Secondly, the HOA demand is required also in order for the title/escrow company to make sure the HOA is paid for any assessments, dues, and/or fees prior to you selling the property. This is to ensure that the buyer is buying the property with a clean slate and will not be responsible for anything owed to the HOA while the previous owner owned the home.
I hope this is helpful and would be glad to help should you need any further assistance.
I look forward to hearing from you!
The Adams Team at
Rothwell Gornt Companies
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"If the property is located within a CIC, Seller acknowledges and agrees to obtain (at Seller's own expense) and/or provide the information required by NRS 116.4109 and 116.41095 to broker for delivery to buyer."
Sounds like a lot of blah blah blah but a CIC=HOA and the NRS mentioned are the laws pertinent to the seller's obligation to pay for the HOA demand and resale package.
I am sorry that was not explained to you at the time that your listing agreement was signed. You can read a blog post I have written about it in the past in my web reference below:
Also, a person from homewise responded to my inquiry, and explained that the reason I did not see an option to order/purchase the Resale Demand on my account page on homewise, is because only someone from the title company (or someone like them, i.e., attorney, or other person with a company with a need to obtain this info) has the option (after they have registered) to order/purchase a Resale Demand. In other words, I as the seller, do not have access to do that.
I know the sale of property is a confusing process for many people, and I am sorry you are frustrated with the process to obtain the documentation needed for the sale of your property.
We use Homewise to help simplify the process as there are different forms needed by different organizations for the sale of your home. The resale package needs to be given to the new owner so that they have all of the rules, regulations, etc. that govern the property they are purchasing. It also tells them if there are any architectural violations on the property, if the association is involved in any litigation, etc. If you paid $300 for your package, you ordered the full package that contains the association documents. If you had the documents, you could have purchased the $175 package that doesn't contain the association documents.
The information the title company needs to prepare the HUD-1 for the sale of your property is different from the resale package. They need to order the resale demand from Homewise to obtain the settlement information they need. The cost of the resale demand is $75. In order to protect financial information regarding the seller, this option is limited as to who can order it. Most of the title companies order this themselves - it sounds like the title company you are using put that responsibility on the seller.
There is also a $75 transfer fee that is collected at settlement to cover the costs associated with setting up a new owner in the association's records. This is not to be confused with the $75 for the resale demand needed by the title company.
If you have any questions, please let me know.
Nevada Law requires sellers to provide the HOA resale package to the buyer which includes the current budget, rules and regulations, CC&Rs etc. so the buyer may review them before closing on the purchase transaction. Additionally the HOA demand is a statement that is provided to the title/escrow company to make any necessary payoffs and prorate the dues at the time of closing. Both of these items are common and customary in the sale of residential property in Nevada.
- Alex Adabashi
Wow! Sorry for the abrupt and incomplete explaination of your escrow officer. Your agent should also be able to answer that question for you. Anyway I noticed Myra akready answered your question. Good luck with your purchase.
HOA is your Home Owner Association
The HOA demands is a package of documents for the title company which researches all outstanding payments, penalties and liens that might be against the property by the HOA. These liens/back dues and penalties have to be paid by the seller in order to close the home.
All HOAs charge different fees. Usually the HOA package is $375 and the Demands are $150. This, though, can vary from HOA to HOA.
I am assuming that you are selling your house as a fir sale by owner and that's why you are not aware of NRS (Nevada Revised Statue) 645 and 116.
As a seller in the state of Nevada, you are required to provide buyers with all information for the HOA including the Cc&Rs, By laws, financials, minutes, litigation information, reserve and few more items. Its referred to as " HOA RESALE PACKAGE ".
The timeline is within 10 days from acceptance. Than buyer has five days to approve or disapprove such information.
The HOA demand, is needed by escrow company to calculate the fees such as transfer fees, monthly fees and any other fees or assessment.
If you have any other question, contact me. Good luck and if you need to purchase a property, I will be happy to help!
Realty Executives Of Nevada
The Seller of the home is responsible to provide... to the buyer,..... the most recent updates made the your HOA.
This will include Bylaws, budgeting, Regulations Etc for that particular association.
If there is a Master Plan that you pay... that will need to be supplied as well.
The demand is an up to date record of HOA Dues Paid or overdue and is important information for the Title company to set up closing.
I'm sorry to hear that this has taken you by suprise...
Your Realtor should have mentioned this to you before you signed the contract.
The good news is.... If you don't have to rush it,.... it is not that expensve,... In many cases...it is under $200 for the resale package.....
Congratulations on Your Sale....
Hank Lauzon III
Signature Real Estate Group
9525 Hillwood Drive #120
Las Vegas, NV 89134
Web : http://HanksLVRealestate.com
Never look down on anybody...unless you're helping them up.
The escrow officer didn't give you a very good answer, but truly, it is required (by law) of every seller that lives in a community with an HOA. Later on down the road, if you buy a home in an HOA (in the state of Nevada), the seller will be required to provide the same paperwork to you.
Hope that helps!
Prudential Americana Group Realtors
The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"
Best of Luck, and Happy Holidays,
Dolly & Margie