A Nevada buyer submits an offer on a home that includes the following clause: 'This offer is contingent upon the buyer's review and approval of the HOA resale package within the time period provided by Nevada law.' The seller accepts the offer. Three days after the buyer receives the HOA resale package, the buyer's agent submits a written cancellation notice citing dissatisfaction with HOA fees. The seller argues the buyer has no right to cancel because the HOA fees were disclosed in the listing. Which of the following is most accurate under Nevada law?
Correct Answer
A) The buyer's cancellation is valid because Nevada law gives buyers 5 calendar days after receipt of the HOA resale package to cancel for any reason
Under NRS Chapter 116, when a buyer purchases a unit in a common-interest community (HOA), the seller must provide the HOA resale package (also called the HOA disclosure package). Upon receipt, the buyer has 5 calendar days to cancel the contract for any reason — this is an unconditional statutory right. Prior disclosure of HOA fees in the listing does not eliminate or waive this statutory cancellation right. The right exists regardless of what was previously disclosed, and the buyer exercised it within the 5-calendar-day window by submitting cancellation on day 3.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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