Time Shares - LICENSING - Sales agent: Application.

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[Rev. 2/20/2020 12:25:26 PM]

[NAC-119A Revised Date: 2-20]

CHAPTER 119A - TIME SHARES

GENERAL PROVISIONS

119A.005            Definitions.

119A.010            “Advertisement” defined.

119A.025            “Commission” defined.

119A.030            “Declaration” 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.073            Check, draft or electronic payment returned for lack of payment; fee.

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 time-share resale broker: Commingling of certain money prohibited; maintenance, inspection and audit of records; notice to Division of location of records of transaction.

119A.110            Change of status; requirement that sale or offer to sell be made in association with licensed location.

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 upon termination of license; transfer of employees to another project broker; no refund under certain circumstances.

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.

SALE OF TIME SHARES

119A.190            Procedure for filing for permit to sell time shares.

119A.195            Preliminary permit to sell time shares.

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

119A.201            Application for registration as time-share resale broker.

119A.202            Abbreviated registration: Information and documents to be provided to purchasers; filing of certain documents with Division; renewal.

119A.203            Abbreviated registration: Application for conversion of existing permit.

119A.205            Public offering statement.

119A.210            Material change in plan; service of order to cease.

119A.213            Developer to file amended statement of record before change of project broker; fee.

119A.215            Informal meetings.

119A.220            Requirements for 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 of project brokers and developers; inspection and audit of records.

119A.245            Duties of project brokers.

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

119A.255            Requirements of contracts, agreements and other documents used in sale of project.

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

119A.257            Required disclosure of certain information to purchaser before resale; duties of time-share resale broker.

119A.260            Time-share representatives.

119A.265            Responsibility of developer and project broker.

119A.270            Factors for determining whether licensee engaged in 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 to prospective purchaser.

119A.290            Complaints.

ADVERTISING

119A.305            General standards.

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

119A.315            Improvements and promised improvements.

119A.325            Potential use of time share.

119A.330            Reference to facilities or other conveniences; disclosure of types of roads; incomplete public facilities.

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

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

119A.345            Required statements and disclosures.

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

119A.355            Use of certain terms.

PROMOTIONAL MEETINGS AND PROMOTIONS

119A.365            Standards for sales techniques and tactics.

119A.370            Use of 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.

PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS

119A.600            Developer: Registration as exchange company to offer program; amendment to registration; fee.

 

 

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.065, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

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

     1.  Offers for sale any time share;

     2.  Causes or induces, directly or indirectly, any person to acquire a time share; or

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

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     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 a time-share instrument consisting of the recorded covenants, conditions and restrictions governing a project or a time-share plan.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     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 or time-share resale broker which the project broker or time-share resale broker uses to conduct the business of selling or reselling time shares, as applicable.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

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

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018) — (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 by or for any person to whom this chapter or chapter 119A of NRS applies, including:

     1.  Any newspaper or periodical, except a press release;

     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; A by R130-16, 8-30-2018)

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

     1.  If a person submits a check, draft or electronic payment to the Division to obtain a license, 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 other than a permit, and the check, draft or electronic payment is returned to the Division because the person had insufficient money or credit with the drawee to pay the check, draft or electronic payment or the person stopped payment on the check, draft or electronic payment:

     (a) The license, 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, 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 and in addition to all other remedies or penalties prescribed by law, the Division will charge a person, for each such check, draft or electronic payment returned to the Division because the person had insufficient money or credit with the drawee to pay the check, draft or electronic payment or because the person stopped payment on the check, draft or electronic payment, 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; A by R130-16, 8-30-2018)

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 person licensed pursuant to chapter 645 of NRS.

          (2) At the principal place of business or a branch office of the project broker or person licensed pursuant to chapter 645 of NRS 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 or person licensed pursuant to chapter 645 of NRS 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 person licensed pursuant to chapter 645 of NRS shall:

     (a) Supervise the provisional licensee; 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; A by R130-16, 8-30-2018)

     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, 119A.268)

     1.  Every branch office must be operated in accordance with the provisions of NRS 119A.268.

     2.  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.

     3.  A branch office is required for each site that is separate from the principal place of business at which the business of selling or reselling time shares, as applicable, is conducted.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     NAC 119A.105  Project broker or time-share resale broker: Commingling of certain money prohibited; maintenance, inspection and audit of records; notice to Division of location of records of transaction. (NRS 119A.190, 119A.400, 119A.420, 119A.652)

     1.  A project broker or time-share resale broker shall not commingle the money or other property of a client with his or her own.

