Nevada Timeshare Foreclosure on the rise, if you have been served legal Timeshare Foreclosure paperwork, you have a case with us. If you have purchased or are thinking of purchasing a timeshare in Nevada, or are facing a timeshare foreclosure, it’s important to learn the answers to the following questions:
- How do I cancel a timeshare purchase in Nevada?
- What disclosures are required in a Nevada timeshare purchase?
- Are there any laws to protect consumers in timeshare transactions?
- Are there any timeshare resale protection laws?
- If I stop making payments, what is the most common type of timeshare foreclosure procedure in Nevada (judicial or nonjudicial)?
Nevada has extensive legislation covering timeshare foreclosures. Read on to find out some of the most important features of Nevada timeshare law.
(Learn more in Nolo’s Buying or Selling a Timeshare and Timeshare Foreclosure topic areas where you can find information about selling or donating your timeshare, timeshare foreclosures, options to avoid a timeshare foreclosure, and consequences of a timeshare foreclosure.)
In Nevada, you may cancel, by written notice, the contract of sale for a timeshare purchase up until midnight of the fifth calendar day following the date you signed the contract (Nev. Rev. Stat. § 119A.410(1)). The contract of sale must include a statement of the right to cancel.
How to cancel the purchase. The written notice of cancellation may be:
- delivered personally to the developer, or
- sent by certified mail, return receipt requested, to the business address of the developer (Nev. Rev. Stat. § 119A.410(3)).
If you cancel, the developer must return all payments within 15 days after receipt of the notice of cancellation (Nev. Rev. Stat. § 119A.410(4)).
The right of cancellation may not be waived. If the developer attempts to obtain a waiver, the buyer may void the contract. (Nev. Rev. Stat. § 119A.410(2)).
(Learn more about cancelling a timeshare purchase in Timeshare Release Now’s News Blog article How Do I Cancel a Timeshare Contract?)
Public Offering Statement
The timeshare developer must provide each prospective purchaser with a copy of the developer’s public offering statement, which must contain a copy of the developer’s permit to sell timeshares (Nev. Rev. Stat. § 119A.400(1)). (A “Public offering statement” is an official report that authorizes the developer to sell timeshares.)
The timeshare broker or sales agent must:
- review the public offering statement with each prospective purchaser before the purchaser signs the contract, and
- obtain a receipt signed by the purchaser that he or she received a copy of the public offering statement (Nev. Rev. Stat. § 119A.400(2)).
Deceptive Practices Are Prohibited
Nevada law prohibits timeshare developers or salespeople from engaging in unfair or deceptive acts in a timeshare transaction. The following acts, among others, constitute deceptive practices under the law:
- misrepresenting or failing to disclose any material fact concerning a timeshare
- including a provision in a timeshare agreement that purports to waive any right or benefit provided for purchasers in the timeshare agreement
- receiving any money or other valuable consideration from a prospective purchaser before the purchaser has received a public offering statement
- misrepresenting the amount of time or period of time the unit will be available to a purchaser
- misrepresenting the size, nature, extent, qualities, or characteristics of the unit
- misrepresenting the conditions under which a purchaser may exchange occupancy rights to a unit in one location for occupancy rights to a unit in another location
- failing to disclose initially that any promised entertainment, food, or other inducements are being offered to solicit the sale of a timeshare, and
- conducting or participating in any type of lottery or contest, or offering prizes or gifts to induce or encourage a person to visit a project, attend a meeting at which a timeshare will be discussed, attend a presentation or purchase a timeshare without prior approval by the Nevada Real Estate Division.
Nevada Timeshare Resale Protection Laws
Timeshare owners can find it extremely difficult to sell their timeshares since there is virtually no after-market for them. As a result, scam artists have popped up who will falsely tell a timeshare owner that there is a ready and willing buyer for the timeshare — but the timeshare owner must pay hundreds or thousands of dollars in upfront fees to process the transaction. After the timeshare owner pays the fees, the scammer often disappears or the buyer never materializes. Nevada law provides some protection to shield consumers from this type of timeshare scam.
License required. In Nevada, a person who, on behalf of an owner (other than a developer), wishes to list, advertise or promote for resale, or solicit prospective purchasers of timeshares that were previously sold (if they are selling more than 12 units) must:
- be licensed as a real estate broker, and
- register as a timeshare resale broker with the Nevada Real Estate Division (Nev. Rev. Stat. § 119A.4771).
Upfront fees must go in an escrow account. A timeshare resale broker who charges or collects an advance fee must place 80% of the fee into his or her trust account. If the broker closes escrow on the timeshare resale, the broker is deemed to have earned the advance fee. However, if the listing of the timeshare expires before the broker closes escrow on the timeshare resale, the broker must return the money held in the trust account to the owner of the timeshare within ten days after the date of the expiration of the listing (Nev. Rev. Stat. § 119A.4779).
Keep in mind, that if your timeshare doesn’t sell, the broker can still keep 20% of the advance fees.
Written contract required. A timeshare resale agreement must be in writing and contain the following disclosures:
- whether any person other than the purchaser may use the timeshare during the period before the timeshare is resold
- whether any person other than the purchaser may rent the use of the timeshare during the period before the timeshare is resold
- the name of any person who will receive any rents or profits generated from the use of the timeshare during the period before the timeshare is resold, and
- a detailed description of any relationship between the person who resells the timeshare and any other person who receives any benefit from the use of the timeshare (Nev. Rev. Stat. § 119A.4777).
Timeshare Foreclosure Procedure
If you take out a loan to purchase an interest in a deeded timeshare and fail to make your timeshare mortgage payments or keep up with the assessments, you will likely face foreclosure. (In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” Find out more in Nolo’s article Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments?
In Nevada, timeshare foreclosures are typically nonjudicial, which means the foreclosure takes place without court supervision. (To learn more about the difference between judicial and nonjudicial foreclosure, and the procedures for each, visit Nolo’s Judicial v. Nonjudicial Foreclosure page.)
(Learn more about the Nevada foreclosure process.)
Nevada Timeshare Laws
The laws governing timeshares in Nevada are found in Chapter 119A of the Nevada Revised Statutes. To read the statutes, go to www.leg.state.nv.us, hover over “Law Library,” then “Nevada Revised Statutes,” and select “Table of Contents” to find Chapter 119A.
(For general articles on foreclosure in Nevada, visit our Nevada Foreclosure Law Center.)