Nev. Admin. Code § 116B.520 - Public offering statements and resale packages: Additional contents

In addition to the information required by NRS NRS 116B.735 and 116B.760, the public offering statement and resale package must also include, to the extent available:

1. A narrative description of all the shared components of the condominium hotel, together with any other portion of the hotel unit not otherwise characterized as shared components, for which the unit owners will be assessed a portion of the operation and maintenance expenses;
2. A schedule summarizing the representative charges, expenses or assessments a prospective buyer would be required to pay each month for each type of unit and any disclaimer that is appropriate to present such information in a fair and complete manner, including at least a statement indicating that the information provided:
(a) Is only a projected estimate and the actual charges, expenses or assessments may vary from actual expenditures or in conjunction with actual operating conditions or as necessary to accommodate changed circumstances;
(b) Is only a categorical presentation and does not specify each charge, expense or assessment separately; and
(c) Does not provide for any additional adjustments to charges, expenses or assessments that may occur due to a transient rental program;
3. If completed, a copy of the most recent audited or reviewed financial statements;
4. If completed, a copy of the most recent reserve study for the major components of the shared components or the major components of the hotel unit;
5. Any supplemental disclosure statement form prepared by the Division; and
6. The following cautions or warnings in bold type and large font:

1. Are you aware of all charges, expenses and assessments for which you will be responsible as a residential unit owner, both on a monthly and annual basis?

2. Do you specifically understand your obligations with respect to:

(1) shared expenses;

(2) reserve requirements for the major components of the shared components and the major components of the hotel unit; and

(3) the budget for the hotel unit and the association? Are you aware of the potential assessments or costs for which you may have to pay your proportionate share? Are you aware that the hotel unit owner has the power to place a lien on your unit and foreclose for unpaid shared expenses or other charges?

3. Do you understand the relations and interactions among you and the association, other residential unit owners, the hotel unit owner, hotel operator or management company? Are you aware that the majority of the condominium hotel may be owned or controlled by the hotel unit owner and that you will be subject to obligations and costs which will be determined by the operation and business goals of the condominium hotel, and that these obligations and costs may change in the future? Are you aware that the role of the association in the governance and operation of the condominium hotel may be extremely limited?

Notes

Nev. Admin. Code § 116B.520
Added to NAC by Comm'n for Common-Interest Communities & Condo. Hotels by R186-07, eff. 5-5-2011

NRS 116B.785, 116B.805

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