     2.  A project broker or time-share resale broker shall keep records of every transaction clearly indicating deposits, disbursements, dates, names of purchasers and salespersons or sales agents, if applicable, and, with respect to a project broker, 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 or time-share resale 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. All such records are subject to inspection by the Division and its investigators and employees.

     4.  The project broker or time-share resale broker must give written notice to the Division of the exact location of his or her records of transaction. The project broker or time-share resale broker may not remove the records of transaction until notice of a new location is delivered to the Division.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     NAC 119A.110  Change of status; requirement that sale or offer to sell be made in association with licensed location. (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, limited-liability company or partnership is not considered to have changed employers if the corporation, limited-liability company or partnership changes its project 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; A by R130-16, 8-30-2018)

     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 upon termination of license; transfer of employees to another project broker; no refund under certain circumstances. (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 employed by the project broker and deliver the license to the Division with the licenses of such 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; A by R130-16, 8-30-2018)

     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.  The hearing described in NAC 119A.150 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; R130-16, 8-30-2018)

     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)

SALE OF TIME SHARES

     NAC 119A.190  Procedure for filing for permit to sell time shares. (NRS 119A.190, 119A.300, 119A.370)  The following procedures must be followed in filing an application for a time-share permit:

     1.  Required material must be filed with the Division by personal delivery, by electronic delivery through a registry approved by the Division, or by mail, addressed to the office of the Division in Las Vegas.

     2.  Checks, drafts, money orders or electronic payments used to pay fees must be made payable to the Nevada Real Estate Division. Any payment of $10,000 or more must be submitted through an electronic wire transfer in the manner prescribed by the Division. All payments submitted are deemed earned upon receipt and are not eligible to be refunded.

     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 that is filed with the Division pursuant to subsection 1 must be on white paper that is 8 1/2 by 11 inches in size, have text that is fully justified to the left and right margins and not contain text that is smaller than 11-point font. Supplemental material, except maps, plats and other official documents, must be on paper that is 8 1/2 by 11 inches in size. Illegible photocopies must not be submitted.

     5.  A developer shall not incorporate by reference any matter used in an application for a different time-share permit previously filed with the Division.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     NAC 119A.195  Preliminary permit to sell time shares. (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 20 calendar days after receipt of written notice of cancellation of the reservation.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     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, a developer applying for a permit to sell time shares shall provide to the Division a statement of record containing the following information on a form prescribed by the Division:

     1.  Concerning the developer and the business experience and background of the developer:

     (a) The name and address of the principal place of business of the developer.

     (b) The federal tax identification number of the developer.

     (c) The ownership or other interest of the developer in the project.

     (d) If the developer is a corporation, limited-liability company or limited partnership:

          (1) A copy of its articles of incorporation, articles of organization or certificate of limited partnership, as applicable, and a Certificate of Good Standing issued by the Secretary of State that is dated within the 30 days immediately preceding the date on which the statement of record is provided to the Division; and

          (2) If the developer is a foreign corporation or foreign limited-liability company, a certificate issued by the Secretary of State authorizing the foreign corporation or foreign limited-liability company to transact business in Nevada that is dated within the 30 days immediately preceding the date on which the statement of record is provided to the Division, 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.

     (e) If the developer is a closely held corporation, limited-liability company, limited partnership or other business entity:

          (1) The name, address and principal occupation of each person owning or controlling an interest of 10 percent or more in the developer and the extent and nature of such ownership; and

          (2) The consent of the developer to the service of process and designation of an agent in the State to accept service.

     (f) If the developer is related to another business entity and is not a publicly traded corporation or held by a publicly traded corporation, a diagram showing the business relationship of the developer to the other business entity.

     (g) A list identifying each state or foreign jurisdiction in which the developer has, within the 10 years immediately preceding the date on which the statement of record is provided to the Division, applied for or received a permit to sell time shares that has been denied, revoked or suspended, or with respect to which other disciplinary action was taken. The list must include the name of the issuing authority.

