USA Statutes : nevada
Title : Title 10 - PROPERTY RIGHTS AND TRANSACTIONS
Chapter : CHAPTER 116 - COMMON-INTEREST OWNERSHIP (UNIFORM ACT)
This chapter may be cited as the Uniform
Common-Interest Ownership Act.
(Added to NRS by 1991, 535)—(Substituted in revision for NRS
116.1101)
As used in this chapter and in the
declaration and bylaws of an association, unless the context otherwise
requires, the words and terms defined in NRS 116.005 to 116.095 ,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1991, 535; A 2003, 1302 , 2221 ; 2005, 2586 )
“Administrator” means the
Real Estate Administrator.
(Added to NRS by 1999, 2993 ; A 2003, 1302 , 2221 )—(Substituted in revision for NRS
116.110305)
1. “Affiliate of a declarant” means any person who controls, is
controlled by or is under common control with a declarant.
2. A person “controls” a declarant if the person:
(a) Is a general partner, officer, director or employer of the
declarant;
(b) Directly or indirectly or acting in concert with one or more
other persons, or through one or more subsidiaries, owns, controls, holds
with power to vote or holds proxies representing, more than 20 percent of
the voting interest in the declarant;
(c) Controls in any manner the election of a majority of the
directors of the declarant; or
(d) Has contributed more than 20 percent of the capital of the
declarant.
3. A person “is controlled by” a declarant if the declarant:
(a) Is a general partner, officer, director or employer of the
person;
(b) Directly or indirectly or acting in concert with one or more
other persons, or through one or more subsidiaries, owns, controls, holds
with power to vote or holds proxies representing, more than 20 percent of
the voting interest in the person;
(c) Controls in any manner the election of a majority of the
directors of the person; or
(d) Has contributed more than 20 percent of the capital of the
person.
4. Control does not exist if the powers described in this section
are held solely as security for an obligation and are not exercised.
(Added to NRS by 1991, 535)—(Substituted in revision for NRS
116.11031)
“Allocated interests”
means the following interests allocated to each unit:
1. In a condominium, the undivided interest in the common
elements, the liability for common expenses, and votes in the association;
2. In a cooperative, the liability for common expenses and the
ownership and votes in the association; and
3. In a planned community, the liability for common expenses and
votes in the association.
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.110313)
“Association” or “unit-owners’ association” means the unit-owners’
association organized under NRS 116.3101 .
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.110315)
“Certificate” means a
certificate for the management of a common-interest community issued by
the Division pursuant to chapter 116A of
NRS.
(Added to NRS by 2003, 2208 ; A 2005, 2587 )
“Commission” means the
Commission for Common-Interest Communities created by NRS 116.600 .
(Added to NRS by 2003, 2208 )
“Common elements” means:
1. In a condominium or cooperative, all portions of the
common-interest community other than the units, including easements in
favor of units or the common elements over other units; and
2. In a planned community, any real estate within the planned
community owned or leased by the association, other than a unit.
(Added to NRS by 1991, 536; A 1993, 2356)—(Substituted in revision
for NRS 116.110318)
“Common expenses” means
expenditures made by, or financial liabilities of, the association,
together with any allocations to reserves.
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.11032)
“Common-interest
community” means real estate with respect to which a person, by virtue of
his ownership of a unit, is obligated to pay for real estate other than
that unit. “Ownership of a unit” does not include holding a leasehold
interest of less than 20 years in a unit, including options to renew.
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.110323)
“Community manager”
means a person who provides for or otherwise engages in the management of
a common-interest community.
(Added to NRS by 2003, 2208 )
“Complaint” means a complaint
filed by the Administrator pursuant to NRS 116.765 .
(Added to NRS by 2003, 2208 )
“Condominium” means a
common-interest community in which portions of the real estate are
designated for separate ownership and the remainder of the real estate is
designated for common ownership solely by the owners of those portions. A
common-interest community is not a condominium unless the undivided
interests in the common elements are vested in the units’ owners.
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.110325)
“Converted building”
means a building that at any time before creation of the common-interest
community was occupied wholly or partially by persons other than
purchasers and persons who occupy with the consent of purchasers.
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.110328)
“Cooperative” means a
common-interest community in which the real estate is owned by an
association, each of whose members is entitled by virtue of his ownership
in the association to exclusive possession of a unit.
(Added to NRS by 1991, 536)—(Substituted in revision for NRS
116.11033)
“Dealer” means a person in the
business of selling units for his own account.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110333)
“Declarant” means any person or
group of persons acting in concert who:
1. As part of a common promotional plan, offers to dispose of his
or its interest in a unit not previously disposed of; or
2. Reserves or succeeds to any special declarant’s right.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110335)
“Declaration” means any
instruments, however denominated, that create a common-interest
community, including any amendments to those instruments.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110338)
“Developmental
rights” means any right or combination of rights reserved by a declarant
in the declaration to:
1. Add real estate to a common-interest community;
2. Create units, common elements or limited common elements within
a common-interest community;
3. Subdivide units or convert units into common elements; or
4. Withdraw real estate from a common-interest community.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.11034)
“Dispose” or
“disposition” means a voluntary transfer to a purchaser of any legal or
equitable interest in a unit, but the term does not include the transfer
or release of a security interest.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110343)
“Division” means the Real Estate
Division of the Department of Business and Industry.
(Added to NRS by 2003, 1301 , 2208 )
“Executive board” means
the body, regardless of name, designated in the declaration to act on
behalf of the association.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110345)
“Financial statement”
means a financial statement of an association that is prepared and
presented in accordance with the requirements established by the
Commission pursuant to NRS 116.31142 .
(Added to NRS by 1997, 3110; A 2005, 2587 )
“Governing documents”
means:
1. The declaration for the common-interest community;
2. The articles of incorporation, articles of association,
articles of organization, certificate of registration, certificate of
limited partnership, certificate of trust or other documents that are
used to organize the association for the common-interest community;
3. The bylaws and rules of the association; and
4. Any other documents that govern the operation of the
common-interest community or the association.
(Added to NRS by 1997, 3111; A 2005, 2587 )
“Hearing panel” means a
hearing panel appointed by the Commission pursuant to NRS 116.675 .
(Added to NRS by 2003, 2208 )
“Identifying number”
means a symbol, address or legally sufficient description of real estate
which identifies only one unit in a common-interest community.
(Added to NRS by 1991, 537; A 1993, 2356)—(Substituted in revision
for NRS 116.110348)
“Leasehold common-interest community” means a common-interest community
in which all or a portion of the real estate is subject to a lease the
expiration or termination of which will terminate the common-interest
community or reduce its size.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.11035)
“Liability
for common expenses” means the liability for common expenses allocated to
each unit pursuant to NRS 116.2107 .
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110353)
“Limited common
element” means a portion of the common elements allocated by the
declaration or by operation of subsection 2 or 4 of NRS 116.2102 for the exclusive use of one or more but
fewer than all of the units.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110355)
“Major component of the common elements” means any component of the
common elements, including, without limitation, any amenity, improvement,
furnishing, fixture, finish, system or equipment, that may, within 30
years after its original installation, require repair, replacement or
restoration in excess of routine annual maintenance which is included in
the annual operating budget of an association.
(Added to NRS by 2005, 2581 )
“Management of a common-interest community” means the physical,
administrative or financial maintenance and management of a
common-interest community, or the supervision of those activities, for a
fee, commission or other valuable consideration.
(Added to NRS by 2003, 2209 )
“Master association”
means an organization described in NRS 116.212 , whether or not it is also an association
described in NRS 116.3101 .
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110358)
“Offering” means any
advertisement, inducement, solicitation or attempt to encourage any
person to acquire any interest in a unit, other than as security for an
obligation. An advertisement in a newspaper or other periodical of
general circulation, or in any broadcast medium to the general public, of
a common-interest community not located in this State, is not an offering
if the advertisement states that an offering may be made only in
compliance with the law of the jurisdiction in which the common-interest
community is located. The verb “offer” has a similar meaning.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.11036)
“Ombudsman” means the Ombudsman
for Owners in Common-Interest Communities.
(Added to NRS by 2003, 2209 )
“Party to the
complaint” means the Division and the respondent.
(Added to NRS by 2003, 2209 )
Repealed. (See chapter 494,
Statutes of Nevada 2005, at page 2634 .)
“Person” includes a government and
governmental subdivision or agency.
(Added to NRS by 1991, 537)—(Substituted in revision for NRS
116.110363)
“Planned community”
means a common-interest community that is not a condominium or a
cooperative. A condominium or cooperative may be part of a planned
community.
(Added to NRS by 1991, 538)—(Substituted in revision for NRS
116.110368)
“Proprietary lease”
means an agreement with the association pursuant to which a member is
entitled to exclusive possession of a unit in a cooperative.
(Added to NRS by 1991, 538)—(Substituted in revision for NRS
116.110373)
“Purchaser” means a person,
other than a declarant or a dealer, who by means of a voluntary transfer
acquires a legal or equitable interest in a unit other than a leasehold
interest (including options to renew) of less than 20 years, or as
security for an obligation.
(Added to NRS by 1991, 538)—(Substituted in revision for NRS
116.110375)
“Real estate” means any
leasehold or other estate or interest in, over or under land, including
structures, fixtures and other improvements and interests that by custom,
usage or law pass with a conveyance of land though not described in the
contract of sale or instrument of conveyance. “Real estate” includes
parcels with or without upper or lower boundaries, and spaces that may be
filled with air or water.
(Added to NRS by 1991, 538)—(Substituted in revision for NRS
116.110378)
“Residential use” means
use as a dwelling or for personal, family or household purposes by
ordinary customers, whether rented to particular persons or not. Such
uses include marina boat slips, piers, stable or agricultural stalls or
pens, campground spaces or plots, parking spaces or garage spaces,
storage spaces or lockers and garden plots for individual use, but do not
include spaces or units primarily used to derive commercial income from,
or provide service to, the public.
(Added to NRS by 1991, 538; A 1999, 3355 )—(Substituted in revision for NRS
116.11038)
“Respondent” means a person
against whom:
1. An affidavit has been filed pursuant to NRS 116.760 .
2. A complaint has been filed pursuant to NRS 116.765 .
(Added to NRS by 2003, 2209 )
“Security interest”
means an interest in real estate or personal property, created by
contract or conveyance, which secures payment or performance of an
obligation. The term includes a lien created by a mortgage, deed of
trust, trust deed, security deed, contract for deed, land sales contract,
lease intended as security, assignment of lease or rents intended as
security, pledge of an ownership interest in an association and any other
consensual lien or contract for retention of title intended as security
for an obligation.
(Added to NRS by 1991, 538)—(Substituted in revision for NRS
116.110383)
“Special
declarant’s rights” means rights reserved for the benefit of a declarant
to:
1. Complete improvements indicated on plats and plans or in the
declaration (NRS 116.2109 ) or, in a
cooperative, to complete improvements described in the public offering
statement pursuant to subsection 2 of NRS 116.4103 ;
2. Exercise any developmental right (NRS 116.211 );
3. Maintain sales offices, management offices, signs advertising
the common-interest community and models (NRS 116.2115 );
4. Use easements through the common elements for the purpose of
making improvements within the common-interest community or within real
estate which may be added to the common-interest community (NRS 116.2116
);
5. Make the common-interest community subject to a master
association (NRS 116.212 );
6. Merge or consolidate a common-interest community with another
common-interest community of the same form of ownership (NRS 116.2121
); or
7. Appoint or remove any officer of the association or any master
association or any member of an executive board during any period of
declarant’s control (NRS 116.31032 ).
(Added to NRS by 1991, 538)—(Substituted in revision for NRS
116.110385)
“Time share” means the right to
use and occupy a unit on a recurrent periodic basis according to an
arrangement allocating this right among various owners of time shares
whether or not there is an additional charge to the owner for occupying
the unit.
(Added to NRS by 1991, 539)—(Substituted in revision for NRS
116.110388)
“Unit” means a physical portion of
the common-interest community designated for separate ownership or
occupancy, the boundaries of which are described pursuant to paragraph
(e) of subsection 1 of NRS 116.2105 .
If a unit in a cooperative is owned by the unit’s owner or is sold,
conveyed, voluntarily or involuntarily encumbered, or otherwise
transferred by the unit’s owner, the interest in that unit which is
owned, sold, conveyed, encumbered or otherwise transferred is the right
to possession of that unit under a proprietary lease, coupled with the
allocated interests of that unit, and the association’s interest in that
unit is not thereby affected.
(Added to NRS by 1991, 539)—(Substituted in revision for NRS
116.11039)
“Unit’s owner” means a
declarant or other person who owns a unit, or a lessee of a unit in a
leasehold common-interest community whose lease expires simultaneously
with any lease the expiration or termination of which will remove the
unit from the common-interest community, but does not include a person
having an interest in a unit solely as security for an obligation. In a
condominium or planned community, the declarant is the owner of any unit
created by the declaration until that unit is conveyed to another person.
In a cooperative, the declarant is treated as the owner of any unit to
which allocated interests have been allocated (NRS 116.2107 ) until that unit has been conveyed to another
person.
(Added to NRS by 1991, 539)—(Substituted in revision for NRS
116.110393)
Except as expressly provided in this
chapter, its provisions may not be varied by agreement, and rights
conferred by it may not be waived. A declarant may not act under a power
of attorney, or use any other device, to evade the limitations or
prohibitions of this chapter or the declaration.
(Added to NRS by 1991, 539)
In a cooperative, unless the declaration provides that the
interest of a unit’s owner in a unit and its allocated interests is real
estate for all purposes, that interest is personal property.
(Added to NRS by 1991, 539; A 2005, 1231 )
1. A building code may not impose any requirement upon any
structure in a common-interest community which it would not impose upon a
physically identical development under a different form of ownership.
2. In condominiums and cooperatives, no zoning, subdivision or
other law, ordinance or regulation governing the use of real estate may
prohibit the condominium or cooperative as a form of ownership or impose
any requirement upon a condominium or cooperative which it would not
impose upon a physically identical development under a different form of
ownership.
3. Except as otherwise provided in subsections 1 and 2, the
provisions of this chapter do not invalidate or modify any provision of
any building code or zoning, subdivision or other law, ordinance, rule or
regulation governing the use of real estate.
4. The provisions of this section do not prohibit a local
government from imposing different requirements and standards regarding
design and construction on different types of structures in
common-interest communities. For the purposes of this subsection, a
townhouse in a planned community is a different type of structure from
other structures in common-interest communities, including, without
limitation, other structures that are or will be owned as condominiums or
cooperatives.
(Added to NRS by 1991, 540; A 2005, 2587 )
1. If a unit is acquired by eminent domain or part of a unit is
acquired by eminent domain leaving the unit’s owner with a remnant that
may not practically or lawfully be used for any purpose permitted by the
declaration, the award must include compensation to the unit’s owner for
that unit and its allocated interests, whether or not any common elements
are acquired. Upon acquisition, unless the decree otherwise provides,
that unit’s allocated interests are automatically reallocated to the
remaining units in proportion to the respective allocated interests of
those units before the taking, and the association shall promptly
prepare, execute and record an amendment to the declaration reflecting
the reallocations. Any remnant of a unit remaining after part of a unit
is taken under this subsection is thereafter a common element.
