CIC Update and Refresher
By Deanne M. Rymarowicz, Esq.
GLVAR Legal Counsel
Effective immediately, when selling a home that is part of a common interest community (CIC), furnishing the resale package is “at the expense of the unit’s owner.” (See SB 253, Section 8.)
In other words, the seller is expressly and solely responsible for paying for the resale package.
There is absolutely no exception or exemption based on the identity of the seller (such as an asset manager) or the nature of the transaction (such as a short sale).
The clarification as to who pays for the resale package comes in SB 253 as put into effect on June 9, 2009 by virtue of a provision in AB 350. Each of these bills also added to the list of documents and information to be included in the resale package.
SB 253 added, “A statement of any transfer fees, transaction fees or any other fees associated with the resale of a unit.” Such a statement will be included in the certificate prepared by the Association, and is required after June 9.
AB 350 added,
In addition to any other document, a statement describing all current and expected fees or charges for each unit, including, without limitation, association fees, fines, assessments, late charges or penalties, interest rates on delinquent assessments, additional costs for collecting past due fines and charges for opening or closing any file for each unit.
This addition will take effect on July 1.
Each of these additions is meant to provide the purchaser with a full and complete picture of the fees and costs associated with owning the property in that particular CIC. GLVAR’s form, “Purchaser’s Receipt of the Common Interest Community Resale Package” will soon be updated to reflect the new line items.
Remember that the purchaser is not liable for “any unpaid assessment or fee greater than the amount set forth in the documents and certificate prepared by the association.” See NRS 116.4109(5). In addition, if the association doesn’t furnish the resale package within the 10 days required by law, the seller is not liable for the delinquent assessment. See NRS 116.4109(5). These protections remained unchanged in the new bills.
Finally, as a reminder, the foreclosure exemption in NRS 116.4101(2) does not apply to an REO transaction. That exemption deals only with the disposition from the borrower/homeowner back to the bank pursuant to foreclosure under NRS 107. Once the foreclosure takes place, the bank or asset manager is the unit’s owner with all the same responsibilities as any other seller in a resale transaction.
All agents should stand firm with their clients and require that Nevada law is complied with in all transactions.
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