     (h) With respect to the developer and any officers, directors, managers or partners thereof, as applicable, the identification of:

          (1) Any conviction of, or plea of guilty or nolo contendere to, any felony or gross misdemeanor charge or crime involving fraud, misrepresentation or unlicensed activity, and the disposition thereof;

          (2) Any denial, suspension or revocation of the license of a real estate broker, broker-salesperson or salesperson in any state, district or territory of the United States or any other jurisdiction;

          (3) Any denial, suspension or revocation of, or any pending administrative proceeding regarding the denial, suspension or revocation of, any professional or occupational license;

          (4) Any voluntary or involuntary petition in bankruptcy filed by or against the applicant within the 7 years immediately preceding the date on which the statement of record is provided to the Division; and

          (5) Any past or pending criminal prosecution or civil litigation that has a material adverse effect on the developer or the time-share plan.

     (i) A financial statement, which may be consolidated with the developer’s parent company, dated within the 6 months immediately preceding the date on which the statement of record is provided to the Division, including a balance sheet and statement of profit and loss.

     2.  Concerning the time-share plan:

     (a) The common name of the time-share plan and a description of the type of time-share plan to be offered for sale;

     (b) The identification of each jurisdiction that has granted approval for the time-share plan;

     (c) Maps of any project within the time-share plan, including recorded plats and location maps;

     (d) Documents concerning the management and maintenance of any project located within this State that are within the time-share plan, including the management agreement and developer subsidy agreement; and

     (e) Evidence of hazard insurance coverage.

     3.  Concerning the physical condition of any project within the time-share plan, a description of each improvement, whether completed or promised, at each component site.

     4.  Concerning the project broker and any sales and marketing entity:

     (a) The name of the real estate broker who will be the project broker and the names of all sales agents within this State;

     (b) The location of the principal place of business or the branch office at which each sales agent will be operating;

     (c) The name of the real estate broker or real estate broker-salesperson in charge of each location, if different from the project broker;

     (d) A list of all other states in which the project broker is licensed;

     (e) A statement as to whether the project broker has been disciplined pursuant to any regulatory agency proceeding; and

     (f) The name, address, telephone number and electronic mail address of any sales and marketing entity.

     5.  The name, address, telephone number and electronic mail address of the person to be contacted regarding the matters contained in the statement of record.

     6.  The location within this State at which the records of the time-share plan and the sales within this State will be maintained, including the name and address of the custodian of such records.

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

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     NAC 119A.201  Application for registration as time-share resale broker. (NRS 119A.190, 119A.4771)  In addition to any other information and documents required to be provided by law, an applicant for registration as a time-share resale broker shall provide the following information and documents with the application for registration, on a form prescribed by the Division:

     1.  The date of application, the name of the applicant and, if different, the name on the applicant’s license as a real estate broker issued pursuant to chapter 645 of NRS, the license number of such license, the home address, business address, electronic mail address, telephone number and facsimile number of the applicant and, if the applicant does business under an assumed or fictitious name pursuant to the provisions of chapter 602 of NRS, the assumed or fictitious name and each county in which such an assumed or fictitious name is registered.

     2.  If the applicant has done business as a real estate broker under any assumed or fictitious name other than any assumed or fictitious name provided pursuant to subsection 1, any other such assumed or fictitious name and the counties and states in which each such name was registered.

     3.  If the applicant is a corporation, partnership, limited-liability company or any other business entity, other than a publicly traded corporation:

     (a) The name and address of the entity and its state of formation; and

     (b) The name, address and principal occupation of each person owning or controlling an interest of 10 percent or more in the entity and the position held by each such person in the entity.

     4.  If the applicant is a corporation, partnership, limited-liability company or any other business entity, a statement as to whether the entity is organized for the sole purpose of the resale of time shares.

     5.  Information concerning any criminal conviction of, or plea of guilty or nolo contendere by, the applicant.

     6.  If the applicant has filed a petition in bankruptcy or has been the object of an involuntary petition within the 7 years immediately preceding the date of the application, a copy of the disposition of any such petition.

     7.  A brief history of the applicant’s business experience and background regarding time-share plans, including, without limitation, all current and former job descriptions, job titles and employer information.

     8.  A statement regarding whether the applicant intends to charge or collect an advance fee and, if so, a copy of a sample contract for an advance fee listing that the applicant intends to use.

     9.  A copy of the state business license of the applicant, a copy of the business license for each county, city or other municipality in this State in which the applicant intends to conduct business, showing that the applicant is in good standing and such a license is in active status, and a copy of any filing for each county in which the applicant intends to conduct business under an assumed or fictitious name.

