit to cover the estimated costs ofcompleting the project must be deposited with an escrow agent under anagreement which is approved by the Division; or

3. The developer shall make any other arrangementwhich is approved by the Division.

(Added to NRS by 1983, 981; A 2001, 2504)

NRS 119A.350 Investigationof applicants; expenses.

1. The Division shall, before issuing any permit orlicense pursuant to the provisions of this chapter, fully investigate allinformation submitted to it as required by this chapter and may, if necessary,inspect the property which is the subject of any application. All reasonableexpenses incurred by the Division in carrying out the investigation orinspection must be paid by the applicant and no license or permit may be issueduntil those expenses have been paid.

2. Payments received by the Division pursuant to thissection must be deposited in the State Treasury for credit to the Real EstateInvestigative Account. The Administrator shall use the money in the Account topay the expenses of agents and employees of the Division making theinvestigations pursuant to this section. The Administrator may advance money tothem for those expenses when appropriate.

(Added to NRS by 1983, 980; A 1991, 1753)

NRS 119A.355 Renewalof permit.

1. A permit must be renewed annually by the developerby filing an application with and paying the fee for renewal to theAdministrator. The application must be filed and the fee paid not later than 30days before the date on which the permit expires. The application must includethe budget of the association and any change that has occurred in theinformation previously provided to the Administrator or in a statement ofdisclosure provided to a prospective purchaser pursuant to the provisions of NRS 119A.400.

2. The renewal is effective on the 30th day after thefiling 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)

NRS 119A.360 Fees.

1. The Division shall collect the following fees atsuch times and upon such conditions as it may provide by regulation:

 

For each applicationfor the registration of a representative............................ $85

For each renewal ofthe registration of a representative...................................... 85

For each transfer ofthe registration of a representative to a different developer....... 20

For each penalty fora late renewal of the registration of a representative....... 40

For each preliminarypermit to sell time shares.................................................... 275

For each permit tosell time shares, per subdivision........................................... 500

For each amendment toa public offering statement after the issuance of the report 150

For each renewal of apermit to sell time shares.................................................. 500

For each original andannual registration of a manager....................................... 75

For each applicationfor an original license as a sales agent............................ 175

For each renewal of alicense as a sales agent.................................................... 175

For each penalty fora late renewal of a license as a sales agent........................ 75

For each change ofname or address...................................................................... 20

For each duplicate license,permit or registration where the original is lost or destroyed, and anaffidavit is made thereof 20

For each annualapproval of a course of instruction offered in preparation for an originallicense or permit 100

For each originalaccreditation of a course of continuing education.............. 100

For each renewal ofaccreditation of a course of continuing education........... 50

 

2. Each developer shall pay an additional fee for eachtime share he sells in a time-share plan over 50 pursuant to the followingschedule:

 

Amountto be

Numberof time shares paidper time share

 

51250.......................................................................................................... $5.00

251500............................................................................................................ 4.00

501750............................................................................................................ 3.00

7511500............................................................................................................ 2.50

over1500............................................................................................................ 1.00

 

3. Except for the fees relating to the registration ofa representative, the Administrator may reduce the fees established by thissection if the reduction is equitable in relation to the costs of carrying outthe provisions of this chapter.

4. The Division shall adopt regulations whichestablish the fees to be charged and collected by the Division to pay the costsof:

(a) Any examination for a license, including any costswhich are necessary for the administration of such an examination.

(b) Any investigation of a persons background.

(Added to NRS by 1983, 985; A 1987, 1081; 1993, 2295;2001, 2504; 2003, 1309; 2005, 1300)

NRS 119A.365 Disciplinaryaction for failure to pay money to Division. Inaddition to any other remedy or penalty, the Administrator may:

1. Refuse to issue a license, permit, certificate orregistration to a person who has failed to pay money which the person owes tothe Division.

2. Refuse to renew, or suspend or revoke, the license,permit, certificate or registration of a person who has failed to pay moneywhich the person owes to the Division.

(Added to NRS by 2003, 1307)

SALE OF TIME SHARES

NRS 119A.370 Filingof advertisement or offering.

1. A time share must not be advertised or offered forsale within this state until the advertisement or offering is filed with theDivision.

2. Each such filing must:

(a) Include the form and content of advertising to beused;

(b) Include the nature of the offer of gifts or otherfree benefits to be extended;

(c) Include the nature of promotional meetingsinvolving any person or act described in NRS119A.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)

NRS 119A.380 Requirementsfor time-share instruments.

1. Each time-share plan must be created by one or moretime-share instruments.

2. A time-share instrument must provide:

(a) A legal description and the physical address of theproject;

(b) The name of the time-share plan;

(c) A system for establishing the permanent identifyingnumbers of the time shares;

(d) For assessment of the expenses of the time-shareplan and an allocation of those expenses among the time shares;

(e) The voting rights which are assigned to each timeshare;

(f) If applicable, the procedure to add units and otherreal estate to, and to withdraw units and other real estate from, the time-shareplan, and the method of reallocating expenses among the time shares after anysuch addition or withdrawal;

(g) The maximum number of time shares that may becreated under the time-share plan;

(h) For selection of the trustee for insurance which isrequired 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 occupancyof the unit.

3. A time-share instrument may provide for:

(a) The developers reserved rights;

(b) Cumulative voting, but only for the purpose ofelecting the members of the board; and

(c) The establishment of:

(1) Separate voting classes based on the size ortype of unit to which the votes are allocated; and

(2) A separate voting class for the developerduring the period in which the developer is in control.

4. The provisions of a time-share instrument areseverable.

5. The rule against perpetuities and NRS 111.103 to 111.1039, inclusive, do not apply todefeat any provisions of a time-share instrument.

(Added to NRS by 1983, 978; A 2001, 2505)

NRS 119A.385 Descriptionof time share. A description of a time shareis a legally sufficient description of the time share and all rights,obligations and interests appurtenant to that time share that were created bythe time-share plan if the description includes, without limitation:

1. The name under which the time-share plan isregistered with the Division;

2. The county in which the project is located;

3. Information which indicates where the time-shareinstruments are recorded; and

4. The permanent identifying number of the time shareas set forth in the time-share instruments.

(Added to NRS by 2001, 2495)

NRS 119A.390 Reservationto purchase time share. A reservation to purchasea time share must:

1. Be on a form approved by the Division;

2. Include a provision which grants the prospectivepurchaser the right to cancel the reservation at any time before the executionof the contract of sale with the full refund of any deposit;

3. Provide for the placement of any deposit in escrowuntil a permit is issued by the Administrator pursuant to NRS 119A.300;

4. Guarantee the purchase price for the time share fora certain period after the issuance of the permit to sell time shares; and

5. Require that any interest earned on the deposit forthe reservation be paid to the prospective purchaser.

(Added to NRS by 1983, 979)

NRS 119A.400 Prospectivepurchasers to be provided with public offering statement and permit.

1. Each developer, through his project broker andsales agents, shall provide each prospective purchaser with a copy of hispublic offering statement which must contain a copy of his permit to sell timeshares.

2. The project broker or sales agent shall review thepublic offering statement with each prospective purchaser before the executionof any contract for the sale of a time share and obtain a receipt signed by thepurchaser for a copy of the public offering statement.

3. If a contract is signed by the purchaser, thesigned receipt for a copy of the public offering statement must be kept by theproject broker for 3 years and is subject to such inspections and audits as maybe prescribed by regulations adopted by the Division.

