Since Nevada first wrote the resale package requirement into law in 1991, it has held the same nine things: the declaration and bylaws, a statement of what the seller owes, the current budget and reserve summary, any pending lawsuits, and a rundown of transfer fees and other charges. A buyer's five-day right to cancel the contract attaches to that packet the moment it arrives. Sellers order it, pay for it, and hand it over, and the clock starts.
As of July 1, 2026, there is a tenth item. Assembly Bill 396, passed by the Nevada Legislature in 2025, amended NRS 116.4109 to require the association to include proof of its own required insurance policies under NRS 116.3113. That is not a housekeeping update. In a forested, guard-gated community like Montreux, it is the first time a buyer gets a document, not an assurance, showing exactly what the association's master policy covers and what it does not.
Why This Landed Here First
The timing is not a coincidence, even if the two laws arrived a year apart. In 2025, the same legislative session that would later produce AB 396 also passed AB 376, which amended NRS 116.3113 itself. That earlier bill let an association's required insurance skip wildfire coverage on individual units when the master policy coordinates with, or defers to, each owner's own wildfire policy. Lawmakers wrote that carve-out as a direct response to the wildfire insurance market pulling back across the West.
Read together, the two laws describe a real shift for anyone selling or buying in a Sierra foothill community. First, Nevada made it legal for an HOA's master policy to lean on individual owner coverage for wildfire risk instead of carrying it directly. Then, a year later, Nevada required that the resale package actually show which approach the association took. Before July 1, 2026, a Montreux buyer could ask whether the HOA's insurance covered wildfire exposure on common areas and get a verbal answer from a board member or manager. Now that answer has to show up as a document, inside the same packet that already starts the buyer's five-day cancellation window.
What the New Document Actually Settles
Montreux's HOA has publicly reported reserves above $2 million, money set aside for the kind of capital work every guard-gated, private-road community eventually needs: gate replacement, road repaving, irrigation infrastructure. Reserves and insurance solve different problems. A reserve fund pays for planned wear and scheduled replacement. Insurance pays when something happens that nobody scheduled: a wildfire event, a liability claim, storm damage that exceeds what reserves were built to absorb.
Buyers have always been able to review the reserve study. What they could not always get in writing was proof of the second half of that equation. The new NRS 116.4109 requirement closes that gap. For a lot backing up to the golf course tree line, or anywhere else on Montreux's roughly 600 forested acres, that is the more consequential document of the two, not because the dollar figure is bigger, but because it answers a question reserves were never designed to answer.
What Changes for a Seller Assembling a Packet This Fall
The resale package is still ordered the same way, typically through the association or its management company, and the seller still generally covers the cost as part of closing. What changes is the list of documents someone has to track down before the packet is complete.
| Before July 1, 2026 | After July 1, 2026 |
|---|---|
| Declaration, bylaws, rules, and the required information statement | Same, unchanged |
| Statement of the seller's assessment balance and any unpaid obligations | Same, unchanged |
| Current operating budget and reserve summary | Same, unchanged |
| Statement of pending litigation or unsatisfied judgments | Same, unchanged |
| Statement of transfer fees and other resale charges | Same, unchanged |
| No requirement to document the association's own insurance coverage | Proof of the association's required insurance policies under NRS 116.3113 |
For a Montreux seller listing this fall, the practical effect is a slightly longer lead time. The five-day buyer cancellation right and the ten-calendar-day window the association has to deliver the packet have not changed. What has changed is that the packet is not complete, and the clock does not meaningfully start, until whoever assembles it has also pulled current proof of the HOA's coverage from its insurance carrier or agent. If that documentation is not already sitting in the management company's files, this is one more call to make before a listing goes live rather than after an offer arrives.
A few things worth confirming before that packet goes out:
- Whether the current proof-of-insurance document reflects the master policy renewal actually in force this year, not a prior term
- Whether the policy on file addresses wildfire coverage directly, or defers to individual owners' policies under the AB 376 carve-out
- Whether any sub-association, such as Parc Foret's separate landscape-maintenance fee structure, carries its own distinct coverage that also needs documenting
- Whether the HOA's management company has a standard turnaround time for producing the new document, since it is new enough that some managers may not have it built into their standard packet template yet
What Changes for a Buyer Reading the Packet
A buyer's move here is straightforward: read the insurance section for what it actually says about wildfire, not just whether the box is checked. If the association's policy defers to individual owner coverage under the AB 376 framework, that is worth knowing before closing, not after a claim. It affects what an individual homeowner's own policy needs to carry, and it is exactly the kind of detail the old nine-item packet never surfaced in writing.
None of this replaces an independent conversation with an insurance agent who understands wildfire coverage in the Sierra foothills. What it does is give a buyer a document to bring into that conversation instead of a secondhand summary from whoever answered the phone at the HOA office.
Common Questions
Does this apply to a Montreux home that went under contract before July 1, 2026? The new requirement attaches to resale packages furnished on or after the law's effective date. A packet already delivered before July 1, 2026 was compiled under the prior nine-item standard.
Who orders the new insurance document, and does it cost extra? It is bundled into the same resale package process the seller already orders and typically pays for. There is no indication it changes who is responsible for the packet, only what the packet has to contain.
Does proof of insurance mean the wildfire risk is fully covered? No. It means the buyer now gets a documented answer to what the association's policy does and does not address, including whether it relies on the AB 376 carve-out for individual owner coverage. What that answer means for a specific property is still worth a direct conversation with an insurance professional.
Montreux has always asked more of a resale transaction than a typical HOA sale, between the guard gate, the private roads, and a golf and country club billed entirely separately from HOA dues. This year, the paperwork finally caught up to that complexity in one specific way. If you are listing a Montreux property this fall, or writing an offer on one, the resale packet you receive is not the same nine-document file it was in June. Knowing what the tenth document says, and what it doesn't, is worth doing before an offer is signed rather than during the cancellation window.
If you want a second set of eyes on a Montreux resale packet, or you are weighing what this year's disclosure changes mean for a specific listing, Michael Herman NV can walk through it with you directly. Request a private Montreux consultation before your next offer or listing goes out.
