[Rev. 11/21/2013 3:51:20 PM--2013]

[NAC-119A Revised Date: 4-12]

CHAPTER 119A - TIME SHARES

GENERAL PROVISIONS

119A.005         Definitions.

119A.010         “Advertisement” defined.

119A.015         “Blanket encumbrance” defined.

119A.020         “Branch office” defined.

119A.025         “Commission” defined.

119A.030         “Declaration” defined.

119A.035         “Director” defined.

119A.040         “Employment” defined.

119A.045         “Principal place of business” defined.

119A.047         “Project instrument” defined.

119A.050         “Promotional meeting” defined.

119A.060         “Published material” defined.

119A.065         “Salesperson” defined.

119A.070         “Time-share plan” defined.

119A.073         Check or draft returned for lack of payment.

LICENSING

119A.075         Sales agent: Application.

119A.077         Sales agent: Fee for investigation of background of applicant.

119A.078         Sales agent: Examination required; fee for examination.

119A.080         Sales agent: Minimum age.

119A.081         Provisional license: Prerequisites; issuance.

119A.082         Provisional license: Expiration; termination of employment; denial of application.

119A.083         Provisional licensee: Restrictions; supervision; commissions.

119A.085         Sales agent: Grounds for denial of application.

119A.090         Sales agent: Notice of denial of application; hearing to contest denial.

119A.095         Sales agent: Invalidation of license.

119A.100         Branch offices.

119A.105         Project broker or developer: Commingling of certain money prohibited; maintenance, inspection and audit of records.

119A.110         Change of status.

119A.112         Sales agent: Application to transfer license to new location.

119A.115         Project broker: Explanation of termination of sales agent.

119A.120         Sales agent: Failure to renew and reinstatement of license.

119A.125         Project broker: Effect of failure to renew or cancellation, revocation or suspension of license.

119A.130         Project broker: Duties, refund and transfer of employees upon termination of license.

119A.135         Failure of sales agent to surrender license: Affidavit showing loss, destruction or theft.

119A.140         Change of address or employment.

119A.147         Referral of complaints.

119A.150         Sales agent: Procedure for revocation or suspension of license.

119A.160         Hearing: Time and place; record; fees for witnesses; subpoena; participation by Administrator.

119A.170         Hearing: Procedure.

119A.175         Rehearing: Procedure.

119A.180         Hearing: Continuance.

119A.185         Sales agent: Payment of fees.

TIME-SHARE PERMITS

119A.190         Procedure for filing for permit or approval.

119A.195         Preliminary permit.

119A.200         Application for permit to sell time shares.

119A.205         Public offering statement.

119A.210         Material change in plan.

119A.215         Informal meetings.

119A.220         Trusts.

119A.225         Agreement by developer to subsidize costs.

119A.230         Subordination of interest by holders of certain liens.

STANDARDS AND DUTIES

119A.240         General obligations.

119A.245         Project brokers.

119A.250         Signing contracts; compliance with real estate laws; relationships between licensees.

119A.255         Contracts and other documents used in sale of project.

119A.256         Required statement in contract or other instrument used in sale of sampler program.

119A.258         Escrow accounts for purchasers.

119A.260         Time-share representatives.

119A.265         Responsibility of developer and project broker.

119A.270         Fraudulent or misleading sales techniques or tactics.

119A.275         Prompt delivery of offers, acceptances and counteroffers.

119A.280         Sales prohibited if title unmerchantable.

119A.285         Disclosure of interest.

119A.290         Complaints.

ADVERTISING

119A.295         Requirements for advertisement: Submission by developer or agent; changes in item; identification of name of developer; press release.

119A.300         Fees.

119A.305         General standards.

119A.310         Price; predevelopment sale; discount; future price; increase in value.

119A.315         Easements; improvements; assessment for improvement; taxes.

119A.320         Reference to community or geographical area.

119A.325         Potential use of time share.

119A.330         Reference to facilities away from project.

119A.335         Use of maps, pictures and sketches.

119A.340         Misleading use of reprints, testimonials, symbols or names.

119A.345         Required disclosures.

119A.350         Reference to right of exchange, resale or repurchase.

119A.355         Use of certain terms.

PROMOTIONAL MEETINGS AND PROMOTIONS

119A.360         Approval of promotional meeting.

119A.365         Standards for sales techniques and tactics.

119A.370         Sweepstakes, vacation or other gift certificate.

EDUCATION

119A.375         Evidence of 14 hours of required instruction.

119A.380         Qualifications for instructors.

119A.385         Approval of course in continuing education.

119A.390         Reapproval of courses; withdrawal or denial of approval.

119A.395         Continuing education: Standards for renewal of license.

119A.400         Continuing education: Standards for courses.

MANAGEMENT OF TIME-SHARE PROJECT

119A.450         Form for registration as manager.

119A.460         Disclosure statement for certain managers.

119A.470         Qualifications of person to conduct reserve study; consultants.

 

 

 

GENERAL PROVISIONS

      NAC 119A.005  Definitions. (NRS 119A.190)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 119A.020 to 119A.160, inclusive, and NAC 119A.010 to 119A.070, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.010  “Advertisement” defined. (NRS 119A.190)  “Advertisement” means published material which:

     1.  Offers for sale any project, unit, time share or interest in any time-share project;

     2.  Causes or induces, directly or indirectly, any person to acquire any interest in a project, unit, time share or interest in any time-share project;

     3.  Is used to induce prospective purchasers to attend sales presentations on time shares; or

     4.  Is used substantially for the retention of purchasers after sale.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.015  “Blanket encumbrance” defined. (NRS 119A.190)  “Blanket encumbrance” means any lien which encompasses more than one time share.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.020  “Branch office” defined. (NRS 119A.190)  “Branch office” means an office operated by a licensed real estate broker or corporation, separate from the principal location of the project broker, for the purposes of engaging in the business of selling real estate or time shares.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.025  “Commission” defined. (NRS 119A.190)  “Commission” means the Real Estate Commission.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.030  “Declaration” defined. (NRS 119A.190)  “Declaration” means the document consisting of the covenants, conditions and restrictions which regulates a project or a time-share plan.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.035  “Director” defined. (NRS 119A.190)  “Director” means the Director of the Department of Business and Industry.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.040  “Employment” defined. (NRS 119A.190)  “Employment” means the relationship between a broker-salesperson, salesperson, time-share representative or time-share agent and the project broker with whom he or she is associated. The term includes any employee-employer relationship as well as any relationship involving an independent contractor.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.045  “Principal place of business” defined. (NRS 119A.190)  “Principal place of business” means the principal office of a project broker which he or she uses to conduct the business of selling real estate or time shares, or both.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

 

      NAC 119A.047  “Project instrument” defined. (NRS 119A.190)  “Project instrument” means any document affecting real property which is the subject of the time share or project and which is not a time-share instrument.

     (Added to NAC by Real Estate Div., eff. 12-3-84)—(Substituted in revision for NAC 119A.055)

      NAC 119A.050  “Promotional meeting” defined. (NRS 119A.190)  “Promotional meeting” means any sales presentation given to any number of potential purchasers at one time at any location.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.060  “Published material” defined. (NRS 119A.190)  “Published material” means anything published in any medium for any person to whom this chapter or chapter 119A of NRS applies, including:

     1.  Any newspaper or periodical, except a press release which meets the standards set forth in NAC 119A.295;

     2.  Any radio, television, telephonic or other electronic broadcast or display;

     3.  Written, printed, photographic or artistic matter, including any pictorial display or statement visible to prospective purchasers attending a promotional meeting;

     4.  Vacation or other gift certificates; and

     5.  Oral statements made by a developer or a representative thereof at any promotional meeting.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.065  “Salesperson” defined. (NRS 119A.190)  “Salesperson” means any person who is licensed under chapter 645 of NRS and is employed or engaged by a licensed real estate broker for compensation or otherwise to perform any act or transaction to which chapter 119A or 645 of NRS applies.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.070  “Time-share plan” defined. (NRS 119A.190)  “Time-share plan” means the rights, obligations and program created by the time-share instruments for a time-share project.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.073  Check or draft returned for lack of payment. (NRS 119A.190, 119A.365)

     1.  If a person submits a check or draft to the Division to obtain a license, permit, certificate, registration, approval, accreditation or other type of authorization to engage in an activity for which authorization is required pursuant to this chapter or chapter 119A of NRS, and the check or draft is returned to the Division because the person had insufficient money or credit with the drawee to pay the check or draft or because the person stopped payment on the check or draft:

     (a) The license, permit, certificate, registration, approval, accreditation or other type of authorization obtained by the person from the Division is automatically invalidated; or

     (b) If the person has not obtained the license, permit, certificate, registration, approval, accreditation or other type of authorization from the Division, the Division may refuse to issue or reinstate the authorization.

     2.  In accordance with NRS 353C.115 and NAC 353C.400, the Division will charge a person, for each check or draft returned to the Division because the person had insufficient money or credit with the drawee to pay the check or draft or because the person stopped payment on the check or draft, a fee of $25 or such other amount as may subsequently be required by NRS 353C.115 and NAC 353C.400.