(Added to NRS by 1983, 981)

NRS 119A.410 Rightto cancel contract of sale.

1. The purchaser of a time share may cancel, bywritten notice, the contract of sale until midnight of the fifth calendar dayfollowing the date of execution of the contract. The contract of sale mustinclude a statement of this right.

2. The right of cancellation may not be waived. Anyattempt by the developer to obtain a waiver results in a contract which isvoidable by the purchaser.

3. The notice of cancellation may be deliveredpersonally to the developer or sent by certified mail or telegram to thebusiness address of the developer.

4. The developer shall, within 15 days after receiptof the notice of cancellation, return all payments made by the purchaser.

(Added to NRS by 1983, 982; A 1985, 1141; 1987, 894; 2003, 984)

NRS 119A.420 Depositsto be placed in escrow. All money, negotiableinstruments or other deposits pertaining to the sale of a time share must beplaced in escrow, pursuant to an agreement approved by the Division, with anescrow agent or a trustee.

(Added to NRS by 1983, 982)

NRS 119A.430 Requirementsfor closing of escrow. Escrow may not beclosed unless the developer has provided satisfactory evidence to theAdministrator that:

1. The project is free and clear of any blanketencumbrance;

2. Each person who holds an interest in the blanketencumbrance has executed an agreement, approved by the Administrator, tosubordinate his rights to the rights of the purchaser;

3. Title to the project has been conveyed to atrustee;

4. All holders of a lien recorded against the projecthave recorded an instrument providing for the release and reconveyance of eachtime share from the lien upon the payment of a specified sum or the performanceof a specified act;

5. The developer has obtained and recorded one or morebinding nondisturbance agreements acceptable to the Administrator, that:

(a) Are executed by the developer, all holders of alien recorded against the project and any other person whose interest in theproject could defeat the rights or interests of any purchaser under thetime-share instrument or contract of sale; and

(b) Provide that any person whose interest in theproject could defeat the rights or interests of any purchaser under thetime-share instrument or contract of sale takes title to the project subject tothe rights of the purchasers; or

6. Alternative arrangements have been made which areadequate to protect the rights of the purchasers of the time shares andapproved by the Administrator.

(Added to NRS by 1983, 982; A 1985, 1141; 2001, 2506)

NRS 119A.450 Provisionin contract relieving purchaser of obligation upon foreclosure of lien againstproject; prohibition against sale or pledge of notes or contracts of sale bydefaulting developer.

1. A contract for the sale of a time share or anyother evidence of an obligation to purchase a time share must provide in12-point bold type that the purchaser is relieved of all obligations under thecontract if his interests are defeated because of the foreclosure of liensagainst the project. The provisions of this subsection do not apply to anyproject 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 blanketencumbrance, he may not sell or pledge any of the notes or contracts of salegiven in payment of the time shares purchased from him.

(Added to NRS by 1983, 983; A 1985, 1142; 1991, 98; 2001, 2507)

NRS 119A.460 Requirementsfor trusts. If a trust is created pursuant toa requirement of this chapter, the:

1. Trustee must be approved by the Administrator.

2. Trust must be irrevocable, unless otherwiseprovided by the Division.

3. Trustee must not be permitted to encumber theproperty unless permission to do so has been given by the Division.

4. Association or each owner must be made athird-party beneficiary.

5. Trustee must be required to give at least 30 daysnotice in writing of his intention to resign to the association, if it has beenformed, and to the Division, and the Division must approve a substitute trusteebefore the resignation of the trustee may be accepted.

(Added to NRS by 1983, 983; A 2001, 2507)

NRS 119A.470 Conveyanceof project to trustee before close of escrow for first sale.

1. If title to a project is conveyed to a trusteepursuant to subsection 3 of NRS 119A.430,before escrow closes for the sale of the first time share, the developer mustprovide the Division with satisfactory evidence that:

(a) Title to the project has been conveyed to thetrustee.

(b) All proceeds received by the developer from thesales of time shares are being delivered to the trustee and deposited in a fundwhich has been established to provide for the payment of any taxes, costs ofinsurance or the discharge of any lien recorded against the project.

2. The trustee shall pay the charges against the trustin the following order:

(a) Trustees fees and costs.

(b) Payment of taxes.

(c) Payments due any holder of a lien recorded againstthe project.

(d) Any other payments authorized by the documentcreating the trust.

3. The Administrator may inspect the records relatingto the trust at any reasonable time.

(Added to NRS by 1983, 983; A 1985, 1142; 2001, 2507)

NRS 119A.475 Actionby purchaser or Administrator for misrepresentation or other violation.

1. Where any part of the statement of record, whenthat part became effective, contained an untrue statement of a material fact oromitted to state a material fact required to be stated therein, theAdministrator or any person acquiring a time share from the developer or hisagent during the period the public offering statement remained uncorrected(unless it is proved that at the time of the acquisition he knew of the untruthor 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 whichcontained an untrue statement of a material fact required to be stated therein,

may be suedby the Administrator or purchaser of the time share.

3. If a suit authorized under subsection 1 or 2 isbrought by the purchaser, he is entitled to recover such damages as representthe difference between the amount paid for the time share and the reasonablecost of any permanent improvements thereto, and the lesser of:

(a) The value thereof as of the time the suit wasbrought;

(b) The price at which the time share has been disposedof in a bona fide market transaction before suit; or

(c) The price at which the time share has been disposedof after suit in a bona fide market transaction but before judgment,

or torescission of the contract of sale and the refund of any consideration paid byhim.

4. If a suit authorized under subsection 1 or 2 isbrought by the Administrator, he may seek a declaration of the court that anyperson entitled to sue the developer or his agent under this section isentitled to the right of rescission and the refund of any consideration paid byhim.

5. Every person who becomes liable to make any paymentunder this section may recover contribution as in cases of contract from anyperson who, if sued separately, would have been liable to make the samepayment.

6. Reasonable attorneys fees may be awarded to theprevailing party in any action brought under this section. Any action torescind a contract of sale under this section must be brought within 1 yearafter the date of purchase or within 1 year after the date of the discovery ofthe misrepresentation giving rise to the action for rescission.

7. The provisions of this section are in addition toand not a substitute for any other right of a person to bring an action in anycourt for any act involved in the offering or sale of time shares or the rightof the state to punish any person for any violation of any law.

8. For the purposes of this section, statement ofrecord means the information submitted to the Administrator by the developerin its application for a permit to offer to sell or sell time shares.

(Added to NRS by 1987, 1078)

RESALE OF TIME SHARES

NRS 119A.4771 Registrationand licensing of person listing, advertising, soliciting or promoting sale of12 or more previously sold time shares on behalf of owner other than developer;exception.

1. A person who, on behalf of an owner other than adeveloper, wishes to list, advertise or promote for resale, or solicitprospective purchasers of, 12 or more time shares that were previously soldmust:

(a) Be licensed as a real estate broker pursuant to theprovisions of chapter 645 of NRS; and

(b) Register as a time-share resale broker with theDivision by completing a form for registration provided by the Division.

2. A time-share resale broker shall renew hisregistration with the Division annually on a form provided by the Division.

3. Unless the method of resales of time shares is madeto evade the provisions of this chapter, a person is not required to registeras a time-share resale broker if the person:

(a) Has acquired fewer than 12 time shares and laterresells or offers to resell one or more of those time shares; or

(b) Is a project broker who resells or offers to resella time share in a project as an agent for a developer who holds a permit forthe project.