     10.  A sample of the sales contract and all other documents that the applicant intends for a prospective purchaser to sign or initial.

     11.  A sample of the following completed forms prescribed by the Division:

     (a) Form 524, Consent to Act;

     (b) Form 525, Duties Owed by a Nevada Real Estate Licensee; and

     (c) Form 533, Dual License Application for a Licensed Nevada Broker.

     (Added to NAC by Real Estate Div. by R130-16, eff. 8-30-2018)

     NAC 119A.202  Abbreviated registration: Information and documents to be provided to purchasers; filing of certain documents with Division; renewal. (NRS 119A.190, 119A.302)

     1.  If a developer files an abbreviated registration pursuant to NRS 119A.302 and the Division approves the public report, public offering statement or other disclosure document issued for the time-share plan in the state or jurisdiction where the time-share plan is offered or sold, the developer shall provide to each purchaser, in addition to any information and documents required to be provided by law, an abbreviated registration disclosure document, on a form prescribed by the Division, which contains:

     (a) A copy of the public report, public offering statement or other disclosure document from the other state or jurisdiction;

     (b) A cover page which contains the statement required by subsection 1 of NAC 119A.205;

     (c) A page which includes:

          (1) The name and address of the developer;

          (2) The effective date of the abbreviated registration disclosure document;

          (3) The date on which the permit was originally issued and the permit number;

          (4) The address and telephone number of the Division; and

          (5) A statement that the disclosure document has been approved for use by the Division;

     (d) A copy of the permit issued by the Administrator, including the effective date of the permit, the date of each renewal thereof and the date of each amendment to the abbreviated registration disclosure statement;

     (e) A copy of the Time Share Notice of Cancellation form prescribed by the Division; and

     (f) A copy of the Receipt of Nevada Public Offering Statement form prescribed by the Division.

     2.  The abbreviated registration disclosure document must be offered to a prospective purchaser in paper format. If the prospective purchaser requests to receive the abbreviated registration disclosure document in an electronic format, the following information must be provided to the prospective purchaser in paper format, on a form provided by the Division:

     (a) The documents described in paragraphs (b) to (f), inclusive, of subsection 1; and

     (b) A disclosure of alternative media delivery, which contains:

          (1) A list of all documents that will be included in the abbreviated registration disclosure document being provided to the prospective purchaser in an electronic format;

          (2) A description of the hardware and software necessary for the prospective purchaser to access electronically the abbreviated registration disclosure document;

          (3) Any instructions necessary for the prospective purchaser to access electronically the abbreviated registration disclosure document; and

          (4) The following disclosure in at least 12-point boldface red type, followed by an area for the signature of the prospective purchaser:

 

I understand that I have the option of receiving the abbreviated registration disclosure document in an electronic format or paper format, and I have decided to accept the abbreviated registration disclosure document in an electronic format.

 

I understand that I should not accept the abbreviated registration disclosure document in an electronic format unless I am able to access electronically the abbreviated registration disclosure document before the end of the 5-day period during which I may cancel the contract of sale pursuant to NRS 119A.410.

 

     3.  Upon providing the disclosure of alternative media delivery pursuant to subsection 2, the developer shall obtain from the prospective purchaser a receipt for a copy of the disclosure form signed by the purchaser. The developer shall keep the receipt with any other documents relating to the sale of the time share at the principal place of business of the developer.

     4.  If the developer provides the abbreviated registration disclosure document in an electronic format, the developer must file with the Division the documents required to be provided to a prospective purchaser in paper format pursuant to subsection 2 and a sample copy of the compact disc, USB flash drive or thumb drive or other form of electronic media on which the abbreviated registration disclosure document is provided.

     5.  The renewal of an abbreviated registration must be made in accordance with the provisions of NRS 119A.355.

     (Added to NAC by Real Estate Div. by R130-16, eff. 8-30-2018)

     NAC 119A.203  Abbreviated registration: Application for conversion of existing permit. (NRS 119A.190, 119A.320, 119A.360)

     1.  An existing permit may be converted to an abbreviated registration by filing an application for conversion to an abbreviated registration with the Division, subject to the requirements of this section and NRS 119A.302. The Division will review each application and issue an approval or a request for more information or documentation:

     (a) Within 60 days after receipt of an application for a permit to sell time shares in a time-share plan containing only one component site; and

     (b) Within 120 days after receipt of an application for a permit to sell time shares in a time-share plan containing more than one component site.

