Nevada § 119A.530 - Written agreement for management of time-share plan and project; disclosure of certain fees, compensation or other property by manager

§ 119A.530. Written agreement for management of time-share plan and project; disclosure of certain fees, compensation or other property by manager

1. During any period in which the developer holds a valid permit and the developer

or an affiliate of the developer is the manager, the developer or an affiliate of

the developer shall provide for the management of the time-share plan and the project,

by a written agreement with the association or, if there is no association, with the

owners. The initial term of the agreement must expire upon the first annual meeting of the

members of the association or at the end of 5 years, whichever comes first. All succeeding terms of the agreement must be renewed annually unless the manager

refuses to renew the agreement or a majority of the members of the association who

are entitled to vote, excluding the developer, notifies the manager of its refusal

to renew the agreement. 2. The agreement must provide that: (a) The manager or a majority of the owners may terminate the agreement for cause. (b) The resignation of the manager will not be accepted until 90 days after receipt

by the association, or if there is no association, by the owners, of the written resignation. (c) A fidelity bond must be delivered by the manager to the association. 3. An agreement entered into or renewed on or after October 1, 2001, must contain

a detailed, itemized schedule of all fees, compensation or other property that the

manager is entitled to receive for services rendered to the association or any member

of the association or otherwise derived from the manager's affiliation with the time-share

plan or the project, or both. The manager shall disclose to the association annually and make available electronically

to an owner upon request a report describing all fees, compensation or other property

that the manager is entitled to receive for services rendered to the association or

any member of the association or otherwise derived from the manager's affiliation

with the time-share plan or the project, or both. 4. Except as otherwise provided in this subsection, if the developer retains a property

interest in the project, the parties to such an agreement must include the developer,

the manager and the association. In addition to the provisions required in subsections 1 and 2, the agreement must

provide: (a) That the project will be maintained in good condition. Except as otherwise provided in this paragraph, any defect which is not corrected

within 10 days after notification by the developer may be corrected by the developer. In an emergency situation, notice is not required. The association must repay the developer for any cost of the repairs plus the legal

rate of interest. Each owner must be assessed for his or her share of the cost of repairs. (b) That, if any dispute arises between the developer and the manager or association,

either party may request from the American Arbitration Association or the Nevada Arbitration

Association a list of seven potential fact finders from which one must be chosen to

settle the dispute. The agreement must provide for the method of selecting one fact finder from this

list. (c) For the collection of assessments from the owners to pay obligations which may

be due to the developer for breach of the covenant to maintain the premises in good

condition and repair. If the developer is not made a party to this agreement, the developer shall be considered

to be a third-party beneficiary of such an agreement. 5. The provisions of this section and NRS 119A.532 and 119A.534 do not apply to the management of a project located outside of this State.