     (Added to NAC by Real Estate Div. by R011-04, eff. 4-6-2004)

LICENSING

      NAC 119A.075  Sales agent: Application. (NRS 119A.190, 119A.210)

     1.  An application for a sales agent’s license must be filed with an office of the Division on forms supplied by the Division and be accompanied by a fingerprint card and such additional information as is required by the Division. Fingerprints must be taken by a recognized law enforcement agency.

     2.  Each application must be completed by the applicant. A member of the Commission or employee of the Division shall not prepare an application on behalf of an applicant.

     3.  The Division will retain an application for 1 year. If a license is not issued within that time, the applicant must submit another application.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.077  Sales agent: Fee for investigation of background of applicant. (NRS 119A.190, 119A.210, 119A.350, 119A.360)

     1.  The Division will charge and collect, from each person who applies for a license as a sales agent, a fee for any investigation of the person’s background undertaken pursuant to NRS 119A.210.

     2.  The fee will not exceed the actual cost to conduct the investigation.

     (Added to NAC by Real Estate Div. by R011-04, eff. 4-6-2004)

      NAC 119A.078  Sales agent: Examination required; fee for examination. (NRS 119A.190, 119A.210, 119A.360)

     1.  An applicant for a license as a sales agent must, not earlier than 1 year before submitting his or her application to the Division, take and pass an examination administered by the Division.

     2.  An applicant must pay a fee of $100 each time he or she takes the examination.

     (Added to NAC by Real Estate Div. by R011-04, eff. 4-6-2004)

      NAC 119A.080  Sales agent: Minimum age. (NRS 119A.190, 119A.210)  The Administrator will not:

     1.  Accept any application from a person under the age of 17 years for a license as a sales agent pursuant to this chapter; or

     2.  Issue a license to a person under the age of 18 years.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.081  Provisional license: Prerequisites; issuance. (NRS 119A.190)

     1.  The Division will grant a provisional sales agent’s license to an applicant who has submitted:

     (a) A complete application for a sales agent’s license in compliance with NRS 119A.210 and NAC 119A.075 and 119A.077;

     (b) A written statement of acknowledgment from the project broker who will employ the applicant that:

          (1) The project broker has obtained a report on the background of the applicant from a licensed private investigator or other reputable source acceptable to the Division;

          (2) The project broker is satisfied that the applicant has a reputation for honesty, trustworthiness and competence; and

          (3) There is a written agreement between the project broker and the applicant in which the applicant states that he or she understands and agrees that his or her employment in a position as a provisional sales agent will be terminated if the Division denies the application; and

     (c) A copy of the report described in subparagraph (1) of paragraph (b), which must demonstrate that the applicant has not been convicted of, or pleaded guilty or nolo contendere to, any crime that would be grounds for the Division to deny the application pursuant to NAC 119A.085.

     2.  The Division will issue a provisional license to the project broker for an applicant upon verifying the applicant’s complete submission of all of the required items set forth in subsection 1.

     (Added to NAC by Real Estate Div. by R153-06, eff. 3-23-2007)

      NAC 119A.082  Provisional license: Expiration; termination of employment; denial of application. (NRS 119A.190)

     1.  A provisional license granted to an applicant by the Division will expire automatically:

     (a) If the Division denies the applicant’s application;

     (b) Upon the issuance of a sales agent’s license to the project broker for the applicant;

     (c) If the Division denies the applicant an identification card or permit of any kind;

     (d) If the applicant terminates employment with the project broker who provided the written statement of acknowledgment identified in NAC 119A.081; or

     (e) If the applicant’s check for the fee for the application of an original license is returned for insufficient funds.

     2.  An applicant may not work for a new project broker without resubmitting a complete application for a sales agent’s license in compliance with NRS 119A.210 and NAC 119A.075, 119A.077 and 119A.081.

     3.  Except as otherwise provided in this section, a provisional license expires 1 year after its date of issuance and may not be renewed.

     4.  Within 10 days after an applicant’s employment is terminated, the project broker shall notify the Division of the termination and return the provisional license to the Division.

     5.  If the Division denies the applicant’s application, the applicant:

     (a) May request a hearing to contest the denial of the application pursuant to NAC 119A.090; and

     (b) Shall not work as a provisional sales agent or in any other position that requires a provisional license while the decision on the appeal requested pursuant to paragraph (a) is pending.

     (Added to NAC by Real Estate Div. by R153-06, eff. 3-23-2007)

      NAC 119A.083  Provisional licensee: Restrictions; supervision; commissions. (NRS 119A.190)

     1.  A provisional licensee shall not:

     (a) Conduct sales-related activities unless he or she is:

          (1) Under the supervision of:

               (I) His or her project broker; or

               (II) A cooperating real estate broker designated by the project broker in accordance with subsection 3 of NAC 119A.100.

          (2) At the principal place of business or a branch office of the project broker, or at the physical location of a time-share development.

     (b) Collect personal information from a prospective purchaser or purchaser of a time share.

     2.  A project broker shall not grant to a provisional licensee:

     (a) Access to a time-share lockbox; or

     (b) The ability to enter a private residence or a time-share unit that an unlicensed person otherwise would not have.

     3.  A project broker or a cooperating real estate broker designated by the project broker in accordance with subsection 3 of NAC 119A.100 shall:

     (a) Supervise the provisional licensee employed by the project broker; and

     (b) Review and approve in writing any contract prepared by the provisional licensee that relates to the sale of a time share.

     4.  A provisional licensee may receive a commission for the sale of a time share in which the provisional licensee is involved.

 

 

     5.  As used in this section:

     (a) “Personal information” has the meaning ascribed to it in NRS 603A.040.

     (b) “Provisional licensee” means an applicant who receives a provisional sales agent’s license from the Division pursuant to NAC 119A.081.

     (Added to NAC by Real Estate Div. by R153-06, eff. 3-23-2007)

      NAC 119A.085  Sales agent: Grounds for denial of application. (NRS 119A.190, 119A.210)  The Division will deny any application for a license if:

     1.  The application is not in proper form;

     2.  The proper fees are not enclosed;

     3.  The accompanying forms are incomplete or otherwise unsatisfactory;

     4.  The application contains a false statement;

     5.  The application is otherwise deficient;

     6.  The applicant has been convicted of, or pleaded guilty or nolo contendere to, a felony or a misdemeanor involving moral turpitude, dishonesty or untrustworthiness, or has aided and abetted another to act or attempt to act in violation of chapter 119, 119A, 645 or 645A of NRS or the regulations adopted pursuant to those chapters;

     7.  The application fails to meet the requirements of NRS 119A.210;

     8.  An investigation fails to show affirmatively that the applicant possesses the necessary qualifications;

     9.  The applicant has willfully acted or attempted to act in violation of chapter 119, 119A, 645 or 645A of NRS or the regulations adopted pursuant to those chapters, or has aided and abetted another to act or attempt to act in violation of those statutes or regulations;

     10.  The applicant has had a license suspended or revoked in another state; or

     11.  The applicant holds a valid license issued pursuant to chapter 645 of NRS.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R011-04, 4-6-2004)

      NAC 119A.090  Sales agent: Notice of denial of application; hearing to contest denial. (NRS 119A.190)

     1.  If an application for a license, filed in the proper form and accompanied by the proper fee, is denied, the Administrator will give notice of the fact to the applicant within 15 days after the denial.

     2.  Upon written request from the applicant for a hearing to contest the denial of an application, the Administrator will schedule a hearing on the matter if the request:

     (a) Is filed within 30 days after receipt of the notice of the denial; and

     (b) Contains allegations which, if true, qualify the applicant for a license.

     3.  The hearing must be conducted within 90 days after receipt of the request for a hearing, at such time and place as the Administrator prescribes.

     4.  At least 15 days before the date set for the hearing, the Administrator will notify the applicant and include with the notification an exact copy of any protest filed, together with copies of all communications, reports, affidavits or depositions in possession of the Division which are relevant to the matter in question.

     5.  Written notice of the hearing will be served by delivery personally to the applicant or certified mail to the last known address of the business of the applicant.

     6.  A record of the proceedings, or any part thereof, must be made available to each party upon the payment to the Division of the reasonable cost of transcription.

     7.  The hearing officer shall or the Administrator will render a decision on any appeal within 60 days after the final hearing and notify the parties to the proceedings, in writing, of his or her ruling, order or decision within 15 days after it is made.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.095  Sales agent: Invalidation of license. (NRS 119A.190, 119A.210)  The Administrator, upon discovery of any error in the issuance of a license which is related to the qualification or fitness of the licensee, will invalidate the license. The Administrator will promptly notify the licensee, in writing, of the invalidation, and the licensee shall surrender the license to the Division within 20 days after the notice is sent. A licensee whose license is invalidated under this section and surrendered within the time specified is entitled to a hearing as provided for the denial of an application in this chapter and chapter 119A of NRS.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.100  Branch offices. (NRS 119A.190)

     1.  Every branch office must be operated under the supervision of a real estate broker or broker-salesperson who has had at least 2 years of experience as an active real estate broker, broker-salesperson or salesperson in the United States.