     2.  An application for conversion to an abbreviated registration must be submitted to the Division in an electronic format or paper format and:

     (a) Include all information and documentation required by NRS 119A.302;

     (b) Be signed by an authorized representative of the developer;

     (c) Be submitted on a form prescribed by the Division; and

     (d) Be accompanied by the fee specified in NRS 119A.360.

     (Added to NAC by Real Estate Div. by R130-16, eff. 8-30-2018)

     NAC 119A.205  Public offering statement. (NRS 119A.190, 119A.300)  

     1.  A public offering statement that has been approved or deemed approved by the Division pursuant to NRS 119A.304 or 119A.355 must have a cover sheet which states in red:

 

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

 

     2.  In addition to including any other information or documents required to be provided by law, the public offering statement must:

     (a) Be prepared and submitted to the Division in an electronic format which may be edited and with text that is not smaller than 11-point font;

     (b) Except as otherwise provided in paragraph (c), be signed by the Administrator or his or her designee as evidence of the Division’s approval for its use;

     (c) If deemed approved by the Division pursuant to NRS 119A.304 or 119A.355, contain the phrase “DEEMED APPROVED FOR USE” in 12-point boldface type, in lieu of containing the signature of the Administrator or his or her designee; and

     (d) Contain:

          (1) The effective date of the public offering statement, the date of the initial public offering statement and the date of every amendment thereto; and

          (2) The date of the initial permit and the date on which the permit was renewed or deemed renewed.

     3.  The public offering statement must be offered to a prospective purchaser in paper format. If after being offered the public offering statement in paper format, the prospective purchaser requests to receive the public offering statement in an electronic format, the following information must be provided to the prospective purchaser in paper format, on forms prescribed by the Division:

     (a) The cover sheet required pursuant to subsection 1;

     (b) A page which includes, without limitation, the:

          (1) Name and address of the developer;

          (2) Effective date of the public offering statement;

          (3) Date on which the initial permit was originally issued and the permit number; and

          (4) Address and telephone number of the Division;

     (c) A copy of the Time Share Notice of Cancellation form prescribed by the Division;

     (d) A copy of the Receipt of Nevada Public Offering Statement form prescribed by the Division; and

     (e) A disclosure of alternative media delivery, which contains:

          (1) A list of all documents that will be included in the public offering statement being provided to the prospective purchaser in an electronic format;

          (2) A description of the hardware and software necessary for the prospective purchaser to access electronically the public offering statement;

          (3) Any instructions necessary for the prospective purchaser to access electronically the public offering statement; and

          (4) The following disclosure in at least 12-point boldface red type, followed by an area for the signature of the prospective purchaser:

 

I understand that I have the option of receiving the public offering statement in an electronic format or paper format, and I have decided to accept the public offering statement in an electronic format.

 

I understand that I should not accept the public offering statement in an electronic format unless I am able to access electronically the public offering statement before the end of the 5-day period during which I may cancel the contract of sale pursuant to NRS 119A.410.

 

     4.  Upon providing the disclosure of alternative media delivery pursuant to subsection 3, the developer shall obtain from the prospective purchaser a receipt for a copy of the disclosure form signed by the purchaser. The developer shall keep the receipt with any other documents relating to the sale of the time share at the principal place of business of the developer.

     5.  If the developer provides the public offering statement in an electronic format, the developer must file with the Division the documents required to be provided to a prospective purchaser in paper format pursuant to subsection 3 and a sample copy of the compact disc, USB flash drive or thumb drive or other form of electronic media on which the public offering statement is provided.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     NAC 119A.210  Material change in plan; service of order to cease. (NRS 119A.190, 119A.280, 119A.490)

     1.  A material change in the time-share plan must satisfy the requirements set forth in NRS 119A.304.

     2.  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; A by R130-16, 8-30-2018)

     NAC 119A.213  Developer to file amended statement of record before change of project broker; fee. (NRS 119A.190)

     1.  A developer shall not change the project broker which coordinates the sale of time shares on behalf of the developer without first filing an amendment to the statement of record filed with the Division.

     2.  An amendment filed with the Division pursuant to subsection 1 must be:

     (a) Signed by an authorized representative of the developer;

     (b) Submitted on a form prescribed by the Division; and

     (c) Accompanied by the fee specified in NRS 119A.360.

