Membership in Campgrounds - SALES AGENTS - Delivery of offers, acceptances and counteroffers.

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[Rev. 11/21/2013 3:51:47 PM--2013]

[NAC-119B Revised Date: 3-89]

CHAPTER 119B - MEMBERSHIP IN CAMPGROUNDS

GENERAL PROVISIONS

119B.010         Definitions.

119B.020         “Employment” defined.

119B.030         “Press release” defined.

119B.040         “Principal place of business” defined.

119B.050         “Promotional meeting” defined.

119B.060         “Published material” defined.

119B.070         “Registered representative” defined.

119B.080         “Sales agent” defined.

119B.090         “Advertising” interpreted.

119B.100         “Membership” interpreted.

119B.110         Refund of certain fees limited.

BROKERS OF RECORD AND DEVELOPERS

119B.120         Responsibility for activities.

119B.130         Use of more than one location.

119B.140         Developer’s records: Inspection and audit.

119B.150         Acceptance of permit constitutes agreement to appoint broker of record as agent for service of process.

119B.160         Inspection of campground by broker; broker may be broker of record for only one developer at a time.

119B.170         Records to be maintained by broker of record; inspection and audit.

119B.180         Supervision of sales agents by broker of record.

SALES AGENTS

119B.190         Association with and compensation from broker of record.

119B.200         Delivery of offers, acceptances and counteroffers.

119B.210         Disclosure of interest in campground to prospective purchaser.

REGISTERED REPRESENTATIVES

119B.220         Real estate and time-share licensees prohibited from registering as registered representatives; authorized acts.

119B.230         Application for registration; permissible title of representative.

CONTRACTS AND OTHER DOCUMENTS OF SALE

119B.240         Signature of broker of record or authorized sales agent.

119B.250         Applicability of standards for advertising.

119B.260         Required and prohibited language.

ADVERTISEMENTS

119B.270         Approval by division.

119B.280         Press releases.

119B.290         Fees.

119B.300         Interpretation.

119B.310         General requirements.

119B.320         Improvements.

119B.330         Reference to community or geographical area.

119B.340         Use of membership for other purpose.

119B.350         Recreational facilities; public facilities.

119B.360         Maps, pictures and sketches.

119B.370         Prohibited material.

119B.380         Statement of purpose of sales presentation.

119B.390         Terms and limitations of certain benefits.

119B.400         Use of certain terms.

PROMOTIONAL MEETINGS; PRIZES AND GIFTS

119B.410         Approval of promotional meeting by division.

119B.420         Techniques for sale of membership.

119B.430         Approval of program including sweepstakes, vacation or gift certificate by division; requirements.

119B.440         Financial assurance of ability to meet financial commitment.

INVESTIGATION OF PROHIBITED ACTIVITY

119B.450         Complaints.

119B.460         Determination of whether person engaged in prohibited activity.

 

 

GENERAL PROVISIONS

     NAC 119B.010  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in:

     1.  NRS 119B.020 to 119B.100, inclusive; and

     2.  NAC 119B.020 to 119B.080, inclusive,

     have the meanings ascribed to them in those sections.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.020  “Employment” defined.  “Employment” means the relationship between a sales agent or registered representative and the broker of record with whom he is associated. The term includes any relationship with an independent contractor.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.030  “Press release” defined.  “Press release” means any written, printed, photographic, artistic or oral statement or material which is intended for publication without payment of any consideration.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.040  “Principal place of business” defined.  “Principal place of business” means the principal office of a broker of record which he uses to conduct the business of selling memberships.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.050  “Promotional meeting” defined.  “Promotional meeting” means any sales presentation given to potential purchasers of a membership.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.060  “Published material” defined.  “Published material” means anything published in any medium, except a press release, and includes:

     1.  Material published in any newspaper or periodical;

     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.  Certificates for a vacation or other gift; and