2. Except as otherwise provided in subsection 1, if part of a unit
is acquired by eminent domain, the award must compensate the unit’s owner
for the reduction in value of the unit and its interest in the common
elements, whether or not any common elements are acquired. Upon
acquisition, unless the decree otherwise provides:
(a) That unit’s allocated interests are reduced in proportion to
the reduction in the size of the unit, or on any other basis specified in
the declaration; and
(b) The portion of the allocated interests divested from the
partially acquired unit are automatically reallocated to that unit and to
the remaining units in proportion to the respective allocated interests
of those units before the taking, with the partially acquired unit
participating in the reallocation on the basis of its reduced allocated
interests.
3. If part of the common elements is acquired by eminent domain,
the portion of the award attributable to the common elements taken must
be paid to the association. Unless the declaration provides otherwise,
any portion of the award attributable to the acquisition of a limited
common element must be equally divided among the owners of the units to
which that limited common element was allocated at the time of
acquisition.
4. The judicial decree must be recorded in every county in which
any portion of the common-interest community is located.
(Added to NRS by 1991, 540)
The principles of law and equity, including the law of corporations, the
law of unincorporated associations, the law of real property, and the law
relative to capacity to contract, principal and agent, eminent domain,
estoppel, fraud, misrepresentation, duress, coercion, mistake,
receivership, substantial performance, or other validating or
invalidating cause supplement the provisions of this chapter, except to
the extent inconsistent with this chapter.
(Added to NRS by 1991, 541)
If a matter
governed by this chapter is also governed by chapter 78 , 81 , 82 , 86 , 87 , 88 or 88A of NRS and there is a conflict between the
provisions of this chapter and the provisions of those other chapters,
the provisions of this chapter prevail.
(Added to NRS by 2003, 2221 ; A 2005, 2587 )
1. This chapter being a general act intended as a unified coverage
of its subject matter, no part of it may be construed to be impliedly
repealed by subsequent legislation if that construction can reasonably be
avoided.
2. This chapter must be applied and construed so as to effectuate
its general purpose to make uniform the law with respect to the subject
of this chapter among states enacting it.
(Added to NRS by 1991, 541)
1. The court, upon finding as a matter of law that a contract or
clause of a contract was unconscionable at the time the contract was
made, may refuse to enforce the contract, enforce the remainder of the
contract without the unconscionable clause, or limit the application of
any unconscionable clause to avoid an unconscionable result.
2. Whenever it is claimed, or appears to the court, that a
contract or any clause of a contract is or may be unconscionable, the
parties, to aid the court in making the determination, must be afforded a
reasonable opportunity to present evidence as to:
(a) The commercial setting of the negotiations; and
(b) The effect and purpose of the contract or clause.
(Added to NRS by 1991, 541)
Every contract or duty
governed by this chapter imposes an obligation of good faith in its
performance or enforcement.
(Added to NRS by 1991, 541)
1. The remedies provided by this chapter must be liberally
administered to the end that the aggrieved party is put in as good a
position as if the other party had fully performed. Consequential,
special or punitive damages may not be awarded except as specifically
provided in this chapter or by other rule of law.
2. Any right or obligation declared by this chapter is enforceable
by judicial proceeding.
(Added to NRS by 1991, 541)
Part II
Applicability
1. Except as otherwise provided in this section and NRS 116.1203
, this chapter applies to all
common-interest communities created within this State.
2. This chapter does not apply to:
(a) A limited-purpose association, except that a limited-purpose
association:
(1) Shall pay the fees required pursuant to NRS 116.31155
;
(2) Shall register with the Ombudsman pursuant to NRS
116.31158 ;
(3) Shall comply with the provisions of:
(I) NRS 116.31038 ,
116.31083 and 116.31152 ; and
(II) NRS 116.31075 , if the limited-purpose association is
created for a rural agricultural residential common-interest community;
(4) Shall comply with the provisions of NRS 116.4101 to 116.412 ,
inclusive, as required by the regulations adopted by the Commission
pursuant to paragraph (b) of subsection 5; and
(5) Shall not enforce any restrictions concerning the use of
units by the units’ owners, unless the limited-purpose association is
created for a rural agricultural residential common-interest community.
(b) A planned community in which all units are restricted
exclusively to nonresidential use unless the declaration provides that
this chapter does apply to that planned community. This chapter applies
to a planned community containing both units that are restricted
exclusively to nonresidential use and other units that are not so
restricted only if the declaration so provides or if the real estate
comprising the units that may be used for residential purposes would be a
planned community in the absence of the units that may not be used for
residential purposes.
(c) Common-interest communities or units located outside of this
State, but the provisions of NRS 116.4102 to 116.4108 , inclusive, apply to all contracts for the
disposition thereof signed in this State by any party unless exempt under
subsection 2 of NRS 116.4101 .
(d) A common-interest community that was created before January 1,
1992, is located in a county whose population is less than 50,000, and
has less than 50 percent of the units within the community put to
residential use, unless a majority of the units’ owners otherwise elect
in writing.
(e) Except as otherwise provided in this chapter, time shares
governed by the provisions of chapter 119A
of NRS.
3. The provisions of this chapter do not:
(a) Prohibit a common-interest community created before January 1,
1992, from providing for separate classes of voting for the units’ owners;
(b) Require a common-interest community created before January 1,
1992, to comply with the provisions of NRS 116.2101 to 116.2122 , inclusive;
(c) Invalidate any assessments that were imposed on or before
October 1, 1999, by a common-interest community created before January 1,
1992; or
(d) Prohibit a common-interest community created before January 1,
1992, or a common-interest community described in NRS 116.31105 from providing for a representative form of
government.
4. The provisions of chapters 117 and
278A of NRS do not apply to common-interest
communities.
5. The Commission shall establish, by regulation:
(a) The criteria for determining whether an association, a
limited-purpose association or a common-interest community satisfies the
requirements for an exemption or limited exemption from any provision of
this chapter; and
(b) The extent to which a limited-purpose association must comply
with the provisions of NRS 116.4101 to
116.412 , inclusive.
6. As used in this section, “limited-purpose association” means an
association that:
(a) Is created for the limited purpose of maintaining:
(1) The landscape of the common elements of a
common-interest community;
(2) Facilities for flood control; or
(3) A rural agricultural residential common-interest
community; and
(b) Is not authorized by its governing documents to enforce any
restrictions concerning the use of units by units’ owners, unless the
limited-purpose association is created for a rural agricultural
residential common-interest community.
(Added to NRS by 1991, 542; A 1999, 2998 ; 2001, 2488 ; 2003, 2223 ; 2005, 2587 )
1. Except as otherwise provided in subsection 2, if a planned
community contains no more than 12 units and is not subject to any
developmental rights, it is subject only to NRS 116.1106 and 116.1107 unless the declaration provides that this
entire chapter is applicable.
2. Except for NRS 116.3104 ,
116.31043 , 116.31046 and 116.31138 , the provisions of NRS 116.3101 to 116.350 ,
inclusive, and the definitions set forth in NRS 116.005 to 116.095 ,
inclusive, to the extent that such definitions are necessary in
construing any of those provisions, apply to a residential planned
community containing more than six units.
(Added to NRS by 1991, 542; A 1993, 2357; 1999, 2999 ; 2001, 528 ; 2003, 2224 , 2266 ; 2005, 1232 , 2589 )
1. Any provision contained in a declaration, bylaw or other
governing document of a common-interest community that violates the
provisions of this chapter shall be deemed to conform with those
provisions by operation of law, and any such declaration, bylaw or other
governing document is not required to be amended to conform to those
provisions.
2. In the case of amendments to the declaration, bylaws or plats
and plans of any common-interest community created before January 1, 1992:
(a) If the result accomplished by the amendment was permitted by
law before January 1, 1992, the amendment may be made either in
accordance with that law, in which case that law applies to that
amendment, or it may be made under this chapter; and
(b) If the result accomplished by the amendment is permitted by
this chapter, and was not permitted by law before January 1, 1992, the
amendment may be made under this chapter.
3. An amendment to the declaration, bylaws or plats and plans
authorized by this section to be made under this chapter must be adopted
in conformity with the applicable provisions of chapter 117 or 278A of NRS and
with the procedures and requirements specified by those instruments. If
an amendment grants to any person any rights, powers or privileges
permitted by this chapter, all correlative obligations, liabilities and
restrictions in this chapter also apply to that person.
(Added to NRS by 1991, 543; A 1999, 2999 ; 2003, 2224 )
If any
change is made to the governing documents of an association, the
secretary or other officer specified in the bylaws of the association
shall, within 30 days after the change is made, prepare and cause to be
hand-delivered or sent prepaid by United States mail to the mailing
address of each unit or to any other mailing address designated in
writing by the unit’s owner, a copy of the change that was made.
(Added to NRS by 1999, 2997 )
ARTICLE 2
CREATION, ALTERATION AND TERMINATION OF COMMON-INTEREST COMMUNITIES
A
common-interest community may be created pursuant to this chapter only by
recording a declaration executed in the same manner as a deed and, in a
cooperative, by conveying the real estate subject to that declaration to
the association. The declaration must be recorded in every county in
which any portion of the common-interest community is located and must be
indexed in the grantee’s index in the name of the common-interest
community and the association and in the grantor’s index in the name of
each person executing the declaration.
(Added to NRS by 1991, 543)
Except as otherwise provided by the
declaration:
1. If walls, floors or ceilings are designated as boundaries of a
unit, all lath, furring, wallboard, plasterboard, plaster, paneling,
tiles, wallpaper, paint, finished flooring and any other materials
constituting any part of the finished surfaces thereof are a part of the
unit, and all other portions of the walls, floors or ceilings are a part
of the common elements.
2. If any chute, flue, duct, wire, conduit, bearing wall, bearing
column or any other fixture lies partially within and partially outside
the designated boundaries of a unit, any portion thereof serving only
that unit is a limited common element allocated solely to that unit, and
any portion thereof serving more than one unit or any portion of the
common elements is a part of the common elements.
3. Subject to subsection 2, all spaces, interior partitions and
other fixtures and improvements within the boundaries of a unit are a
part of the unit.
4. Any shutters, awnings, window boxes, doorsteps, stoops,
porches, balconies, pads and mounts for heating and air-conditioning
systems, patios and all exterior doors and windows or other fixtures
designed to serve a single unit, but located outside the unit’s
boundaries, are limited common elements allocated exclusively to that
unit.
(Added to NRS by 1991, 543)
1. The inclusion in a governing document of an association of a
provision that violates any provision of this chapter does not render any
other provisions of the governing document invalid or otherwise
unenforceable if the other provisions can be given effect in accordance
with their original intent and the provisions of this chapter.
2. The rule against perpetuities and NRS 111.103 to 111.1039 , inclusive, do not apply to defeat any
provision of the declaration, bylaws, rules or regulations adopted
pursuant to NRS 116.3102 .
3. In the event of a conflict between the provisions of the
declaration and the bylaws, the declaration prevails except to the extent
the declaration is inconsistent with this chapter.
4. Title to a unit and common elements is not rendered
unmarketable or otherwise affected by reason of an insubstantial failure
of the declaration to comply with this chapter. Whether a substantial
failure impairs marketability is not affected by this chapter.
(Added to NRS by 1991, 544; A 2003, 2225 )
A description of a unit which
sets forth the name of the common-interest community, the file number and
book or other information to show where the declaration is recorded, the
county in which the common-interest community is located and the
identifying number of the unit, is a legally sufficient description of
that unit and all rights, obligations and interests appurtenant to that
unit which were created by the declaration or bylaws.
(Added to NRS by 1991, 544; A 1993, 2357)
1. The declaration must contain:
(a) The names of the common-interest community and the association
and a statement that the common-interest community is either a
condominium, cooperative or planned community;
(b) The name of every county in which any part of the
common-interest community is situated;
(c) A sufficient description of the real estate included in the
common-interest community;
(d) A statement of the maximum number of units that the declarant
reserves the right to create;
(e) In a condominium or planned community, a description of the
boundaries of each unit created by the declaration, including the unit’s
identifying number or, in a cooperative, a description, which may be by
plats or plans, of each unit created by the declaration, including the
unit’s identifying number, its size or number of rooms, and its location
within a building if it is within a building containing more than one
unit;
(f) A description of any limited common elements, other than those
specified in subsections 2 and 4 of NRS 116.2102 , as provided in paragraph (g) of subsection 2
of NRS 116.2109 and, in a planned
community, any real estate that is or must become common elements;
(g) A description of any real estate, except real estate subject to
developmental rights, that may be allocated subsequently as limited
common elements, other than limited common elements specified in
subsections 2 and 4 of NRS 116.2102 ,
together with a statement that they may be so allocated;
(h) A description of any developmental rights and other special
declarant’s rights reserved by the declarant, together with a legally
sufficient description of the real estate to which each of those rights
applies, and a time within which each of those rights must be exercised;
(i) If any developmental right may be exercised with respect to
different parcels of real estate at different times, a statement to that
effect together with:
(1) Either a statement fixing the boundaries of those
portions and regulating the order in which those portions may be
subjected to the exercise of each developmental right or a statement that
no assurances are made in those regards; and
(2) A statement whether, if any developmental right is
exercised in any portion of the real estate subject to that developmental
right, that developmental right must be exercised in all or in any other
portion of the remainder of that real estate;
(j) Any other conditions or limitations under which the rights
described in paragraph (h) may be exercised or will lapse;
(k) An allocation to each unit of the allocated interests in the
manner described in NRS 116.2107 ;
(l) Any restrictions:
(1) On use, occupancy and alienation of the units; and
(2) On the amount for which a unit may be sold or on the
amount that may be received by a unit’s owner on sale, condemnation or
casualty to the unit or to the common-interest community, or on
termination of the common-interest community;
(m) The file number and book or other information to show where
easements and licenses are recorded appurtenant to or included in the
common-interest community or to which any portion of the common-interest
community is or may become subject by virtue of a reservation in the
declaration; and
(n) All matters required by NRS 116.2106 to 116.2109 , inclusive, 116.2115 and 116.2116 and 116.31032 .
2. The declaration may contain any other matters the declarant
considers appropriate.
(Added to NRS by 1991, 544; A 1993, 2357)
1. Any lease the expiration or termination of which may terminate
the common-interest community or reduce its size must be recorded. Every
lessor of those leases in a condominium or planned community shall sign
the declaration. The declaration must state:
(a) The recording data where the lease is recorded;
(b) The date on which the lease is scheduled to expire;
(c) A legally sufficient description of the real estate subject to
the lease;
(d) Any right of the units’ owners to redeem the reversion and the
manner whereby those rights maybe exercised, or a statement that they do
not have those rights;
(e) Any right of the units’ owners to remove any improvements
within a reasonable time after the expiration or termination of the
lease, or a statement that they do not have those rights; and
(f) Any rights of the units’ owners to renew the lease and the
conditions of any renewal, or a statement that they do not have those
rights.
2. After the declaration for a leasehold condominium or leasehold
planned community is recorded, neither the lessor nor the lessor’s
successor in interest may terminate the leasehold interest of a unit’s
owner who makes timely payment of his share of the rent and otherwise
complies with all covenants which, if violated, would entitle the lessor
to terminate the lease. The leasehold interest of a unit’s owner in a
condominium or planned community is not affected by failure of any other
person to pay rent or fulfill any other covenant.
3. Acquisition of the leasehold interest of any unit’s owner by
the owner of the reversion or remainder does not merge the leasehold and
freehold interests unless the leasehold interests of all units’ owners
subject to that reversion or remainder are acquired.
