Nevada § 116B.765 - Required form of information statement

§ 116B.765. Required form of information statement

The information statement required by NRS 116B.735 and 116B.760 must be in substantially the following form: BEFORE YOU PURCHASE PROPERTY IN A CONDOMINIUM HOTEL DID YOU KNOW․․․ 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 condominium hotel,

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 NRS 116B.755 , if you received a public offering statement, or NRS 116B.760 , 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 condominium hotel, 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 Certain provisions in the CC&Rs and other governing documents may be superseded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 116B 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 AND CHARGES FOR AS LONG AS YOU OWN YOUR

PROPERTY? As an owner in a condominium hotel, you are responsible for paying your share of expenses

relating to the common elements and shared components. The obligation to pay these expenses binds you and every future owner of the property. Owners' fees are usually assessed for these expenses monthly. You have to pay dues whether or not you agree with the way the association or the

hotel unit owner is managing the property or spending the assessments or charges. The hotel unit owner executive board of the association may have the power to change

and increase the amount of the assessment or charges and to levy special assessments

or special charges against your property to meet extraordinary expenses. 4. IF YOU FAIL TO PAY OWNERS' ASSESSMENTS OR CHARGES, YOU COULD LOSE YOUR HOME? If you do not pay these assessments or charges when due, the hotel unit owner or 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

or hotel unit owner's costs, as applicable, 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 condominium hotels 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 yourself 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 elements of the condominium

hotel. 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 condominium association 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 condominium hotel, 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 condominium hotel. You may not agree with decisions made by the association or its governing bodies

even though the decisions are ones which the 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 residential unit in the

condominium hotel. 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 and Condominium Hotels, the Nevada Real Estate Division

and the Commission for Common-Interest Communities and Condominium Hotels. 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 CONDOMINIUM HOTEL? The law requires you to provide a prospective purchaser of your property with a copy

of the condominium hotel'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 provide a copy of the current year-to-date statement of

the shared expenses charged to your unit by the declarant or hotel unit owner, as

applicable. 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 NRS 116B.725 to 116B.795 , inclusive. 7. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN A CONDOMINIUM HOTEL THAT ARE GUARANTEED

YOU BY THE STATE? Pursuant to provisions of this chapter, 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. (d) To inspect, examine, photocopy and audit financial and other records of the association. (e) To be notified of all changes in the condominium hotel'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 condominium hotel. 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 and Condominium Hotels, Nevada Real Estate Division, at (telephone number). Buyer or prospective buyer's initials:__________ Date:__________