1. YOU GENERALLY HAVE 5 DAYS TO
CANCEL THE PURCHASE AGREEMENT?
When you enter into a purchase agreement to
buy a home or unit in a common-interest
community, in most cases you should receive
either a public offering statement, if you are the
original purchaser of the home or unit, or a
resale package, if you are not the original
purchaser. The law generally provides for a
5-day period in which you have the right to
cancel the purchase agreement. The 5-day
period begins on different starting dates,
depending on whether you receive a public
offering statement or a resale package. Upon
receiving a public offering statement or a resale
package, you should make sure you are
informed of the deadline for exercising your right
to cancel. In order to exercise your right to
cancel, the law generally requires that you hand
deliver the notice of cancellation to the seller
within the 5-day period, or mail the notice of
cancellation to the seller by prepaid United
States mail within the 5-day period. For more
information regarding your right to cancel, see
Nevada Revised Statutes 116.4108, if you
received a public offering statement, or Nevada
Revised Statutes 116.4109, if you received a
resale package.
2. YOU ARE AGREEING TO
RESTRICTIONS ON HOW YOU CAN USE
YOUR PROPERTY?
These restrictions are contained in a document
known as the Declaration of Covenants,
Conditions and Restrictions. The CC&Rs
become a part of the title to your property. They
bind you and every future owner of the property
whether or not you have read them or had them
explained to you. The CC&Rs, together with
other “governing documents” (such as
association bylaws and rules and regulations),
are intended to preserve the character and value
of properties in the community, but may also
restrict what you can do to improve or change
your property and limit how you use and enjoy
your property. By purchasing a property
encumbered by CC&Rs, you are agreeing to
limitations that could affect your lifestyle and
freedom of choice. You should review the
CC&Rs, and other governing documents before
purchasing to make sure that these limitations
and controls are acceptable to you. Certain
provisions in the CC&Rs and other governing
documents may be superseded by contrary
provisions of chapter 116 of the Nevada Revised
Statutes. The Nevada Revised Statutes are
available at the Internet address
http://www.leg.state.nv.us/nrs/.
3. YOU WILL HAVE TO PAY OWNERS’
ASSESSMENTS FOR AS LONG AS YOU
OWN YOUR PROPERTY?
As an owner in a common-interest community,
you are responsible for paying your share of
expenses relating to the common elements,
such as landscaping, shared amenities and the
operation of any homeowners’ association. The
obligation to pay these assessments binds you
and every future owner of the property. Owners’
fees are usually assessed by the homeowners’
association and due monthly. You have to pay
dues whether or not you agree with the way the
association is managing the property or
spending the assessments. The executive board
of the association may have the power to
change and increase the amount of the
assessment and to levy special assessments
against your property to meet extraordinary
expenses. In some communities, major
components of the common elements of the
community such as roofs and private roads must
be maintained and replaced by the association.
If the association is not well managed or fails to
provide adequate funding for reserves to repair,
replace and restore common elements, you may
be required to pay large, special assessments to
accomplish these tasks.
4. IF YOU FAIL TO PAY OWNERS’
ASSESSMENTS, YOU COULD LOSE YOUR
HOME?
If you do not pay these assessments when due,
the association usually has the power to collect
them by selling your property in a nonjudicial
foreclosure sale. If fees become delinquent, you
may also be required to pay penalties and the
association’s costs and attorney’s fees to
become current. If you dispute the obligation or
its amount, your only remedy to avoid the loss of
your home may be to file a lawsuit and ask a
court to intervene in the dispute.
5. YOU MAY BECOME A MEMBER OF A
HOMEOWNERS’ ASSOCIATION THAT HAS
THE POWER TO AFFECT HOW YOU USE
AND ENJOY YOUR PROPERTY?
Many common-interest communities have a
homeowners’ association. In a new
development, the association will usually be
controlled by the developer until a certain
number of units have been sold. After the period
of developer control, the association may be
controlled by property owners like you who are
elected by homeowners to sit on an executive
board and other boards and committees formed
by the association. The association and its
executive board are responsible for assessing
homeowners for the cost of operating the
association and the common or shared elements
of the community and for the day-to-day
operation and management of the community.
