If you've purchased or are considering buying a timeshare in Nevada—or are facing a timeshare foreclosure—it's important to learn the answers to the following questions:
Nevada has extensive legislation covering timeshare transactions. Read on to find out some of the most important features of Nevada's timeshare laws.
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:
If you cancel, the developer must return all payments within 20 days after receipt of the notice of cancellation. (Nev. Rev. Stat. § 119A.410(4)). (Learn more about canceling a timeshare purchase in How Do I Cancel a Timeshare Contract?)
The right of cancellation can't be waived. If the developer attempts to obtain a waiver of cancellation rights, the buyer may void the contract. (Nev. Rev. Stat. § 119A.410(2)).
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:
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:
Timeshare owners often find it extremely difficult to sell their timeshares because there's 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 resale 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:
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. But 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).
Written contract required. A timeshare resale agreement must be in writing and contain the following disclosures:
If you take out a loan to buy an interest in a deeded timeshare and fail to make your timeshare mortgage payments—or fail to keep up with the assessments—you'll 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." To find out more, see 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. (Learn more about the Nevada foreclosure process.)
If you have questions about timeshare laws in Nevada or want to learn about foreclosure, consider talking to a real estate attorney or a foreclosure attorney.