4. If the expiration or termination of a lease decreases the
number of units in a common-interest community, the allocated interests
must be reallocated in accordance with subsection 1 of NRS 116.1107
as if those units had been taken by
eminent domain. Reallocations must be confirmed by an amendment to the
declaration prepared, executed and recorded by the association.
(Added to NRS by 1991, 545)
1. The declaration must allocate to each unit:
(a) In a condominium, a fraction or percentage of undivided
interests in the common elements and in the common expenses of the
association (NRS 116.3115 ) and a
portion of the votes in the association;
(b) In a cooperative, a proportionate ownership in the association,
a fraction or percentage of the common expenses of the association (NRS
116.3115 ) and a portion of the votes
in the association; and
(c) In a planned community, a fraction or percentage of the common
expenses of the association (NRS 116.3115 ) and a portion of the votes in the
association.
2. The declaration must state the formulas used to establish
allocations of interests. Those allocations may not discriminate in favor
of units owned by the declarant or an affiliate of the declarant.
3. If units may be added to or withdrawn from the common-interest
community, the declaration must state the formulas to be used to
reallocate the allocated interests among all units included in the
common-interest community after the addition or withdrawal.
4. The declaration may provide:
(a) That different allocations of votes are made to the units on
particular matters specified in the declaration;
(b) For cumulative voting only for the purpose of electing members
of the executive board; and
(c) For class voting on specified issues affecting the class if
necessary to protect valid interests of the class.
Ê Except as otherwise provided in NRS 116.31032 , a declarant may not utilize cumulative or
class voting for the purpose of evading any limitation imposed on
declarants by this chapter nor may units constitute a class because they
are owned by a declarant.
5. Except for minor variations because of rounding, the sum of the
liabilities for common expenses and, in a condominium, the sum of the
undivided interests in the common elements allocated at any time to all
the units must each equal one if stated as a fraction or 100 percent if
stated as a percentage. In the event of discrepancy between an allocated
interest and the result derived from application of the pertinent
formula, the allocated interest prevails.
6. In a condominium, the common elements are not subject to
partition, and any purported conveyance, encumbrance, judicial sale or
other voluntary or involuntary transfer of an undivided interest in the
common elements made without the unit to which that interest is allocated
is void.
7. In a cooperative, any purported conveyance, encumbrance,
judicial sale or other voluntary or involuntary transfer of an ownership
interest in the association made without the possessory interest in the
unit to which that interest is related is void.
(Added to NRS by 1991, 546; A 1993, 2359)
1. Except for the limited common elements described in subsections
2 and 4 of NRS 116.2102 , the
declaration must specify to which unit or units each limited common
element is allocated. An allocation may not be altered without the
consent of the units’ owners whose units are affected.
2. Except as the declaration otherwise provides, a limited common
element may be reallocated by an amendment to the declaration executed by
the units’ owners between or among whose units the reallocation is made.
The persons executing the amendment shall provide a copy thereof to the
association, which shall record it. The amendment must be recorded in the
names of the parties and the common-interest community.
3. A common element not previously allocated as a limited common
element may be so allocated only pursuant to provisions in the
declaration made in accordance with paragraph (g) of subsection 1 of NRS
116.2105 . The allocations must be made
by amendments to the declaration.
(Added to NRS by 1991, 547)
1. Plats and plans are a part of the declaration, and are required
for all common-interest communities except cooperatives. Each plat and
plan must be clear and legible and contain a certification that the plat
or plan contains all information required by this section.
2. Each plat must comply with the provisions of chapter 278 of NRS and show:
(a) The name and a survey of the area which is the subject of the
plat;
(b) A sufficient description of the real estate;
(c) The extent of any encroachments by or upon any portion of the
property which is the subject of the plat;
(d) The location and dimensions of all easements having a specific
location and dimension which serve or burden any portion of the
common-interest community;
(e) The location and dimensions of any vertical unit boundaries and
that unit’s identifying number;
(f) The location with reference to an established datum of any
horizontal unit boundaries not shown or projected on plans recorded
pursuant to subsection 4 and that unit’s identifying number; and
(g) The location and dimensions of limited common elements,
including porches, balconies and patios, other than parking spaces and
the other limited common elements described in subsections 2 and 4 of NRS
116.2102 .
3. To the extent not shown or projected on the plats, plans of the
units must show or project any units in which the declarant has reserved
the right to create additional units or common elements (paragraph (h) of
subsection 1 of NRS 116.2105 ),
identified appropriately.
4. Unless the declaration provides otherwise, the horizontal
boundaries of part of a unit located outside a building have the same
elevation as the horizontal boundaries of the inside part and need not be
depicted on the plats and plans of the units.
5. A declarant shall also provide a plan of development for the
common-interest community with its initial phase of development. The
declarant shall revise the plan of development with each subsequent
phase. The plan of development may show the intended location and
dimensions of any contemplated improvement to be constructed anywhere
within the common-interest community. Any contemplated improvement shown
must be labeled either “MUST BE BUILT” or “NEED NOT BE BUILT.” The plan
of development must also show or project:
(a) The location and dimensions of all real estate not subject to
developmental rights, or subject only to the developmental right to
withdraw, and the location and dimensions of all existing improvements
within that real estate;
(b) A sufficient description of any real estate subject to
developmental rights, labeled to identify the rights applicable to each
parcel; and
(c) A sufficient description of any real estate in which the units’
owners will own only an estate for years, labeled as “leasehold real
estate.”
6. Upon exercising any developmental right, the declarant shall
record new or amended plats necessary to conform to the requirements of
subsection 2 and provide new or amended plans of the units and a new or
amended plan of development or new certifications of those plans if the
plans otherwise conform to the requirements of subsections 3 and 5.
7. Each plat must be certified by an independent professional land
surveyor. The plans of the units must be certified by an independent
professional engineer or architect. If the plan of development is not
certified by an independent professional land surveyor or an independent
professional engineer or architect, it must be acknowledged by the
declarant.
(Added to NRS by 1991, 547; A 1993, 2360)
1. To exercise any developmental right reserved under paragraph
(h) of subsection 1 of NRS 116.2105 ,
the declarant shall prepare, execute and record an amendment to the
declaration (NRS 116.2117 ) and in a
condominium or planned community comply with NRS 116.2109 . The declarant is the owner of any units
thereby created. The amendment to the declaration must assign an
identifying number to each new unit created, and, except in the case of
subdivision or conversion of units described in subsection 2, reallocate
the allocated interests among all units. The amendment must describe any
common elements and any limited common elements thereby created and, in
the case of limited common elements, designate the unit to which each is
allocated to the extent required by NRS 116.2108 .
2. Developmental rights may be reserved within any real estate
added to the common-interest community if the amendment adding that real
estate includes all matters required by NRS 116.2105 or 116.2106 , as the case may be, and, in a condominium or
planned community, the plats and plans include all matters required by
NRS 116.2109 . This provision does not
extend the time limit on the exercise of developmental rights imposed by
the declaration pursuant to paragraph (h) of subsection 1 of NRS 116.2105
.
3. Whenever a declarant exercises a developmental right to
subdivide or convert a unit previously created into additional units,
common elements, or both:
(a) If the declarant converts the unit entirely to common elements,
the amendment to the declaration must convey it to the association or
reallocate all the allocated interests of that unit among the other units
as if that unit had been taken by eminent domain (NRS 116.1107 ); and
(b) If the declarant subdivides the unit into two or more units,
whether or not any part of the unit is converted into common elements,
the amendment to the declaration must reallocate all the allocated
interests of the unit among the units created by the subdivision in any
reasonable manner prescribed by the declarant.
4. If the declaration provides, pursuant to paragraph (h) of
subsection 1 of NRS 116.2105 , that all
or a portion of the real estate is subject to a right of withdrawal:
(a) If all the real estate is subject to withdrawal, and the
declaration does not describe separate portions of real estate subject to
that right, none of the real estate may be withdrawn after a unit has
been conveyed to a purchaser; and
(b) If any portion is subject to withdrawal, it may not be
withdrawn after a unit in that portion has been conveyed to a purchaser.
(Added to NRS by 1991, 548)
1. Except as otherwise provided in this section and subject to the
provisions of the declaration and other provisions of law, a unit’s owner:
(a) May make any improvements or alterations to his unit that do
not impair the structural integrity or mechanical systems or lessen the
support of any portion of the common-interest community;
(b) May not change the appearance of the common elements, or the
exterior appearance of a unit or any other portion of the common-interest
community, without permission of the association; and
(c) After acquiring an adjoining unit or an adjoining part of an
adjoining unit, may remove or alter any intervening partition or create
apertures therein, even if the partition in whole or in part is a common
element, if those acts do not impair the structural integrity or
mechanical systems or lessen the support of any portion of the
common-interest community. Removal of partitions or creation of apertures
under this paragraph is not an alteration of boundaries.
2. An association may not:
(a) Unreasonably restrict, prohibit or otherwise impede the lawful
rights of a unit’s owner to have reasonable access to his unit.
(b) Unreasonably restrict, prohibit or withhold approval for a
unit’s owner to add to a unit:
(1) Improvements such as ramps, railings or elevators that
are necessary to improve access to the unit for any occupant of the unit
who has a disability;
(2) Additional locks to improve the security of the unit;
(3) Shutters to improve the security of the unit or to
reduce the costs of energy for the unit; or
(4) A system that uses wind energy to reduce the costs of
energy for the unit if the boundaries of the unit encompass 2 acres or
more within the common-interest community.
(c) With regard to approving or disapproving any improvement or
alteration made to a unit, act in violation of any state or federal law.
3. Any improvement or alteration made pursuant to subsection 2
that is visible from any other portion of the common-interest community
must be installed, constructed or added in accordance with the procedures
set forth in the governing documents of the association and must be
selected or designed to the maximum extent practicable to be compatible
with the style of the common-interest community.
4. A unit’s owner may not add to the unit a system that uses wind
energy as described in subparagraph 4 of paragraph (b) of subsection 2
unless he first obtains the written consent of each owner of property
within 300 feet of any boundary of the unit.
(Added to NRS by 1991, 549; A 2003, 2225 ; 2005, 1819 )
1. Subject to the provisions of the declaration and other
provisions of law, the boundaries between adjoining units may be
relocated by an amendment to the declaration upon application to the
association by the owners of those units. If the owners of the adjoining
units have specified a reallocation between their units of their
allocated interests, the application must state the proposed
reallocations. Unless the executive board determines, within 30 days,
that the reallocations are unreasonable, the association shall prepare an
amendment that identifies the units involved and states the
reallocations. The amendment must be executed by those units’ owners,
contain words of conveyance between them, and, on recordation, be indexed
in the name of the grantor and the grantee, and in the grantee’s index in
the name of the association.
2. The association:
(a) In a condominium or planned community shall prepare and record
plats or plans necessary to show the altered boundaries between adjoining
units, and their dimensions and identifying numbers; and
(b) In a cooperative shall prepare and record amendments to the
declaration, including any plans, necessary to show or describe the
altered boundaries between adjoining units, and their dimensions and
identifying numbers.
(Added to NRS by 1991, 550)
1. If the declaration expressly so permits, a unit may be
subdivided into 2 or more units. Subject to the provisions of the
declaration and other provisions of law, upon application of the unit’s
owner to subdivide a unit, the association shall prepare, execute and
record an amendment to the declaration, including in a condominium or
planned community the plats and plans, subdividing that unit.
2. The amendment to the declaration must be executed by the owner
of the unit to be subdivided, assign an identifying number to each unit
created, and reallocate the allocated interests formerly allocated to the
subdivided unit to the new units in any reasonable manner prescribed by
the owner of the subdivided unit.
(Added to NRS by 1991, 550)
The existing physical
boundaries of a unit or the physical boundaries of a unit reconstructed
in substantial accordance with the description contained in the original
declaration are its legal boundaries, rather than the boundaries derived
from the description contained in the original declaration, regardless of
vertical or lateral movement of the building or minor variance between
those boundaries and the boundaries derived from the description
contained in the original declaration. This section does not relieve a
unit’s owner of liability in case of his willful misconduct or relieve a
declarant or any other person of liability for failure to adhere to any
plats and plans or, in a cooperative, to any representation in the public
offering statement.
(Added to NRS by 1991, 550)
A declarant may maintain
offices for sales and management, and models in units or on common
elements in the common-interest community only if the declaration so
provides. Subject to any limitations in the declaration, a declarant may
maintain signs on the common elements advertising the common-interest
community. This section is subject to the provisions of other state law
and to local ordinances.
(Added to NRS by 1991, 550; A 1993, 2361)
1. Subject to the provisions of the declaration, a declarant has
an easement through the common elements as may be reasonably necessary to
discharge the declarant’s obligations or exercise special declarant’s
rights, whether arising under this chapter or reserved in the declaration.
2. In a planned community, subject to the provisions of paragraph
(f) of subsection 1 of NRS 116.3102
and NRS 116.3112 , the units’ owners
have an easement:
(a) In the common elements for purposes of access to their units;
and
(b) To use the common elements and all real estate that must become
common elements (paragraph (f) of subsection 1 of NRS 116.2105 ) for all other purposes.
3. Unless the terms of an easement in favor of an association
prohibit a residential use of a servient estate, if the owner of the
servient estate has obtained all necessary approvals required by law or
any covenant, condition or restriction on the property, the owner may use
such property in any manner authorized by law without obtaining any
additional approval from the association. Nothing in this subsection
authorizes an owner of a servient estate to impede the lawful and
contractual use of the easement.
4. The provisions of subsection 3 do not abrogate any easement,
restrictive covenant, decision of a court, agreement of a party or any
contract, governing document or declaration of covenants, conditions and
restrictions, or any other decision, rule or regulation that a local
governing body or other entity that makes decisions concerning land use
or planning is authorized to make or enact that exists before October 1,
1999, including, without limitation, a zoning ordinance, permit or
approval process or any other requirement of a local government or other
entity that makes decisions concerning land use or planning.
(Added to NRS by 1991, 551; A 1999, 3355 )
1. Except as otherwise provided in NRS 116.21175 , and except in cases of amendments that may
be executed by a declarant under subsection 6 of NRS 116.2109 or NRS 116.211 , or by the association under NRS 116.1107
, subsection 4 of NRS 116.2106 , subsection 3 of NRS 116.2108 , subsection 1 of NRS 116.2112 or NRS 116.2113 , or by certain units’ owners under subsection
2 of NRS 116.2108 , subsection 1 of NRS
116.2112 , subsection 2 of NRS 116.2113
or subsection 2 of NRS 116.2118 , and except as otherwise limited by
subsection 4, the declaration, including any plats and plans, may be
amended only by vote or agreement of units’ owners of units to which at
least a majority of the votes in the association are allocated, or any
larger majority the declaration specifies. The declaration may specify a
smaller number only if all of the units are restricted exclusively to
nonresidential use.
2. No action to challenge the validity of an amendment adopted by
the association pursuant to this section may be brought more than 1 year
after the amendment is recorded.
3. Every amendment to the declaration must be recorded in every
county in which any portion of the common-interest community is located
and is effective only upon recordation. An amendment, except an amendment
pursuant to NRS 116.2112 , must be
indexed in the grantee’s index in the name of the common-interest
community and the association and in the grantor’s index in the name of
the parties executing the amendment.