Because homeowners sitting on the executive
board and other boards and committees of the
association may not have the experience or
professional background required to understand
and carry out the responsibilities of the
association properly, the association may hire
professional community managers to carry out
these responsibilities. Homeowners’
associations operate on democratic principles.
Some decisions require all homeowners to vote,
some decisions are made by the executive
board or other boards or committees established
by the association or governing documents.
Although the actions of the association and its
executive board are governed by state laws, the
CC&Rs and other documents that govern the
common-interest community, decisions made by
these persons, will affect your use and
enjoyment of your property, your lifestyle and
freedom of choice, and your cost of living in the
community. You may not agree with decisions
made by the association or its governing bodies
even though the decisions are ones which the
Revision date: 6/30/09
association is authorized to make. Decisions
may be made by a few persons on the executive
board or governing bodies that do not
necessarily reflect the view of the majority of
homeowners in the community. If you do not
agree with decisions made by the association,
its executive board or other governing bodies,
your remedy is typically to attempt to use the
democratic processes of the association to seek
the election of members of the executive board
or other governing bodies that are more
responsive to your needs. If you have a dispute
with the association, its executive board or other
governing bodies, you may be able to resolve
the dispute through the complaint, investigation
and intervention process administered by the
Office of the Ombudsman for Owners in
Common-Interest Communities, the Nevada
Real Estate Division and the Commission for
Common Interest Communities. However, to
resolve some disputes, you may have to
mediate or arbitrate the dispute and, if mediation
or arbitration is unsuccessful, you may have to
file a lawsuit and ask a court to resolve the
dispute. In addition to your personal cost in
mediation or arbitration, or to prosecute a
lawsuit, you may be responsible for paying your
share of the association’s cost in defending
against your claim.
6. YOU ARE REQUIRED TO PROVIDE
PROSPECTIVE PURCHASERS OF YOUR
PROPERTY WITH INFORMATION ABOUT
LIVING IN YOUR COMMON-INTEREST
COMMUNITY?
The law requires you to provide a prospective
purchaser of your property with a copy of the
community’s governing documents, including the
CC&Rs, association bylaws, and rules and
regulations, as well as a copy of this document.
You are also required to provide a copy of the
association’s current year-to-date financial
statement, including, without limitation, the most
recent audited or reviewed financial statement, a
copy of the association’s operating budget and
information regarding the amount of the monthly
assessment for common expenses, including
the amount set aside as reserves for the repair,
replacement and restoration of common
elements. You are also required to inform
prospective purchasers of any outstanding
judgments or lawsuits pending against the
association of which you are aware. For more
information regarding these requirements, see
Nevada Revised Statutes 116.41095.
7. YOU HAVE CERTAIN RIGHTS
REGARDING OWNERSHIP IN A COMMON-
INTEREST COMMUNITY THAT ARE
GUARANTEED YOU BY THE STATE?
Pursuant to provisions of chapter 116 of Nevada
Revised Statutes, you have the right:
(a) To be notified of all meetings of the
association and its executive board,
except in cases of emergency.
(b) To attend and speak at all meetings of
the association and its executive board,
except in some cases where the
executive board is authorized to meet in
closed, executive session.
(c) To request a special meeting of the
association upon petition of at least
10 percent of the homeowners.
(d) To inspect, examine, photocopy and
audit financial and other records of the
association.
(e) To be notified of all changes in the
community’s rules and regulations and
other actions by the association or
board that affect you.
8. QUESTIONS? Although they may be
voluminous, you should take the time to read
and understand the documents that will control
your ownership of a property in a common-
interest community. You may wish to ask your
real estate professional, lawyer or other person
with experience to explain anything you do not
understand. You may also request assistance
from the Office of the Ombudsman for Owners in
Common-Interest Communities, Nevada Real
Estate Division, at 702-486-4480 or statewide
toll free at 1-877-827-9907.
BEFORE YOU PURCHASE
PROPERTY IN A
COMMON-INTEREST
COMMUNITY
DID YOU KNOW . . .
State of Nevada
Business and Industry
Real Estate Division
Office of the Ombudsman
for Owners in
Common-Interest Communities
2501 E. Sahara Ave., Suite 202
Las Vegas, NV 89104
PHONE – 702-486-4480
FAX – 702-486-4520
STATEWIDE TOLL FREE
1-877-829-9907
www.red.nv.gov
