Golfing with my dad on his 75th birthday
The Nevada “Residential Disclosure Guide” is amended. It can be viewed on line by clicking here. Changes in the current revision of the booklet pertain to the Common-interest Communities and Condominium Hotels disclosures. Pay special attention to Statement of Demand. (see below).
Information regarding the Statement of Demand requirement legislated in 2013 was added and some of the original language explaining about common-interest communities disclosures generally and resale packages drafted back in 2005-06 was reworked. All other disclosure information remains unchanged.
SECTION – Common-Interest Communities and Condominium Hotels
OLD Language- When is it due?
The statement must be delivered to the buyer not later than the date the offer becomes binding on the purchaser
When is it due?
In a transaction requiring a public offering statement (further detailed below), the information statement is part of the public offering statement and is due no later than the date an offer to purchase becomes binding on the buyer. If the unit has not been inspected by the buyer, the buyer will have 5 calendar days to cancel the contract from the date of execution.
In a resale transaction, the information statement is part of the resale package. A buyer has 5 calendar days to cancel the contract after receipt of the resale package.
It is good practice to provide the information statement no later than 5 days before the contract becomes binding on the buyer in any type of transaction.
SECTION – Public Offering Statement
NEW (additional) Language
If the property is a new unit in a common-interest community or a condominium hotel, or if the community is subject to any developmental rights, or contains converted buildings or contains units which may be in a time share, or is registered with the Securities and Exchange Commission, the buyer must also be provided with a Public Offering Statement disclosing applicable information, including:
– development rights of contractors
– construction schedule
– description of proposed improvements
– mechanical & electrical installations
– initial or special fees
– number & identity of units in timeshare
Unless the buyer has personally inspected the unit, the buyer may cancel the contract to purchase, by written notice, until midnight of the fifth calendar day following the date of execution of the contract. This provision must be stated in the contract.
SECTION – Resale Package
NEW (additional) Language:
In transactions involving the resale of a unit previously sold by the developer, a resale package must be provided to the buyer at the expense of the seller. [NOTE – his is clarifying who pays for the package, which was clarified by Nevada law].
NEW Language: [in bold]
In addition to the information statement, the resale package includes the following: thedeclarations, bylaws, rules and regulations, monthly assessments, unpaid assessments of any kind, current operating budget, financial statement, reserve summary, unsatisfied judgments, and status of any pending legal actions.
SECTION – Transfer Fees
Do not pertain to Condominium Hotels
The resale package for a home or unit in a common-interest community must also include a statement of any transfer fees, transaction fees or any other fees associated with the resale of a unit.
SECTION -Unpaid Obligations
NEW Language [in bold]
Do not pertain to Condominium Hotels
Please be advised that while the resale package includes this information, changes to the law in 2013 no longer allow a seller or buyer to rely on this statement as accurate. The seller must obtain a “statement of demand” which is separate from the resale package. [Remember…the old language stated the statement was valid for 15 days; this is all removed now, a “statement of demand” (see below) is now separate from the Re-Sale Package]
SECTION – Delivery of Resale Package
NEW Language [in bold]:
Association or hotel unit owner has 10 days to provide the resale package after a request. If the documents are not provided within 10 days the buyer is not liable for any delinquent assessment. The resale package should be delivered as soon as practicable. Unless the buyer has accepted conveyance of the unit, the buyer may cancel the contract to purchase, by written notice, until midnight of the fifth calendar day following receipt of the resale package. This provision must be stated in the contract.
SECTION – Statement of Demand
NEW (additional language)
Does not pertain to Condominium Hotels
The statement of fees and assessments in the resale package my not be relied upon. It is necessary for any seller to purchase a statement of demand from the association and provide it to the buyer. The statement of demand may be requested by the unit owner, his or her representative or the holder of a security interest on the unit. A statement of demand from the association sets forth the current outstanding assessments, fees and unpaid obligations, including foreclosure fees and attorney’s fees due from the seller. The statement of demand remains effective for the period specified in the demand which must not be less than 15 business days from the date of delivery by the association to the seller. The association may provide a corrected statement of demand prior to the sale. Payment of the amount set forth in the statement of demand constitutes full payment of the amount due from the seller.
SEE Also the following forms: click to read –
Form: Before You Purchase Property in a Common-Interest Community Did You Know… or
Form: Before You Purchase Property in a Condominium Hotel Did You Know…
Previous Posts on Common Interest Communities in Nevada
What Can Be Included In a CIC Super Priority Lien in Nevada – December 18, 2012
Nevada CIC Resale Package Costs I – May 21, 2010
Nevada Condominium Hotel Disclosure – July 31, 2009
CIC Unpaid Delinquent Dues And How They Affect REO Listings – July 2, 2009
Changes to the Nevada CIC Resale Package – June 10, 2009
Non-Receipt of the Resale Package – May 8, 2009
Rental Restrictions within an Association – March 6, 2009
Nevada CIC Charges for Resale Packages – January 30, 2009
Nevada CIC Addendums – June 13,2008