Nevada § 116.4109 - Resales of units

§ 116.4109. Resales of units

1. Except in the case of a sale in which delivery of a public offering statement is

required, or unless exempt under subsection 2 of NRS 116.4101 , a unit's owner or his or her authorized agent shall, at the expense of the unit's

owner, furnish to a purchaser a resale package containing all of the following: (a) A copy of the declaration, other than any plats, the bylaws, the rules or regulations

of the association and the information statement required by NRS 116.41095 . (b) A statement from the association setting forth the amount of the monthly assessment

for common expenses and any unpaid obligation of any kind, including, without limitation,

management fees, transfer fees, fines, penalties, interest, collection costs, foreclosure

fees and attorney's fees currently due from the selling unit's owner. (c) A copy of the current operating budget of the association and current year-to-date

financial statement for the association, which must include a summary of the reserves

of the association required by NRS 116.31152 and which must include, without limitation, a summary of the information described

in paragraphs (a) to (e), inclusive, of subsection 3 of NRS 116.31152 . (d) A statement of any unsatisfied judgments or pending legal actions against the

association and the status of any pending legal actions relating to the common-interest

community of which the unit's owner has actual knowledge. (e) A statement of any transfer fees, transaction fees or any other fees associated

with the resale of a unit. (f) 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. 2. The purchaser may, by written notice, cancel the contract of purchase until midnight

of the fifth calendar day following the date of receipt of the resale package described

in subsection 1, and the contract for purchase must contain a provision to that effect. If the purchaser elects to cancel a contract pursuant to this subsection, the purchaser

must hand deliver the notice of cancellation to the unit's owner or his or her authorized

agent, mail the notice of cancellation by prepaid United States mail to the unit's

owner or his or her authorized agent or deliver the notice of cancellation by electronic

transmission to the unit's owner or his or her authorized agent. Cancellation is without penalty, and all payments made by the purchaser before cancellation

must be refunded promptly. If the purchaser has accepted a conveyance of the unit, the purchaser is not entitled

to: (a) Cancel the contract pursuant to this subsection; or (b) Damages, rescission or other relief based solely on the ground that the unit's

owner or his or her authorized agent failed to furnish the resale package, or any

portion thereof, as required by this section. 3. Within 10 calendar days after receipt of a written request by a unit's owner or

his or her authorized agent, the association shall furnish all of the following to

the unit's owner or his or her authorized agent for inclusion in the resale package: (a) Copies of the documents required pursuant to paragraphs (a) and (c) of subsection

1; and (b) A certificate containing the information necessary to enable the unit's owner

to comply with paragraphs (b), (d), (e) and (f) of subsection 1. 4. If the association furnishes the documents and certificate pursuant to subsection

3: (a) The unit's owner or his or her authorized agent shall include the documents and

certificate in the resale package provided to the purchaser, and neither the unit's

owner nor his or her authorized agent is liable to the purchaser for any erroneous

information provided by the association and included in the documents and certificate. (b) The association may charge the unit's owner a reasonable fee to cover the cost

of preparing the certificate furnished pursuant to subsection 3. Such a fee must be based on the actual cost the association incurs to fulfill the

requirements of this section in preparing the certificate and must not exceed $185,

except that if a unit's owner or an authorized agent thereof requests that the certificate

be furnished sooner than 3 business days after the date of the request, the association

may charge a fee, which must not exceed $100, to expedite the preparation of the certificate. The amount of the fee may increase, on an annual basis, by a percentage equal to

the percentage of increase in the Consumer Price Index (All Items) published by the

United States Department of Labor for the preceding calendar year, but must not increase

by more than 3 percent each year. (c) The other documents furnished pursuant to subsection 3 must be provided in electronic

format to the unit's owner. If the association is unable to provide such documents in electronic format, the

association may charge the unit's owner a reasonable fee, not to exceed 25 cents per

page for the first 10 pages, and 10 cents per page thereafter, to cover the cost of

copying. (d) Except for the fees allowed pursuant to paragraphs (b) and (c), the association

may not charge the unit's owner any other fees for preparing or furnishing the documents

and certificate pursuant to subsection 3. 5. Neither a purchaser nor the purchaser's interest in a unit is liable for any unpaid

assessment or fee greater than the amount set forth in the documents and certificate

prepared by the association. If the association fails to furnish the documents and certificate within the 10

calendar days allowed by this section, the purchaser is not liable for the delinquent

assessment. A resale package provided to a unit's owner or his or her authorized agent pursuant

to this section remains effective for 90 calendar days. 6. Upon the request of a unit's owner or his or her authorized agent, or upon the

request of a purchaser to whom the unit's owner has provided a resale package pursuant

to this section or his or her authorized agent, the association shall make the entire

study of the reserves of the association which is required by NRS 116.31152 reasonably available for the unit's owner, purchaser or authorized agent to inspect,

examine, photocopy and audit. The study must be made available at the business office of the association or some

other suitable location within the county where the common-interest community is situated

or, if it is situated in more than one county, within one of those counties. 7. A unit's owner, the authorized agent of the unit's owner or the holder of a security

interest on the unit may request a statement of demand from the association. Not later than 10 calendar days after receipt of a written request from the unit's

owner, the authorized agent of the unit's owner or the holder of a security interest

on the unit for a statement of demand, the association shall furnish a statement of

demand to the person who requested the statement and provide a copy of the statement

to any other interested party. The association may charge a fee of not more than $165 to prepare and furnish a

statement of demand pursuant to this subsection and an additional fee of not more

than $100 to furnish a statement of demand within 3 business days after receipt of

a written request for a statement of demand. The amount of the fees for preparing and furnishing a statement of demand and the

additional fee for furnishing a statement of demand within 3 business days may increase,

on an annual basis, by a percentage equal to the percentage of increase in the Consumer

Price Index (All Items) published by the United States Department of Labor for the

preceding calendar year, but must not increase by more than 3 percent each year. The statement of demand: (a) Must set forth the amount of the monthly assessment for common expenses and any

unpaid obligation of any kind, including, without limitation, management fees, transfer

fees, fines, penalties, interest, collection costs, foreclosure fees and attorney's

fees currently due from the selling unit's owner; and (b) Remains effective for the period specified in the statement of demand, which must

not be less than 15 business days after the date of delivery by the association to

the unit's owner, the authorized agent of the unit's owner or the holder of a security

interest on the unit, whichever is applicable. As used in this subsection, “ interested party ” includes the unit's owner selling the unit and the prospective purchaser of the

unit. 8. In preparing, copying, furnishing or expediting or otherwise providing any document

or other item pursuant to this section, an association, or entity related to or acting

on behalf of an association, shall not charge a unit's owner, the authorized agent

of a unit's owner, a purchaser or, pursuant to subsection 7, the holder of a security

interest on a unit, any fee: (a) Not authorized in this section; or (b) In an amount which exceeds any limit set forth in this section. 9. If the association becomes aware of an error in a statement of demand furnished

pursuant to subsection 7 during the period in which the statement of demand is effective

but before the consummation of a resale for which a resale package was furnished pursuant

to subsection 1, the association must deliver a replacement statement of demand to

the person who requested the statement of demand. Unless the person who requested the statement of demand receives a replacement statement

of demand, the person may rely upon the accuracy of the information set forth in the

statement of demand provided by the association for the resale. Payment of the amount set forth in the statement of demand constitutes full payment

of the amount due from the selling unit's owner.