4. Except to the extent expressly permitted or required by other
provisions of this chapter, no amendment may change the boundaries of any
unit, the allocated interests of a unit or the uses to which any unit is
restricted, in the absence of unanimous consent of the units’ owners
affected and the consent of a majority of the owners of the remaining
units.
5. Amendments to the declaration required by this chapter to be
recorded by the association must be prepared, executed, recorded and
certified on behalf of the association by any officer of the association
designated for that purpose or, in the absence of designation, by the
president of the association.
(Added to NRS by 1991, 551; A 1993, 2362; 1999, 395 , 396 ; 2005, 2589 )
1. Except as otherwise limited by subsection 4 of NRS 116.2117
, if:
(a) To approve an amendment to the declaration pursuant to NRS
116.2117 , the declaration requires:
(1) In a single-class voting structure, more than a majority
of the total number of votes allocated to the single class to be cast in
favor of the amendment; or
(2) In a multiclass voting structure, more than a majority
of the total number of votes allocated to one or more of the multiple
classes to be cast in favor of the amendment; and
(b) An amendment fails to receive the number of votes required by
the declaration to be approved but:
(1) In a single-class voting structure, receives a majority
of the total number of votes allocated to the single class; or
(2) In a multiclass voting structure, receives in each of
the multiple classes a majority of the total number of votes allocated to
that class,
Ê the association or any unit’s owner may file a petition with the
district court in any county in which any portion of the common-interest
community is located asking for an order waiving the supermajority
requirements of the declaration and confirming the amendment as validly
approved.
2. If the association or any unit’s owner files a petition
pursuant to subsection 1, the petition:
(a) Must contain sufficient information specifying:
(1) The actions that have been taken to obtain the number of
votes required to approve the amendment under the declaration and whether
those actions have conformed with the procedures set forth in the
declaration;
(2) The amount of time that has been allowed for the units’
owners to vote upon the amendment;
(3) The number and percentage of affirmative votes required
in each voting class to approve the amendment under the declaration;
(4) The number and percentage of affirmative and negative
votes actually received in each voting class with regard to the
amendment; and
(5) Any other matters the petitioner considers relevant to
the court’s determination; and
(b) Must include, as exhibits to the petition, copies of:
(1) The governing documents;
(2) The complete text of the amendment and a statement
explaining the need for the amendment and its purposes and objectives;
(3) All notices and materials used in the effort to persuade
the units’ owners to approve the amendment; and
(4) Any other documents the petitioner considers relevant to
the court’s determination.
3. Upon receiving the petition, the court shall:
(a) Set the matter for hearing; and
(b) Issue an ex parte order setting forth the manner in which the
petitioner must give written notice of the hearing to all the units’
owners in the association.
4. The court may grant the petition if it finds that the
petitioner has presented evidence establishing that:
(a) The petitioner has given at least 15 days’ written notice of
the hearing to:
(1) All the units’ owners in the association;
(2) Each city, if any, and each county in which any portion
of the common-interest community is located; and
(3) All other persons or entities that are entitled to notice
under the declaration;
(b) The voting process regarding the amendment was conducted in
accordance with all applicable provisions of the governing documents and
state law;
(c) A reasonably diligent effort was made to allow all eligible
units’ owners and, if required by the governing documents, all lenders to
vote on the amendment;
(d) The amendment:
(1) In a single-class voting structure, received a majority
of the total number of votes allocated to the single class; or
(2) In a multiclass voting structure, received in each of
the multiple classes a majority of the total number of votes allocated to
that class; and
(e) The amendment is reasonable.
5. If the court grants the petition, the court shall enter an
order waiving the supermajority requirements of the declaration and
confirming the amendment as validly approved.
6. An amendment confirmed by a final court order pursuant to this
section is not effective until a certified copy of the amendment and the
final court order have been recorded in each county in which any portion
of the common-interest community is located. The amendment must be
prepared, executed, recorded and certified on behalf of the association
by any officer of the association designated for that purpose or, in the
absence of designation, by the president of the association, and the
final court order must be recorded along with the amendment.
7. After the amendment and the final court order have been
recorded pursuant to this section, the declaration, as amended, has the
same force and effect as if the amendment had been approved in compliance
with every requirement imposed by the governing documents.
8. Not later than 30 days after the date on which the amendment
and the final court order are recorded pursuant to this section, the
association shall mail to all the units’ owners in the association:
(a) A copy of the amendment and the final court order; and
(b) A statement explaining that the amendment and the final court
order have been recorded and that the declaration has been amended
pursuant to this section.
(Added to NRS by 2005, 2581 )
1. Except in the case of a taking of all the units by eminent
domain (NRS 116.1107 ) or in the case
of foreclosure against an entire cooperative of a security interest that
has priority over the declaration, a common-interest community may be
terminated only by agreement of units’ owners to whom at least 80 percent
of the votes in the association are allocated, or any larger percentage
the declaration specifies. The declaration may specify a smaller
percentage only if all of the units are restricted exclusively to
nonresidential uses.
2. An agreement to terminate must be evidenced by the execution of
an agreement to terminate, or ratifications thereof, in the same manner
as a deed, by the requisite number of units’ owners. The agreement must
specify a date after which the agreement will be void unless it is
recorded before that date. An agreement to terminate and all
ratifications thereof must be recorded in every county in which a portion
of the common-interest community is situated and is effective only upon
recordation.
3. In the case of a condominium or planned community containing
only units having horizontal boundaries described in the declaration, an
agreement to terminate may provide that all of the common elements and
units of the common-interest community must be sold following
termination. If, pursuant to the agreement, any real estate in the
common-interest community is to be sold following termination, the
agreement must set forth the minimum terms of the sale.
4. In the case of a condominium or planned community containing
any units not having horizontal boundaries described in the declaration,
an agreement to terminate may provide for sale of the common elements,
but it may not require that the units be sold following termination,
unless the declaration as originally recorded provided otherwise or all
the units’ owners consent to the sale.
5. The association, on behalf of the units’ owners, may contract
for the sale of real estate in a common-interest community, but the
contract is not binding on the units’ owners until approved pursuant to
subsections 1 and 2. If any real estate is to be sold following
termination, title to that real estate, upon termination, vests in the
association as trustee for the holders of all interests in the units.
Thereafter, the association has all powers necessary and appropriate to
effect the sale. Until the sale has been concluded and the proceeds
thereof distributed, the association continues in existence with all
powers it had before termination. Proceeds of the sale must be
distributed to units’ owners and lienholders as their interests may
appear, in accordance with NRS 116.21183 and 116.21185 . Unless otherwise specified in the agreement
to terminate, as long as the association holds title to the real estate,
each unit’s owner and his successors in interest have an exclusive right
to occupancy of the portion of the real estate that formerly constituted
the unit. During the period of that occupancy, each unit’s owner and his
successors in interest remain liable for all assessments and other
obligations imposed on units’ owners by this chapter or the declaration.
6. In a condominium or planned community, if the real estate
constituting the common-interest community is not to be sold following
termination, title to the common elements and, in a common-interest
community containing only units having horizontal boundaries described in
the declaration, title to all the real estate in the common-interest
community, vests in the units’ owners upon termination as tenants in
common in proportion to their respective interests as provided in NRS
116.21185 , and liens on the units
shift accordingly. While the tenancy in common exists, each unit’s owner
and his successors in interest have an exclusive right to occupancy of
the portion of the real estate that formerly constituted the unit.
7. Following termination of the common-interest community, the
proceeds of any sale of real estate, together with the assets of the
association, are held by the association as trustee for units’ owners and
holders of liens on the units as their interests may appear.
(Added to NRS by 1991, 551)
1. Following termination of a condominium or planned community,
creditors of the association holding liens on the units, which were
recorded before termination, may enforce those liens in the same manner
as any lienholder. All other creditors of the association are to be
treated as if they had perfected liens on the units immediately before
termination.
2. In a cooperative, the declaration may provide that all
creditors of the association have priority over any interests of units’
owners and creditors of units’ owners. In that event, following
termination, creditors of the association holding liens on the
cooperative which were recorded before termination may enforce their
liens in the same manner as any lienholder, and any other creditor of the
association is to be treated as if he had perfected a lien against the
cooperative immediately before termination. Unless the declaration
provides that all creditors of the association have that priority:
(a) The lien of each creditor of the association which was
perfected against the association before termination becomes, upon
termination, a lien against each unit’s owner’s interest in the unit as
of the date the lien was perfected;
(b) Any other creditor of the association is to be treated upon
termination as if the creditor had perfected a lien against each unit’s
owner’s interest immediately before termination;
(c) The amount of the lien of an association’s creditor described
in paragraphs (a) and (b) against each of the units’ owners’ interest
must be proportionate to the ratio which each unit’s liability for common
expenses bears to the liability for common expenses of all of the units;
(d) The lien of each creditor of each unit’s owner which was
perfected before termination continues as a lien against that owner’s
unit as of the date the lien was perfected; and
(e) The assets of the association must be distributed to all units’
owners and all lienholders as their interests may appear in the order
described in this section.
Ê Creditors of the association are not entitled to payment from any
unit’s owner in excess of the amount of the creditor’s lien against that
owner’s interest.
(Added to NRS by 1991, 553)
The respective interests of units’ owners referred to in
subsections 5, 6 and 7 of NRS 116.2118
and in NRS 116.21183 are as follows:
1. Except as otherwise provided in subsection 2, the respective
interests of units’ owners are the fair market values of their units,
allocated interests, and any limited common elements immediately before
the termination, as determined by one or more independent appraisers
selected by the association. The decision of the independent appraisers
must be distributed to the units’ owners and becomes final unless
disapproved within 30 days after distribution by units’ owners to whom 25
percent of the votes in the association are allocated. The proportion of
interest of any unit’s owner to that of all units’ owners is determined
by dividing the fair market value of that unit and its allocated
interests by the total fair market values of all the units and their
allocated interests.
2. If any unit or any limited common element is destroyed to the
extent that an appraisal of the fair market value thereto before
destruction cannot be made, the interests of all units’ owners are:
(a) In a condominium, their respective interests in the common
elements immediately before the termination;
(b) In a cooperative, their respective ownerships immediately
before the termination; and
(c) In a planned community, their respective liabilities for common
expenses immediately before the termination.
(Added to NRS by 1991, 553)
1. In a condominium or planned community, except as otherwise
provided in subsection 2, foreclosure or enforcement of a lien or
encumbrance against the entire common-interest community does not
terminate, of itself, the common-interest community, and foreclosure or
enforcement of a lien or encumbrance against a portion of the
common-interest community, other than withdrawable real estate, does not
withdraw that portion from the common-interest community. Foreclosure or
enforcement of a lien or encumbrance against withdrawable real estate
does not withdraw, of itself, that real estate from the common-interest
community, but the person taking title thereto may require from the
association, upon request, an amendment excluding the real estate from
the common-interest community.
2. In a condominium or planned community, if a lien or encumbrance
against a portion of the real estate comprising the common-interest
community has priority over the declaration and the lien or encumbrance
has not been partially released, the parties foreclosing the lien or
encumbrance, upon foreclosure, may record an instrument excluding the
real estate subject to that lien or encumbrance from the common-interest
community.
(Added to NRS by 1991, 554)
The declaration may
require that all or a specified number or percentage of the lenders who
hold security interests encumbering the units approve specified actions
of the units’ owners or the association as a condition to the
effectiveness of those actions, but no requirement for approval may
operate to:
1. Deny or delegate control over the general administrative
affairs of the association by the units’ owners or the executive board;
2. Prevent the association or the executive board from commencing,
intervening in or settling any litigation or proceeding; or
3. Prevent any trustee or the association from receiving and
distributing any proceeds of insurance except pursuant to NRS 116.31133
and 116.31135 .
(Added to NRS by 1991, 554)
1. If the declaration provides that any of the powers described in
NRS 116.3102 are to be exercised by or
may be delegated to a profit or nonprofit corporation that exercises
those or other powers on behalf of one or more common-interest
communities or for the benefit of the units’ owners of one or more
common-interest communities, or on behalf of a common-interest community
and a time-share plan created pursuant to chapter 119A of NRS, all provisions of this chapter applicable
to unit-owners’ associations apply to any such corporation, except as
modified by this section.
2. Unless it is acting in the capacity of an association described
in NRS 116.3101 , a master association
may exercise the powers set forth in paragraph (b) of subsection 1 of NRS
116.3102 only to the extent expressly
permitted in:
(a) The declarations of common-interest communities which are part
of the master association or expressly described in the delegations of
power from those common-interest communities to the master association; or
(b) The declaration of the common-interest community which is a
part of the master association and the time-share instrument creating the
time-share plan governed by the master association.
3. If the declaration of any common-interest community provides
that the executive board may delegate certain powers to a master
association, the members of the executive board have no liability for the
acts or omissions of the master association with respect to those powers
following delegation.
4. The rights and responsibilities of units’ owners with respect
to the unit-owners’ association set forth in NRS 116.3103 , 116.31032 , 116.31034 , 116.31036 , 116.3108 , 116.31085 , 116.3109 , 116.311 ,
116.31105 and 116.3112 apply in the conduct of the affairs of a
master association only to persons who elect the board of a master
association, whether or not those persons are otherwise units’ owners
within the meaning of this chapter.
5. Even if a master association is also an association described
in NRS 116.3101 , the certificate of
incorporation or other instrument creating the master association and the
declaration of each common-interest community, the powers of which are
assigned by the declaration or delegated to the master association, may
provide that the executive board of the master association must be
elected after the period of the declarant’s control in any of the
following ways:
(a) All units’ owners of all common-interest communities subject to
the master association may elect all members of the master association’s
executive board.
(b) All members of the executive boards of all common-interest
communities subject to the master association may elect all members of
the master association’s executive board.
(c) All units’ owners of each common-interest community subject to
the master association may elect specified members of the master
association’s executive board.
(d) All members of the executive board of each common-interest
community subject to the master association may elect specified members
of the master association’s executive board.
(Added to NRS by 1991, 554; A 1993, 2362; 2001, 2489 ; 2003, 2226 )
The executive board of a master
association of any common-interest community that was created before
January 1, 1975, and is located in a county whose population is 400,000
or more may record an amendment to the declaration pursuant to which the
master association reallocates the costs of administering the common
elements of the master association among the units of the common-interest
community uniformly and based upon the actual costs associated with each
unit.
(Added to NRS by 2003, 2220 )
1. Any two or more common-interest communities of the same form of
ownership, by agreement of the units’ owners as provided in subsection 2,
may be merged or consolidated into a single common-interest community. In
the event of a merger or consolidation, unless the agreement otherwise
provides, the resultant common-interest community is the legal successor,
for all purposes, of all of the preexisting common-interest communities,
and the operations and activities of all associations of the preexisting
common-interest communities are merged or consolidated into a single
association that holds all powers, rights, obligations, assets and
liabilities of all preexisting associations.
2. An agreement of two or more common-interest communities to
merge or consolidate pursuant to subsection 1 must be evidenced by an
agreement prepared, executed, recorded and certified by the president of
the association of each of the preexisting common-interest communities
following approval by owners of units to which are allocated the
percentage of votes in each common-interest community required to
terminate that common-interest community. The agreement must be recorded
in every county in which a portion of the common-interest community is
located and is not effective until recorded.
3. Every agreement for merger or consolidation must provide for
the reallocation of the allocated interests in the new association among
the units of the resultant common-interest community either by stating
the reallocations or the formulas upon which they are based or by stating
the percentage of overall allocated interests of the new common-interest
community which are allocated to all of the units comprising each of the
preexisting common-interest communities, and providing that the portion
of the percentages allocated to each unit formerly constituting a part of
the preexisting common-interest community must be equal to the
percentages of allocated interests allocated to that unit by the
declaration of the preexisting common-interest community.