     2.  The project broker is responsible for all branch offices operated by him or her.

     3.  If the location of the branch office does not permit the project broker to exercise direct supervision, a real estate broker-salesperson must supervise that branch office, or the project broker must designate a cooperating real estate broker who must accept, in writing, the responsibility of supervision of that branch office. The cooperating broker must have the authority and responsibility of a project broker at the designated branch office.

     4.  A supervisor of a branch office may not manage more than one branch office.

     5.  A branch office is not required to establish a trust account separate from the main office, but if one is established, one of the signatures required on the account must be that of the supervisor of the branch office.

     6.  A branch office is required for each site for promotional sales.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.105  Project broker or developer: Commingling of certain money prohibited; maintenance, inspection and audit of records. (NRS 119A.190, 119A.400, 119A.420, 119A.652)

     1.  A project broker or developer shall not commingle the money or other property of his or her principal with his or her own.

     2.  A project broker shall keep records of every transaction clearly indicating deposits, disbursements, dates, names of purchasers and salespersons or sales agents, the records required to be kept pursuant to NRS 119A.400 and other pertinent information, numbered consecutively or indexed to permit audit by the Division.

     3.  A project broker shall notify the Division of the names of banks in which he or she maintains trust accounts and specify the names of the accounts on forms provided by the Division. The project broker must consent to inspection and audit of the trust accounts by the Division.

     4.  The project broker must give written notice to the Division of the exact location of his or her records of transaction. The project broker may not remove them until he or she has delivered notice to the Division of the new location.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.110  Change of status. (NRS 119A.190, 119A.220)

     1.  When a sales agent requests a change of project broker and pays the fee, the receipt issued by the Division constitutes a temporary working permit pending receipt of the requested license.

     2.  A sales agent who is working for a corporation is not considered to have changed employers if the corporation changes its corporate broker.

     3.  A real estate broker-salesperson, salesperson or sales agent shall not sell or offer to sell time shares in association with anyone other than the real estate broker with whom he or she is licensed at the location indicated on his or her license.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

 

      NAC 119A.112  Sales agent: Application to transfer license to new location. (NRS 119A.190, 119A.220)  A sales agent shall apply to transfer his or her license to a different location, on forms furnished by the Division, before conducting sales activities at the new location.

     (Added to NAC by Real Estate Div., eff. 5-2-86)

      NAC 119A.115  Project broker: Explanation of termination of sales agent. (NRS 119A.190, 119A.220)  The project broker shall explain the circumstances surrounding the discharge or termination of employment of any sales agent and supply an impression of his or her character, integrity and competence as well as any other pertinent information requested by the Division.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.120  Sales agent: Failure to renew and reinstatement of license. (NRS 119A.190, 119A.210)

     1.  If a sales agent fails to file an application for the renewal of his or her license before it expires, the sales agent may not engage in the business of selling time shares until the license is reinstated. To have the license reinstated, the sales agent must apply on the appropriate form, submit a current fingerprint card and pay the required fee.

     2.  In reviewing an application for reinstatement, the Administrator will apply the same standards as are applied for an application for an initial license. The Administrator will determine whether the application is accepted or denied within 10 days after receipt by the Division of the completed application, fee and any other information requested from the applicant and the report on the fingerprint card from the Federal Bureau of Investigation, if a report was requested.

     3.  If the Administrator denies an application for reinstatement for any reason, the sales agent may appeal the denial in the same manner as provided for the appeal of a denial of an application for an initial license.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.125  Project broker: Effect of failure to renew or cancellation, revocation or suspension of license. (NRS 119A.190, 119A.220)  If a project broker fails to renew his or her license or it is cancelled, suspended or revoked, the license of each sales agent in his or her employ will be immediately suspended until the employee applies for and meets the qualifications for reinstatement of his or her license and pays the proper fees.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.130  Project broker: Duties, refund and transfer of employees upon termination of license. (NRS 119A.190, 119A.220)  If the project broker fails to renew his or her license or it is cancelled, suspended or revoked, the project broker shall notify all broker-salespersons, salespersons and sales agents in his or her employ and deliver the license to the Division with the licenses of his or her employees. The employees may, upon proper application and payment of the required fee, transfer to the employ of another project broker within 30 days without need to submit current fingerprint cards. The Division will not make a refund when a license is cancelled, suspended, revoked or otherwise terminated.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.135  Failure of sales agent to surrender license: Affidavit showing loss, destruction or theft. (NRS 119A.190)  If a sales agent is required to surrender his or her license and does not, the sales agent shall file an affidavit with the Division showing that the license has been lost, destroyed or stolen. The affidavit must contain the licensee’s promise to return the license if it is recovered.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.140  Change of address or employment. (NRS 119A.190)

     1.  Each licensee and representative shall inform the Division immediately, in writing, of any change in the address of his or her business or residence. Failure to inform the Division of changes of address is a ground for suspension or revocation of a license.

     2.  Failure to notify the Division that a project broker has discontinued business at the address at which he or she is registered, or that a licensee is no longer employed by a project broker under whom he or she is shown to be licensed, is a ground for suspension or revocation of the license involved.

     3.  A representative is authorized to conduct activities only at the location specified in his or her application. Any change of location by a representative must be acknowledged to the Division in advance.

     4.  Failure to acknowledge a change of location is a ground for cancellation of a representative’s authorization to represent a developer.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.147  Referral of complaints. (NRS 119A.190, 119A.630, 119A.655)  The Administrator will refer any complaint:

     1.  For the imposition of a fine or the revocation or suspension of a sales agent’s license, to the Commission; and

     2.  On any other matter requiring a hearing, to a hearing officer.

     (Added to NAC by Real Estate Div., eff. 5-2-86)

      NAC 119A.150  Sales agent: Procedure for revocation or suspension of license. (NRS 119A.190, 119A.655)

     1.  The procedure set forth in this section will be followed before a sales agent’s license is revoked or suspended.

     2.  Upon a complaint initiated by the Administrator, the matter will be set for a hearing by the Administrator, who will schedule a hearing before the Commission.

     3.  The sales agent will be given at least 30 days notice in writing by the Administrator of the date, time and place of the hearing, together with a copy of the complaint and copies of all communications, reports, affidavits or depositions in possession of the Administrator relevant to the complaint.

     4.  The notice will be served by delivery personally to the sales agent or by mailing by certified mail to the last known address of the sales agent.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.160  Hearing: Time and place; record; fees for witnesses; subpoena; participation by Administrator. (NRS 119A.190, 119A.640, 119A.655)

     1.  A hearing must be held at such time and place as the Administrator prescribes.

     2.  A record of the proceedings will be made available to each party upon the payment to the Division of the reasonable cost of transcription.

     3.  Each witness who appears pursuant to a subpoena may receive for his or her attendance the same fees and mileage allowed by law to a witness in civil cases to be paid by the party at whose request the witness is subpoenaed.

     4.  A party to a hearing may compel the attendance of witnesses in his or her behalf at the hearing upon making a request to the Administrator and designating the name and address of the person to be served with a subpoena.

     5.  The Administrator will not participate in the adjudication of a disciplinary proceeding but will carry out the hearing officer’s decision.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

 

 

      NAC 119A.170  Hearing: Procedure. (NRS 119A.190, 119A.640, 119A.655, 119A.658)

     1.  The hearing officer shall:

     (a) Ascertain whether all persons commanded to appear under subpoena are present, and whether all documents, books, records and other evidence under subpoena are present in the hearing room;

     (b) Administer the oath to the reporter as follows: “Do you solemnly swear or affirm that you will report this hearing to the best of your stenographic ability?”;

     (c) Ascertain whether either party desires to have a witness excluded from the hearing room until he or she is called. The hearing officer may exclude a witness on his or her own motion or upon the motion of either party;

     (d) Ascertain whether a copy of the complaint or decision to deny has been filed and whether an answer has been filed as part of the record in the proceedings; and

     (e) Request the plaintiff or petitioner to proceed with the presentation of his or her case.

     2.  The hearing officer may question witnesses or counsel at any time during the proceedings.

     3.  Documentary or physical evidence which is to be introduced must first be marked for identification by the hearing officer.

     4.  When the plaintiff or petitioner has completed his or her presentation, the hearing officer shall request the respondent to proceed with the introduction of evidence and calling of witnesses on his or her behalf.

     5.  When the respondent has completed his or her presentation, the petitioner or plaintiff may call any rebuttal witnesses.

     6.  When all testimony for the plaintiff or petitioner and respondent has been given and all evidence submitted, the hearing officer may request the petitioner or plaintiff and the respondent to summarize their presentations.

     7.  The hearing officer shall indicate for the record that the hearing is terminated, and that he or she will issue a decision after considering all the evidence. After presentation of the case by the Administrator and the respondent and closing arguments by either party, if any, the hearing officer may recess the hearing for the purpose of coming to a decision.

