Contracts

The real estate profession has become increasingly based in legalities. While a handshake can signify an agreement, the contract is the foundation of the real estate transaction today.

With the increased focus on legal issues, NVAR provides members services in the legal arena. Various articles on current and hot legal topics are provided through the weekly NVAR Online News. In addition, the Legal Information Line is available to members.

There are many real estate related questions that arise often. These FAQs (Frequently Asked Questions) by topic are provided to assist you in finding quick answers.

Contracts

Q:  Rejection Law. Does a seller have to let the buyer know that he/she has rejected their offer?

A:  Yes.  NAC 645.632 requires that if a licensee represents a seller and the seller rejects the buyer’s offer, the licensee must provide the buyer with a written notice, signed by the seller, which informs the buyer that the offer was not accepted.

NAC 645.632  Notification of rejection of offer or counteroffer. (NRS 645.050, 645.190)
1.  If a licensee represents a seller in a transaction, and if the seller does not accept an offer within a reasonable time after an offer has been presented to the seller, the licensee shall provide to the buyer or the representative of the buyer written notice signed by the seller which informs the buyer that the offer has not been accepted by the seller.
2.  If a licensee represents a buyer in a transaction, and if the buyer does not accept a counteroffer within a reasonable time after a counteroffer has been presented to the buyer, the licensee shall provide to the seller or the representative of the seller written notice signed by the buyer which informs the seller that the counteroffer has not been accepted by the buyer.

(Added to NAC by Real Estate Adv. Comm’n, eff. 8-21-81; A by Real Estate Comm’n by R186-99, 1-21-2000)

Q:  Sellers are required to provide purchaser’s with a resale package.  For how long is a resale package good?

A: SB 403 addressed that issue in 2011.  This bill provides that the part of the resale package which requires the CIC statement of monthly assessments and unpaid obligations of any kind must be effective for 15 working days.
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As part of the resale package, the association is required to generate a statement of the specific fees associated with the unit. This is the statement that is used by title and escrow for the final closing transaction.

When a person purchases property in a CIC (or HOA) NRS 116.4109(1)(a)-(f) identifies the types of information a buyer is to be provided, including such things as the bylaws, CC&R’s (covenants, conditions and restrictions), rules and regulations along with the disclosure of any pending legal matters or any fees that may be assessed in the future by the CIC for the purchaser of the property. Specifically 116.4109(1)(b) provides that the association is required to generate a statement of the specific fees associated with the unit. The statute provides that the CIC has ten (10) days to provide the documents, so they are usually ordered at the beginning of a transaction. Very commonly, though, the information provided was good for only one day. That makes it very difficult for title to use the statement at closing, and requires ordering an update at an additional cost, disrupting the closing process.