(Added to NRS by 1999, 2687; A 2001, 2507)

NRS 119A.4773 Filingof advertisement or offering required.

1. A time share must not be advertised or offered forresale within this state until the advertisement or offering is filed with theDivision.

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 freebenefits to be extended; and

(c) The nature of promotional meetings involving anyperson or act described in NRS 119A.300.

(Added to NRS by 1999, 2688; A 2001, 2508)

NRS 119A.4775 Disclosureof certain information before resale; regulations.

1. Before a purchaser signs any contract to purchase atime share that is offered for resale, the person who is reselling the timeshare, other than a developer, shall disclose by a written document separatefrom the contract to purchase a time share:

(a) The period during which the purchaser may use thetime share;

(b) A legal description of the interest in the timeshare;

(c) The earliest date that the prospective purchasermay use the time share;

(d) The name, address and telephone number of the agentmanaging the time-share plan and the project;

(e) The place where the documents of formation of theassociation and documents governing the time-share plan and the project may beobtained;

(f) The amount of the annual assessment of theassociation of the time share for the current fiscal year, if any;

(g) Whether all assessments against the time share arepaid in full, and the consequences of failure to pay any assessment;

(h) Whether participation in any program for theexchange of occupancy rights among owners or with the owners of time shares inother time-share plans is mandatory; and

(i) Any other information required to be disclosedpursuant to the regulations adopted by the Administrator pursuant to subsection2.

2. The Administrator shall adopt regulationsprescribing the form and contents of the disclosure statement described in thissection.

(Added to NRS by 1999, 2687; A 2001, 2508)

NRS 119A.4777 Requirementsfor agreement for resale of time share; reseller to provide copy of agreementto owner.

1. An agreement for a time-share resale entered intoby 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 purchasermay use the time share during the period before the time share is resold;

(2) Whether any person other than the purchasermay rent the use of the time share during the period before the time share isresold;

(3) The name of any person who will receive anyrents or profits generated from the use of the time share during the periodbefore the time share is resold; and

(4) A detailed description of any relationshipbetween the person who resells the time share and any other person who receivesany benefit from the use of the time share.

2. A person who resells a time share shall provide afully executed copy of the written agreement described in subsection 1 to theowner on the date that the owner signs the agreement.

3. A person who resells a time share shall make thedisclosures required pursuant to paragraph (b) of subsection 1 before acceptinganything of value from the owner.

(Added to NRS by 1999, 2686)

NRS 119A.4779 Advancefee charged or collected by time-share resale broker. Inaddition to the provisions of NRS 645.322,645.323 and 645.324, a time-share resale broker whocharges or collects an advance fee shall place 80 percent of that fee into histrust account. If the time-share resale broker closes escrow on the time-shareresale, he shall be deemed to have earned the advance fee. If the listing ofthe time share expires before the time-share resale broker closes escrow on thetime-share resale, he must return the money held in the trust account to theowner of the time share within 10 days after the date of the expiration of thelisting.

(Added to NRS by 1999, 2687)

RIGHTS OF OWNERS

NRS 119A.480 Requirementsif developer holds leasehold interest.

1. If the interest of the developer is a leaseholdinterest, the lease, unless otherwise determined by the Division, must providethat:

(a) The lessee must give notice of termination of thelease for any default by the lessor to the association.

(b) The lessor, upon any default of the lesseeincluding bankruptcy of the lessee, shall enter into a new lease with theassociation upon the same terms and conditions as the lease with the developer.

2. The Division may require the developer to execute abond or other type of security for the payment of the rental obligation.

(Added to NRS by 1983, 991; A 1985, 1143)

NRS 119A.490 Filingof amendment of time-share instrument required.

1. Any proposed amendment by the developer of theprovisions of a time-share instrument must be filed with the Division.

2. Unless the Division notifies the developer of itsdisapproval within 15 days, the amendments shall be deemed to be approved bythe Division.

(Added to NRS by 1983, 993; A 1985, 1143; 2001, 2509)

NRS 119A.495 Withdrawalof units from time-share plan. If a time-shareinstrument 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 shareattributable to that unit is owned by a purchaser.

(Added to NRS by 2001, 2495)

NRS 119A.497 Relocationof boundaries between adjoining units.

1. Except as otherwise provided in subsection 2 andsubject to the provisions of the time-share instrument and other provisions of law,a developer may, with the prior approval of the Division, relocate theboundaries between adjoining units by amending the provisions of the time-shareinstrument and any recorded map or plat relating thereto.

2. A developer may relocate the boundaries betweenadjoining 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 theadjoining units is owned by a purchaser.

(Added to NRS by 2001, 2495)

NRS 119A.500 Partitionof unit. No action for partition of a unit maybe maintained except as provided in the time-share instrument. If a time shareis owned by two or more persons, an action may be brought for the judicial saleof the time share. A provision for the waiver or subordination of the right ofpartition or any other right characteristic of a tenancy in common is valid.

(Added to NRS by 1983, 995; A 2001, 2509)

NRS 119A.510 Replacementor compensation if unit unavailable. If a unitis unavailable for a period to which the owner is entitled by schedule or by confirmedreservation, 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

NRS 119A.520 Membersof association for time-share plan; incorporation of association; proxies.

1. Each owner is a member of the association for thetime-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 permitto sell time shares under statutes which govern the sale of time shares.

3. The association may adopt and amend bylaws, rulesand regulations.

4. Except as otherwise provided in NRS 82.321, any proxy which is executed byan owner to an association is valid for an indefinite period if the owner may revokehis proxy, by written notice to the association, to vote at a particularmeeting.

(Added to NRS by 1983, 989; A 1985, 1143; 1993, 2378;2001, 2509)

NRS 119A.522 Periodof developers control of association; representation of owners on board.

1. Except as otherwise provided in this section, atime-share instrument may provide for a period of the developers control of anassociation during which the developer, or a person designated by him, mayappoint and remove the officers of the association and the members of theboard. Regardless of the period provided in the time-share instrument, theperiod of the developers control of the association terminates no later than:

(a) One hundred and twenty days after conveyance of 80percent of the time shares that may be created by the time-share instrument toowners other than the developer;

(b) Five years after the developer has ceased to offertime shares for sale in the ordinary course of business; or

(c) Five years after any right to add new time shareswas last exercised,

whicheveroccurs earlier.

2. A developer may voluntarily surrender the right toappoint and remove officers and members of the board before the end of theperiod provided for in subsection 1 by executing and recording with thetime-share instrument a written instrument declaring the surrender. If such aninstrument is recorded, the developer may require that, for the duration of theperiod of the developers control, specified actions of the association orboard, as described in the recorded instrument, be approved by the developerbefore they become effective.

3. Not later than 60 days after conveyance of 25percent of the time shares that may be created pursuant to the time-shareinstrument to owners other than the developer, at least one member and not lessthan 25 percent of the members of the board must be elected by owners otherthan the developer. Not later than 60 days after conveyance of 50 percent ofthe time shares that may be created pursuant to the time-share instrument toowners other than the developer, not less than 33 1/3 percent of the members ofthe board must be elected by owners other than the developer.