     8.  The date of decision for the purpose of appeal therefrom is the date of written notice of the decision or ruling by the hearing officer.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.175  Rehearing: Procedure. (NRS 119A.190)  The following procedures will be used for a rehearing in a case where a ruling or decision of the hearing officer is against the sales agent:

     1.  The sales agent may within 10 days after receiving the decision, petition the hearing officer for a rehearing.

     2.  The petition must state with particularity the points of law which in the opinion of the sales agent the hearing officer has overlooked or misconstrued and must contain every argument in support of the application that the sales agent desires to present.

     3.  Oral argument in support of the petition is not permitted.

     4.  The Administrator may file and serve an answer to a petition for a rehearing within 10 days after receiving service of the petition.

     5.  A rehearing may be granted by the hearing officer for any of the following causes or grounds:

     (a) An irregularity in the proceedings in the original hearing;

     (b) Newly discovered evidence of a material nature which the applicant could not with reasonable diligence have discovered and produced at the original hearing; or

     (c) An error in the application of the law which occurred at the hearing and was objected to by the sales agent during the earlier hearing.

 

 

 

     6.  A petition for a rehearing may not exceed 10 pages of standard printing.

     7.  The filing of a petition for rehearing, or the decision therefrom, does not toll the running of the 30-day period of appeal to the district court from the date of the decision of the hearing officer.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.180  Hearing: Continuance. (NRS 119A.190, 119A.655)

     1.  The time of the hearing may be continued by the hearing officer upon the written petition of the sales agent or upon the written petition of the Administrator for good cause shown, or by stipulation of the parties to the hearing.

     2.  A continuance will not be granted on the grounds that the sales agent’s attorney has not had an opportunity to review the case unless he or she was given the case in good faith by the sales agent less than 15 days before the hearing.

     3.  A continuance will not be granted unless it is made in good faith and not merely for delay.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.185  Sales agent: Payment of fees. (NRS 119A.190)  The payment of an application or license fee must be made by cash, check or money order and payment shall be deemed earned upon receipt by the Division.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 11-8-88)

TIME-SHARE PERMITS

      NAC 119A.190  Procedure for filing for permit or approval. (NRS 119A.190, 119A.300, 119A.370)  The following procedures must be followed in filing an application for a time-share permit, the approval of an advertisement and other requests for an approval:

     1.  Required material must be filed with the Division by personal delivery or by mail, addressed to the office of the Division in Carson City.

     2.  Checks, drafts or money orders used to pay fees must be made payable to the Real Estate Division.

     3.  The date of a filing is the date when a statement, document or other material is received by the Division in the correct form together with the prescribed fee.

     4.  An application for a permit to sell time shares must be typed in black ink in standard or elite type on a form supplied by the Division. Supplemental material, except deeds, title policies, maps, plats, advertising and other official documents, must be typed on good quality, unglazed, legal size paper with a 2-inch margin at the top and a 1 1/2-inch margin on each side. Illegible photocopies must not be submitted.

     5.  The developer shall not incorporate by reference any matter used in a prior application for a time-share permit.

     6.  Copies of movies, videotapes, radio broadcasts, on cassette only, not reel-to-reel, or other bulky items which may be required in order to comply with the provisions of the written plan must be separate from the bound documents filed with the Division but clearly identified with the specific filing.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.195  Preliminary permit. (NRS 119A.190, 119A.290)  If a preliminary permit to sell time shares has been issued by the Administrator, the developer may accept a good faith deposit for a reservation if the document by which the reservation is taken provides for payment to the holder of the reservation of the total deposit plus interest earned, if any, within 15 days of written notice of cancellation of the reservation.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.200  Application for permit to sell time shares. (NRS 119A.190, 119A.290, 119A.300)  In addition to the information and documents required to be provided by law, an applicant shall provide the following information in or documents with his or her application for a permit to sell time shares:

     1.  Concerning the applicant’s business experience and background:

     (a) His or her name and the address of his or her principal place of business.

     (b) His or her ownership or other interest in the project.

     (c) If the applicant is a corporation:

          (1) A copy of its articles of incorporation and a current certificate of incorporation; and

          (2) If it is a foreign corporation, a certificate from the Secretary of State authorizing the corporation to transact business in Nevada, together with a copy of the list of its officers and directors and the designation of its registered agent, when required by the Secretary of State.

     (d) If the applicant is not a corporation, his or her consent to the service of process and designation of an agent in the State to accept service.

     (e) If the applicant is related to another business entity, a diagram showing his or her business relationship to the other business entity.

     (f) A list identifying each permit, license or other document for which the applicant has applied, or which he or she has received from any foreign or domestic governmental agency which allows or authorizes the applicant to sell or to promote the sale of:

          (1) Land;

          (2) Homes;

          (3) Home improvements;

          (4) Time shares;

          (5) Investments; or

          (6) Securities,

Ê including the denial or revocation, suspension or other disciplinary action taken in connection with any permit, license or other document. The list must include the date, issuing authority and status of each permit, license or document.

     (g) The identification of any conviction of the applicant, his or her affiliate or, if the applicant is a corporation, any of its incorporators or officers of a crime involving fraud, misrepresentation or unlicensed activity.

     (h) The identification of any pending criminal prosecution of the applicant, his or her affiliate or, if the applicant is a corporation, any of its incorporators or officers for a crime involving fraud, misrepresentation or unlicensed activity.

     (i) The identification of any past or pending civil litigation to which the applicant or his or her affiliate was or is a party or, if the applicant is a corporation, any of its incorporators or officers were or are parties.

     (j) The location within this State at which the project’s records are or will be maintained.

     2.  Concerning the proposed project:

     (a) A description of the method by which a prospective purchaser may locate and identify an individual unit, time share or other interest;

     (b) The identification of each approval granted for the proposed project by any governmental agency and the location of the public record of each approval;

     (c) The identification of each disclosure statement or other statement of information or other document filed with any governmental agency concerning the project;

     (d) A copy of any document which relates to the construction, acquisition or installation of any equipment or service of a utility in connection with the project;

     (e) Maps of the project including recorded plats and location maps;

     (f) Documents concerning maintenance of the project including the:

          (1) Management agreement;

          (2) Subsidy agreement;

          (3) Articles of association; and

          (4) Membership agreement of the association; and

     (g) Evidence of insurance coverage providing that proceeds must be disbursed for the repair and restoration of the project.

     3.  Concerning the physical condition of the project, a description of:

     (a) The climate and physical condition of the project’s site;

     (b) Each improvement, whether completed or promised, at the project’s site;

     (c) Each facility or service which is available in the area surrounding the project’s site; and

     (d) The nature and extent of the fire protection and police services for the project site.

     4.  Concerning the proposed promotion, advertising and sale of units, time shares or other interests in the project:

     (a) The written plan of the applicant’s advertising campaign including a copy of each proposed advertisement and other published material;

     (b) A description of each promotional activity which the applicant proposes to conduct in connection with the project;

     (c) A written plan of the method to be used in:

          (1) Procuring a prospective purchaser;

          (2) Accomplishing the sale; and

          (3) Retaining the purchaser after the sale; and

     (d) A statement of the agent’s or broker’s responsibility in connection with the activities mentioned in this subsection.

Ê After an application has been received by the Division, the applicant may be required to provide additional or explanatory information or provide copies of documents identified in the application.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.205  Public offering statement. (NRS 119A.190, 119A.300)  The public offering statement issued by the Division pursuant to NRS 119A.300 will have a cover sheet which states in red:

 

     THE PROSPECTIVE PURCHASER SHOULD READ THIS REPORT BEFORE SIGNING ANY PAPER.

 

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.210  Material change in plan. (NRS 119A.190, 119A.280, 119A.490)

     1.  A material change in the time-share plan includes, but is not limited to, the following:

     (a) Any material change in the time-share instruments or the project instruments;

     (b) A change in the escrow instructions, sales contract or other documents made available to or executed by a purchaser;

     (c) If a trust is established pursuant to NRS 119A.430, the resignation or proposed resignation of the trustee or any change in the trust agreement;

     (d) A material change adverse to the financial condition of the developer, the project or the association;

     (e) Any governmental action or proposed governmental action which would have an adverse effect on a time-share plan or on the developer;

     (f) Any action by the owners’ association or other management entity of the project in which the time-share property is located which would have a material adverse effect on the time-share plan;

     (g) Any change which would cause the information in the permit to sell time shares to be materially incorrect or misleading, including the suspension or expiration of a permit to sell time shares issued by another state;

     (h) A change in any project broker; and

     (i) Suspension of the project by an exchange program.

     2.  A developer may not make or cause to be made a material change in the time-share plan without giving the Division at least 10 days advance notice in writing of the intended change.

     3.  An order to cease issued pursuant to NRS 119A.280 must be served upon the project broker or developer personally or by certified mail to the last known business address on file with the Division.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.215  Informal meetings. (NRS 119A.190)  The Administrator will schedule an informal meeting to resolve matters which may be settled or otherwise may not require a formal hearing, in accordance with the following procedures:

     1.  The Administrator will initiate the procedure for an informal meeting by giving written notice which will include a concise statement of all the facts relating to the possible violation and a brief statement of the relief desired by the Administrator.

     2.  An informal meeting will be held by the Administrator or a designee thereof at a time and place prescribed by the Administrator.

