Like many Western states, Nevada has seen an uptick in the number of residents who move to the state to retire. With the beautiful scenery, mostly pleasant weather, and large open spaces, the state is a welcoming place to live for many people who are in the post-career phase of their lives. For many of these individuals, with their children grown, and the physical requirements of caring for a single-family house getting more difficult to accept, the idea of having a smaller dwelling and someone to take care of certain maintenance issues is appealing. These people may profit from looking at the various ‘common interest communities’ that are available to them.
A common-interest community is one in which the people own a dwelling unit, and by virtue of that ownership, are responsible for paying a portion of the real estate taxes, insurance and other costs associated with the property. These properties are usually governed by a ‘declaration’ that sets out the obligations of every owner, and whether they need to contribute for improvements, maintenance and other costs required by the property’s management. This generally applies only to ownership interests and not leases that are less than 20 years in length.
Nevada residents may be curious as to whether common-interest communities are synonymous with condominiums. While all condominiums are common-interest communities, the converse is not true. That is, there are some specific characteristics of a condominium that differentiate it from other common-interest properties. The main one of these is that a condominium requires that the interest of unit owners in the common areas of the property be vested, undivided, in those owners.
While Nevada isn’t like some other states in the prevalence of condominiums and other common-interest communities, there are plenty of opportunities for ownership in such places, if an individual desires. It is important that those thinking about purchasing a unit in such a community understand the rights and responsibilities that go along with it. An experienced real estate attorney may be able to explain the advantages and drawbacks of these properties in any individual’s situation.