(Added to NRS by 2001, 2496)

NRS 119A.524 Reservedrights of developer. A developers reservedrights may include, without limitation, the right to:

1. Add units or real estate to, and withdraw units orreal estate from, a time-share plan.

2. Create units, a common area or a limited commonarea within the project.

3. Subdivide units or convert units into a commonarea.

4. Make and complete improvements to the project.

5. Maintain sales offices, management offices andsigns for advertising the time-share plan, project and models.

6. Enter into a subsidy agreement with the associationin lieu of paying the assessments allocated to the time shares owned by thedeveloper.

7. Provide for the establishment of a masterassociation, as defined in NRS 116.063.

8. Merge or consolidate a time-share plan with anothertime-share plan which has the same form of ownership.

9. Relocate boundaries between adjoining units inaccordance with the provisions of this chapter.

(Added to NRS by 2001, 2497)

NRS 119A.526 Quorum.

1. Unless the bylaws of an association specify alarger percentage, a quorum is present throughout any meeting of theassociation if persons entitled to cast 10 percent of the votes that may becast are present in person or by proxy at the beginning of the meeting.

2. Unless the bylaws of an association provideotherwise, a quorum shall be deemed to be present throughout a meeting of theboard if persons entitled to cast a majority of the votes on that board arepresent at the beginning of the meeting.

(Added to NRS by 2001, 2497)

NRS 119A.528 Removalof member of board; indemnification and defense of member of board.

1. Notwithstanding any provision of a time-share instrumentor the bylaws of an association to the contrary, the owners, by a two-thirdsvote of all persons present, in person or by proxy, who are entitled to vote atany meeting of the owners at which a quorum is present, may remove any memberof the board, with or without cause, other than a member appointed by thedeveloper.

2. If a member of the board is sued for liability foractions undertaken in his role as a member of the board, the association shallindemnify 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 withgross negligence. After such proof, the association is no longer liable for thecosts 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 thevictims of crimes occurring on the project. Punitive damages may not berecovered against the association, but may be recovered from persons whoseactivity gave rise to the damages.

(Added to NRS by 2001, 2496)

NRS 119A.530 Writtenagreement for management of time-share plan and project; disclosure of annualrevenue received by manager.

1. A developer or an affiliate of the developer shallprovide for the management of the time-share plan and the project, by a writtenagreement 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 ofthe 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 themanager refuses to renew the agreement or a majority of the members of theassociation who are entitled to vote, excluding the developer, notifies themanager of its refusal to renew the agreement.

2. The agreement must provide that:

(a) The manager or a majority of the owners mayterminate the agreement for cause.

(b) The resignation of the manager will not be accepteduntil 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 tothe association.

3. An agreement entered into or renewed on or afterOctober 1, 2001, must contain a detailed, itemized schedule of all fees,compensation or other property that the manager is entitled to receive forservices rendered to the association or any member of the association orotherwise derived from the managers affiliation with the time-share plan orthe project, or both, unless the manager is the developer or an affiliate ofthe developer. Upon the request of the association, the manager shall discloseto the association annual revenue received by the manager from the managersaffiliation with the time-share plan or the project, or both.

4. Except as otherwise provided in this subsection, ifthe developer retains a property interest in the project, the parties to suchan agreement must include the developer, the manager and the association. Inaddition to the provisions required in subsections 1 and 2, the agreement mustprovide:

(a) That the project will be maintained in goodcondition. Except as otherwise provided in this paragraph, any defect which isnot cured within 10 days after notification by the developer may be cured byhim. In an emergency situation, notice is not required. The association mustrepay the developer for any cost of the repairs plus the legal rate ofinterest. Each owner must be assessed for his share of the cost of repairs.

(b) That, if any dispute arises between the developerand the manager or association, either party may request from the AmericanArbitration Association or the Nevada Arbitration Association a list of sevenpotential fact finders from which one must be chosen to settle the dispute. Theagreement must provide for the method of selecting one fact finder from thislist.

(c) For the collection of assessments from the ownersto pay obligations which may be due to the developer for breach of the covenantto maintain the premises in good condition and repair.

If thedeveloper is not made a party to this agreement, he shall be considered to be athird-party beneficiary of such an agreement.

(Added to NRS by 1983, 989; A 1985, 1461; 2001, 2509)

NRS 119A.532 Registrationof managers; form for registration; fee. [Effective until the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain 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 registerwith the Division on a form prescribed by the Division.

2. The form for registration must include, withoutlimitation:

(a) The registered name of the time-share plan or theproject, or both, that the manager will manage;

(b) The address and telephone number of the managersprincipal place of business;

(c) The social security number of the manager; and

(d) The name of the managers responsible managingemployee.

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 accordancewith 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 managerand annually thereafter to maintain the registration.

5. As used in this section, responsible managingemployee means the person designated by the manager to:

(a) Make technical and administrative decisions inconnection with the managers business; and

(b) Hire, superintend, promote, transfer, lay off,discipline or discharge other employees or recommend such action on behalf ofthe manager.

(Added to NRS by 2001, 2498; A 2003, 1310)

NRS 119A.532 Registration of managers; form forregistration; fee. [Effective on the date of the repeal of the federal lawrequiring each state to establish procedures for withholding, suspending andrestricting the professional, occupational and recreational licenses for childsupport arrearages and for noncompliance with certain processes relating topaternity 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 registerwith the Division on a form prescribed by the Division.

2. The form for registration must include, withoutlimitation:

(a) The registered name of the time-share plan or theproject, or both, that the manager will manage;

(b) The address and telephone number of the managersprincipal place of business; and

(c) The name of the managers responsible managingemployee.

3. The form for registration must be accompanied bysatisfactory evidence, acceptable to the Division, that the manager and hisemployees have obtained fidelity bonds in accordance with regulations adoptedby the Division.

4. The Division shall collect the fee specified in NRS 119A.360 upon registering the managerand annually thereafter to maintain the registration.

5. As used in this section, responsible managingemployee means the person designated by the manager to:

(a) Make technical and administrative decisions inconnection with the managers business; and

(b) Hire, superintend, promote, transfer, lay off,discipline or discharge other employees or recommend such action on behalf ofthe 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 toestablish procedures for withholding, suspending and restricting theprofessional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings)

NRS 119A.534 Disclosurestatement to be submitted by certain managers; regulations.

1. A manager who enters into or renews an agreementthat must comply with the provisions of subsection 3 of NRS 119A.530 shall submit to theassociation and to the Division a disclosure statement that contains adescription of any arrangement made by the manager or an affiliate of themanager relating to:

(a) The resale of time shares on behalf of theassociation or its members;

(b) Actions taken for the collection of assessments andthe foreclosure of liens on behalf of the association or its members;

(c) The exchange or rental of time shares owned by theassociation or its members; and

(d) The use of the names of the members of the associationfor purposes unrelated to the duties of the association as set forth in thetime-share instrument and this chapter.

2. The disclosure statement must be:

(a) Submitted annually at a time designated by theAdministrator and at least 120 days before any date on which the agreement isautomatically renewed.

(b) Signed by the manager or an authorizedrepresentative of the manager under penalty of perjury.

3. The Administrator shall adopt regulationsprescribing the form and contents of the disclosure statements required by thissection.

(Added to NRS by 2001, 2498)

NRS 119A.540 Annualbudget; assessments for unsold time shares.