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

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.070  “Registered representative” defined.  “Registered representative” means a person who, on behalf of one or more developers, induces other persons to attend a sales presentation. The term does not include a sales agent or a person who only performs clerical tasks or arranges appointments for others.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.080  “Sales agent” defined.  “Sales agent” means any person who is licensed pursuant to chapter 119A of NRS as a sales agent or pursuant to chapter 645 of NRS as a salesman or broker-salesman and is employed by a licensed real estate broker for compensation or otherwise to perform any act or transaction to which chapter 119A, 119B or 645 of NRS applies.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.090  “Advertising” interpreted.  The administrator will interpret “advertising” to mean published material which:

     1.  Offers for sale any membership or interest in a campground;

     2.  Causes or induces, directly or indirectly, any person to acquire any membership or interest in a campground;

     3.  Is used to induce prospective purchasers to attend sales presentations on a campground; or

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

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.100  “Membership” interpreted.  The administrator will interpret “membership” to include:

     1.  An interest in real property; and

     2.  A contractual right to occupancy.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.110  Refund of certain fees limited.  Unless otherwise determined by the administrator, all fees submitted to him pursuant to NRS 119B.210 are deemed earned upon receipt. Not more than one- half of the fee submitted may be refunded.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

BROKERS OF RECORD AND DEVELOPERS

     NAC 119B.120  Responsibility for activities.

     1.  The broker of record and the developer are responsible for all activities involving advertising, sales, solicitations and the inducement of any person to purchase a membership.

     2.  The broker of record is responsible for the activities of each sales agent in his employment.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.130  Use of more than one location.

     1.  If a developer wishes to use more than one location at which to conduct sales, the broker of record shall establish and maintain appropriate branch offices.

     2.  A site that is devoted exclusively to inducing persons to attend a sales presentation for a membership and that is not located at the regular place of business of the developer, broker of record or sales agent is not a branch office; however, the broker of record is responsible for the conduct of any person attempting to induce that attendance and must inform the division, in advance, of the proposed establishment or relocation of such a site.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.140  Developer’s records: Inspection and audit.  A developer’s records may be inspected and audited by the division and must be made available to the division at the:

     1.  Location where the records are kept, if they are located in Nevada; or

     2.  Division’s office in Carson City or Las Vegas, if they are kept outside of Nevada.

     A developer must produce his records within 10 days after his receipt of the division’s request.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.150  Acceptance of permit constitutes agreement to appoint broker of record as agent for service of process.  Acceptance by the developer of a permit authorizing him to offer memberships for sale in this state is an agreement by him to appoint a broker of record as his agent for service of any notice, correspondence or complaint.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.160  Inspection of campground by broker; broker may be broker of record for only one developer at a time.  Before a broker accepts a position as broker of record, he must personally inspect the campground for which he is to be responsible. The division will designate a broker as a broker of record for only one developer at any time.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.170  Records to be maintained by broker of record; inspection and audit.

     1.  The broker of record shall obtain from each purchaser of a membership a signed receipt for a copy of the public offering statement and shall keep the receipt along with a copy of any contract of sale or other sales agreement and other material related to the sale in his files. The records must be kept for 3 years after the contract is signed or for 1 year after the final payment has been made on any contract for the sale of the property, whichever is longer.

     2.  If the records are kept at a location other than the principal place of business of the broker of record, the broker of record shall notify the division in writing of the location.

     3.  The records of the broker of record may be inspected and audited by the division at any time during regular business hours.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.180  Supervision of sales agents by broker of record.  Every broker of record shall teach his sales agents the provisions of this chapter and chapter 119B of NRS. He shall exercise strict supervision over their activities related to the selling of a membership and over the operation of his business.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

SALES AGENTS

     NAC 119B.190  Association with and compensation from broker of record.  A sales agent shall not associate with or accept compensation from any person other than the broker of record under whom he is licensed.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.200  Delivery of offers, acceptances and counteroffers.  A sales agent shall promptly deliver:

     1.  To the broker of record, every good faith offer he receives, including all the terms and conditions of the purchase.

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

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.210  Disclosure of interest in campground to prospective purchaser.  If a sales agent owns or has an interest in the campground for which he is attempting to sell a membership or an interest in the membership which he is attempting to sell, he shall disclose his interest in writing to a prospective purchaser before or at the time the sales agent receives an offer to purchase a membership.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

REGISTERED REPRESENTATIVES

     NAC 119B.220  Real estate and time-share licensees prohibited from registering as registered representatives; authorized acts.  A person licensed as a real estate broker, broker-salesman or salesman pursuant to chapter 645 of NRS or a sales agent pursuant to chapter 119A of NRS may not register with the division as a registered representative, but may solicit or induce persons to attend an offer or sale of memberships in the campground with which he is associated.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.230  Application for registration; permissible title of representative.

     1.  A person who desires to become a registered representative for a developer must file an application for registration on a form furnished by the division. The fee required by NRS 119B.210 is not refundable.

     2.  An application for registration must be filed with the division for each developer the registered representative represents.

     3.  A person who is registered may refer to himself only as a representative of a campground.

     (Added to NAC by Real Estate Div., eff. 2-18-87; A 11-8-88)

CONTRACTS AND OTHER DOCUMENTS OF SALE

     NAC 119B.240  Signature of broker of record or authorized sales agent.  All contracts of sale must contain the signature of the broker of record or his authorized sales agent.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.250  Applicability of standards for advertising.  Each contract, agreement or other document used in the sale of a membership is subject to the standards for advertising prescribed in NAC 119B.310 to 119B.400, inclusive.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.260  Required and prohibited language.

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

 

     This is a binding contract by which you agree to purchase a membership in a campground. You should examine the statement regarding your right to revoke this contract within 5 days, which is contained elsewhere in this contract.

 

     2.  The following words or words of a similar meaning may not be used in a contract of sale for the sale of a membership:

 

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

 

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

 

     A contract of membership may be canceled at the option of the member if he sends notice of the cancellation by certified mail, return receipt requested, to the developer, posted not later than midnight of the 5th calendar day following the day on which the contract was signed.

 

     4.  Each contract of sale of a membership in a campground located outside Nevada must contain one of the following sentences:

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

     (b) “This contract is to be construed according to the laws of (name of the state or country); however, any purchaser solicited in Nevada retains those rights granted him pursuant to chapter 119B of NRS.”

     (Added to NAC by Real Estate Div., eff. 2-18-87)

ADVERTISEMENTS

     NAC 119B.270  Approval by division.

     1.  Before an advertisement is published, it must be submitted by the developer to the division for approval. If an employee or agent of the developer submits the advertisement, the developer must notify the division in writing that the employee has the authority to submit it and to agree to any changes the division may require.

     2.  If a change is made in an advertisement which has been approved by the division, the advertisement must be resubmitted for approval.

     3.  A number will be assigned to each advertisement approved by the division.

     4.  A press release issued with a good faith belief in the veracity of its contents need not be approved by the administrator.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.280  Press releases.  A press release may not contain any statement concerning:

     1.  The volume of sales of memberships;

     2.  The financial status of the developer; or

     3.  The investment potential of the campground.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.290  Fees.

     1.  The following fees will be charged for each advertisement or change in an advertisement submitted to the administrator for his approval:

     (a) For each item of advertising, $5 per page to a maximum of $25. If an advertisement is printed on both sides of a page, each side will be considered as one page.

     (b) For a presentation for television or motion pictures, $25. If a script for the presentation is submitted with the tape or film of the presentation, the fee will be charged once.

     2.  The fee may be paid in cash or by a cashier’s check, certified check, personal or company check or money order.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.300  Interpretation.

     1.  An advertisement will be interpreted as being false or misleading if:

     (a) The statements and representations contained in the advertisement are not true;

     (b) The advertisement states the factual material so as to misrepresent the facts or create misleading impressions; and

     (c) The advertisement is inconsistent with the information filed with the division.

