The law applies to all homeowners who are selling
property that is governed by a homeowners association. It will have pertinent
applications to any purchaser about to "buy into" a community
governed by a homeowners association.
Brief Summary:
The Law is designed as a protective measure to consumers that are about
to "buy into" or become a part of a homeowners association. A perspective
buyer must receive what is known as the "Certificate of Resale" from the
seller of the unit.
What is the Certificate of resale?
It includes the following:
- A Copy of the declarations, Covenants Conditions and Restrictions
(CC+R's), Bylaws, and rules and regulations
- Association by-Laws
- Rules and Regulations of the Association
- Statement of monthly assessments for common expenses and any unpaid
assessments
- Current operating budget
- Current financial statement of the association including a balance
sheet
- Funds held in reserve for common elements
- Statement showing any unsatisfied judgements or lawsuits against
association
- Statement of the status of any pending legal action against the association
or relating to the common interest community of which the seller has
actual knowledge
- A copy of the minutes of the most recent Board of Directors meeting
in the homeowners association in which you are making a purchase.
This material must be available to the purchaser "before conveyance" or
in plain English, before it closes.
What if the purchaser does not receive this?
HE CAN RESCIND THE SALE...... WITH NO PENALTY! Meaning, all earnest deposit
money is refundable.
ALSO:
Another interesting aspect of the Law is the creation of the office of
the Ombudsman.
Who is he?
He or she is to act as a go between concerning the Division of Real Estate
and the Board of Directors of any homeowners association regarding the
interpretation of the Law.
Who pays for this?
Each homeowner through an annual billing to their association is billed
approximately $7 per year to fund this position.
For more details about SB314 and it's provisions contact:
The Real Estate Division
2501 W Sahara Suite 102
Las Vegas, NV 89102-4137
(702) 486-4033