1. The association or, if there is no association, thedeveloper shall adopt an annual budget for revenues, expenditures and reservesand collect assessments for the expenses of the time-share plan and the projectfrom the owners. The annual budgets of the association must be submitted to andapproved by the Division until such time as the association is controlled bymembers other than the developer.

2. The Administrator may require that the associationor, if there is no association, the developer provide, at the associations orthe developers expense, an opinion from an independent professional consultantas to the sufficiency of the budget to sustain the time-share plan offered bythe association or the developer. The association or the developer shall placeany money collected for assessments and any other revenues received by or onbehalf of the association in an account established by the association.

3. The developer shall pay assessments for any timeshares which are unsold or enter into an agreement with the association, in aform approved by the Division, to pay the difference between the actualexpenses incurred by the association and the sum of the amounts payable to theassociation as assessments by owners, other than the developer, and otherrevenues received by the association. The Division may require the developer toprovide a surety bond or other form of security which is satisfactory to theDivision, to guarantee payment of the developers obligation.

(Added to NRS by 1983, 990; A 1985, 1143; 1987, 1081;2001, 2510)

NRS 119A.542 Conductand contents of study of reserves; review of study and necessary adjustments toreserves by board; regulations.

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 majorcomponents of the project;

(b) Review the results of that study at least annuallyto determine if those reserves are sufficient; and

(c) Make any adjustments it deems necessary to maintainthe required reserves.

2. The study required by subsection 1 must beconducted by a person qualified by training and experience to conduct such astudy, including a member of the board or the manager of the time-share plan orthe project, or both, who is so qualified. The study must include, withoutlimitation:

(a) A summary of an inspection of the major componentsof the project;

(b) An identification of the major components of theproject which have a remaining useful life of less than 30 years;

(c) An estimate of the remaining useful life of eachmajor component identified pursuant to paragraph (b);

(d) An estimate of the cost of repair, replacement orrestoration of each major component identified pursuant to paragraph (b) duringand at the end of its useful life; and

(e) An estimate of the total annual assessment that maybe required to cover the cost of repairing, replacing or restoring the majorcomponents identified pursuant to paragraph (b), after subtracting the reservesof the association as of the date of the study.

3. The Administrator shall adopt by regulation thequalifications required for conducting a study required by subsection 1.

(Added to NRS by 2001, 2497)

NRS 119A.550 Assessmentupon time share; notice of assessment; liens; enforcement of liens.

1. The developer or the association may levy andenforce a reasonable assessment upon any time share in accordance with thetime-share instrument, which is a debt of the owner thereof at the time theassessment is made. The amount of the assessment plus any other chargesthereon, such as interest, costs, attorneys fees and penalties, as may beprovided for in the time-share instrument is a lien upon the time shareassessed when the developer or the association causes to be recorded with thecounty recorder of the county in which the project is located a notice ofassessment, which must state:

(a) The amount of the assessment and such other chargesthereon as may be authorized by the time-share instrument;

(b) A description of the time share against which thelien has been assessed; and

(c) The name of the owner.

The noticemust be signed by an authorized representative of the developer or theassociation or as otherwise provided in the time-share instrument. Upon paymentof 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 tobe recorded a further notice stating the satisfaction and the release of thelien thereof.

2. The lien is prior to all other liens recorded afterthe recordation of the notice of assessment except that the time-shareinstrument may provide for the subordination thereof to any other liens andencumbrances. Unless sooner satisfied and released or the enforcement thereofinitiated as provided in subsection 3, the lien expires and has no furtherforce or effect 1 year after the date of recordation of the notice ofassessment, but the 1-year period may be extended by the developer or theassociation for a period not to exceed 1 additional year by recording a writtenextension thereof.

3. The lien may be enforced by sale by the developeror the association, its agent or attorney, after failure of the owner to paysuch 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 consistentwith the provisions of NRS 119A.560,or in any other manner permitted by law. Unless otherwise provided in thetime-share instrument, the developer or the association, if it is acorporation, cooperative association, partnership or natural person, may bid atforeclosure sale and hold, lease, mortgage and convey the time share.

(Added to NRS by 1983, 991; A 2001, 2511)

NRS 119A.552 Statementof unpaid assessments. An association, uponthe receipt of a written request, shall furnish to an owner or any lender whohas a security interest in a time share or the project, a statement settingforth the amount of unpaid assessments made against the owners time share. Thestatement must be furnished within 10 business days after receipt of therequest and is binding on the association, the board and every owner.

(Added to NRS by 2001, 2497)

NRS 119A.560 Powerof sale; notice of sale.

1. The power of sale may not be exercised until:

(a) The developer or the association, its agent orattorney has first executed and caused to be recorded with the recorder of thecounty wherein the project is located a notice of default and election to sellthe time share or cause its sale to satisfy the assessment lien; and

(b) The owner or his successor in interest has failedto pay the amount of the lien, including costs, fees and expenses incident toits enforcement for 60 days computed as prescribed in subsection 2.

2. The 60-day period provided in subsection 1 beginson the first day following the day upon which the notice of default andelection to sell is recorded and a copy of the notice is mailed by certified orregistered mail with postage prepaid to the owner or to his successor ininterest at his address if that address is known, otherwise to the address ofthe project. The notice must describe the deficiency in payment.

3. The developer or the association, its agent orattorney shall, after expiration of the 60-day period and before selling thetime share, give notice of the time and place of the sale in the manner and fora time not less than that required for the sale of real property uponexecution, except that a copy of the notice of sale must be mailed on or beforethe first publication or posting required by NRS21.130 by certified or registered mail with postage prepaid to the owner orto his successor in interest at his address if that address is known, otherwiseto the address of the project. The sale may be made at the office of thedeveloper or the association if the notice so provided, whether the project islocated within the same county as the office of the developer or theassociation or not.

4. Every sale made under the provisions of NRS 119A.550 vests in the purchaser thetitle of the owner without equity or right of redemption.

(Added to NRS by 1983, 992; A 2001, 2511)

NRS 119A.570 Insurance.

1. The developer or the association, if it has beenformed, shall maintain:

(a) Property insurance on the project and any personalproperty available for use by the owners in conjunction therewith, other thanpersonal property separately owned by an owner, insuring against all risks ofdirect physical loss commonly insured against, with a provision agreed to bythe lender, that the proceeds must be disbursed for the repair or restorationof the property, and that the owners and lienholders are not entitled toreceive payment of any portion of the proceeds unless there is a surplus ofproceeds after the property has been completely repaired or restored;

(b) Liability insurance, including insurance formedical payments, in an amount not less than $1,000,000 per occurrence,covering all occurrences commonly insured against for death, bodily injury andproperty damage arising out of or in connection with the use, ownership ormaintenance of the time-share property and units; and

(c) Insurance covering the costs of temporary quartersfor the owners and other losses commonly insured against.

2. Each insurance policy carried pursuant tosubsection 1 must provide that:

(a) Each owner is an insured person under the policywhether designated as an insured by name individually or as part of a namedgroup or otherwise, as his interest may appear;

(b) The insurer waives its right to subrogation underthe policy against any owner or members of his household; and

(c) No act or omission by any owner, unless actingwithin the scope of his authority on behalf of an association, will void thepolicy or be a condition to recovery by any other person under the policy.