     3.  The Administrator or the designee will, upon request, or any other party may, record the informal meeting.

     4.  The initiation of an informal meeting by the Administrator is without prejudice to its right to initiate a complaint and formal proceedings covering the same subject matter pursuant to this chapter.

     5.  All matters discussed and all material presented in an informal meeting may be used in a subsequent formal hearing, and the Administrator or the designee convening the meeting will inform all parties of that fact at the beginning of the informal meeting.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.220  Trusts. (NRS 119A.190, 119A.430)  If a trust is used to satisfy the requirements of subsection 2 of NRS 119A.430:

     1.  The trust must be established pursuant to an agreement approved by the Administrator; and

     2.  The trustee must be the party executing the sales contract as seller and is accountable for all unsold units and interests in the project.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.225  Agreement by developer to subsidize costs. (NRS 119A.190)  The developer, in lieu of paying the assessments on all unsold intervals, may enter an agreement with the association whereby he or she agrees to pay the difference between the total of the assessments paid by owners to the association and the actual operating costs, together with the budgeted reserves for repair and replacement. In addition to the agreement, the Division may require security in the form of a bond, letter of credit or other liquid asset to be placed in escrow.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.230  Subordination of interest by holders of certain liens. (NRS 119A.190)  Any holder of a lien which is secured by any collateral interest in the real property of the project shall subordinate his or her interest to the declaration either by jointly executing the declaration or by a separate recorded instrument.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

STANDARDS AND DUTIES

      NAC 119A.240  General obligations. (NRS 119A.190, 119A.652)

     1.  The project broker shall share with the developer the responsibility for all activities involving advertising, sales, solicitations and the inducement of persons to purchase time shares.

     2.  If a developer wishes to use more than one location to conduct sales activities, the project broker shall establish and maintain appropriate branch offices.

     3.  A location devoted exclusively to attempting to induce persons to attend a sales presentation for a time-share project which is not located at the developer’s, project broker’s or a sales agent’s regular place of business is not a branch office, although the project broker is responsible for the conduct of such an effort to induce attendance and must inform the Division in advance of his or her proposed establishment or relocation of such an effort.

     4.  The project broker is responsible for the activities of each sales agent, salesperson, broker-salesperson and registered representative.

     5.  A developer’s records may be inspected and audited by the Division and must be made available to the Division at the location of the records if they are located in Nevada or at the Division’s office in Carson City or Las Vegas, if outside of Nevada.

     6.  A developer must produce the records within 10 days of his or her receipt of the Division’s request. Failure to provide the Division with the records will result in suspension of the developer’s sales activities until the records requested are produced.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.245  Project brokers. (NRS 119A.190, 119A.400)

     1.  Before a broker may accept the position as project broker, he or she must make a personal inspection of the project for which he or she is to be responsible.

     2.  The project broker shall:

     (a) Obtain from each purchaser of a time share in the project a receipt for a copy of the public offering statement signed by the purchaser and selling agent;

     (b) Keep the receipt with a copy of any contract of sale or other sales agreement and other material in the files at his or her principal place of business;

     (c) Teach his or her salespersons, sales agents and registered representatives the contents of this chapter and chapter 119A of NRS and exercise strict supervision over their activities and over the operation of his or her business; and

     (d) Accept from the Division service of any notice, communication, correspondence or complaint on behalf of the developer or the project.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.250  Signing contracts; compliance with real estate laws; relationships between licensees. (NRS 119A.190)

     1.  All contracts of sale must be signed either by the project broker or by his or her authorized broker-salesperson, salesperson or sales agent.

     2.  Nothing in this chapter excuses a licensed real estate broker, broker-salesperson or salesperson from complying with chapter 645 of NRS and the regulations adopted pursuant thereto.

     3.  A broker-salesperson, salesperson or sales agent shall not associate with or accept compensation from any person other than the project broker under whom he or she is licensed at the time.

     4.  A person licensed as a real estate broker, broker-salesperson or salesperson under chapter 645 of NRS or a sales agent under chapter 119A of NRS may not register with the Division as a registered representative unless that license is placed on inactive status.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 2-28-90)

      NAC 119A.255  Contracts and other documents used in sale of project. (NRS 119A.190)

     1.  Each contract, agreement and other document used in the sale of the project is subject to the standards for advertising that are set forth in this chapter.

     2.  The following words must be printed clearly and conspicuously in a 12-point boldface type at the top of each contract for the sale of a time share:

 

     This is a binding contract by which you agree to purchase an interest in a time-share project. You should examine the statement of your right to revoke this contract within 5 days which is contained elsewhere in this contract.

 

     3.  The following words or words of a similar import may not be used in a contract of sale for a project, time-share unit or interest in a project:

 

     The purchaser agrees that no representation, oral or implied, has been made to the purchaser other than what is contained in this contract.

 

     4.  The following words must be printed clearly and conspicuously above the purchaser’s signature line in each contract for the sale of a time share:

     (a) “The purchaser of a time share may cancel, by written notice, the contract of sale until midnight of the fifth calendar day after the date of execution of the contract.”

     (b) “The right of cancellation may not be waived. Any attempt by the developer to obtain a waiver results in a contract which is voidable by the purchaser.”

     (c) “The notice of cancellation may be delivered personally to the developer or sent by certified mail or telegraph to the business address of the developer.”

     (d) “The developer shall, within 15 days after receipt of the notice of cancellation, return all payments made by the purchaser.”

     5.  Each contract of sale of a time-share property located outside Nevada which is sold within this State must contain one of the following sentences:

     (a) “This contract is to be construed according to the laws of Nevada and specifically chapter 119A of NRS”; or

     (b) “This contract is to be construed according to the laws of (name of the state or country). Any purchaser solicited in Nevada retains those rights granted under chapter 119A of NRS.”

     6.  A developer, real estate licensee or other agent shall not make any written or oral statement which seeks to change the true nature or legal rights or obligations of any contract or legal document approved by the Division.

     7.  Each major improvement which is promised in an offer must be stated in the contract so as to legally bind the developer to provide it. The Administrator will determine which improvements are considered to be subject to this requirement. With the prior approval of the Division, a major improvement which is promised in a project may be included in the contract by reference to another document.

     8.  The Administrator will schedule an informal meeting to attempt to resolve a question regarding an advertisement or a document as provided in NAC 119A.215.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R135-01, 12-13-2001)

      NAC 119A.256  Required statement in contract or other instrument used in sale of sampler program. (NRS 119A.190)

     1.  Each contract or other instrument that is used in the sale of a sampler program must contain the following statement in at least 10-point bold type above the purchaser’s signature line:

 

     The Real Estate Division of the Department of Business and Industry does not regulate or evaluate the sale of this product. No representations to the contrary may be made.

 

     2.  As used in this section, “sampler program” means a program that allows a prospective purchaser of a time share to buy an increment of time or occupancy of a limited duration in a time-share plan, normally to be used within 1 year after the date of purchase, for the purpose of determining whether to purchase a time share in the time-share plan.

     (Added to NAC by Real Estate Div. by R135-01, eff. 12-13-2001)

      NAC 119A.258  Escrow accounts for purchasers. (NRS 119A.190, 119A.420)  All deposits, negotiable instruments and money received in the sale of a time share must be placed in a separate escrow account for each purchaser for the duration of the period of revocation provided in this chapter unless:

     1.  The project broker has posted a surety bond naming the Division for the benefit of the purchasers in the minimum amount of $25,000 or in an amount equal to the highest monthly total amount of deposits received by that project broker, whichever sum is greater; and

     2.  All such money or negotiable instruments are deposited in one trust account established solely for the project and the purposes set forth in this section.

     (Added to NAC by Real Estate Div., eff. 2-28-90)

      NAC 119A.260  Time-share representatives. (NRS 119A.190, 119A.240, 119A.360)

     1.  A person who desires to become a representative for a developer must file an application for registration on a form furnished by the Division. The fee required by NRS 119A.360 is not refundable. An application for registration must be filed with the Division for each developer represented.

     2.  A person who is registered shall refer to himself or herself only as a time-share representative.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 11-8-88)

      NAC 119A.265  Responsibility of developer and project broker. (NRS 119A.190)

     1.  The developer is responsible for the acts of each person whom he or she employs or engages to represent him or her which are performed within the scope of the employee’s employment.

     2.  The project broker is responsible for the acts of each person whom he or she employs or engages to represent him or her which are performed within the scope of the employee’s employment.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.270  Fraudulent or misleading sales techniques or tactics. (NRS 119A.190, 119A.230)  In determining whether a licensee has engaged in a fraudulent or misleading sales technique or tactic, the Commission or hearing officer shall consider whether the licensee has, in connection with the act complained of:

     1.  Demonstrated an acceptable level of professional conduct to protect the public against fraud, misrepresentation or unethical practices in the promotion and sale of time shares.

     2.  Endeavored to ascertain all the pertinent facts concerning the project with which he or she is dealing.

     3.  Made a representation that is outside of his or her field of experience or competence without the assistance of a qualified authority, unless the fact of the lack of experience or competence is fully disclosed to his or her client.

