NAC119.520. Vacation and other gift certificates.

     1. Before a developer advertises or promotes a subdivision with a program which includes the use of vacation or other gift certificates, he or she must submit in writing as a part of his or her written plan a description of the program, along with the following:

     (a) Copies of the vacation or gift certificates and other published materials to be used in the program;

     (b) The names of the companies with which he or she has contracted to provide the goods or services offered in a certificate; and

     (c) Evidence satisfactory to the Division that he or she has firm commitments with the hotels, motels or other suppliers of accommodations which will be used as part of a program using vacation certificates, and, if required by the Administrator, provide financial assurances that he or she can and will honor his or her commitments with certificate holders as well as with the suppliers.

     2. Vacation and other gift certificates must conform to the standards for advertising set forth in these regulations, and the following standards:

     (a) Each certificate must contain a fixed date for the expiration of rights afforded certificate holders; and

     (b) The nature of the gift or other benefit must be clearly and fully disclosed. The disclosure must include a description of:

          (1) What the prospective purchaser will actually receive;

          (2) When he or she will receive it;

          (3) His or her obligations, if any; and

          (4) All other material conditions or limitations placed on the gift or benefit.

     3. Any change in the date of expiration or in the identity of the certificate companies or the hotels, motels or other suppliers of accommodations used in the program is a material change in the written plan, and notice of the change must be given to the Division for its written approval before the effective date of the change.

     4. When personal contact is made with the holder of a certificate, the developer, real estate licensee or other agent shall clearly identify himself or herself and his or her status of employment with regard to the subdivision.

     [Dep’t of Commerce, Real Estate Div., § 57, eff. 7-16-80]—(NAC A 10-23-87)