Nevada Revised Statutes 119A.4779 – Advance fee charged or collected by time-share resale broker; requirements for contract for advance fee listing; duties and prohibited acts; violation constitutes unfair or deceptive act or practice; civil penalty
1. In addition to the provisions of NRS 645.322, 645.323 and 645.324, a time-share resale broker who charges or collects an advance fee shall place 80 percent of that fee into his or her trust account. If the time-share resale broker closes escrow on the time-share resale, the time-share resale broker shall be deemed to have earned the advance fee. If the listing of the time share expires before the time-share resale broker closes escrow on the time-share resale, the time-share resale broker must return the money held in the trust account to the owner of the time share within 10 days after the date of the expiration of the listing.
Terms Used In Nevada Revised Statutes 119A.4779
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
2. The contract for an advance fee listing must include the following disclosures to the owner of any previously sold time share:
(a) A description of any fees or costs related to the services that the owner or any other person is required to pay to the time-share resale broker or to any third party;
(b) A description of when any fees or costs are due; and
(c) The disclosures required by paragraph (c) of subsection 1 of NRS 119A.4777.
3. A time-share resale broker who charges or collects an advance fee shall not:
(a) State or imply to an owner that the time-share resale broker has identified a person interested in buying or renting the time share without providing the name, address and telephone number of such person;
(b) State or imply to an owner that the time share has a specific resale value;
(c) Fail to honor any cancellation notice sent by the owner by midnight of the fifth day after the date of execution of the contract; or
(d) Fail to provide a full refund of all money paid by an owner within 20 days after receipt of a notice of cancellation.
4. If a time-share resale broker executes a contract that fails to comply with the provisions of subsection 2, such contract is voidable at the option of the owner for a period of 1 year after the date of execution.
5. Notwithstanding the obligations placed upon any other person by this section, the time-share resale broker shall supervise, manage and control all aspects of the resale offering. Any violation of the provisions of this section that occurs during such offering shall be deemed a violation by the time-share resale broker and by the person who actually committed the violation.
6. The use of any unfair or deceptive act or practice by any person in connection with the offering of a time share for resale is a violation of this section.
7. A violation of this section is an unfair or deceptive act or practice pursuant to NRS 207.170, 207.171, 598.0915 to 598.0925, inclusive, and chapters 598A and 599A of NRS.
8. Notwithstanding any other penalty provided for in this chapter or chapter 645 of NRS, a person who violates any provision of NRS 119A.4771 to 119A.4779, inclusive, is subject to a civil penalty of not more than $1,000 for each violation.