(Added to NRS by 1983, 990; A 1985, 1144; 2001, 2512)

NRS 119A.580 Consentrequired for liens for labor, services or materials; when consent deemed given. No labor performed or services or materials furnished withthe consent of or at the request of an owner may be the basis for the filing ofa 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 hasexpressly consented to or requested the performance of such labor or furnishingof such materials or services. Express consent shall be deemed to have beengiven 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, ifauthorized by the association and provided for in the time-share instrument,shall be deemed to be performed or furnished with the express consent of eachowner. An owner may remove his time share from a lien against two or more timeshares or any part thereof by payment to the holder of the lien of the fractionof 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

NRS 119A.590 Informationto be furnished to purchasers by developer.

1. A developer who offers a program for the exchangeof occupancy rights among owners or with the owners of time shares in othertime-share plans, or both, shall give to the purchaser the followinginformation:

(a) The name and address of the company offering theprogram.

(b) The names of the officers, directors andshareholders owning at least 5 percent of the outstanding stock of thatcompany.

(c) A statement indicating whether the company or anyof its officers or directors has any legal or beneficial interest in anyinterest of the developer or managing agent in any time-share plan included inthe program and, if so, the name, location and nature of the interest.

(d) A statement that the purchasers contract with thecompany is a contract separate and distinct from the contract to purchase thetime share, unless the company and the developer or an affiliate of thedeveloper are the same.

(e) A statement indicating whether the purchasersparticipation in the program is dependent upon the continued inclusion of thetime-share plan in the program.

(f) A statement indicating whether the purchasersmembership or participation in the program is voluntary or mandatory.

(g) A complete and accurate description of:

(1) The terms and conditions of the purchaserscontractual relationship with the company and the procedure by which changesthereto may be made.

(2) The procedure to qualify for and makeexchanges.

(3) All limitations, restrictions or prioritiesof the program, including, but not limited to, limitations on exchanges basedon the seasons of the year, the size of units or levels of occupancy, printedin boldface type, and, if such limitations, restrictions or priorities are notuniformly applied by the program, a clear description of the manner in whichthey are applied.

(h) A statement indicating whether exchanges arearranged on the basis of available space and whether there are any guaranteesof fulfilling specific requests for exchanges.

(i) A statement indicating whether and under whatcircumstances an owner, in dealing with the company, may lose the right to useand occupy a unit in any properly applied for exchange without being providedwith 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 companyand, if so, the circumstances under which those changes may be made.

(k) The name and address of the site of each projectincluded in the program.

(l) The number of units in each time-share planincluded in the program which are available for occupancy, expressed innumerical 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-shareplan 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, 500to 999 and at least 1,000, and a statement of the criteria used to determinethose owners who are eligible to participate in the program.

(n) The disposition made by the company of time sharesdeposited with the program by owners who are eligible to participate in theprogram and not used by the company in effecting exchanges.

(o) An annual report completed on or before July 1 ofthe succeeding year which must be independently certified by a certified publicaccountant or accounting firm in accordance with the standards of theAccounting 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 toparticipate in the program, including an indication of whether the relationshipbetween the company and the owners is based on the payment of a fee or isgratuitous.

(2) The number of time-share plans included inthe program, categorized by those plans which are the subject of a contractbetween the developer or the association and the company and those plans whichare the subject of a contract between the company and owners directly.

(3) The number of time shares for which thecompany has an outstanding obligation to provide an exchange to an owner whorelinquished a time share during the year in exchange for a time share in anyfuture year.

(4) The number of exchanges confirmed by thecompany during the year.

2. The information required by subsection 1 must bedelivered to the purchaser before the execution of any contract between thepurchaser and the company or the contract to purchase the time share.

3. Upon receipt of the information, the purchasershall certify in writing that he has received the information from thedeveloper.

4. Except as otherwise provided in this subsection,the information required by subsection 1 must be periodically revised toreflect any material changes in that information. The information required byparagraphs (b), (c), (k), (l), (m) and (o) of subsection 1 must be consistentwith the latest audited statement of the company which is prepared not morethan 18 months before the information is delivered.

(Added to NRS by 1983, 986; A 1985, 1144; 2001, 2513)

NRS 119A.600 Informationto be furnished by company offering program. Ifa company intends to offer a program for the exchange of occupancy rights amongowners 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 theoffering or the execution of any contract between the purchaser or owner andthe company offering the program, the information set forth in subsection 1 of NRS 119A.590. The requirements of thissection do not apply to any renewal of a contract between an owner and such acompany.

(Added to NRS by 1983, 988; A 2001, 2515)

NRS 119A.620 Informationto be furnished to Division and secretary of association; liability forinformation and representations.

1. A company whose program for the exchange ofoccupancy rights among owners or with the owners of time shares in othertime-share plans, or both, is offered to purchasers of time shares in thisstate shall, on or before July 1 of each year, file with the Division andsecretary 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 orpublication of information provided to it by the company.

3. Except as otherwise provided in this subsection, nocompany is liable for:

(a) Any representation made by the developer relatingto the program or company.

(b) The use, delivery or publication by the developerof any information relating to the program or company.

Such acompany is liable only for the written information provided to the developer bythe company.

(Added to NRS by 1983, 988; A 2001, 2515)

HEARINGS

NRS 119A.630 Administratorto appoint hearing officer. For any proceedingheld pursuant to a provision of this chapter, except a hearing to impose a fineor revoke, suspend or deny the renewal of a license or permit, theAdministrator may appoint a hearing officer from the staff of the Department ofBusiness and Industry who shall act as his agent and conduct any hearing orinvestigation which may be conducted by the Administrator pursuant to thischapter. The Administrator shall appoint a hearing officer to conduct a hearingto 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)

NRS 119A.640 Powersof Administrator or hearing officer. TheAdministrator or his hearing officer may:

1. Take testimony and other evidence concerning allmatters 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 ofwitnesses and the production of books and papers.

(Added to NRS by 1983, 994)

NRS 119A.650 Districtcourt to enforce Administrators subpoenas.

1. The district court in the county in which a hearingis to be held may compel the attendance of witnesses, the giving of testimonyand the production of books and papers as requested by any subpoena issued bythe Administrator.

2. If a witness refuses to attend, testify or produceany papers required by a subpoena, the Administrator may report to the districtcourt in the county in which the hearing is pending by petition, setting forththat:

(a) Due notice has been given of the time and place ofattendance of the witness or the production of the books and papers;

(b) The witness has been subpoenaed in the mannerprescribed in this chapter; and

(c) The witness has failed and refused to attend orproduce the papers required by subpoena before the Administrator in the causeor proceeding named in the subpoena or has refused to answer questionspropounded to him in the course of the hearing, and asking an order of thecourt compelling the witness to attend and testify or produce the books orpapers before the Administrator.

3. The court, upon petition of the Administrator, mayenter an order directing the witness to appear before the court at a time andplace to be fixed by the court in the order. The time fixed must not be morethan 10 days after the date of the order. The order must command the respondentto show cause why he has not attended, testified or produced the books orpapers before the Administrator. A certified copy of the order must be servedupon the witness. If it appears to the court that the subpoena was regularlyissued by the Administrator, the court may enter an order that the witnessappear before the Administrator at the time and place fixed in the order andtestify or produce the required books or papers. If the witness fails orrefuses to obey the order, the witness may be held in contempt of court.

(Added to NRS by 1983, 995)

ENFORCEMENT OF CHAPTER

NRS 119A.652 Inspectionsby Division; penalty for failure to cooperate; regulations.

