Home Selling in Las Vegas>Question Details

mike, Home Seller in Las Vegas, NV

I'm selling a house and being asked to pay for HOA resale package and HOA demand package. What are these things?

Asked by mike, Las Vegas, NV Wed Dec 11, 2013

When I ask the escrow officer what they are, I just get "it is required and must be paid for." If I can't get a real answer, it pings my BS meter.

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Answers

19
Hopefully Mike got is answer by now. This post was from 4 months ago.
1 vote Thank Flag Link Tue Mar 4, 2014
As others have stated below this is required by law for all homes sold within communities that have an HOA. The HOA resale package will provide all of the documentation the buyer will need in order to have full disclosure of the HOA's rules and regulations as well as the HOA's financial standing/budget etc. This is very important to a buyer because it can affect what the buyer can do with the property as well as disclose if the HOA is in financial trouble. (For example if the community has rental restrictions, an investor looking to buy and hold as a rental property would not want to buy that home as they would not be allowed to put a tenant in the property. As another example, when the market crashed some HOA's we having financial troubles due to the amount of vacant properties or default property owner's that were no longer making their HOA payments. If owners are not making their HOA payment the HOA's revenue does not support the necessary expenses like maintenance, exterior repairs on condos, etc)

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!

Best Regards,
Robert Adams
Broker/Salesman
The Adams Team at
Rothwell Gornt Companies
C:702-349-9175
F:702-932-8826
RobertAdams@LVrealestateHELP.com
http://www.LVrealestateHELP.com

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1 vote Thank Flag Link Fri Jan 3, 2014
It is actually required by law and if you review the listing agreement you signed (if it is the most current GLVAR listing agreement,) on page 2 #11 line 109 it states:

"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:
1 vote Thank Flag Link Mon Dec 23, 2013
Great answer
Flag Mon Jan 27, 2014
Reading the answers below, this fee seems to be nothing more than something fabricated by lawyers so they can charge a rather large fee for doing nothing. All of the content provided should be easily available at no cost to anyone within the association. There is no justification for such an exorbitant cost for simply printing out documents. No value is being provided here.
0 votes Thank Flag Link Sat Aug 23, 2014
After confusing messages between the seller"s and buyer's realtors and the title company person, I obtained a clear explanation from the person at my condo association management company, who deals with homewisedocs (the provider of these documents being discussed here).
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.
Hi Joan,

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.
0 votes Thank Flag Link Fri Apr 4, 2014
" If you have any questions, please let me know." was part of the response sent to me; it is not an invitation from me to the readers here.
Flag Fri Apr 4, 2014
This is a typical seller expense. Costs are $125 for the HOA Demand and $160 for the Resale Package (on average).
0 votes Thank Flag Link Tue Mar 18, 2014
This is the paperwork that comes from your association either condo or homeowners . If you contact the person in charge of the association which is usually a management company they will know what this is and provide with the package which is required for closing.
0 votes Thank Flag Link Mon Mar 3, 2014
In very simple terms the resale package is a package of documents related to the homeowner's association that a seller is required by law to provide to the buyer. Consider the demand statement like a bill or invoice. Both are required and both are paid for by the seller and they can cost a few hundred dollars for each HOA. If you don't like it (and you shouldn't) I suggest you voice your concerns to your hoa and management company.
0 votes Thank Flag Link Sun Mar 2, 2014
A few months ago my husband and I sold our home in Colorado and it was a bit difficult getting the HOA documents needed for our buyer. A family friend referred us to http://www.associationonline.com. They were a huge help in making sure we had all the right documents and the information met the state disclosure requirements. I was able to get the whole package together easily by the contract deadline. I don’t think the process could get much easier than the software and service provided by Association Online. You should visit their website or call (970)-226-1324. They’re a great help for homeowners nationwide.
0 votes Thank Flag Link Mon Feb 3, 2014
Sorry to hear it was difficult to get the HOA docs in your previous deal. In Las Vegas it is quite simple to obtain these docs. They simply need to be paid for and ordered.
Flag Mon Feb 3, 2014
Hi Mike,

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
0 votes Thank Flag Link Fri Dec 13, 2013
Hi Mike,

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
0 votes Thank Flag Link Wed Dec 11, 2013
The HOA package consists of approximately 12 documents from your HOA - these include the Budget, Rules & Regulations, CC&R's (Covenants, Conditions, and Restrictions of the Association), Litigation, Architectural, and other items. As a seller, you have to purchase these items for the transaction to happen. The new buyer cannot close without them as it is a state law in Nevada that they have to receive current and up to date HOA documents.

