You’ve got five days to read HOA rules

Q: I just bought a townhouse in a nice, older guard-gated Henderson golf community. The homeowners association fees are about $300 a month. By the time the deal closed and I moved in I did not have much time to read the covenants, conditions and restrictions. Is there a law that says you have a certain amount of time to read the rules before you commit to the sale? When do they need to get them to you? I really wanted to build an office in my garage, and now I find out I can’t.

A: Yes, there are time frames. You should receive the common-interest communities HOA package within 15 days and you have five days from receipt to approve. That means approve the monthly dues and any restrictions the HOA may have. If you do not receive this, you can cancel the transaction and get a refund of your earnest money deposit. Once you receive the CIC package, if you do not cancel, then the CIC HOA Resale Package is deemed approved. The Greater Las Vegas Association of Realtors uses specific verbiage in most contracts to protect buyer and seller. See below.

Seller or his authorized agent shall request the CIC documents and certificate listed in NRS 116.4109 (collectively, the “resale package”) within two business days of acceptance and provide the same to buyer within one business day of seller’s receipt thereof. Buyer may cancel this agreement without penalty until midnight of the fifth calendar day following the date of receipt of the resale package. If buyer does not receive the resale package within 15 calendar days of acceptance, this agreement may be cancelled in full by buyer without penalty. If buyer elects to cancel this agreement pursuant to this section, he must deliver, via hand delivery or prepaid U.S. mail, a written notice of cancellation to seller or his authorized agent identified in the confirmation of representation at the end of this agreement. Upon such written cancellation, buyer shall promptly receive a refund of the EMD (earnest money deposit). The parties agree to execute any documents requested by escrow holder to facilitate the refund. If written cancellation is not received within the specified time period, the resale package will be deemed approved. Seller shall pay all outstanding CIC fines or penalties at COE (close of escrow).

This is one of many reasons why it’s very important to have a knowledgeable Realtor represent you. Especially with some of the HOA’s in Las Vegas.

In summary, you, as a buyer, should always take the time to read and understand your rights as an owner in an HOA, as well as your responsibility to the community.

Steve Hawks, Platinum Real Estate Professionals