     (Added to NAC by Real Estate Div. by R130-16, eff. 8-30-2018)

     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  Requirements for 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 that complies with the laws of the jurisdiction under which it was formed; and

     2.  A copy of the trust agreement must be submitted to the Division with the initial statement of record and, if the trust agreement is amended, the amendment must be submitted to the Division as an amendment to the statement of record within 10 days after the effective date of the amendment.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     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 the developer 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; A by R130-16, 8-30-2018)

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

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

STANDARDS AND DUTIES

     NAC 119A.240  General obligations of project brokers and developers; inspection and audit of records. (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 plan which is not located at the regular place of business of the developer, project broker or sales agent is not a branch office.

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

     5.  At the discretion of the Administrator, the records of a developer and project broker may be inspected and audited by the Division and, in accordance with subsection 6, 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 Las Vegas, if they are located outside of Nevada.

     6.  A developer must produce the records within 10 days after receiving 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; A by R130-16, 8-30-2018)

     NAC 119A.245  Duties of project brokers. (NRS 119A.190, 119A.400)  A project broker shall:

     1.  Obtain from each purchaser of a time share, on a form prescribed by the Division, a receipt for a copy of the public offering statement signed by the purchaser and selling agent;

     2.  Provide the purchaser with a copy of the receipt in paper format;

     3.  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; and

     4.  Review with 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.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     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  Requirements of contracts, agreements and other documents used in sale of project. (NRS 119A.190)

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

     2.  Each contract for the sale of a time share or purchase agreement must be printed with text that is not smaller than 11-point font and have a margin of approximately 1 inch on the left and right sides and at the top and bottom of each page.

     3.  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.

 

     4.  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.

 

     5.  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, sent by certified mail, return receipt requested, or sent by express, priority or recognized overnight delivery service, with proof of service, to the business address of the developer.”

     (d) “The developer shall, within 20 calendar days after receipt of the notice of cancellation, return all payments made by the purchaser.”

     6.  Each contract of sale for 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.”

     7.  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.

     8.  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.

     9.  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; R130-16, 8-30-2018)

     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.257  Required disclosure of certain information to purchaser before resale; duties of time-share resale broker. (NRS 119A.4775)

     1.  The information required to be disclosed to the purchaser of a previously sold time share pursuant to NRS 119A.4775 must be given to the purchaser by a time-share resale broker in paper format on a disclosure form prescribed by the Division, and must include a notice of cancellation form prescribed by the Division.

     2.  A time-share resale broker shall:

     (a) Obtain from each purchaser of a previously sold time share a signed receipt for the disclosure form prescribed by the Division and provide the purchaser with a copy in paper format; and

     (b) Keep the receipt of the disclosure form signed by the purchaser with a copy of any contract for the resale of a time share at the principal place of business of the time-share resale broker.

     3.  In addition to any other information required to be disclosed to the purchaser, the following disclosures must appear on the disclosure form in not less than 12-point boldface type:

 

A PURCHASER MAY CANCEL, BY WRITTEN NOTICE, THE CONTRACT OF SALE UNTIL MIDNIGHT OF THE FIFTH CALENDAR DAY AFTER THE DATE OF EXECUTION OF THE CONTRACT.

 

THE NOTICE OF CANCELLATION MAY BE DELIVERED PERSONALLY TO THE TIME-SHARE RESALE BROKER, SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR SENT BY EXPRESS, PRIORITY OR RECOGNIZED OVERNIGHT DELIVERY SERVICE, WITH PROOF OF SERVICE, TO THE BUSINESS ADDRESS OF THE TIME-SHARE RESALE BROKER.

 

THE TIME-SHARE RESALE BROKER SHALL, WITHIN 20 DAYS AFTER RECEIPT OF THE NOTICE OF CANCELLATION, RETURN ALL PAYMENTS MADE BY THE PURCHASER.

     (Added to NAC by Real Estate Div. by R143-16, eff. 8-30-2018)

     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  Factors for determining whether licensee engaged in 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 time-share plan 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 time-share plan 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; A by R130-16, 8-30-2018)

     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 time share with knowledge that the title is unmerchantable.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 10-23-87; R130-16, 8-30-2018)

     NAC 119A.285  Disclosure of interest to prospective purchaser. (NRS 119A.190)  If a licensee owns or has an interest in a time share which he or she is attempting to sell, or has an interest in the time-share plan of the time share, the licensee shall disclose the interest and the nature thereof 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; A by R130-16, 8-30-2018)

     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.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; and

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

     2.  An advertisement or a piece of promotional material will be judged on the basis of the representations contained in it.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

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

     1.  Which refers to the purchase price of any 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 a project within the time-share plan has not yet been completed, must disclose whether there is a good faith plan for such completion and, if there is such a plan, the estimated completion date.

