ARDA and ARDA-ROC Support Revisions to Nevada Timeshare Legislation

2015-03-23

Issue Brief

In 2014, ARDA and ARDA-ROC worked with the Nevada Real Estate Division (NRED) and the Nevada legislature to enact two important timeshare bills: Assembly Bill 404 (AB 404) and Senate Bill 383 (SB 383). Both bills address needed revisions to existing timeshare legislation.

Impact

Impact of AB 404 

The Assembly bill does the following:
 

  • Streamlines the previously unworkable procedure for the Nevada Real Estate Division’s (NRED) issue of a timeshare public offering statement (POS), which is an official report that authorizes the developer to sell timeshares, without compromising consumer protection.
  • Adds consumer protections for purchasers buying timeshares on the resale market.
  • Clarifies existing law allowing timeshare homeowners’ associations to resell foreclosed timeshares without registering as a developer.
  • Increases funding for the NRED staff so they can more efficiently and effectively regulate the industry.
  • Requires that the purchaser be given a five-day right of rescission and other certain disclosures, prohibits misleading statements by timeshare resale brokers, and makes violations of the resale laws unfair or deceptive trade practices under existing law.

Impact of SB 383 

The Senate bill defines what must be included in the public offering statement, which makes it clear to developers and owners their rights and obligations.

 

Position/Call to Action

 ARDA and ARDA-ROC support AB 404 and SB 383 as they provide greater transparency and protections to owners.

Issue Updates

The NRED has submitted the regulations to the Legislative Counsel Bureau and is now required to have public workshops and adopt them at a public hearing. We are awaiting notice of that hearing, in which ARDA and interested members will be able to provide comments. The regulation cannot take effect until it is approved by the Legislative Commission or its subcommittee.

 

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