     4.  Adequately documented any required disclosure of his or her interest in the project with which he or she is dealing.

     5.  Kept himself or herself informed of the current laws and regulations governing the promotion and sale of time shares and related fields in which he or she attempts to provide guidance.

     6.  Breached his or her obligation of absolute fidelity to his or her principal’s interest or his or her obligation to deal fairly with all parties to a transaction.

     7.  Obtained each change in the terms of the contract for sale and related documents in writing and determined that each change is signed or initialed by the parties concerned.

     8.  Understood and properly applied relevant federal and state law relating to protection of potential purchasers.

     9.  Demonstrated an acceptable level of professional conduct in seeking to provide all material facts of common or express concern to the parties to the transaction.

 

     10.  Violated any of the provisions of this chapter or chapter 119A of NRS.

     11.  Employed oppressive sales tactics or methods as described in this chapter.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.275  Prompt delivery of offers, acceptances and counteroffers. (NRS 119A.190)  A sales agent shall promptly deliver:

     1.  To the project broker every good faith offer complete with all the terms and conditions of the purchase which he or she obtains; and

     2.  To the purchaser and seller a copy of each acceptance of an offer or counteroffer.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.280  Sales prohibited if title unmerchantable. (NRS 119A.190)  A sales agent may not attempt to sell or offer to sell any unit, time share or interest in the project with knowledge that the title is unmerchantable.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 10-23-87)

      NAC 119A.285  Disclosure of interest. (NRS 119A.190)  If a licensee owns or has an interest in a unit, time share or an interest in a time share which he or she is attempting to sell, the licensee shall disclose the interest and the fact and nature of his or her license in writing to a prospective purchaser before or at the time of his or her receipt of an offer to purchase.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.290  Complaints. (NRS 119A.190)

     1.  The Administrator will prepare and require the use of a standard form or affidavit by a person in making a complaint in connection with the promotion and sale of time shares.

     2.  When a complaint is made, the Administrator will investigate any action which appears to violate chapter 119, 119A, 645 or 645A of NRS or the regulations adopted pursuant thereto and is not limited to the matter in the complaint.

     3.  A licensee or representative shall disclose all facts and documents pertinent to the investigation to the members of the Administrator’s staff conducting the investigation.

     4.  If the Administrator determines that there is a reason to believe that a violation of law or of a regulation has occurred, he or she will initiate the appropriate disciplinary steps as provided in either chapter 119A of NRS, if the licensee is licensed pursuant to that chapter, or chapter 645 of NRS, if the licensee is licensed pursuant to that chapter.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

ADVERTISING

      NAC 119A.295  Requirements for advertisement: Submission by developer or agent; changes in item; identification of name of developer; press release. (NRS 119A.190, 119A.370)

     1.  A proposed advertisement must be submitted to the Division by the developer or an employee or agent thereof.

     2.  Any change in an item of advertising which has been previously filed with the Division must be submitted to the Division with the changes clearly marked on the item. The modified advertisement voids the prior filing.

     3.  The name of the developer must be clearly identified to the satisfaction of the Division in any advertising used by the developer.

     4.  A press release issued in good faith is exempt from this section if it is intended for publication without payment of any consideration.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 2-28-90; R135-01, 12-13-2001)

 

      NAC 119A.300  Fees. (NRS 119A.190, 119A.370)

     1.  Each item of advertising and each modification of an item of advertising which was previously filed constitutes a separate filing, and a fee will be assessed for each item submitted.

     2.  A fee may be paid in cash or by cashier’s check, certified check, personal check, company check or money order. If payment is made by a personal or company check, the Division will not file the advertisement until the check has been honored by the bank on which it is drawn.

     3.  The following schedule of fees is established for the filing of advertising:

     (a) For each item of advertising 8 1/2 by 14 inches or less in size, the fee is $5 per page to a maximum of $25. If the item is a newspaper line advertisement or a classified display of 15 words or less, without any illustrations, the fee is $2.

     (b) For a full page advertisement in a newspaper, approximately 15 by 22 inches, the fee is $20.

     (c) If an advertisement contains matter on both sides of a page, the advertisement is considered to be two pages in length.

     (d) If the size of the advertisement, including, but not limited to, a map, poster or billboard, is larger than 15 by 22 inches, or if the length of a written advertisement, including, but not limited to, a radio or television script, speech script, book, pamphlet or similar item, contains five or more pages, the fee is $25.

     (e) For a television or motion picture presentation, the fee is $25. If a script is submitted simultaneously with the television tape or motion picture film, there is no extra charge. The developer is responsible for making the advertisement available for review by the Division.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R135-01, 12-13-2001)

      NAC 119A.305  General standards. (NRS 119A.190, 119A.370)

     1.  An advertisement must conform to the following standards:

     (a) Statements and representations contained in the advertisement must be accurate and true;

     (b) An advertisement must fully state the factual material so as not to misrepresent the facts or create misleading impressions; and

     (c) Each advertisement must be consistent with the information filed with the Division.

     2.  An advertisement or a piece of promotional material will be judged on the basis of the positive representations contained in it and the reasonable inferences to be drawn from it. An inference which may be reasonably drawn from an advertisement or a piece of promotional material is deemed to be a positive assertion unless the inference is negated in clear and unmistakable terms, or unless adequate safeguards have been provided by the developer to assure the accuracy of the thing inferred.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.310  Price; predevelopment sale; discount; future price; increase in value. (NRS 119A.190, 119A.370)  An advertisement, a piece of promotional material or an oral representation regarding a project:

     1.  Which refers to the purchase price of any unit, time share or any interest in a unit or time share must also clearly disclose any additional compulsory assessment or cost to the prospective purchaser.

     2.  Which refers to a predevelopment sale being at a lower price, because the project has not yet been developed in some manner, must disclose whether there is a good faith plan for development and, if there is such a plan, the prospective completion date.

     3.  Which offers a discount which reduces the advertised price may do so only if the discount is offered for a purchase in quantity, payment in cash, a large or accelerated payment or on other reasonable grounds.

     4.  Must not contain any statement concerning a future increase of the price by the developer which is not specific as to the amount and the date of the increase, and a future increase of the price may not be alluded to unless it is anticipated in good faith.

     5.  Must not state that the value of the land, unit, time share or an interest in the land, unit or time share has increased in the project or the area unless the interest used for comparison is directly comparable to that being advertised for sale.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.315  Easements; improvements; assessment for improvement; taxes. (NRS 119A.190, 119A.370)

     1.  An advertisement which states the size of a unit, a time share or an interest being offered must also disclose any easement to which any unit is subject and the nature of the easement. If an easement has a significant effect on the use of a unit, a time share or an interest, each map, plat or other representation of the unit, time share or interest must show the extent to which the use is affected by the easement.

     2.  No improvement in or related to the project may be advertised unless it has been completed or installed and is available for use, or the completion or availability is assured through an adequate financial arrangement approved by the Division, including a contractual obligation of the developer to the purchaser.

     3.  An advertisement which refers to any promised improvement for which the prospective purchaser will be assessed must clearly and fully disclose the assessment.

     4.  An advertisement which contains a statement regarding taxes and their amount must state the latest available information.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.320  Reference to community or geographical area. (NRS 119A.190, 119A.370)  An advertisement which refers to a community or a geographical area in connection with a project, unit, time share or interest must state the mileage from a specific point in that community or area, together with the types of roads to be traversed.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.325  Potential use of time share. (NRS 119A.190, 119A.370)

     1.  An advertisement must not imply the use of a time-share project, unit or other interest or other reason for its purchase which is not set forth in the application for a permit to sell time shares.

     2.  An advertisement which contains a statement, photograph or sketch portraying the use to which an advertised property may be put by the purchaser must set forth a qualified estimate of cost for preparation for the advertised use if the preparation will not be done by the developer and the cost is not included in the purchase price.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.330  Reference to facilities away from project. (NRS 119A.190, 119A.370)

     1.  An advertisement must not contain any statement, photograph or sketch relating to a facility for recreation, sports or any other conveniences which are away from the project or not in existence, unless it is clearly and prominently disclosed in conjunction with the statement, photograph or sketch that the facility is only proposed or is not a part of the project, and the distance to it in miles along a road is given together with the types of roads to be traversed. If the facility is only proposed, the developer must state a good faith date of completion in the advertisement.

     2.  An advertisement which refers to a public facility must fully disclose the financial arrangement and completion date for the facility.

     3.  An advertisement must not refer to a public facility which is only proposed or under study unless it fully and clearly discloses that the facility is proposed or under study. If the advertisement refers to a proposed location or date of completion for a proposed facility, it must also disclose whether a decision to construct the facility has been officially rendered by the governmental authority responsible for the decision.

     4.  As used in this section, “public facility” means any facility which is available or will be available for use by the general public including purchasers of the project and their successors in interest.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.335  Use of maps, pictures and sketches. (NRS 119A.190, 119A.370)

     1.  An advertisement may not include a map unless it is drawn to scale and the scale is stated, or the map clearly and obviously bears the label “not to scale.”

