119A.430 - Requirements for closing of escrow.

119A.430  Requirements for closing of escrow.  Escrow may not be closed unless the developer has provided satisfactory evidence to the Administrator that:

      1.  The project is free and clear of any blanket encumbrance;

      2.  Each person who holds an interest in the blanket encumbrance has executed an agreement, approved by the Administrator, to subordinate his or her rights to the rights of the purchaser;

      3.  Title to the project has been conveyed to a trustee;

      4.  All holders of a lien recorded against the project have recorded an instrument providing for the release and reconveyance of each time share from the lien upon the payment of a specified sum or the performance of a specified act;

      5.  The developer has obtained and recorded one or more binding nondisturbance agreements acceptable to the Administrator, that:

      (a) Are executed by the developer, all holders of a lien recorded against the project and any other person whose interest in the project could defeat the rights or interests of any purchaser under the time-share instrument or contract of sale; and

      (b) Provide that any person whose interest in the project could defeat the rights or interests of any purchaser under the time-share instrument or contract of sale takes title to the project subject to the rights of the purchasers; or

      6.  Alternative arrangements have been made which are adequate to protect the rights of the purchasers of the time shares and approved by the Administrator.

      (Added to NRS by 1983, 982; A 1985, 1141; 2001, 2506)