(Added to NRS by 1991, 555)
In a planned
community, if the right is originally reserved in the declaration, the
declarant, in addition to any other developmental right, may amend the
declaration at any time during as many years as are specified in the
declaration for adding additional real estate to the planned community
without describing the location of that real estate in the original
declaration; but the amount of real estate added to the planned community
pursuant to this section may not exceed 10 percent of the real estate
described in paragraph (c) of subsection 1 of NRS 116.2105 and the declarant may not in any event
increase the number of units in the planned community beyond the number
stated in the original declaration pursuant to paragraph (d) of that
subsection.
(Added to NRS by 1991, 556; A 1993, 2363)
ARTICLE 3
MANAGEMENT OF THE COMMON-INTEREST COMMUNITY
General Provisions
1. A unit-owners’ association must be organized no later than the
date the first unit in the common-interest community is conveyed.
2. The membership of the association at all times consists
exclusively of all units’ owners or, following termination of the
common-interest community, of all owners of former units entitled to
distributions of proceeds under NRS 116.2118 , 116.21183 and 116.21185 , or their heirs, successors or assigns.
3. The association must:
(a) Be organized as a profit or nonprofit corporation, association,
limited-liability company, trust or partnership;
(b) Include in its articles of incorporation, articles of
association, articles of organization, certificate of registration,
certificate of limited partnership, certificate of trust or other
documents of organization, or any amendment thereof, that the purpose of
the corporation, association, limited-liability company, trust or
partnership is to operate as an association pursuant to this chapter;
(c) Contain in its name the words “common-interest community,”
“community association,” “master association,” “homeowners’ association”
or “unit-owners’ association”; and
(d) Comply with the provisions of chapters 78 , 81 , 82 , 86 , 87 , 88 and 88A of NRS when filing with the Secretary of State its
articles of incorporation, articles of association, articles of
organization, certificate of registration, certificate of limited
partnership, certificate of trust or other documents of organization, or
any amendment thereof.
(Added to NRS by 1991, 556; A 2003, 20th Special Session, 130
; 2005, 2590 )
1. Except as otherwise provided in subsection 2, and subject to
the provisions of the declaration, the association may do any or all of
the following:
(a) Adopt and amend bylaws, rules and regulations.
(b) Adopt and amend budgets for revenues, expenditures and reserves
and collect assessments for common expenses from the units’ owners.
(c) Hire and discharge managing agents and other employees, agents
and independent contractors.
(d) Institute, defend or intervene in litigation or administrative
proceedings in its own name on behalf of itself or two or more units’
owners on matters affecting the common-interest community.
(e) Make contracts and incur liabilities.
(f) Regulate the use, maintenance, repair, replacement and
modification of common elements.
(g) Cause additional improvements to be made as a part of the
common elements.
(h) Acquire, hold, encumber and convey in its own name any right,
title or interest to real estate or personal property, but:
(1) Common elements in a condominium or planned community
may be conveyed or subjected to a security interest only pursuant to NRS
116.3112 ; and
(2) Part of a cooperative may be conveyed, or all or part of
a cooperative may be subjected to a security interest, only pursuant to
NRS 116.3112 .
(i) Grant easements, leases, licenses and concessions through or
over the common elements.
(j) Impose and receive any payments, fees or charges for the use,
rental or operation of the common elements, other than limited common
elements described in subsections 2 and 4 of NRS 116.2102 , and for services provided to the units’
owners.
(k) Impose charges for late payment of assessments.
(l) Impose construction penalties when authorized pursuant to NRS
116.310305 .
(m) Impose reasonable fines for violations of the governing
documents of the association only if the association complies with the
requirements set forth in NRS 116.31031 .
(n) Impose reasonable charges for the preparation and recordation
of any amendments to the declaration or any statements of unpaid
assessments, and impose reasonable fees, not to exceed the amounts
authorized by NRS 116.4109 , for
preparing and furnishing the documents and certificate required by that
section.
(o) Provide for the indemnification of its officers and executive
board and maintain directors’ and officers’ liability insurance.
(p) Assign its right to future income, including the right to
receive assessments for common expenses, but only to the extent the
declaration expressly so provides.
(q) Exercise any other powers conferred by the declaration or
bylaws.
(r) Exercise all other powers that may be exercised in this State
by legal entities of the same type as the association.
(s) Direct the removal of vehicles improperly parked on property
owned or leased by the association, as authorized pursuant to NRS 487.038
, or improperly parked on any road, street, alley or other
thoroughfare within the common-interest community in violation of the
governing documents. In addition to complying with the requirements of
NRS 487.038 and any requirements in the governing documents, if a vehicle
is improperly parked as described in this paragraph, the association must
post written notice in a conspicuous place on the vehicle or provide oral
or written notice to the owner or operator of the vehicle at least 48
hours before the association may direct the removal of the vehicle,
unless the vehicle:
(1) Is blocking a fire hydrant, fire lane or parking space
designated for the handicapped; or
(2) Poses an imminent threat of causing a substantial
adverse effect on the health, safety or welfare of the units’ owners or
residents of the common-interest community.
(t) Exercise any other powers necessary and proper for the
governance and operation of the association.
2. The declaration may not impose limitations on the power of the
association to deal with the declarant which are more restrictive than
the limitations imposed on the power of the association to deal with
other persons.
(Added to NRS by 1991, 556; A 1999, 3000 ; 2003, 2227 , 2267 ; 2005, 2590 )
1. Except as otherwise provided in the declaration, the bylaws,
this section or other provisions of this chapter, the executive board may
act in all instances on behalf of the association. In the performance of
their duties, the officers and members of the executive board are
fiduciaries. The members of the executive board are required to exercise
the ordinary and reasonable care of directors of a corporation, subject
to the business-judgment rule.
2. The executive board may not act on behalf of the association to
amend the declaration, to terminate the common-interest community, or to
elect members of the executive board or determine their qualifications,
powers and duties or terms of office, but the executive board may fill
vacancies in its membership for the unexpired portion of any term.
(Added to NRS by 1991, 557; A 1993, 2364; 2001, 3193 ; 2003, 225 ; 2005, 2592 )
1. A unit’s owner shall adhere to a schedule required by the
association for:
(a) The completion of the design of a unit or the design of an
improvement to a unit;
(b) The commencement of the construction of a unit or the
construction of an improvement to a unit;
(c) The completion of the construction of a unit or the
construction of an improvement to the unit; or
(d) The issuance of a permit which is necessary for the occupancy
of a unit or for the use of an improvement to a unit.
2. The association may impose and enforce a construction penalty
against a unit’s owner who fails to adhere to a schedule as required
pursuant to subsection 1 if:
(a) The maximum amount of the construction penalty and the schedule
are set forth in:
(1) The declaration;
(2) Another document related to the common-interest
community that is recorded before the date on which the unit’s owner
acquired title to the unit; or
(3) A contract between the unit’s owner and the association;
and
(b) The unit’s owner receives notice of the alleged violation which
informs him that he has a right to a hearing on the alleged violation.
3. For the purposes of this chapter, a construction penalty is not
a fine.
(Added to NRS by 2003, 2221 , 2266 )
1. Except as otherwise provided in this section, if a unit’s owner
or a tenant or guest of a unit’s owner violates any provision of the
governing documents of an association, the executive board may, if the
governing documents so provide:
(a) Prohibit, for a reasonable time, the unit’s owner or the tenant
or guest of the unit’s owner from:
(1) Voting on matters related to the common-interest
community.
(2) Using the common elements. The provisions of this
subparagraph do not prohibit the unit’s owner or the tenant or guest of
the unit’s owner from using any vehicular or pedestrian ingress or egress
to go to or from the unit, including any area used for parking.
(b) Impose a fine against the unit’s owner or the tenant or guest
of the unit’s owner for each violation, except that a fine may not be
imposed for a violation that is the subject of a construction penalty
pursuant to NRS 116.310305 . If the
violation poses an imminent threat of causing a substantial adverse
effect on the health, safety or welfare of the units’ owners or residents
of the common-interest community, the amount of the fine must be
commensurate with the severity of the violation and must be determined by
the executive board in accordance with the governing documents. If the
violation does not pose an imminent threat of causing a substantial
adverse effect on the health, safety or welfare of the units’ owners or
residents of the common-interest community, the amount of the fine must
be commensurate with the severity of the violation and must be determined
by the executive board in accordance with the governing documents, but
the amount of the fine must not exceed $100 for each violation or a total
amount of $1000, whichever is less. The limitations on the amount of the
fine do not apply to any interest, charges or costs that may be collected
by the association pursuant to this section if the fine becomes past due.
2. The executive board may not impose a fine pursuant to
subsection 1 unless:
(a) Not less than 30 days before the violation, the person against
whom the fine will be imposed had been provided with written notice of
the applicable provisions of the governing documents that form the basis
of the violation; and
(b) Within a reasonable time after the discovery of the violation,
the person against whom the fine will be imposed has been provided with:
(1) Written notice specifying the details of the violation,
the amount of the fine, and the date, time and location for a hearing on
the violation; and
(2) A reasonable opportunity to contest the violation at the
hearing.
3. The executive board must schedule the date, time and location
for the hearing on the violation so that the person against whom the fine
will be imposed is provided with a reasonable opportunity to prepare for
the hearing and to be present at the hearing.
4. The executive board must hold a hearing before it may impose
the fine, unless the person against whom the fine will be imposed:
(a) Pays the fine;
(b) Executes a written waiver of the right to the hearing; or
(c) Fails to appear at the hearing after being provided with proper
notice of the hearing.
5. If a fine is imposed pursuant to subsection 1 and the violation
is not cured within 14 days, or within any longer period that may be
established by the executive board, the violation shall be deemed a
continuing violation. Thereafter, the executive board may impose an
additional fine for the violation for each 7-day period or portion
thereof that the violation is not cured. Any additional fine may be
imposed without notice and an opportunity to be heard.
6. If the governing documents so provide, the executive board may
appoint a committee, with not less than three members, to conduct
hearings on violations and to impose fines pursuant to this section.
While acting on behalf of the executive board for those limited purposes,
the committee and its members are entitled to all privileges and
immunities and are subject to all duties and requirements of the
executive board and its members.
7. The provisions of this section establish the minimum procedural
requirements that the executive board must follow before it may impose a
fine. The provisions of this section do not preempt any provisions of the
governing documents that provide greater procedural protections.
8. Any past due fine:
(a) Bears interest at the rate established by the association, not
to exceed the legal rate per annum.
(b) May include any costs of collecting the past due fine at a rate
established by the association. If the past due fine is for a violation
that does not threaten the health, safety or welfare of the residents of
the common-interest community, the rate established by the association
for the costs of collecting the past due fine:
(1) May not exceed $20, if the outstanding balance is less
than $200.
(2) May not exceed $50, if the outstanding balance is $200
or more, but is less than $500.
(3) May not exceed $100, if the outstanding balance is $500
or more, but is less than $1,000.
(4) May not exceed $250, if the outstanding balance is
$1,000 or more, but is less than $5,000.
(5) May not exceed $500, if the outstanding balance is
$5,000 or more.
(c) May include any costs incurred by the association during a
civil action to enforce the payment of the past due fine.
9. As used in this section:
(a) “Costs of collecting” includes, without limitation, any
collection fee, filing fee, recording fee, referral fee, fee for postage
or delivery, and any other fee or cost that an association may reasonably
charge to the unit’s owner for the collection of a past due fine. The
term does not include any costs incurred by an association during a civil
action to enforce the payment of a past due fine.
(b) “Outstanding balance” means the amount of a past due fine that
remains unpaid before any interest, charges for late payment or costs of
collecting the past due fine are added.
(Added to NRS by 1997, 3112; A 1999, 3001 ; 2003, 2228 , 2268 ; 2005, 2592 )
If an association has
imposed a fine against a unit’s owner or a tenant or guest of a unit’s
owner pursuant to NRS 116.31031 for
violations of the governing documents of the association, the association:
1. Shall, in the books and records of the association, account for
the fine separately from any assessment, fee or other charge; and
2. Shall not apply, in whole or in part, any payment made by the
unit’s owner for any assessment, fee or other charge toward the payment
of the outstanding balance of the fine or any costs of collecting the
fine, unless the unit’s owner provides written authorization which
directs the association to apply the payment made by the unit’s owner in
such a manner.
(Added to NRS by 1997, 3112; A 2005, 1715 )—(Substituted in revision for NRS
116.31145)
1. Except as otherwise provided in this section, the declaration
may provide for a period of declarant’s control of the association,
during which a declarant, or persons designated by him, may appoint and
remove the officers of the association and members of the executive
board. Regardless of the period provided in the declaration, a period of
declarant’s control terminates no later than:
(a) Sixty days after conveyance of 75 percent of the units that may
be created to units’ owners other than a declarant or, if the association
exercises powers over a common-interest community pursuant to this
chapter and a time-share plan pursuant to chapter 119A of NRS, 120 days after conveyance of 80 percent of
the units that may be created to units’ owners other than a declarant;
(b) Five years after all declarants have ceased to offer units for
sale in the ordinary course of business; or
(c) Five years after any right to add new units was last exercised,
Ê whichever occurs earlier.
2. A declarant may voluntarily surrender the right to appoint and
remove officers and members of the executive board before termination of
that period, but in that event the declarant may require, for the
duration of the period of declarant’s control, that specified actions of
the association or executive board, as described in a recorded instrument
executed by the declarant, be approved by the declarant before they
become effective.
3. Not later than 60 days after conveyance of 25 percent of the
units that may be created to units’ owners other than a declarant, at
least one member and not less than 25 percent of the members of the
executive board must be elected by units’ owners other than the
declarant. Not later than 60 days after conveyance of 50 percent of the
units that may be created to units’ owners other than a declarant, not
less than 33 1/3 percent of the members of the executive board must be
elected by units’ owners other than the declarant.
(Added to NRS by 1993, 2353; A 2001, 2490 )
1. Except as otherwise provided in subsection 5 of NRS 116.212
, not later than the termination of any
period of declarant’s control, the units’ owners shall elect an executive
board of at least three members, at least a majority of whom must be
units’ owners. Unless the governing documents provide otherwise, the
remaining members of the executive board do not have to be units’ owners.
The executive board shall elect the officers of the association. The
members of the executive board and the officers of the association shall
take office upon election.
2. The term of office of a member of the executive board may not
exceed 2 years, except for members who are appointed by the declarant.
Unless the governing documents provide otherwise, there is no limitation
on the number of terms that a person may serve as a member of the
executive board.
3. The governing documents of the association must provide for
terms of office that are staggered in such a manner that, to the extent
possible, an equal number of members of the executive board are elected
at each election. The provisions of this subsection do not apply to:
(a) Members of the executive board who are appointed by the
declarant; and
(b) Members of the executive board who serve a term of 1 year or
less.
4. Not less than 30 days before the preparation of a ballot for
the election of members of the executive board, the secretary or other
officer specified in the bylaws of the association shall cause notice to
be given to each unit’s owner of his eligibility to serve as a member of
the executive board. Each unit’s owner who is qualified to serve as a
member of the executive board may have his name placed on the ballot
along with the names of the nominees selected by the members of the
executive board or a nominating committee established by the association.
