Nev. Admin. Code § 119B.420

Current through October 11, 2024

Section 119B.420 - Techniques for sale of membership

Techniques used to sell a membership must conform to the following standards:

1. Decoys or false buyers may not be used in a promotional meeting to initiate sales or for any other purpose.

2. Each oral statement made to a prospective purchaser at a promotional meeting must be completely consistent with written advertising or other material filed with and approved by the division.

3. Any prospective purchaser who expresses a desire to leave a promotional meeting at any time during or after the sales presentation may not be impeded in any manner or coerced to remain.

4. Investigators and other employees of the division may attend any promotional meeting.

5. Excessively loud music must not be played during a promotional meeting, and it must be turned down or off at the request of any employee of the division who is present at the meeting.

6. After the original sales agent initially meets with a potential purchaser, the developer or broker of record may allow only one other sales agent to attempt a sale to the same potential purchaser, except for a sales agent making a speech from a podium.

7. If an employee of the division is present at a sales presentation, he may not be identified or asked questions in such a way that a potential purchaser might hear the question or the employee's remarks.

8. If a broker of record, developer or employee of either, at any time before, during or after a promotional meeting uses any electronic surveillance, recording, eavesdropping or listening device, he must disclose its use orally at the beginning of the meeting and by means of a placard prominently displayed in the room in which the meeting is held.

9. Each advertised gift must be given to a potential purchaser whether or not he purchases a membership.

10. An employee of the developer shall not keep a potential purchaser's credit card for a period longer than is reasonably necessary to check the purchaser's credit rating.

11. The public offering statement must be reviewed by the sales agent or broker of record with the potential purchaser along with the sales contract and other documents which the purchaser will sign if a purchase is consummated.

12. Upon the purchaser's request, the purchaser must be allowed time to talk and review the documents with another person and, if he so desires, consult an attorney before signing any document.

13. Before signing an offer to purchase, the purchaser must be informed of his unconditional right to rescind the sales contract within 5 days after the date of signing the contract.

14. The division may not be mentioned in such a manner as to suggest that the division has endorsed the campground or documents or sales techniques related to the campground.

15. No false or misleading statement may be made regarding the future economic success, any recreational facility or the location of the campground.

Nev. Admin. Code § 119B.420

Added to NAC by Real Estate Div., eff. 2-18-87