1. The Division shall regularly inspect the files oftransactions, records of trusts and relevant accounts of all project brokersand developers.

2. If a project broker or developer fails to allow orcooperate fully with such an inspection, the Division may:

(a) Impose a fine or suspend or revoke the license orpermit of the project broker or developer; or

(b) Deny the renewal of the license of the projectbroker.

3. The Division shall adopt regulations specifying theprocedure for such inspections.

(Added to NRS by 1985, 1134; A 2001, 530)

NRS 119A.654 Disciplinaryaction against developer. The Administratormay impose a fine or suspend, revoke, deny the renewal of or place conditionsupon the permit of a developer at any time if the developer:

1. Obtained the permit by false or fraudulentrepresentation; or

2. Violates any of the terms or conditions of thepermit, the provisions of this chapter or the regulations adopted pursuantthereto.

(Added to NRS by 1985, 1135; A 1991, 98; 2001, 531)

NRS 119A.655 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Complaint; hearing; notice.

1. The procedure set forth in this section must befollowed before the Administrator or Division imposes a fine or revokes,suspends or denies the renewal of any license or permit issued pursuant to thischapter.

2. Upon the initiation of a complaint by theAdministrator, the matter must be set for a hearing by the Administrator, whoshall schedule a hearing before the hearing officer, and the licensee orpermittee is entitled to be heard thereon in person or by counsel.

3. The hearing officer shall hold the hearing within90 days after the filing of a complaint by the Administrator. The time of thehearing may be continued at the discretion of the hearing officer, upon thewritten request of the licensee or permittee or of the Administrator for goodcause shown.

4. The licensee or permittee must be given at least 30days notice in writing by the Administrator of the date, time and place of thehearing together with a copy of the complaint and copies of all communications,reports, affidavits or depositions in possession of the Division relevant tothe complaint. The Administrator may present evidence obtained after the noticeonly if he shows that the evidence was not available after diligentinvestigation before the time notice was given to the licensee or permittee andthat the evidence was given or communicated to the licensee or permitteeimmediately after it was obtained.

5. Notice is complete upon delivery personally to thelicensee or permittee or upon mailing by certified mail to the last knownaddress of the licensee or permittee. If the licensee is a sales agent, theAdministrator shall also notify the broker with whom he is associated, or thedeveloper by whom he is employed, by mailing an exact statement of the chargesand the date, time and place of the hearing by certified mail to thedevelopers or brokers last known address.

(Added to NRS by 1985, 1135; A 2001, 531)

NRS 119A.656 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Answer; limitation on proceeding.

1. Within 20 days after service of the notice uponhim, the licensee or permittee shall file an answer to the charges with theDivision. The answer must contain an admission or denial of the allegationscontained in the complaint and any defenses upon which the licensee orpermittee will rely.

2. The answer may be served by delivery to theAdministrator, or by mailing the answer by certified mail to the principaloffice of the Division.

3. No proceeding to impose a fine or suspend, revokeor deny the renewal of any license or permit may be maintained unless it iscommenced by the giving of notice to the licensee or permittee within 3 yearsafter the time of the act charged, whether of commission or omission, except:

(a) If the charges are based upon a failure to discloseor misrepresentation, the period does not commence until the discovery of factswhich do or should lead to the discovery of the failure to disclose ormisrepresentation; and

(b) Whenever any action or proceeding is instituted towhich the Division, licensee or permittee is a party and which involves theconduct of the licensee or permittee in the transaction with which the chargesare related, the running of the 3-year period with respect to the institutionof a proceeding under this chapter to impose a fine or suspend, revoke or denythe renewal of the license or permit is suspended during the pendency of theaction or proceeding.

(Added to NRS by 1985, 1136; A 2001, 531)

NRS 119A.657 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Decision of hearing officer.

1. The hearing officer shall render a decision on anycomplaint within 60 days after the final hearing thereon and shall give noticein writing of the ruling or decision to the applicant, licensee or permitteeaffected thereby by certified mail to the last known address of the person towhom the notice is sent.

2. If the ruling is adverse to the licensee orpermittee, the hearing officer shall also state in the notice the date uponwhich the ruling or decision becomes effective, which date must not be lessthan 30 days after the date of the notice.

3. The decision of the hearing officer may not bestayed by any appeal unless the district court so orders upon motion of thelicensee or permittee, notice to the Division of the motion and opportunity forthe Division to be heard.

4. An appeal from a decision of the district courtaffirming the imposition of a fine or the revocation, suspension or denial ofthe renewal of a license or permit does not stay the order of the hearingofficer unless the district or appellate court upon petition of the licensee orpermittee after notice and hearing orders such stay, and upon the filing of abond for costs in the amount of $1,000.

(Added to NRS by 1985, 1136; A 2001, 532)

NRS 119A.658 Procedurefor imposing fine or revoking, suspending or denying renewal of license orpermit: Appeal of decision of hearing officer.

1. A ruling or decision of the hearing officer in anydisciplinary action is final when in favor of the licensee or permittee.

2. If a ruling or decision is against the licensee orpermittee, the licensee or permittee may within 30 days after the date of thedecision appeal therefrom to the district court for the county in which theparty adversely affected by the decision resides or has his place of businessunder the terms of this chapter, by filing in the district court and servingupon the Administrator personally or by certified mail a notice of the appeal,a written petition for review and a demand in writing for a certifiedtranscript and copies of all the papers on file in the office of the Divisionaffecting or relating to the decision and the evidence taken at the hearing.Thereupon, the Division shall, within 30 days, make and certify the transcriptand the copies and file them with the clerk of the court. The petition forreview need not be verified but must set forth in specific detail any groundfor the appeal, including any errors which the licensee or permittee contendsthat the hearing officer committed at the hearing.

3. The appellants opening brief must be filed in thedistrict court within 30 days after the date on which the transcript is filedwith the court. The respondents answering brief must be filed within 30 daysafter the appellants opening brief is filed. If the appellant chooses to filea reply brief, it must be filed within 10 days after the respondents answeringbrief is filed. Failure to file a brief within the time prescribed in thissection constitutes a waiver of the right to file that brief, unless the courtgrants an extension for good cause shown.

4. The burden of proof in the appeal is on theappellant. The court shall consider the action of the Administrator upon whichthe decision of the hearing officer was based, and is limited solely to aconsideration and determination of the question of whether there has been anabuse of discretion on the part of the Administrator in making that decision.

(Added to NRS by 1985, 1136; A 2001, 532)

NRS 119A.659 Expiration,revocation or surrender of license or permit does not prohibit disciplinaryaction against holder thereof. The expirationor revocation of a license or permit by operation of law or by order ordecision of a hearing officer or a court of competent jurisdiction, or thevoluntary surrender of a license or permit by a sales agent, project broker ordeveloper does not:

1. Prohibit the Administrator, Division or Real EstateCommission from initiating or continuing an investigation of, or action ordisciplinary proceeding against, the sales agent, project broker or developer;or

2. Prevent the imposition or collection of any fine orpenalty authorized pursuant to the provisions of this chapter against the salesagent, project broker or developer.

(Added to NRS by 2001, 529)

NRS 119A.660 Enforcementof chapter and protection of purchasers by Administrator.