5. Each person whose name is placed on the ballot as a candidate
for a member of the executive board must:
(a) Make a good faith effort to disclose any financial, business,
professional or personal relationship or interest that would result or
would appear to a reasonable person to result in a potential conflict of
interest for the candidate if the candidate were to be elected to serve
as a member of the executive board; and
(b) Disclose whether the candidate is a member in good standing.
For the purposes of this paragraph, a candidate shall not be deemed to be
in “good standing” if the candidate has any unpaid and past due
assessments or construction penalties that are required to be paid to the
association.
Ê The candidate must make all disclosures required pursuant to this
subsection in writing to the association with his candidacy information.
The association shall distribute the disclosures to each member of the
association with the ballot in the manner established in the bylaws of
the association.
6. Unless a person is appointed by the declarant:
(a) A person may not be a member of the executive board or an
officer of the association if the person, his spouse or his parent or
child, by blood, marriage or adoption, performs the duties of a community
manager for that association.
(b) A person may not be a member of the executive board of a master
association or an officer of that master association if the person, his
spouse or his parent or child, by blood, marriage or adoption, performs
the duties of a community manager for:
(1) That master association; or
(2) Any association that is subject to the governing
documents of that master association.
7. An officer, employee, agent or director of a corporate owner of
a unit, a trustee or designated beneficiary of a trust that owns a unit,
a partner of a partnership that owns a unit, a member or manager of a
limited-liability company that owns a unit, and a fiduciary of an estate
that owns a unit may be an officer of the association or a member of the
executive board. In all events where the person serving or offering to
serve as an officer of the association or a member of the executive board
is not the record owner, he shall file proof in the records of the
association that:
(a) He is associated with the corporate owner, trust, partnership,
limited-liability company or estate as required by this subsection; and
(b) Identifies the unit or units owned by the corporate owner, trust,
partnership, limited-liability company or estate.
8. The election of any member of the executive board must be
conducted by secret written ballot unless the declaration of the
association provides that voting rights may be exercised by delegates or
representatives as set forth in NRS 116.31105 . If the election of any member of the
executive board is conducted by secret written ballot:
(a) The secretary or other officer specified in the bylaws of the
association shall cause a secret ballot and a return envelope to be sent,
prepaid by United States mail, to the mailing address of each unit within
the common-interest community or to any other mailing address designated
in writing by the unit’s owner.
(b) Each unit’s owner must be provided with at least 15 days after
the date the secret written ballot is mailed to the unit’s owner to
return the secret written ballot to the association.
(c) A quorum is not required for the election of any member of the
executive board.
(d) Only the secret written ballots that are returned to the
association may be counted to determine the outcome of the election.
(e) The secret written ballots must be opened and counted at a
meeting of the association. A quorum is not required to be present when
the secret written ballots are opened and counted at the meeting.
(f) The incumbent members of the executive board and each person
whose name is placed on the ballot as a candidate for a member of the
executive board may not possess, be given access to or participate in the
opening or counting of the secret written ballots that are returned to
the association before those secret written ballots have been opened and
counted at a meeting of the association.
9. Each member of the executive board shall, within 90 days after
his appointment or election, certify in writing to the association, on a
form prescribed by the Administrator, that he has read and understands
the governing documents of the association and the provisions of this
chapter to the best of his ability. The Administrator may require the
association to submit a copy of the certification of each member of the
executive board of that association at the time the association registers
with the Ombudsman pursuant to NRS 116.31158 .
(Added to NRS by 1993, 2353; A 1997, 3117; 1999, 3001 ; 2003, 2229 ; 2005, 2594 )
1. Notwithstanding any provision of the declaration or bylaws to
the contrary, any member of the executive board, other than a member
appointed by the declarant, may be removed from the executive board, with
or without cause, if at a removal election held pursuant to this section
the number of votes cast in favor of removal constitutes:
(a) At least 35 percent of the total number of voting members of
the association; and
(b) At least a majority of all votes cast in that removal election.
2. The removal of any member of the executive board must be
conducted by secret written ballot unless the declaration of the
association provides that voting rights may be exercised by delegates or
representatives as set forth in NRS 116.31105 . If the removal of a member of the executive
board is conducted by secret written ballot:
(a) The secretary or other officer specified in the bylaws of the
association shall cause a secret ballot and a return envelope to be sent,
prepaid by United States mail, to the mailing address of each unit within
the common-interest community or to any other mailing address designated
in writing by the unit’s owner.
(b) Each unit’s owner must be provided with at least 15 days after
the date the secret written ballot is mailed to the unit’s owner to
return the secret written ballot to the association.
(c) Only the secret written ballots that are returned to the
association may be counted to determine the outcome.
(d) The secret written ballots must be opened and counted at a
meeting of the association. A quorum is not required to be present when
the secret written ballots are opened and counted at the meeting.
(e) The incumbent members of the executive board, including,
without limitation, the member who is subject to the removal, may not
possess, be given access to or participate in the opening or counting of
the secret written ballots that are returned to the association before
those secret written ballots have been opened and counted at a meeting of
the association.
3. If a member of an executive board is named as a respondent or
sued for liability for actions undertaken in his role as a member of the
board, the association shall indemnify him for his losses or claims, and
undertake all costs of defense, unless it is proven that he acted with
willful or wanton misfeasance or with gross negligence. After such proof,
the association is no longer liable for the cost of defense, and may
recover costs already expended from the member of the executive board who
so acted. Members of the executive board are not personally liable to the
victims of crimes occurring on the property. Punitive damages may not be
recovered against the association, but may be recovered from persons
whose activity gave rise to the damages.
4. The provisions of this section do not prohibit the Commission
from taking any disciplinary action against a member of an executive
board pursuant to NRS 116.745 to
116.795 , inclusive.
(Added to NRS by 1993, 2354; A 2003, 2231 ; 2005, 2596 )
In addition to any applicable requirement set
forth in NRS 116.310395 , within 30
days after units’ owners other than the declarant may elect a majority of
the members of the executive board, the declarant shall deliver to the
association all property of the units’ owners and of the association held
by or controlled by him, including:
1. The original or a certified copy of the recorded declaration as
amended, the articles of incorporation, articles of association, articles
of organization, certificate of registration, certificate of limited
partnership, certificate of trust or other documents of organization for
the association, the bylaws, minute books and other books and records of
the association and any rules or regulations which may have been adopted.
2. An accounting for money of the association and audited
financial statements for each fiscal year and any ancillary period from
the date of inception of the association to the date the period of the
declarant’s control ends. The financial statements must fairly and
accurately report the association’s financial position.
3. A complete study of the reserves of the association, conducted
by a person who holds a permit to conduct such a study issued pursuant to
chapter 116A of NRS. At the time the
control of the declarant ends, he shall:
(a) Except as otherwise provided in this paragraph, deliver to the
association a reserve account that contains the declarant’s share of the
amounts then due, and control of the account. If the declaration was
recorded before October 1, 1999, and, at the time the control of the
declarant ends, he has failed to pay his share of the amounts due, the
executive board shall authorize the declarant to pay the deficiency in
installments for a period of 3 years, unless the declarant and the
executive board agree to a shorter period.
(b) Disclose, in writing, the amount by which he has subsidized the
association’s dues on a per unit or per lot basis.
4. The association’s money or control thereof.
5. All of the declarant’s tangible personal property that has been
represented by the declarant as property of the association or, unless
the declarant has disclosed in the public offering statement that all
such personal property used in the common-interest community will remain
the declarant’s property, all of the declarant’s tangible personal
property that is necessary for, and has been used exclusively in, the
operation and enjoyment of the common elements, and inventories of these
properties.
6. A copy of any plans and specifications used in the construction
of the improvements in the common-interest community which were completed
within 2 years before the declaration was recorded.
7. All insurance policies then in force, in which the units’
owners, the association, or its directors and officers are named as
insured persons.
8. Copies of any certificates of occupancy that may have been
issued with respect to any improvements comprising the common-interest
community other than units in a planned community.
9. Any renewable permits and approvals issued by governmental
bodies applicable to the common-interest community which are in force and
any other permits and approvals so issued and applicable which are
required by law to be kept on the premises of the community.
10. Written warranties of the contractor, subcontractors,
suppliers and manufacturers that are still effective.
11. A roster of owners and mortgagees of units and their addresses
and telephone numbers, if known, as shown on the declarant’s records.
12. Contracts of employment in which the association is a
contracting party.
13. Any contract for service in which the association is a
contracting party or in which the association or the units’ owners have
any obligation to pay a fee to the persons performing the services.
(Added to NRS by 1993, 2354; A 1999, 3002 ; 2001, 2490 ; 2005, 2597 )
1. If a common-interest community is developed in separate phases
and any declarant or successor declarant is constructing any common
elements that will be added to the association’s common elements after
the date on which the units’ owners other than the declarant may elect a
majority of the members of the executive board, the declarant or
successor declarant who is constructing such additional common elements
is responsible for:
(a) Paying all expenses related to the additional common elements
which are incurred before the conveyance of the additional common
elements to the association; and
(b) Except as otherwise provided in NRS 116.31038 , delivering to the association that
declarant’s share of the amount specified in the study of the reserves
completed pursuant to subsection 2.
2. Before conveying the additional common elements to the
association, the declarant or successor declarant who constructed the
additional common elements shall deliver to the association a study of
the reserves for the additional common elements which satisfies the
requirements of NRS 116.31152 .
3. As used in this section, “successor declarant” includes,
without limitation, any successor declarant who does not control the
association established by the initial declarant.
(Added to NRS by 2003, 2219 )
1. At the time of each close of escrow of a unit in a converted
building, the declarant shall deliver to the association the amount of
the converted building reserve deficit allocated to that unit.
2. The allocation to a unit of the amount of any converted
building reserve deficit must be made in the same manner as assessments
are allocated to that unit.
3. As used in this section, “converted building reserve deficit”
means the amount necessary to replace the major components of the common
elements needing replacement within 10 years after the date of the first
sale of a unit.
(Added to NRS by 2005, 2581 )
1. A special declarant’s right created or reserved under this
chapter may be transferred only by an instrument evidencing the transfer
recorded in every county in which any portion of the common-interest
community is located. The instrument is not effective unless executed by
the transferee.
2. Upon transfer of any special declarant’s right, the liability
of a transferor declarant is as follows:
(a) A transferor is not relieved of any obligation or liability
arising before the transfer and remains liable for warranties imposed
upon him by this chapter. Lack of privity does not deprive any unit’s
owner of standing to maintain an action to enforce any obligation of the
transferor.
(b) If a successor to any special declarant’s right is an affiliate
of a declarant, the transferor is jointly and severally liable with the
successor for any obligations or liabilities of the successor relating to
the common-interest community.
(c) If a transferor retains any special declarant’s rights, but
transfers other special declarant’s rights to a successor who is not an
affiliate of the declarant, the transferor is liable for any obligations
or liabilities imposed on a declarant by this chapter or by the
declaration relating to the retained special declarant’s rights and
arising after the transfer.
(d) A transferor has no liability for any act or omission or any
breach of a contractual obligation or warranty arising from the exercise
of a special declarant’s right by a successor declarant who is not an
affiliate of the transferor.
3. Unless otherwise provided in a mortgage, deed of trust or other
agreement creating a security interest, in case of foreclosure of a
security interest, sale by a trustee under an agreement creating a
security interest, tax sale, judicial sale or sale under the Bankruptcy
Code or a receivership, of any units owned by a declarant or real estate
in a common-interest community subject to developmental rights, a person
acquiring title to all the property being foreclosed or sold, but only
upon his request, succeeds to all special declarant’s rights related to
that property held by that declarant, or only to any rights reserved in
the declaration pursuant to NRS 116.2115 and held by that declarant to maintain
models, offices for sales and signs. The judgment or instrument conveying
title must provide for transfer of only the special declarant’s rights
requested.
4. Upon foreclosure of a security interest, sale by a trustee
under an agreement creating a security interest, tax sale, judicial sale
or sale under the Bankruptcy Code or a receivership of all interests in a
common-interest community owned by a declarant:
(a) The declarant ceases to have any special declarant’s rights; and
(b) The period of declarant’s control (NRS 116.31032 ) terminates unless the judgment or
instrument conveying title provides for transfer of all special
declarant’s rights held by that declarant to a successor declarant.
(Added to NRS by 1991, 560; A 1993, 2366)
The liabilities and obligations of a
person who succeeds to special declarant’s rights are as follows:
1. A successor to any special declarant’s right who is an
affiliate of a declarant is subject to all obligations and liabilities
imposed on the transferor by this chapter or by the declaration.
2. A successor to any special declarant’s right, other than a
successor described in subsection 3 or 4 or a successor who is an
affiliate of a declarant, is subject to the obligations and liabilities
imposed by this chapter or the declaration:
(a) On a declarant which relate to the successor’s exercise or
nonexercise of special declarant’s rights; or
(b) On his transferor, other than:
(1) Misrepresentations by any previous declarant;
(2) Warranties on improvements made by any previous
declarant, or made before the common-interest community was created;
(3) Breach of any fiduciary obligation by any previous
declarant or his appointees to the executive board; or
(4) Any liability or obligation imposed on the transferor as
a result of the transferor’s acts or omissions after the transfer.
3. A successor to only a right reserved in the declaration to
maintain models, offices for sales and signs (NRS 116.2115 ), may not exercise any other special
declarant’s right, and is not subject to any liability or obligation as a
declarant, except the obligation to provide a public offering statement
and any liability arising as a result thereof.
4. A successor to all special declarant’s rights held by a
transferor who succeeded to those rights pursuant to a deed or other
instrument of conveyance in lieu of foreclosure or a judgment or
instrument conveying title under subsection 3 of NRS 116.3104 , may declare in a recorded instrument the
intention to hold those rights solely for transfer to another person.
Thereafter, until transferring all special declarant’s rights to any
person acquiring title to any unit or real estate subject to
developmental rights owned by the successor, or until recording an
instrument permitting exercise of all those rights, that successor may
not exercise any of those rights other than any right held by his
transferor to control the executive board in accordance with NRS
116.31032 for the duration of any
period of declarant’s control, and any attempted exercise of those rights
is void. So long as a successor declarant may not exercise special
declarant’s rights under this subsection, the successor declarant is not
subject to any liability or obligation as a declarant other than
liability for his acts and omissions under NRS 116.31032 .
(Added to NRS by 1991, 561; A 1993, 2367)
NRS
116.3104 and 116.31043 do not subject any successor to a special
declarant’s right to any claims against or other obligations of a
transferor declarant, other than claims and obligations arising under
this chapter or the declaration.
(Added to NRS by 1991, 561)
If
entered into before the executive board elected by the units’ owners
pursuant to NRS 116.31034 takes
office, any management contract, employment contract, or lease of
recreational or parking areas or facilities, any other contract or lease
between the association and a declarant or an affiliate of a declarant or
any contract or lease that is not in good faith or was unconscionable to
the units’ owners at the time entered into under the circumstances then
prevailing may be terminated without penalty by the association at any
time after the executive board elected by the units’ owners takes office
upon not less than 90 days’ notice to the other party. This section does
not apply to any lease the termination of which would terminate the
common-interest community or reduce its size, unless the real estate
subject to that lease was included in the common-interest community for
the purpose of avoiding the right of the association to terminate a lease
under this section, or to a proprietary lease.
