Nevada Passes Amendments to Timeshare Law

2013-03-18

Issue Brief

AB 404 extensively amends Nevada Chapter 119A, the timeshare law. In addition to toughening resale disclosures and penalties, the bill contains sections to speed up processing of developer filings.

Impact

AB 404 addresses several things: it streamlines the previously unworkable procedure for the Real Estate Division’s issue of a time-share public offering statement (POS), without compromising consumer protection; adds consumer protections for purchasers buying time-shares on the resale market; it clarifies existing law allowing timeshare associations to resell foreclosed time-shares without registering as a developer; and it changes the staffing of timeshare resale offices. The bill also requires that the purchaser be given a five-day right of rescission and certain disclosures, prohibits misleading statements by timeshare resale brokers, and makes violations of the resale laws unfair or deceptive trade practices under existing law. It clarifies that the current exemption for resales by timeshare associations applies to the resale of “right to use” timeshares, as well as those that are interests in real estate (however the timeshare is acquired by the association).  

Position/Call to Action

ARDA and ARDA-ROC strongly supported AB 404. 

Resolution

AB 404 passed both houses of the Nevada legislature and was signed into law by the Governor.

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