1. Whenever the Administrator believes that any personhas violated any order, regulation, permit, decision, demand or requirement, orany of the provisions of this chapter, he may bring an action in the districtcourt in the county in which the person resides or maintains his principalplace of business or, if the person resides outside the State, in any court ofcompetent jurisdiction within or outside the State, against the person toenjoin him from continuing the violation.

2. The Administrator may intervene in any actioninvolving a time-share plan, a project or a time share if intervention isnecessary in the public interest and for the protection of purchasers.

(Added to NRS by 1983, 994; A 2001, 2515)

NRS 119A.665 Appointmentof receiver.

1. When the Administrator ascertains that anassociation or a developer, if there is no association, is insolvent or inimminent danger of insolvency, or the associations or developers affairs arebeing mismanaged, he may file a complaint in the district court of the countyin which the principal office of the association or developer is located forthe appointment of a receiver.

2. Upon appointment, the receiver shall takepossession of all the property, business and assets of the association ordeveloper which are located within this state and retain possession of themuntil further order of the court. The receiver shall make or cause to be madean inventory of the assets and known liabilities of the association ordeveloper. Upon approval of the court, the receiver shall take such other actionsas appear necessary and reasonable for the conduct of the business of theassociation or developer.

3. The inventory made by the receiver and all claimsfiled by creditors are open at all reasonable times for inspection and anyaction taken by the receiver upon any of the claims is subject to the approvalof the court before which the cause is pending.

4. The expenses of the receiver and compensation ofcounsel, as well as all expenditures required in any liquidation proceeding,must be fixed by the receiver, subject to the approval of the court, and, uponcertification of the receiver, must be paid out of the assets he controls asreceiver.

(Added to NRS by 1987, 1079; A 2001, 2515)

NRS 119A.670 Actionby Real Estate Commission against project broker. TheReal Estate Commission may take action pursuant to NRS 645.630 against any project broker whofails to adequately supervise the conduct of any sales agent or representativewith whom he is associated.

(Added to NRS by 1983, 994)

NRS 119A.675 Administrativefine for engaging in certain conduct without license, permit, certificate,registration or authorization; procedure for imposition of fine; judicialreview; exceptions.

1. In addition to any other remedy or penalty, theAdministrator may impose an administrative fine against any person whoknowingly:

(a) Engages or offers to engage in any activity forwhich a license, permit, certificate or registration or any type ofauthorization is required pursuant to this chapter, or any regulation adoptedpursuant thereto, if the person does not hold the required license, permit, certificateor registration or has not been given the required authorization; or

(b) Assists or offers to assist another person tocommit a violation described in paragraph (a).

2. If the Administrator imposes an administrative fineagainst a person pursuant to this section, the amount of the administrativefine may not exceed the amount of any gain or economic benefit that the personderived from the violation or $5,000, whichever amount is greater.

3. In determining the appropriate amount of the administrativefine, the Administrator shall consider:

(a) The severity of the violation and the degree of anyharm that the violation caused to other persons;

(b) The nature and amount of any gain or economicbenefit that the person derived from the violation;

(c) The persons history or record of other violations;and

(d) Any other facts or circumstances that theAdministrator deems to be relevant.

4. Before the Administrator may impose theadministrative fine, the Administrator must provide the person with notice andan opportunity to be heard.

5. The person is entitled to judicial review of thedecision of the Administrator in the manner provided by chapter 233B of NRS.

6. The provisions of this section do not apply to aperson who engages or offers to engage in activities within the purview of thischapter if:

(a) A specific statute exempts the person fromcomplying with the provisions of this chapter with regard to those activities;and

(b) The person is acting in accordance with theexemption while engaging or offering to engage in those activities.

(Added to NRS by 2003, 1307)

UNLAWFUL ACTS

NRS 119A.680 Actingas project broker, sales agent, representative, manager or time-share resalebroker without license or registration.

1. It is unlawful for any person to engage in thebusiness of, act in the capacity of, advertise or assume to act as a:

(a) Project broker or sales agent within the State ofNevada 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 brokerwithin the State of Nevada without first registering with the Division.

2. Any person who violates subsection 1 is guilty of agross misdemeanor.

(Added to NRS by 1983, 984; A 1985, 1147, 2280; 1999, 2688; 2001, 2516)

NRS 119A.690 Falsifyingapplication; failure to submit annual report. Anyperson who willfully submits, in the application for a permit to sell timeshares or an application for a sales agents license, any materially false ormisleading information or fails to submit an annual report on a program for theexchange of occupancy rights among owners or with the owners of time shares inother time-share plans, or both, is guilty of a misdemeanor.

(Added to NRS by 1983, 995; A 1985, 1147; 2001, 2516)

NRS 119A.700 Falseor misleading advertising.

1. It is unlawful for any person to use false ormisleading information to advertise the sale of time shares.

2. Unless a person has actual knowledge of the falseor misleading information, the owner, publisher, licensee or operator of anynewspaper, magazine, television or radio broadcasting station or their agentsor employees are not liable under this chapter for any advertising of any timeshare carried in the newspaper, magazine or by the television or radiobroadcasting station nor are any of them liable under this chapter for thecontents of any advertisement.

(Added to NRS by 1983, 996)

NRS 119A.702 Restrictionson promotional material; completion of improvements portrayed in promotionalmaterial.

1. It is unlawful for any person to display or deliverto prospective purchasers of time shares promotional material that describes orportrays an improvement that has not been made to the project unless theimprovement is conspicuously labeled or identified with the phrase MUST BEBUILT or NEED NOT BE BUILT or with other similar language approved by theDivision.

2. A developer shall construct and complete anyimprovement to a project that is described or portrayed in promotional materialfor the sale of time shares unless the improvement is labeled or identified asNEED NOT BE BUILT or with other similar language approved by the Division.

(Added to NRS by 2001, 2499)

NRS 119A.710 Unfairmethods of competition; deceptive or unfair acts. Itis unlawful to engage in unfair methods of competition or deceptive or unfairacts in the offer to sell or sale of a time share including, withoutlimitation:

1. Misrepresenting or failing to disclose any materialfact concerning a time share.

2. Including in an agreement for the purchase of atime share provisions purporting to waive any right or benefit provided forpurchasers under this chapter.

3. Receiving from a prospective purchaser any money orother valuable consideration before the purchaser has received a statement ofpublic offering.

4. Misrepresenting the amount of time or period oftime the unit will be available to a purchaser.

5. Misrepresenting the location or locations of theunit.

6. Misrepresenting the size, nature, extent, qualitiesor characteristics of the unit.

7. Misrepresenting the nature or extent of anyservices incident to the unit.

8. Misrepresenting the conditions under which apurchaser may exchange occupancy rights to a unit in one location for occupancyrights to a unit in another location.

9. Failing to disclose initially that any promisedentertainment, food or other inducements are being offered to solicit the saleof a time share.

10. Conducting or participating in, without priorapproval by the Division, any type of lottery or contest, or offering prizes orgifts to induce or encourage a person to visit a project, attend a meeting atwhich a time share will be discussed, attend a presentation or purchase a timeshare.

11. Failing to disclose initially to a prospectivepurchaser any agreement between the project broker or sales agent and thedeveloper that results in a sharing of sales proceeds in excess of a minimumsales price for a time share.

12. Any act or practice considered an unfair method ofcompetition 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 599Aof NRS.

(Added to NRS by 1985, 1134; A 1989, 650; 1991, 98; 2001, 2516)

 

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