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.
0 votes Thank Flag Link Wed Dec 11, 2013
Dear Colorado HOA Forum, I have always agreed that the cost of labor has been reduced by the use of technology and yet the fees have not reduced. However, I was told by one management company that the main cost is the attorney's letter stating whether or not there is litigation/pending lawsuits in the community.
Flag Thu Dec 12, 2013
this is a total ripoff, it must cost all of $15 in labor and materials to produce this information, if it doesn't the property manager should be fired, this is all in a data base and produced via form letters, this only relates to actions and indebtedness to the hoa from the seller, this is not brain surgery but routine and expected work, property management companies produce reports on delinquent dues, status of liens and other debt by homeowners each month, much of this can be obtained via the HOA web site and the cost of 10 cents per page, this is a cash cow for the property managers, we in Colorado via the Colorado HOA Forum http://www.coloradohoaforum.com are attempting to end this practice or limit the cost to no more than $50
Flag Wed Dec 11, 2013
Hi Mike

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!

Rena Levy
Global broker/Associate
Realty Executives Of Nevada
702-992-7754 Direct
702-940-4500 Office
Rena@CvegasHomes.com
Web Reference: http://www.cvegashomes.com
0 votes Thank Flag Link Wed Dec 11, 2013
Hello Mike,

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....


Happy Holidays,
Hank Lauzon III
Signature Real Estate Group
9525 Hillwood Drive #120
Las Vegas, NV 89134

Cell 702-449-0899
Office 702-949-2409
Fax 702-543-6844

Web : http://HanksLVRealestate.com
Email: HankLVRealestate@aol.com
Facebook: http://www.Facebook.com/HanksLasVegasRealEstate

Never look down on anybody...unless you're helping them up.
0 votes Thank Flag Link Wed Dec 11, 2013
Yes, Joseph is correct. It's a tough pill to swallow sometimes when you have 3. I've had one home that had to pay almost $1,000.00 in HOA resale packages. One master asso and 2 sub-associations.
0 votes Thank Flag Link Wed Dec 11, 2013
Also if you have an HOA lien, this lien MUST be satisfied by Escrow prior to transfer of title by the escrow/title company.
Flag Wed Dec 11, 2013
The HOA resale package is a package that contains all the rules, restrictions and finances of the Home Owners Association. The Demand is a break down of the accounting on the property that escrow needs in order to prorate the fees.
0 votes Thank Flag Link Wed Dec 11, 2013
Nevada law states that the seller of a home MUST provide a complete HOA package for the new buyer. That includes the bylaws, financials, minutes of the most recent meetings, CC&Rs, etc. The HOA demand is the payoff balance of any outstanding dues or liens. All of these items and files cost money to maintain, and the fees paid by the seller go towards those costs.

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!

Diann Tonnesen
Prudential Americana Group Realtors
sold@GreatLasVegasHomes.com
702-985-7654

The Tonnesen Team - with over 30 years of experience helping families call Las Vegas "home!"
0 votes Thank Flag Link Wed Dec 11, 2013
The resale package has nothing to do with escrow. Your listing agent should of informed you at the time your listing was taken, that this is required for you to provide to the buyer. The Resale package is provided by your home owner association which includes the CCR, Bylaws, Financials among other things regarding your home owner association. The HOA demand is a separate cost and is the final billing statement from your homeowner's association that is required by escrow to close on your property.

Best of Luck, and Happy Holidays,

Dolly & Margie
0 votes Thank Flag Link Wed Dec 11, 2013
100% it is mandatory. By law as a seller you must provide to any buyer the rules,regs,bylaws,budgets,etc,etc for hoa and that is what this package is including. As well the Demand is to get HOA to send a breakdown of what might be owed or if $0 balance to be able to switch house into new buyers name for future.
0 votes Thank Flag Link Wed Dec 11, 2013
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