Nevada Administrative Code Chapter 119A - TIME SHARES
Nevada Administrative Code (NAC)
Chapter 119A — Time Shares
Overview:
Chapter 119A governs the regulation of time-share plans, developers, and sales practices in Nevada. It is designed to protect purchasers, ensure fair marketing practices, and regulate disclosure, management, and financial aspects of time-share properties.
1. Definitions and General Provisions (NAC 119A.010 – NAC 119A.050)
Key points:
Defines key terms such as “time-share,” “developer,” “interval,” “exchange program,” and “public offering statement.”
Establishes the regulatory authority of the Nevada Real Estate Division (NRED) over time-share programs.
Clarifies scope and applicability, including which plans are covered and exemptions.
Why it matters:
Definitions ensure clarity for developers, purchasers, and regulators, preventing misinterpretation of rights and responsibilities.
2. Public Offering Statement Requirements (NAC 119A.060 – NAC 119A.100)
Key points:
Developers must provide a Public Offering Statement (POS) before any sale, detailing financials, maintenance fees, ownership rights, and restrictions.
The POS must include legal descriptions, management agreements, and any liens or encumbrances.
Statements must be updated if material changes occur before closing.
Failure to provide a compliant POS may result in rescission rights for purchasers.
Why it matters:
Full disclosure protects purchasers from misrepresentation and ensures informed buying decisions.
3. Sales Practices and Marketing Rules (NAC 119A.110 – NAC 119A.160)
Key points:
Developers and sales agents must adhere to ethical marketing practices, including avoiding false claims about property, income potential, or future value.
Rules prohibit high-pressure sales tactics, misleading advertisements, or unlicensed sales agents.
Developers must maintain records of sales presentations and contracts for inspection.
Why it matters:
Ethical marketing prevents fraudulent or coercive sales, protecting consumers and enhancing industry credibility.
4. Time-Share Contracts and Rescission Rights (NAC 119A.170 – NAC 119A.210)
Key points:
Contracts must include all material terms: purchase price, payment schedule, financing, maintenance fees, and cancellation procedures.
Purchasers have a rescindable period (often 5–10 days) to cancel a contract without penalty.
Developers must return all payments if the contract is rescinded within the allowed period.
Any waiver of rescission rights is prohibited.
Why it matters:
These rules protect consumers from rushed decisions and allow them to review contracts fully.
5. Management and Maintenance (NAC 119A.220 – NAC 119A.260)
Key points:
Developers must establish a management entity responsible for property upkeep, financial administration, and operations.
Maintenance fees must be clearly disclosed, reasonable, and used for the intended purposes.
Owners must have access to financial statements and budgets for the time-share property.
Rules specify procedures for reserve funds, assessments, and collection of unpaid fees.
Why it matters:
Proper management ensures long-term property value, accountability, and fairness to all time-share owners.
6. Exchange Programs (NAC 119A.270 – NAC 119A.310)
Key points:
If a time-share program participates in an exchange program (swapping weeks with other resorts), the developer must disclose participation rules, fees, and limitations.
Exchange agreements must identify the rights and responsibilities of the participants.
Purchasers must be informed about availability, selection priority, and any additional costs associated with exchanges.
Why it matters:
Transparency ensures purchasers understand the benefits and limitations of exchange programs.
7. Financial Reporting and Recordkeeping (NAC 119A.320 – NAC 119A.360)
Key points:
Developers must maintain accurate financial records, including income, expenses, fees, and reserves.
Records must be available for inspection by the Real Estate Division.
Annual financial statements must be provided to owners, demonstrating how funds are managed.
Noncompliance may lead to administrative penalties or suspension of sales activities.
Why it matters:
Financial transparency protects owners from mismanagement and fraud.
8. Penalties, Violations, and Enforcement (NAC 119A.370 – NAC 119A.400)
Key points:
Violations of Chapter 119A rules can result in fines, suspension or revocation of developer licenses, and civil liability.
Misrepresentations, unlicensed sales, or failure to provide disclosures are common grounds for penalties.
Purchasers may pursue rescission, damages, or other remedies if violations occur.
The Real Estate Division investigates complaints and enforces compliance through administrative actions.
Why it matters:
Enforcement ensures compliance with consumer protection laws and maintains the integrity of the time-share industry.
✅ Summary of Key Rule Areas
| Rule Area | Main Purpose | Example “Case” |
|---|---|---|
| Definitions & General Provisions | Clarify scope and terminology | “Time-share,” “public offering statement” |
| Public Offering Statement | Ensure disclosure | Financials, ownership rights, updates |
| Sales Practices & Marketing | Prevent fraud | No misleading claims, ethical conduct |
| Contracts & Rescission | Protect consumers | Contract clarity, rescission period |
| Management & Maintenance | Ensure property upkeep | Fees, reserves, financial transparency |
| Exchange Programs | Regulate swaps | Participation rules, fees, limitations |
| Financial Reporting & Recordkeeping | Transparency & accountability | Annual statements, inspections |
| Penalties & Enforcement | Compliance & remedies | Fines, license suspension, rescission rights. |
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