     3.  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.

     4.  Must not state that the value of the land, unit or time share or an interest in the land, unit or time share has increased in the project or the area.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     NAC 119A.315  Improvements and promised improvements. (NRS 119A.190, 119A.370)

     1.  No improvement in or related to a project within a time-share plan 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 and there is a contractual obligation of the developer to the purchaser to complete the improvement.

     2.  An advertisement which refers to any promised improvement for which the prospective purchaser will be required to pay additional fees for use or access must disclose the existence of such fees.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     NAC 119A.325  Potential use of time share. (NRS 119A.190, 119A.370)  An advertisement must not imply that the use of a time share is other than as set forth in the statement of record.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A by R130-16, 8-30-2018)

     NAC 119A.330  Reference to facilities or other conveniences; disclosure of types of roads; incomplete public facilities. (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 is not within 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. If the road or street leading to the facility is not traversable year-round by a conventional automobile, the developer must disclose 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 must not contain any statement, photograph or sketch relating to a public facility that is incomplete. As used in this subsection, “public facility” means any facility which is available or will be available for use by the general public, including purchasers of time shares and their successors in interest.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     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 estimated date on which the project will be available for occupancy.

     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; A by R130-16, 8-30-2018)

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

     1.  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.

     2.  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.

     3.  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; A by R130-16, 8-30-2018)

     NAC 119A.345  Required statements and disclosures. (NRS 119A.190, 119A.370)  

     1.  Each orally presented or written advertisement which is designed to induce attendance at or participation in a sales presentation must conspicuously include:

     (a) The following statement: “This advertising material is being used for the purpose of soliciting sales of time shares”; and

     (b) A disclosure of any restrictions or conditions on the sale of a time share or the attendance or participation in the sales presentation.

     2.  The disclosure required by paragraph (b) of subsection 1 must be provided to a prospective purchaser in writing or electronically at least once before any scheduled sales presentation, but does not need to be included in every advertisement provided to a prospective purchaser before the sales presentation.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     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 time share must not be advertised as being “free” if the prospective purchaser is required to give any consideration, or if any additional time share must be purchased to render the “free” time share usable. A time share 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” that are not traversable year-round by a conventional automobile must affirmatively disclose the nature of those roads or streets.

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

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

PROMOTIONAL MEETINGS AND PROMOTIONS

     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.

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

     11.  Upon the request of a prospective purchaser, he or she 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.

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

     13.  The Division may not be mentioned in such a manner as to suggest that the Division has approved a time-share plan or the documents or sales techniques of the time-share plan.

     14.  No false or misleading statements may be made regarding the future economic success, any recreational facilities or the location of any project within the time-share plan.

     (Added to NAC by Real Estate Div., eff. 12-3-84; A 5-2-86; R130-16, 8-30-2018)

     NAC 119A.370  Use of sweepstakes, vacation or other gift certificate. (NRS 119A.190, 119A.370)

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

     (a) 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

     (b) 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; and

          (5) The actual value of the gift or benefit.

     3.  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 time-share plan.

     4.  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; R130-16, 8-30-2018)

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 of a project located in this State 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.

     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; A by R130-16, 8-30-2018)

     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)

PROGRAMS FOR EXCHANGE OF OCCUPANCY RIGHTS

     NAC 119A.600  Developer: Registration as exchange company to offer program; amendment to registration; fee. (NRS 119A.190, 119A.360)

     1.  A developer that wishes to operate as an exchange company and offer a program for the exchange of occupancy rights among owners or with the owners of time shares in other time-share plans, or both, must file a registration with the Division in an electronic format or paper format. After a registration has been filed pursuant to this subsection, the developer shall file any amendment to the registration with respect to any material change in an electronic format or paper format.

     2.  A registration or amendment filed with the Division pursuant to subsection 1 must be:

     (a) Signed by an authorized representative of the developer;

     (b) Submitted on a form prescribed by the Division; and

     (c) Accompanied by the fee specified in NRS 119A.360.

     (Added to NAC by Real Estate Div. by R130-16, eff. 8-30-2018)