     2.  An advertisement will be judged on the basis of the express representations contained in it and the reasonable inferences to be drawn from those representations. An inference which may be reasonably drawn from an advertisement shall be deemed to be an express representation unless the inference is negated in clear and unmistakable terms or adequate safeguards have been provided by the developer to assure the accuracy of the inference.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.310  General requirements.  An advertisement:

     1.  Which refers to the purchase price of any membership must clearly disclose any assessment or additional cost required to be paid by a purchaser.

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

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

     4.  Must not contain any statement concerning a future increase of the price by the developer unless the amount and the date of the increase are specified. A future increase of the price may not be implied or referred to unless it is anticipated in good faith.

     5.  Must not indicate that the value of a membership in a similar campground has increased, unless the membership used for comparison is directly comparable to that being advertised for sale.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.320  Improvements.  No improvement in or related to the campground 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 a contractual obligation of the developer to the purchaser.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.330  Reference to community or geographical area.  An advertisement which refers to a community or a geographical area in connection with a campground must state the mileage from a specific point in that community or area and describe the types of roads to be traversed.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.340  Use of membership for other purpose.  An advertisement must not state or imply that a membership may be used for any purpose other than that set forth in the application for a permit to sell memberships.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.350  Recreational facilities; public facilities.

     1.  An advertisement must not contain any statement, photograph or sketch relating to a facility for recreation, sports or other convenience which is away from the campground or not in existence, unless the advertisement clearly and prominently states in conjunction with the statement, photograph or sketch:

     (a) That the facility is only proposed and is not a part of the campground.

     (b) The distance to the facility in miles along a road and describes the type of road to be traversed.

     (c) In good faith, a date of completion of the proposed facility.

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

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

     4.  As used in this section, “public facility” means any facility which is available or will be available for use by the general public including a purchaser of a membership in the campground and his successor in interest.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.360  Maps, pictures and sketches.

     1.  An advertisement may not include a map unless the map:

     (a) Is drawn to scale, and the scale is stated;

     (b) Clearly and obviously is not to scale; or

     (c) Bears the label “not to scale.”

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

     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. 2-18-87)

      NAC 119B.370  Prohibited material.  An advertisement must not include:

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

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

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

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

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.380  Statement of purpose of sales presentation.  Each orally presented or written advertisement which is designed to induce attendance at or participation in a sales presentation must conspicuously include the following statement:

 

     The purpose of (the event or activity) is to attempt to sell you a membership in a campground in (name of state in which property is located).

 

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.390  Terms and limitations of certain benefits.  An advertisement which refers to:

     1.  A privilege on the part of the owner to the reciprocal use of another campground must clearly state any qualification or limitation on the privilege.

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

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.400  Use of certain terms.

     1.  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 in conjunction with the term and the type of road traversed is described.

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

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

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

     5.  An advertisement may use the term “waterfront” or other terms of similar meaning only if the campground actually fronts on a body of water and has full and usable access along the frontage.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

PROMOTIONAL MEETINGS; PRIZES AND GIFTS

     NAC 119B.410  Approval of promotional meeting by division.

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

     2.  In reviewing material submitted by an applicant pursuant to NRS 119B.260, the administrator will investigate whether the nature and manner of conducting a promotional meeting will bring about a full disclosure of all the material facts concerning the project.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.420  Techniques for sale of membership.  Techniques used to sell a membership must conform to the following standards:

     1.  Decoys or false buyers may not be used in a promotional meeting to initiate sales or for any other purpose.

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

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

     4.  Investigators and other employees of the division may attend any promotional meeting.

     5.  Excessively loud music must not be played during a promotional meeting, and it must be turned down or off at the request of any employee of the division who is present at the meeting.

     6.  After the original sales agent initially meets with a potential purchaser, the developer or broker of record may allow only one other sales agent to attempt a sale to the same potential purchaser, except for a sales agent making a speech from a podium.