(Added to NRS by 1991, 561; A 1993, 2368)
1. The bylaws of the association must provide:
(a) The number of members of the executive board and the titles of
the officers of the association;
(b) For election by the executive board of a president, treasurer,
secretary and any other officers of the association the bylaws specify;
(c) The qualifications, powers and duties, terms of office and
manner of electing and removing officers of the association and members
of the executive board and filling vacancies;
(d) Which powers, if any, that the executive board or the officers
of the association may delegate to other persons or to a community
manager;
(e) Which of its officers may prepare, execute, certify and record
amendments to the declaration on behalf of the association;
(f) Procedural rules for conducting meetings of the association;
(g) A method for amending the bylaws; and
(h) Procedural rules for conducting elections.
2. Except as otherwise provided in the declaration, the bylaws may
provide for any other matters the association deems necessary and
appropriate.
3. The bylaws must be written in plain English.
(Added to NRS by 1991, 562; A 1993, 2368; 1997, 3117; 2003, 2232
)
The rules adopted by an association:
1. Must be reasonably related to the purpose for which they are
adopted.
2. Must be sufficiently explicit in their prohibition, direction
or limitation to inform a person of any action or omission required for
compliance.
3. Must not be adopted to evade any obligation of the association.
4. Must be consistent with the governing documents of the
association and must not arbitrarily restrict conduct or require the
construction of any capital improvement by a unit’s owner that is not
required by the governing documents of the association.
5. Must be uniformly enforced under the same or similar
circumstances against all units’ owners. Any rule that is not so
uniformly enforced may not be enforced against any unit’s owner.
6. May be enforced by the association through the imposition of a
fine only if the association complies with the requirements set forth in
NRS 116.31031 .
(Added to NRS by 1997, 3111; A 1999, 3004 ; 2003, 2269 )
[Replaced in revision by NRS 116.320 .]
1. Except to the extent provided by the declaration, subsection 2
and NRS 116.31135 , the association is
responsible for maintenance, repair and replacement of the common
elements, and each unit’s owner is responsible for maintenance, repair
and replacement of his unit. Each unit’s owner shall afford to the
association and the other units’ owners, and to their agents or
employees, access through his unit reasonably necessary for those
purposes. If damage is inflicted on the common elements or on any unit
through which access is taken, the unit’s owner responsible for the
damage, or the association if it is responsible, is liable for the prompt
repair thereof.
2. In addition to the liability that a declarant as a unit’s owner
has under this chapter, the declarant alone is liable for all expenses in
connection with real estate subject to developmental rights. No other
unit’s owner and no other portion of the common-interest community is
subject to a claim for payment of those expenses. Unless the declaration
provides otherwise, any income or proceeds from real estate subject to
developmental rights inures to the declarant.
3. In a planned community, if all developmental rights have
expired with respect to any real estate, the declarant remains liable for
all expenses of that real estate unless, upon expiration, the declaration
provides that the real estate becomes common elements or units.
(Added to NRS by 1991, 562; A 1993, 2368)
Meetings and Voting
In
conducting any meetings, a rural agricultural residential common-interest
community must comply with the provisions set forth in chapter 241 of NRS concerning open meetings which are generally
applicable to public bodies.
(Added to NRS by 2003, 2221 )
1. A meeting of the units’ owners must be held at least once each
year. If the governing documents do not designate an annual meeting date
of the units’ owners, a meeting of the units’ owners must be held 1 year
after the date of the last meeting of the units’ owners. If the units’
owners have not held a meeting for 1 year, a meeting of the units’ owners
must be held on the following March 1.
2. Special meetings of the units’ owners may be called by the
president, by a majority of the executive board or by units’ owners
constituting at least 10 percent, or any lower percentage specified in
the bylaws, of the total number of voting members of the association. The
same number of units’ owners may also call a removal election pursuant to
NRS 116.31036 . To call a special
meeting or a removal election, the units’ owners must submit a written
petition which is signed by the required percentage of the total number
of voting members of the association pursuant to this section and which
is mailed, return receipt requested, or served by a process server to the
executive board or the community manager for the association. If the
petition calls for a special meeting, the executive board shall set the
date for the special meeting so that the special meeting is held not less
than 15 days or more than 60 days after the date on which the petition is
received. If the petition calls for a removal election and:
(a) The voting rights of the units’ owners will be exercised by
delegates or representatives as set forth in NRS 116.31105 , the executive board shall set the date for
the removal election so that the removal election is held not less than
15 days or more than 60 days after the date on which the petition is
received; or
(b) The voting rights of the units’ owners will be exercised
through the use of secret written ballots pursuant to NRS 116.31036
, the secret written ballots for the
removal election must be sent in the manner required by NRS 116.31036
not less than 15 days or more than 60
days after the date on which the petition is received, and the executive
board shall set the date for the meeting to open and count the secret
written ballots so that the meeting is held not more than 15 days after
the deadline for returning the secret written ballots.
3. Not less than 15 days or more than 60 days in advance of any
meeting of the units’ owners, the secretary or other officer specified in
the bylaws shall cause notice of the meeting to be hand-delivered, sent
prepaid by United States mail to the mailing address of each unit or to
any other mailing address designated in writing by the unit’s owner or,
if the association offers to send notice by electronic mail, sent by
electronic mail at the request of the unit’s owner to an electronic mail
address designated in writing by the unit’s owner. The notice of the
meeting must state the time and place of the meeting and include a copy
of the agenda for the meeting. The notice must include notification of
the right of a unit’s owner to:
(a) Have a copy of the minutes or a summary of the minutes of the
meeting provided to the unit’s owner upon request and, if required by the
executive board, upon payment to the association of the cost of providing
the copy to the unit’s owner.
(b) Speak to the association or executive board, unless the
executive board is meeting in executive session.
4. The agenda for a meeting of the units’ owners must consist of:
(a) A clear and complete statement of the topics scheduled to be
considered during the meeting, including, without limitation, any
proposed amendment to the declaration or bylaws, any fees or assessments
to be imposed or increased by the association, any budgetary changes and
any proposal to remove an officer of the association or member of the
executive board.
(b) A list describing the items on which action may be taken and
clearly denoting that action may be taken on those items. In an
emergency, the units’ owners may take action on an item which is not
listed on the agenda as an item on which action may be taken.
(c) A period devoted to comments by units’ owners and discussion of
those comments. Except in emergencies, no action may be taken upon a
matter raised under this item of the agenda until the matter itself has
been specifically included on an agenda as an item upon which action may
be taken pursuant to paragraph (b).
5. If the association adopts a policy imposing fines for any
violations of the governing documents of the association, the secretary
or other officer specified in the bylaws shall prepare and cause to be
hand-delivered or sent prepaid by United States mail to the mailing
address of each unit or to any other mailing address designated in
writing by the unit’s owner, a schedule of the fines that may be imposed
for those violations.
6. The secretary or other officer specified in the bylaws shall
cause minutes to be recorded or otherwise taken at each meeting of the
units’ owners. Not more than 30 days after each such meeting, the
secretary or other officer specified in the bylaws shall cause the
minutes or a summary of the minutes of the meeting to be made available
to the units’ owners. A copy of the minutes or a summary of the minutes
must be provided to any unit’s owner upon request and, if required by the
executive board, upon payment to the association of the cost of providing
the copy to the unit’s owner.
7. Except as otherwise provided in subsection 8, the minutes of
each meeting of the units’ owners must include:
(a) The date, time and place of the meeting;
(b) The substance of all matters proposed, discussed or decided at
the meeting; and
(c) The substance of remarks made by any unit’s owner at the
meeting if he requests that the minutes reflect his remarks or, if he has
prepared written remarks, a copy of his prepared remarks if he submits a
copy for inclusion.
8. The executive board may establish reasonable limitations on
materials, remarks or other information to be included in the minutes of
a meeting of the units’ owners.
9. The association shall maintain the minutes of each meeting of
the units’ owners until the common-interest community is terminated.
10. A unit’s owner may record on audiotape or any other means of
sound reproduction a meeting of the units’ owners if the unit’s owner,
before recording the meeting, provides notice of his intent to record the
meeting to the other units’ owners who are in attendance at the meeting.
11. The units’ owners may approve, at the annual meeting of the
units’ owners, the minutes of the prior annual meeting of the units’
owners and the minutes of any prior special meetings of the units’
owners. A quorum is not required to be present when the units’ owners
approve the minutes.
12. As used in this section, “emergency” means any occurrence or
combination of occurrences that:
(a) Could not have been reasonably foreseen;
(b) Affects the health, welfare and safety of the units’ owners or
residents of the common-interest community;
(c) Requires the immediate attention of, and possible action by,
the executive board; and
(d) Makes it impracticable to comply with the provisions of
subsection 3 or 4.
(Added to NRS by 1991, 562; A 1995, 2230; 1997, 3118; 1999, 3004
; 2001, 470 ; 2003, 2232 , 2270 ; 2005, 2598 )
1. A meeting of the executive board must be held at least once
every 90 days.
2. Except in an emergency or unless the bylaws of an association
require a longer period of notice, the secretary or other officer
specified in the bylaws of the association shall, not less than 10 days
before the date of a meeting of the executive board, cause notice of the
meeting to be given to the units’ owners. Such notice must be:
(a) Sent prepaid by United States mail to the mailing address of
each unit within the common-interest community or to any other mailing
address designated in writing by the unit’s owner;
(b) If the association offers to send notice by electronic mail,
sent by electronic mail at the request of the unit’s owner to an
electronic mail address designated in writing by the unit’s owner; or
(c) Published in a newsletter or other similar publication that is
circulated to each unit’s owner.
3. In an emergency, the secretary or other officer specified in
the bylaws of the association shall, if practicable, cause notice of the
meeting to be sent prepaid by United States mail to the mailing address
of each unit within the common-interest community. If delivery of the
notice in this manner is impracticable, the notice must be hand-delivered
to each unit within the common-interest community or posted in a
prominent place or places within the common elements of the association.
4. The notice of a meeting of the executive board must state the
time and place of the meeting and include a copy of the agenda for the
meeting or the date on which and the locations where copies of the agenda
may be conveniently obtained by the units’ owners. The notice must
include notification of the right of a unit’s owner to:
(a) Have a copy of the minutes or a summary of the minutes of the
meeting provided to the unit’s owner upon request and, if required by the
executive board, upon payment to the association of the cost of providing
the copy to the unit’s owner.
(b) Speak to the association or executive board, unless the
executive board is meeting in executive session.
5. The agenda of the meeting of the executive board must comply
with the provisions of subsection 4 of NRS 116.3108 . The period required to be devoted to
comments by the units’ owners and discussion of those comments must be
scheduled for the beginning of each meeting. In an emergency, the
executive board may take action on an item which is not listed on the
agenda as an item on which action may be taken.
6. At least once every 90 days, unless the declaration or bylaws
of the association impose more stringent standards, the executive board
shall review, at a minimum, the following financial information at one of
its meetings:
(a) A current year-to-date financial statement of the association;
(b) A current year-to-date schedule of revenues and expenses for
the operating account and the reserve account, compared to the budget for
those accounts;
(c) A current reconciliation of the operating account of the
association;
(d) A current reconciliation of the reserve account of the
association;
(e) The latest account statements prepared by the financial
institutions in which the accounts of the association are maintained; and
(f) The current status of any civil action or claim submitted to
arbitration or mediation in which the association is a party.
7. The secretary or other officer specified in the bylaws shall
cause minutes to be recorded or otherwise taken at each meeting of the
executive board. Not more than 30 days after each such meeting, the
secretary or other officer specified in the bylaws shall cause the
minutes or a summary of the minutes of the meetings to be made available
to the units’ owners. A copy of the minutes or a summary of the minutes
must be provided to any unit’s owner upon request and, if required by the
executive board, upon payment to the association of the cost of providing
the copy to the unit’s owner.
8. Except as otherwise provided in subsection 9 and NRS 116.31085
, the minutes of each meeting of the
executive board must include:
(a) The date, time and place of the meeting;
(b) Those members of the executive board who were present and those
members who were absent at the meeting;
(c) The substance of all matters proposed, discussed or decided at
the meeting;
(d) A record of each member’s vote on any matter decided by vote at
the meeting; and
(e) The substance of remarks made by any unit’s owner who addresses
the executive board at the meeting if he requests that the minutes
reflect his remarks or, if he has prepared written remarks, a copy of his
prepared remarks if he submits a copy for inclusion.
9. The executive board may establish reasonable limitations on
materials, remarks or other information to be included in the minutes of
its meetings.
10. The association shall maintain the minutes of each meeting of
the executive board until the common-interest community is terminated.
11. A unit’s owner may record on audiotape or any other means of
sound reproduction a meeting of the executive board, unless the executive
board is meeting in executive session, if the unit’s owner, before
recording the meeting, provides notice of his intent to record the
meeting to the members of the executive board and the other units’ owners
who are in attendance at the meeting.
12. As used in this section, “emergency” means any occurrence or
combination of occurrences that:
(a) Could not have been reasonably foreseen;
(b) Affects the health, welfare and safety of the units’ owners or
residents of the common-interest community;
(c) Requires the immediate attention of, and possible action by,
the executive board; and
(d) Makes it impracticable to comply with the provisions of
subsection 2 or 5.
(Added to NRS by 1999, 2995 ; A 2001, 472 ; 2003, 2234 ; 2005, 2600 )
1. Except as otherwise provided in this section, a unit’s owner
may attend any meeting of the units’ owners or of the executive board and
speak at any such meeting. The executive board may establish reasonable
limitations on the time a unit’s owner may speak at such a meeting.
2. An executive board may not meet in executive session to enter
into, renew, modify, terminate or take any other action regarding a
contract, unless it is a contract between the association and an attorney.
3. An executive board may meet in executive session only to:
(a) Consult with the attorney for the association on matters
relating to proposed or pending litigation if the contents of the
discussion would otherwise be governed by the privilege set forth in NRS
49.035 to 49.115 , inclusive, or to enter into, renew, modify,
terminate or take any other action regarding a contract between the
association and the attorney.
(b) Discuss the character, alleged misconduct, professional
competence, or physical or mental health of a community manager or an
employee of the association.
(c) Except as otherwise provided in subsection 4, discuss a
violation of the governing documents, including, without limitation, the
failure to pay an assessment.
(d) Discuss the alleged failure of a unit’s owner to adhere to a
schedule required pursuant to NRS 116.310305 if the alleged failure may subject the
unit’s owner to a construction penalty.
4. An executive board shall meet in executive session to hold a
hearing on an alleged violation of the governing documents unless the
person who may be sanctioned for the alleged violation requests in
writing that an open hearing be conducted by the executive board. If the
person who may be sanctioned for the alleged violation requests in
writing that an open hearing be conducted, the person:
(a) Is entitled to attend all portions of the hearing related to
the alleged violation, including, without limitation, the presentation of
evidence and the testimony of witnesses; and
(b) Is not entitled to attend the deliberations of the executive
board.
5. Except as otherwise provided in this subsection, any matter
discussed by the executive board when it meets in executive session must
be generally noted in the minutes of the meeting of the executive board.
The executive board shall maintain minutes of any decision made pursuant
to subsection 4 concerning an alleged violation and, upon request,
provide a copy of the decision to the person who was subject to being
sanctioned at the hearing or to his designated representative.
6. Except as otherwise provided in subsection 4, a unit’s owner is
not entitled to attend or speak at a meeting of the executive board held
in executive session.
