Provision in contract relieving purchaser of obligation upon foreclosure of lien against project; prohibition against sale or pledge of notes or contracts of sale by defaulting developer.
1. A contract for the sale of a time share or any other evidence of an obligation to purchase a time share must provide in 12‑point bold type that the purchaser is relieved of all obligations under the contract if his interests are defeated because of the foreclosure of liens against the project. The provisions of this subsection do not apply to any project which meets any one of the requirements of subsections 1 to 5, inclusive, of NRS 119A.430.
2. If a developer or owner is in default on a blanket encumbrance, he may not sell or pledge any of the notes or contracts of sale given in payment of the time shares purchased from him.
Last modified: February 27, 2006