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In Nevada, common-interest community (CIC) resales require:

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Question & Answer

Review the question and all answer choices

A

No special documents

Nevada law explicitly requires special documentation for CIC resales β€” the resale package is a mandatory statutory requirement under NRS Β§ 116.4109, not an optional formality, and failure to provide it gives the buyer the right to cancel the transaction, making 'no special documents' entirely incorrect.

B

Resale package from the HOA

Correct Answer
C

Only financial statements

Providing only financial statements would be insufficient under Nevada law, which requires the complete resale package including governing documents (CC&Rs, bylaws, rules), reserve study, litigation disclosures, and pending special assessment information β€” financial statements alone would leave buyers without critical information about the rules they must follow and the organizational structure they are joining.

D

State approval

Nevada's CIC resale process does not require state government approval β€” the resale package is prepared by the HOA or its management company and delivered to the buyer through the transaction process; there is no state agency that reviews or approves individual CIC resales, making state approval both incorrect and logistically impractical given the volume of CIC transactions in Nevada.

Why is this correct?

Nevada Revised Statutes Β§ 116.4109 requires that sellers of units in common-interest communities provide buyers with a resale package prepared by the HOA or its management company, which must include the declaration of covenants, conditions and restrictions (CC&Rs), bylaws, rules and regulations, current financial statements, the most recent reserve study, information about any pending litigation or special assessments, and the HOA's current budget. The buyer has a statutory right to cancel the purchase agreement within five calendar days of receiving the complete resale package, giving them a meaningful opportunity to review the documents before becoming irrevocably committed. This comprehensive disclosure requirement is among the most robust in the nation and reflects Nevada's large condominium and planned community market, particularly in the Las Vegas metropolitan area.

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