The chapter containing the rescission requirement excludes timeshares re-sold which were acquired at foreclosure. See below:
The law states:
NRS 119A.170 Applicability of this chapter and chapter 645 of NRS.
1. The provisions of this chapter, except subsection 4, do not apply to:
(a) The sale of 12 or fewer time shares in a project or the sale of 12 or fewer time shares in the same subdivision;
(b) The sale or transfer of a time share by an owner who is not the developer, unless the time share is sold in the ordinary course of business of that owner;
(c) Any transfer of a time share:
(1) By deed in lieu of foreclosure;
(2) At a foreclosure sale; or
(3) By the resale of a time share that has been acquired by an association by deed in lieu of foreclosure or at a foreclosure sale;
Please let me know if you need any other assistance. Thank you for accepting my answer and ensuring that I receive credit for assisting you.Thank you again
What is subsection 4? In other words, what part of NRS 119A does apply to them?
Also, while they told us that the timeshare was a foreclosure, we were never provided any documentation to that effect. Would they be required to provide this documentation?
I appreciate your patience.
Subsection 4 follows:
4. The provisions of chapter 645 of NRS apply to the sale of time shares, except any sale of a time share to which this chapter applies, and for that purpose the terms "real property" and "real estate" as used in chapter 645 of NRS shall be deemed to include a time share, whether it is an interest in real property or merely a contractual right to occupancy.
Chapter 645 relates to the requirements to obtain a real estate license to sell property. A timeshare reseller must obtains a timeshare reseller broker's license. That could be a point on which to challenge a sale. A timeshare resale contract must require certain language, but no rescission period is mentioned.
Here are the requirements for a resale agreement at:
Thank you again
Thank you for your response, I will certainly accept your answer. One clarification, though: Could you please cite exactly where you saw that "a timeshare reseller must obtain a timeshare reseller broker's license?" Would that mean that in a timeshare selling environment the individual salesman who assisted me would need such a liscense, or only that there would need to be someone at the company with a broker's license? Also, are you saying that there is a seperate "timeshare reseller broker's license" in Nevada that is distinct from a normal real estate broker's license?
Thank you so much for your help!!
Subsection 4 requires real estate licenses for certain activities. NRS Chapter 119 would apply to timeshare resellers except those who are selling foreclosures and timeshares acquired by deed in lieu of foreclosure.
A timeshare reseller must obtain a license as a broker or register as a reseller if they sell 12 or more timeshares, otherwise the requirement does not apply.
NRS 119A.4771 Registration and licensing of person listing, advertising, soliciting or promoting sale of 12 or more previously sold time shares on behalf of owner other than developer; exception.
1. 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, 12 or more time shares that were previously sold must:
(a) Be licensed as a real estate broker pursuant to the provisions of chapter 645 of NRS; and
(b) Register as a time-share resale broker with the Division by completing a form for registration provided by the Division.
2. A time-share resale broker shall renew his or her registration with the Division annually on a form provided by the Division.
3. Unless the method of resales of time shares is made to evade the provisions of this chapter, a person is not required to register as a time-share resale broker if the person:
(a) Has acquired fewer than 12 time shares and later resells or offers to resell one or more of those time shares; or
(b) Is a project broker who resells or offers to resell a time share in a project as an agent for a developer who holds a permit for the project.
Please let me know if you need any other assistance. Thank you for accepting my answer and ensuring that I receive credit for assisting you.
Thank you so much for your help!
My last and final question for you at this time:
As you quoted, NRS 119A.170 "Applicability of this chapter and chapter 645 of NRS" states "1. The provisions of this chapter, except subsection 4, do not apply to: ... (c) Any transfer of a time share: ... (3) By the resale of a time share that has been acquired by an association by deed in lieu of foreclosure or at a foreclosure sale."
Does this exclude from the NRS regulations a corporation who sells a timeshare that was previously purchased by them following a foreclosure? Or does it only exclude purchase of a foreclosed timeshare directly from an association (though perhaps through the help of a broker), which is defined in NRS 119A.032 as "association of owners established pursuant to NRS 119A.520" and as such would not include a resale corporation?
Thank you so much!!!
The section, or more precisely the exclusion, pertains to any resale via a person or person acting on behalf of a corporation where the property was previously acquired via foreclosure or deed in lieu of foreclosure. The language is broad and covers all properties being resold in any fashion which were acquired via a foreclosure or deed in lieu of foreclosure. Deed in lieu would result in the property going to the lender or timeshare property foreclosing for unpaid assessments. The resale could be from the timeshare property association, lender or third party. No differentiation is made.
Thank you for your quick reply!
I should have mentioned in my previous question that the corporation who we purchased from tells me now over the phone that they purchased many of these as deeded timeshares, mostly through a forclosures, and then put them into a big pot from which they now sell 50-year "right to use" timeshares as we purchased. Would you think that this would still be covered under the foreclosure language, as the timeshare has been changed?
A right to use property such as a vacation club may not be a timeshare. It depends on how the entity is established. The best approach for a consumer is to contact the state, the real estate commission, to first to determine if the "use" marketed as a type of timeshare is actually a timeshare. There are a variety of "use" schemes as opposed to timeshare entities since the term "timeshare" has become a bit tarnished. These new marketing techniques make it difficult to determine what exactly is purchased and to what extent it is regulated without looking at the contract signed. Consider contacting the state real estate commission to inquire if the seller or property is licensed or registered as a vacation ownership, timeshare or other entity.
Thank you very much
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