     2.  A map, plat or other representation of a project must indicate the date on which the project will be completed. If multiple dates of completion extend over a period of years, then a series of shadings, outlines or other graphic coding may be used to indicate the dates of completion.

     3.  If an advertisement contains a picture, the picture must fairly and accurately depict the existing conditions of the project being advertised for sale.

     4.  An advertisement must not contain an artist’s sketch which portrays proposed improvements or nonexistent scenes unless the sketch is accompanied by a clear statement that the portrayal is an artist’s sketch and that the improvements are proposed or the scenes do not currently exist.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.340  Misleading use of reprints, testimonials, symbols or names. (NRS 119A.190, 119A.370)  An advertisement must not include:

     1.  Reprints of previously published material unless the information contained in the reprint is true, relates to the project being offered and complies with all other provisions of this chapter.

     2.  A testimonial or endorsement which contains any statement that the developer or project broker is precluded by law or regulation from making in his or her own behalf.

     3.  An asterisk or other reference symbol which refers to explanatory material that contradicts or changes, or tends to contradict or change, the meaning of any prior statement or which obscures or tends to obscure any material fact asserted elsewhere in the advertisement.

     4.  A name or symbol which implies that the advertiser is a public agency or a nonprofit, research or other similar organization unless it is such an organization.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.345  Required disclosures. (NRS 119A.190, 119A.370)  Each orally presented or written advertisement which is designed to induce attendance at or participation in a sales presentation must conspicuously include:

     1.  The following statement: “The purpose of (the event or activity) is to attempt to sell you a time-share interest in (name of state in which property is located)”; and

     2.  A disclosure of any restrictions or conditions on the sale of the time-share interest or the attendance or participation in the sales presentation.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.350  Reference to right of exchange, resale or repurchase. (NRS 119A.190, 119A.370)  An advertisement which refers to:

     1.  A privilege on the part of the owner to exchange his or her time share must clearly state any qualification or limitation on the privilege.

     2.  A resale or repurchase of the time share by the developer must fully disclose the terms and conditions of the resale or repurchase.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.355  Use of certain terms. (NRS 119A.190, 119A.370)

     1.  An advertisement must not contain the term “appraised,” “appraised value” or any other similar term without specifying the statistics or materials which support the conclusion, including:

     (a) The date of the appraisal;

     (b) The appraiser’s name, address and telephone number;

     (c) Any limiting conditions and other special factors of the appraisal; and

     (d) The relationship of the appraiser to the developer.

     2.  An advertisement must not contain terms such as “minutes away,” “short distance,” “only miles,” “near” or similar indistinct or indefinite terms which are intended to indicate distance unless the actual distance in miles along a road is stated together with the types of roads traversed.

     3.  A promotional offer which is advertised must not use the terms “free,” “no obligation” or a term of similar import to describe that which is offered unless the offer is unequivocally without conditions.

     4.  A unit, time share or interest must not be advertised as being “free” if the prospective purchaser is required to give any consideration, or if any additional unit, time share or interest must be purchased to render the “free” unit, time share or interest usable. A unit, time share or interest may be advertised as being offered “for closing costs only” if the closing costs are fully disclosed.

     5.  An advertisement which refers to or depicts “roads” or “streets” must affirmatively disclose the nature of those roads or streets, including whether the roads or streets are paved, gravel or dirt, and if a road or street is not traversable year-round by a conventional automobile.

     6.  An advertisement may use the term “waterfront” project or other terms of similar import only if the project, time-share unit or interest being offered actually fronts on a body of water and has full and usable access along the frontage.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

PROMOTIONAL MEETINGS AND PROMOTIONS

      NAC 119A.360  Approval of promotional meeting. (NRS 119A.190, 119A.370)

     1.  Before a developer may conduct a promotional meeting, a statement of the nature and manner of conducting the meeting must be submitted in writing and approved by the Division.

     2.  In reviewing material submitted by an applicant pursuant to NRS 119A.370, the Administrator will investigate whether the nature and manner of conducting a promotional meeting will bring about a full disclosure of all the material facts concerning the project.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.365  Standards for sales techniques and tactics. (NRS 119A.190, 119A.370)  Sales techniques and tactics must conform to the following standards:

     1.  Decoys or false buyers must not be used in a promotional meeting for any purpose.

     2.  Each oral statement made to a prospective purchaser at a promotional meeting must be completely consistent with written advertising or other material filed with and approved by the Division.

     3.  Any prospective purchaser who expresses a desire to leave a promotional meeting at any time during or after the sales presentation may not be impeded in any manner from departing or coerced or pressured to remain.

     4.  Investigators and other employees of the Division must be allowed to attend any promotional meeting.

     5.  Excessively loud music must not be played during a promotional meeting, and it must be turned off or down at the request of employees of the Division who are present at the meeting.

     6.  Except for a speaker making a speech from a podium, after a salesperson initially meets with a prospective purchaser, the developer or project broker may allow only one additional salesperson to attempt a sale.

     7.  If an employee of the Division is present at a sales presentation, he or she must not be identified, singled out or asked questions in such a way that a potential purchaser might hear the question or the employee’s remarks.

     8.  If a project broker or developer at any time before, during or after a promotional meeting uses any electronic surveillance, recording, eavesdropping or listening device, he or she must disclose its use orally at the beginning of the meeting and also by means of a placard prominently displayed in the meeting room.

     9.  Each gift advertised must be given to a prospective purchaser whether or not he or she purchases a time share. The advertisement must disclose, in writing, any condition or restriction of the offer of a gift.

     10.  An employee of the developer shall not keep a prospective purchaser’s credit card for a period longer than is reasonably necessary to check the purchaser’s credit rating.

     11.  The public offering statement and exchange information, the sales contract and other documents which the purchaser would be signing if a purchase were consummated must be reviewed by the sales agent, salesperson, broker-salesperson or project broker with the potential purchaser.

     12.  Upon the purchaser’s request, the purchaser must be allowed time to discuss the documents with another person, review the documents and, if he or she so desires, consult an attorney before signing any document.

     13.  Before signing an offer to purchase, the purchaser must be informed of his or her unconditional right to rescind the sales contract.

     14.  The Division may not be mentioned in such a manner as to suggest that the Division has approved the project, documents or sales techniques of the project.

     15.  No false or misleading statements may be made regarding the future economic success, any recreational facilities or the location of the project.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86)

      NAC 119A.370  Sweepstakes, vacation or other gift certificate. (NRS 119A.190, 119A.370)

     1.  Before a developer advertises or promotes a project with a program which includes the use of a sweepstakes, vacation or other form of a gift certificate, the developer must:

     (a) Provide copies of the vacation or gift certificates and any other published materials to be used in the program;

     (b) Provide the names of the companies with which he or she has contracted to provide the goods or services offered;

     (c) Provide evidence satisfactory to the Division that he or she has firm commitments with the suppliers of goods or services which will be used as part of the program;

     (d) If required by the Administrator, provide proof of financial assurance that he or she can and will honor his or her commitments to the recipients and the suppliers; and

     (e) Comply with the provisions of NRS 598.131 to 598.139, inclusive.

     2.  A sweepstakes, vacation or other form of a gift certificate must conform to the standards for advertising that are set forth in this chapter and must:

     (a) Contain a fixed date for the expiration of rights afforded recipients; and

     (b) Disclose the nature of the gift or other benefit. The disclosure must include a description of:

          (1) What the prospective purchaser will actually receive;

          (2) When he or she will receive it;

          (3) His or her obligations, if any;

          (4) All other material conditions or limitations;

          (5) The actual value of the gift or benefit; and

          (6) If the offering constitutes a chance to win a gift or other benefit, the probability of winning conspicuously stated in plain language.

     3.  Any change in the expiration date or in the identity of a supplier of goods or services used in the program is a material change in the written plan, and notice of the change must be given to the Division for its written approval before the change becomes effective.

     4.  When the developer, real estate licensee or other agent meets with a recipient he or she shall clearly identify himself or herself and his or her status of employment with regard to the project.

     5.  The Administrator will schedule an informal meeting to attempt to resolve a question regarding an advertisement or a document as provided in NAC 119A.215.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 10-23-87; 2-28-90)

EDUCATION

      NAC 119A.375  Evidence of 14 hours of required instruction. (NRS 119A.190, 119A.210)  The Administrator will accept as satisfactory evidence of the 14 hours of instruction required by paragraph (a) of subsection 1 of NRS 119A.210, the submission by the applicant of a certificate issued by a qualified instructor evidencing that the applicant has:

     1.  Attended 8 hours of instruction in the principles and practices of selling time shares which must:

     (a) Include elements and types of time shares, the respective roles of the developer, owner, project broker, agent and representatives and the forms of contractual agreement and other documents related to the sale of time shares; and

     (b) Not include specific office-related, project-oriented training or policies, any meeting for the promotion of sales or any activity held as part of the actual sale or promotion of business, or the development of personal motivation, the psychology of sales or techniques for making sales;

     2.  Attended 6 hours of instruction in professional ethics and the applicable laws and regulations relating to time shares which must include coverage of chapter 119A of NRS and the regulations adopted pursuant thereto and the Federal Trade Commission Act, 15 U.S.C. §§ 41 to 58, inclusive; and

     3.  Passed the final examination with a grade of 75 percent or higher.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.380  Qualifications for instructors. (NRS 119A.190, 119A.210)  A qualified instructor must:

     1.  Have a good reputation for honesty, integrity and trustworthiness.

     2.  Have a combination of education and experience in the field of real estate, time shares or business as follows:

     (a) A college degree in business, economics, real estate or a related area plus 1 year of practical experience in a related area;

     (b) Two years of college courses in business, real estate, economics or education plus 2 years of practical experience in a related area;

     (c) Five years of full-time practical experience in a related area; or

     (d) Proof of appropriate training and knowledge sufficient to instruct such course subjects as deemed acceptable by the Administrator.

