Buying A Henderson Home: The CIC Resale Package
If you're buying a home in Henderson Nevada, odds are good that you'll be part of a Common Interest Community (CIC). Also referred to as Homeowner Associations (HOAs), these neighborhoods often have very specific rules and regulations that all owners and residents must abide by.
How many trees must I have in the front yard? What colors can I paint my house? Can I park my boat or RV in the street? These are all types of questions that are addressed by CIC rules. Right now 79% of the active Henderson homes for sale fall within CICs, so it is important for buyers to be informed of their rights and responsibilities before purchasing.
When you sign an offer to purchase in a Common Interest Community, your agent should also have you sign the Information Statement Disclosing Homeowners' Rights and Responsibilities form. Commonly referred to as "Did You Know ...", the form addresses these seven key issues:
"Did You Know ...
- You generally have 5 days to cancel the purchase agreement?
- You are agreeing to restrictions on how you can use your property?
- You will have to pay owners' assessments for as long as you own your property?
- If you fail to pay owners' assessments, you could lose your home?
- You may become a member of a homeowners' association that has the power to affect how you use and enjoy your property?
- You are required to provide prospective purchasers of your property with information about living in your common-interest community?
- You have certain rights regarding ownership in a common-interest community that are guaranteed you by the state?"
Once your offer is accepted, the seller has two days to order the CIC Resale Package as specified in item 9 on page 5 of the Residential Purchase Agreement (your offer). The resale package contains the Declaration of Restrictions (CC&Rs); association rules and regulations; current operating budget and financial statements; a summary of any legal action that affects the association; a statement of the current and expected fees; and other information that affects homeowners in that neighborhood.
Resale packages can be delivered electronically (usually in .pdf format), on disk, or as hard copy. It's not uncommon for the package to be 100 pages or more, but don't ignore it. Read it. You only have five days to cancel the purchase without penalty; beyond that, your earnest money may be at risk.
Nevada real estate agents, the state Real Estate Division, and our state legislature have worked closely to create timelines and disclosures that protect and inform buyers of homes in common-interest communities. For more on CICs, see Article 4 of Nevada Revised Statutes 116 or consult with your buyer's agent or broker.
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