Many newer communities across the nation have homeowners associations (HOA), landscape maintenance associations (LMA), or some other type of Common Interest Community (CIC). For some years, Nevada has required that buyers in any sort of CIC get a chance to inspect the rules before buying. It’s only fair, because these rules restrict the way owners can use their property.

However, the “CIC Resale Package” as it is known often costs several hundred dollars. Who pays for it? The law used to be unclear, and many banks and short sellers demanded that the buyer (or more likely, the buyer’s Realtor) pay for it. This made for a sticky situation if the sale fell through. If the buyer doesn’t like what he or she sees in “the package” he/she has the right to cancel the deal and get the deposit back, but the expensive package itself is bought and non-refundable. At least if it were owned by the seller, the buyer could send it back and it could be used for another offer (in most cases).

A new law passed by the 2009 legislative session clears things up: effective June 9, the seller pays for the resale package, period. There is no room for debate.

If you are buying a home in an HOA, LMA or other common interest community, remember that the law says they have to put the rules in your hands, and they have to pay to do it. Some listings still say the buyer will pay, but I expect these to be corrected in a matter of weeks. Insist that the seller follow the law.