     3.  Follow the procedure set forth for the approval of a course for continuing education.

     4.  Issue a certificate of completion to an applicant when he or she has:

     (a) Attended 14 hours of the required instruction; and

     (b) Passed the final examination with a grade of 75 percent or higher.

     5.  Maintain attendance records for 2 years which contain each student’s name, the date and his or her attendance at the specific courses.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.385  Approval of course in continuing education. (NRS 119A.190, 119A.210)

     1.  The application for the approval of a course in continuing education must be submitted to the Administrator on a form provided by the Administrator.

 

     2.  The Administrator will not give retroactive approval for a course.

     3.  The criteria used by the Administrator in evaluating a course will consist of, but are not limited to:

     (a) The qualifications of the instructor;

     (b) The materials for the courses that are offered;

     (c) The adequacy of the documentation of the student’s attendance provided to the Administrator and the records maintained by the instructor; and

     (d) Whether course evaluations by persons who attended the course are provided.

     4.  If the course is approved, the instructor shall provide a certified copy of the record of attendance of the student to the Administrator containing the:

     (a) Name of the instructor;

     (b) Name of the student;

     (c) Number of hours of instruction;

     (d) Dates of instruction;

     (e) Title of the course or seminar; and

     (f) Signature of the instructor.

     5.  The instructor shall notify the Administrator if there are any material changes in the course.

     6.  The Administrator’s approval of the course is effective for 1 year after the original accreditation or reaccreditation.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.390  Reapproval of courses; withdrawal or denial of approval. (NRS 119A.190, 119A.210)

     1.  The instructor must apply for reapproval of the course on a form provided by the Administrator at least 2 weeks before the expiration of the previous approval. If the instructor fails to do so, he or she must apply for an original approval if he or she wishes to continue to offer the course.

     2.  Each of the following acts and conditions is a ground for withdrawal of approval or denial of reapproval:

     (a) The poor quality of the curriculum or instruction, as demonstrated by an evaluation of the course prepared by the students or an employee of the Division.

     (b) The instructor’s failure to notify the Administrator regarding any material change in the course.

     (c) The instructor’s failure to supervise strictly the attendance of students.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.395  Continuing education: Standards for renewal of license. (NRS 119A.190, 119A.210)

     1.  The license of a sales agent will not be renewed unless he or she submits proof of having completed 6 hours of continuing education.

     2.  The Administrator will accept only those courses that have been approved as meeting the requirements for continuing education as set forth in this chapter.

     3.  The continuing education must be completed during the 2-year period preceding the date of renewal of his or her license.

     4.  A course may not be taken for credit more than once unless the material in the course has been significantly changed or updated.

     5.  A licensee may receive credit for courses in continuing education if he or she teaches an approved course. The credit will be given only once for teaching the course. The licensee must submit proof that he or she taught the course during the applicable period of licensing.

     6.  The Administrator will not accept more than 7 hours of credit for courses in continuing education for each day of instruction.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

      NAC 119A.400  Continuing education: Standards for courses. (NRS 119A.190, 119A.210)

     1.  A course, in order to qualify for credit for continuing education, must contain:

     (a) Current information on real estate or time-share subjects which will improve the professional knowledge of the licensee and enable him or her to give better service to the public; or

     (b) Information that relates to pertinent laws and regulations of Nevada.

     2.  The Administrator will accept the following courses as meeting the standards for continuing education contained in subsection 1 without application or specific approval:

     (a) Any course in real estate, time shares or a directly related subject if the course is offered by an accredited university or community college; or

     (b) Any course offered by the National Association of Realtors, National Timesharing Council or its societies, institutes or councils.

     3.  The following types of courses and activities do not meet the standards for continuing education:

     (a) A course designed only to prepare an applicant for an examination;

     (b) A course designed to develop or improve clerical, office or business skills, such as typing, shorthand, operation of business machines, speed reading, improving memory or writing letters and reports;

     (c) A meeting for the promotion of a sale, a program of office training or other activity which is held as part of the general business of the licensee;

     (d) A course for orientation of licensees; or

     (e) A course on the development of personal motivation, the psychology of sales or the techniques for making sales.

     (Added to NAC by Real Estate Div., eff. 12-3-84)

MANAGEMENT OF TIME-SHARE PROJECT

      NAC 119A.450  Form for registration as manager. (NRS 119A.190, 119A.532)

     1.  A form for registration submitted pursuant to NRS 119A.532 by a person who wishes to engage in the business of, act in the capacity of, advertise or assume to act as a manager must be:

     (a) Completed personally by the person who wishes to register. A member of the Commission or employee of the Division may not prepare a form for registration on behalf of a person who wishes to register.

     (b) Accompanied by the fees prescribed by the Division.

     (c) Except as otherwise provided in subsection 3, accompanied by satisfactory evidence, acceptable to the Division, that the person who wishes to register and his or her employees have obtained fidelity bonds, insurance policies or cash deposits deemed comparable by the Division for the benefit of the association or, if there is no association, the owners.

     2.  A separate form for registration must be filed for each agreement to manage a time-share plan or project that a person wishes to enter.

     3.  A person who has not entered into an agreement to manage a time-share plan or a project, but who files a form for registration for the purpose of advertising, soliciting or otherwise offering his or her management services in this State, must indicate this purpose on the form in the space provided for the registered name of the time-share plan or the project, or both. Within 30 days after entering into an agreement to manage a time-share plan or a project, a person who has registered pursuant to this subsection must:

     (a) File a separate form for registration that indicates the registered name of the time-share plan or the project, or both; and

     (b) Submit satisfactory evidence, acceptable to the Division, that he or she has complied with the provisions of paragraph (c) of subsection 1.

     (Added to NAC by Real Estate Div. by R135-01, eff. 12-13-2001)

      NAC 119A.460  Disclosure statement for certain managers. (NRS 119A.190, 119A.534)  The disclosure statement required by NRS 119A.534 must be submitted on a form prescribed by the Division and must contain:

     1.  A schedule of fees to be paid to the manager or an affiliate of the manager for the resale of any time shares for the purposes of paragraph (a) of subsection 1 of NRS 119A.534;

     2.  A written policy concerning the procedures for billing and collecting assessments and for the foreclosure of liens for the purposes of paragraph (b) of subsection 1 of NRS 119A.534;

     3.  A description of any exchange program that is not operated by a third-party vendor of an exchange program or of a rental program offered by the manager or an affiliate of the manager and any fees to be paid to the manager or an affiliate of the manager of such a program for the purposes of paragraph (c) of subsection 1 of NRS 119A.534; and

     4.  Any use of the names of the members of the association and other information collected by the manager regarding the members for purposes that are unrelated to the duties of the association, including, without limitation, payment history, address, telephone number and social security number, for the purposes of paragraph (d) of subsection 1 of NRS 119A.534.

     (Added to NAC by Real Estate Div. by R135-01, eff. 12-13-2001)

      NAC 119A.470  Qualifications of person to conduct reserve study; consultants. (NRS 119A.190, 119A.542)

     1.  A person is qualified by training and experience to conduct a reserve study if the person proves to the satisfaction of the board that he or she has:

     (a) A good reputation for honesty, trustworthiness and integrity;

     (b) The ability to evaluate components of the common area with regard to normal and accelerated deterioration, remaining useful life, by year, and current cost to repair, replace or restore;

     (c) The ability to perform financial analysis, cost estimates and 30-year projections, as applicable;

     (d) The ability to review documents of the association and to consult with the board to ascertain and confirm the component inventory from such a review;

     (e) The ability to gather and analyze financial data, including, without limitation, monthly assessment fees, current balance of reserves, interest rate anticipated on reserves, anticipated inflation and maximum fee increases allowable; and

     (f) The background and knowledge pertinent to all areas to be addressed by the reserve study and to all components of the common area to be addressed by the reserve study.

     2.  A person who is selected to perform a reserve study for the board may use consultants and other persons with expertise in the areas and components of the reserve study to assist in preparing the reserve study.

     3.  As used in this section:

     (a) “Component inventory” means a list of components of the common area identified in a reserve study that may require repair, replacement or restoration.

     (b) “Reserve study” means a study required pursuant to NRS 119A.542 that projects the expenses of an association for the repair, replacement and restoration of the major components of the common area and that establishes the reserves required to cover such expenses.

     (Added to NAC by Real Estate Div. by R135-01, eff. 12-13-2001)