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

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

     9.  Each advertised gift must be given to a potential purchaser whether or not he purchases a membership.

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

     11.  The public offering statement must be reviewed by the sales agent or broker of record with the potential purchaser along with the sales contract and other documents which the purchaser will sign if a purchase is consummated.

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

     13.  Before signing an offer to purchase, the purchaser must be informed of his unconditional right to rescind the sales contract within 5 days after the date of signing the contract.

     14.  The division may not be mentioned in such a manner as to suggest that the division has endorsed the campground or documents or sales techniques related to the campground.

     15.  No false or misleading statement may be made regarding the future economic success, any recreational facility or the location of the campground.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.430  Approval of program including sweepstakes, vacation or gift certificate by division; requirements.

     1.  Before a developer advertises or promotes a campground in which memberships are offered for sale with a program which includes the use of a sweepstakes, vacation or gift certificate, he must submit a written description of the program to the division for approval. The material submitted must include:

     (a) Copies of the vacation or gift certificate and any other published material to be used in the program;

     (b) The name of each company with whom he has contracted to provide the goods or services offered;

     (c) Evidence satisfactory to the division that he has commitments with the suppliers of goods or services which will be used as part of the program; and

     (d) If required by the administrator, proof of financial assurance that he can and will honor his commitments to the recipients and suppliers.

     2.  A program which includes the use of a sweepstakes, vacation or gift certificate must conform to the provisions of NAC 119B.310 to 119B.400, inclusive, and must:

     (a) Contain a date for the expiration of the rights of the recipient to the gift or other benefit; and

     (b) Disclose the nature of the gift or other benefit. This disclosure must specify:

          (1) What the potential purchaser will actually receive;

          (2) When he will receive it;

          (3) His obligations, if any;

          (4) All other material conditions or limitations to his receipt of the gift or benefit;

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

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

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

     4.  When the developer, broker of record, sales agent or registered representative meets with a recipient of a gift or other benefit, he shall clearly identify himself and his status of employment with regard to the campground.

     (Added to NAC by Real Estate Div., eff. 2-18-87; A 10-23-87)

      NAC 119B.440  Financial assurance of ability to meet financial commitment.  The division may require as a condition to its approval of a program for the sale of memberships which includes the use of a sweepstakes, vacation or gift certificate, that the developer file with the division a bond, letter of credit or other financial assurance approved by the administrator in an amount which ensures that he will be able to meet his financial commitment.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

INVESTIGATION OF PROHIBITED ACTIVITY

     NAC 119B.450  Complaints.

     1.  Any person who files a complaint with the administrator in connection with the promotion and sale of a membership must submit the complaint in writing on a form prescribed by the administrator.

     2.  When a complaint is filed, the administrator will investigate any action which appears to violate any provision of chapter 119B of NRS or this chapter. The investigation is not limited to the subject matter of the complaint.

     3.  A developer, broker of record, sales agent or registered representative shall disclose all facts and make available all documents pertinent to the investigation to the administrator or the member of his staff conducting the investigation.

     (Added to NAC by Real Estate Div., eff. 2-18-87)

      NAC 119B.460  Determination of whether person engaged in prohibited activity.  In determining whether a person has engaged in false or misleading advertising or unfair methods of competition or deceptive or unfair practices, the administrator shall consider whether the person 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 a membership.

     2.  Made a reasonable effort to ascertain all the pertinent facts concerning the campground with which he is dealing.

     3.  Made a representation that is outside of his 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 the parties to the transaction.

     4.  Adequately documented any required disclosure of his interest in the campground with which he is dealing.

     5.  Kept himself informed of the current laws governing the promotion and sale of a membership and related fields in which he attempts to provide guidance.

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

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

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

     9.  Made a reasonable effort to ascertain and disclose all material facts of common or expressed concern to the parties to the transaction.

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

     (Added to NAC by Real Estate Div., eff. 2-18-87)