(Added to NRS by 1997, 3111; A 1999, 3005 ; 2003, 2236 , 2271 ; 2005, 2602 )
1. If an executive board receives a written complaint from a
unit’s owner alleging that the executive board has violated any provision
of this chapter or any provision of the governing documents of the
association, the executive board shall, if action is required by the
executive board, place the subject of the complaint on the agenda of the
next regularly scheduled meeting of the executive board.
2. Not later than 10 business days after the date that the
association receives such a complaint, the executive board or an
authorized representative of the association shall acknowledge the
receipt of the complaint and notify the unit’s owner that, if action is
required by the executive board, the subject of the complaint will be
placed on the agenda of the next regularly scheduled meeting of the
executive board.
(Added to NRS by 2003, 2218 )
1. The association shall provide written notice to each unit’s
owner of a meeting at which the commencement of a civil action is to be
considered at least 21 calendar days before the date of the meeting.
Except as otherwise provided in this subsection, the association may
commence a civil action only upon a vote or written agreement of the
owners of units to which at least a majority of the votes of the members
of the association are allocated. The provisions of this subsection do
not apply to a civil action that is commenced:
(a) To enforce the payment of an assessment;
(b) To enforce the declaration, bylaws or rules of the association;
(c) To enforce a contract with a vendor;
(d) To proceed with a counterclaim; or
(e) To protect the health, safety and welfare of the members of the
association. If a civil action is commenced pursuant to this paragraph
without the required vote or agreement, the action must be ratified
within 90 days after the commencement of the action by a vote or written
agreement of the owners of the units to which at least a majority of
votes of the members of the association are allocated. If the
association, after making a good faith effort, cannot obtain the required
vote or agreement to commence or ratify such a civil action, the
association may thereafter seek to dismiss the action without prejudice
for that reason only if a vote of written agreement of the owners of the
units to which at least a majority of votes of the members of the
association are allocated was obtained at the time the approval to
commence or ratify the action was sought.
2. At least 10 days before an association commences or seeks to
ratify the commencement of a civil action, the association shall provide
a written statement to all the units’ owners that includes:
(a) A reasonable estimate of the costs of the civil action,
including reasonable attorney’s fees;
(b) An explanation of the potential benefits of the civil action
and the potential adverse consequences if the association does not
commence the action or if the outcome of the action is not favorable to
the association; and
(c) All disclosures that are required to be made upon the sale of
the property.
3. No person other than a unit’s owner may request the dismissal
of a civil action commenced by the association on the ground that the
association failed to comply with any provision of this section.
4. If any civil action in which the association is a party is
settled, the executive board shall disclose the terms and conditions of
the settlement at the next regularly scheduled meeting of the executive
board after the settlement has been reached. The executive board may not
approve a settlement which contains any terms and conditions that would
prevent the executive board from complying with the provisions of this
subsection.
(Added to NRS by 2005, 2585 )
1. Except as otherwise provided in this section and NRS 116.31034
, and except when the governing
documents provide otherwise, a quorum is present throughout any meeting
of the association if the number of members of the association who are
present in person or by proxy at the beginning of the meeting equals or
exceeds 20 percent of the total number of voting members of the
association.
2. If the governing documents of an association contain a quorum
requirement for a meeting of the association that is greater than the 20
percent required by subsection 1 and, after proper notice has been given
for a meeting, the members of the association who are present in person
or by proxy at the meeting are unable to hold the meeting because a
quorum is not present at the beginning of the meeting, the members who
are present in person at the meeting may adjourn the meeting to a time
that is not less than 48 hours or more than 30 days from the date of the
meeting. At the subsequent meeting:
(a) A quorum shall be deemed to be present if the number of members
of the association who are present in person or by proxy at the beginning
of the subsequent meeting equals or exceeds 20 percent of the total
number of voting members of the association; and
(b) If such a quorum is deemed to be present but the actual number
of members who are present in person or by proxy at the beginning of the
subsequent meeting is less than the number of members who are required
for a quorum under the governing documents, the members who are present
in person or by proxy at the subsequent meeting may take action only on
those matters that were included as items on the agenda of the original
meeting.
Ê The provisions of this subsection do not change the actual number of
votes that are required under the governing documents for taking action
on any particular matter.
3. Unless the governing documents specify a larger percentage, a
quorum is deemed present throughout any meeting of the executive board if
persons entitled to cast 50 percent of the votes on that board are
present at the beginning of the meeting.
(Added to NRS by 1991, 563; A 1999, 3006 ; 2003, 2237 )
1. If only one of several owners of a unit is present at a meeting
of the association, that owner is entitled to cast all the votes
allocated to that unit. If more than one of the owners are present, the
votes allocated to that unit may be cast only in accordance with the
agreement of a majority in interest of the owners, unless the declaration
expressly provides otherwise. There is majority agreement if any one of
the owners cast the votes allocated to that unit without protest made
promptly to the person presiding over the meeting by any of the other
owners of the unit.
2. Except as otherwise provided in this section, votes allocated
to a unit may be cast pursuant to a proxy executed by a unit’s owner. A
unit’s owner may give a proxy only to a member of his immediate family, a
tenant of the unit’s owner who resides in the common-interest community,
another unit’s owner who resides in the common-interest community, or a
delegate or representative when authorized pursuant to NRS 116.31105
. If a unit is owned by more than one
person, each owner of the unit may vote or register protest to the
casting of votes by the other owners of the unit through an executed
proxy. A unit’s owner may revoke a proxy given pursuant to this section
only by actual notice of revocation to the person presiding over a
meeting of the association.
3. Before a vote may be cast pursuant to a proxy:
(a) The proxy must be dated.
(b) The proxy must not purport to be revocable without notice.
(c) The proxy must designate the meeting for which it is executed.
(d) The proxy must designate each specific item on the agenda of
the meeting for which the unit’s owner has executed the proxy, except
that the unit’s owner may execute the proxy without designating any
specific items on the agenda of the meeting if the proxy is to be used
solely for determining whether a quorum is present for the meeting. If
the proxy designates one or more specific items on the agenda of the
meeting for which the unit’s owner has executed the proxy, the proxy must
indicate, for each specific item designated in the proxy, whether the
holder of the proxy must cast a vote in the affirmative or the negative
on behalf of the unit’s owner. If the proxy does not indicate whether the
holder of the proxy must cast a vote in the affirmative or the negative
for a particular item on the agenda of the meeting, the proxy must be
treated, with regard to that particular item, as if the unit’s owner were
present but not voting on that particular item.
(e) The holder of the proxy must disclose at the beginning of the
meeting for which the proxy is executed the number of proxies pursuant to
which the holder will be casting votes.
4. A proxy terminates immediately after the conclusion of the
meeting for which it is executed.
5. A vote may not be cast pursuant to a proxy for the election or
removal of a member of the executive board of an association unless the
proxy is exercised through a delegate or representative authorized
pursuant to NRS 116.31105 .
6. The holder of a proxy may not cast a vote on behalf of the
unit’s owner who executed the proxy in a manner that is contrary to the
proxy.
7. A proxy is void if the proxy or the holder of the proxy
violates any provision of subsections 1 to 6, inclusive.
8. If the declaration requires that votes on specified matters
affecting the common-interest community must be cast by the lessees of
leased units rather than the units’ owners who have leased the units:
(a) The provisions of subsections 1 to 7, inclusive, apply to the
lessees as if they were the units’ owners;
(b) The units’ owners who have leased their units to the lessees
may not cast votes on those specified matters;
(c) The lessees are entitled to notice of meetings, access to
records and other rights respecting those matters as if they were the
units’ owners; and
(d) The units’ owners must be given notice, in the manner provided
in NRS 116.3108 , of all meetings at
which the lessees are entitled to vote.
9. If any votes are allocated to a unit that is owned by the
association, those votes may not be cast, by proxy or otherwise, for any
purpose.
(Added to NRS by 1991, 563; A 1999, 3006 ; 2003, 2238 )
1. If the declaration so provides, in a common-interest community
that consists of at least 1,000 units, the voting rights of the units’
owners in the association for that common-interest community may be
exercised by delegates or representatives.
2. In addition to a common-interest community identified in
subsection 1, if the declaration so provides, in a common-interest
community created before October 1, 1999, the voting rights of the units’
owners in the association for that common-interest community may be
exercised by delegates or representatives.
3. For the purposes of subsection 1, each unit that a declarant
has reserved the right to create pursuant to NRS 116.2105 and for which developmental rights exist must
be counted in determining the number of units in a common-interest
community.
4. Notwithstanding any provision in the declaration, the election
of any delegate or representative must be conducted by secret written
ballot.
5. When an election of a delegate or representative is conducted
by secret written ballot:
(a) The secretary or other officer of the association specified in
the bylaws of the association shall cause a secret written ballot and a
return envelope to be sent, prepaid by United States mail, to the mailing
address of each unit within the common-interest community or to any other
mailing address designated in writing by the unit’s owner.
(b) Each unit’s owner must be provided with at least 15 days after
the date the secret written ballot is mailed to the unit’s owner to
return the secret written ballot to the association.
(c) Only the secret written ballots that are returned to the
association in the manner prescribed on the ballot may be counted to
determine the outcome of the election.
(d) The secret written ballots must be opened and counted at a
meeting called for the purpose of electing delegates or representatives.
A quorum is not required to be present when the secret written ballots
are opened and counted at the meeting.
(e) A candidate for delegate or representative may not possess, be
given access to or participate in the opening or counting of the secret
written ballots that are returned to the association in the manner
prescribed on the ballot before those secret written ballots have been
opened and counted at a meeting called for that purpose.
(Added to NRS by 2003, 2220 )
Liabilities, Insurance and Fiscal Affairs
Neither the association
nor any unit’s owner except the declarant is liable for that declarant’s
torts in connection with any part of the common-interest community which
that declarant has the responsibility to maintain. Otherwise, an action
alleging a wrong done by the association must be brought against the
association and not against any unit’s owner. If the wrong occurred
during any period of declarant’s control and the association gives the
declarant reasonable notice of and an opportunity to defend against the
action, the declarant who then controlled the association is liable to
the association or to any unit’s owner for all tort losses not covered by
insurance suffered by the association or that unit’s owner, and all costs
that the association would not have incurred but for a breach of contract
or other wrongful act or omission. Whenever the declarant is liable to
the association under this section, the declarant is also liable for all
expenses of litigation, including reasonable attorney’s fees, incurred by
the association. Any statute of limitation affecting the association’s
right of action under this section is tolled until the period of
declarant’s control terminates. A unit’s owner is not precluded from
maintaining an action contemplated by this section because he is a unit’s
owner or a member or officer of the association.
(Added to NRS by 1991, 563)
1. In a condominium or planned community, portions of the common
elements may be conveyed or subjected to a security interest by the
association if persons entitled to cast at least a majority of the votes
in the association, including a majority of the votes allocated to units
not owned by a declarant, or any larger percentage the declaration
specifies, agree to that action; but all owners of units to which any
limited common element is allocated must agree in order to convey that
limited common element or subject it to a security interest. The
declaration may specify a smaller percentage only if all of the units are
restricted exclusively to nonresidential uses. Proceeds of the sale are
an asset of the association.
2. Part of a cooperative may be conveyed and all or part of a
cooperative may be subjected to a security interest by the association if
persons entitled to cast at least a majority of the votes in the
association, including a majority of the votes allocated to units not
owned by a declarant, or any larger percentage the declaration specifies,
agree to that action; but, if fewer than all of the units or limited
common elements are to be conveyed or subjected to a security interest,
then all units’ owners of those units, or the units to which those
limited common elements are allocated, must agree in order to convey
those units or limited common elements or subject them to a security
interest. The declaration may specify a smaller percentage only if all of
the units are restricted exclusively to nonresidential uses. Proceeds of
the sale are an asset of the association. Any purported conveyance or
other voluntary transfer of an entire cooperative, unless made pursuant
to NRS 116.2118 , is void.
3. An agreement to convey common elements in a condominium or
planned community, or to subject them to a security interest, or in a
cooperative, an agreement to convey any part of a cooperative or subject
it to a security interest, must be evidenced by the execution of an
agreement, or ratifications thereof, in the same manner as a deed, by the
requisite number of units’ owners. The agreement must specify a date
after which the agreement will be void unless recorded before that date.
The agreement and all ratifications thereof must be recorded in every
county in which a portion of the common-interest community is situated,
and is effective only upon recordation.
4. The association, on behalf of the units’ owners, may contract
to convey an interest in a common-interest community pursuant to
subsection 1, but the contract is not enforceable against the association
until approved pursuant to subsections 1, 2 and 3. Thereafter, the
association has all powers necessary and appropriate to effect the
conveyance or encumbrance, including the power to execute deeds or other
instruments.
5. Unless made pursuant to this section, any purported conveyance,
encumbrance, judicial sale or other voluntary transfer of common elements
or of any other part of a cooperative is void.
6. A conveyance or encumbrance of common elements or of a
cooperative pursuant to this section does not deprive any unit of its
rights of access and support.
7. Unless the declaration otherwise provides, a conveyance or
encumbrance of common elements pursuant to this section does not affect
the priority or validity of preexisting encumbrances.
8. In a cooperative, the association may acquire, hold, encumber
or convey a proprietary lease without complying with this section.
(Added to NRS by 1991, 564; A 1993, 2369)
[Replaced in revision by NRS 116.340 .]
[Replaced
in revision by NRS 116.345 .]
1. Commencing not later than the time of the first conveyance of a
unit to a person other than a declarant, the association shall maintain,
to the extent reasonably available, both of the following:
(a) Property insurance on the common elements and, in a planned
community, also on property that must become common elements, insuring
against all risks of direct physical loss commonly insured against or, in
the case of a converted building, against fire and extended coverage
perils. The total amount of insurance after application of any
deductibles must be not less than 80 percent of the actual cash value of
the insured property at the time the insurance is purchased and at each
renewal date, exclusive of land, excavations, foundations and other items
normally excluded from property policies.
(b) Liability insurance, including insurance for medical payments,
in an amount determined by the executive board but not less than any
amount specified in the declaration, covering all occurrences commonly
insured against for death, bodily injury, and property damage arising out
of or in connection with the use, ownership, or maintenance of the common
elements and, in cooperatives, also of all units.
2. In the case of a building that is part of a cooperative or that
contains units having horizontal boundaries described in the declaration,
the insurance maintained under paragraph (a) of subsection 1, to the
extent reasonably available, must include the units, but need not include
improvements and betterments installed by units’ owners.
3. If the insurance described in subsections 1 and 2 is not
reasonably available, the association promptly shall cause notice of that
fact to be hand-delivered or sent prepaid by United States mail to all
units’ owners. The declaration may require the association to carry any
other insurance, and the association in any event may carry any other
insurance it considers appropriate to protect the association or the
units’ owners.
4. An insurance policy issued to the association does not prevent
a unit’s owner from obtaining insurance for his own benefit.
(Added to NRS by 1991, 565)
1. Insurance policies carried pursuant to NRS 116.3113 must provide to the extent reasonably
available that:
(a) Each unit’s owner is an insured person under the policy with
respect to liability arising out of his interest in the common elements
or membership in the association;
(b) The insurer waives its right to subrogation under the policy
against any unit’s owner or member of his household;
(c) No act or omission by any unit’s owner, unless acting within
the scope of his authority on behalf of the association, will void the
policy or be a condition to recovery under the policy; and
(d) If, at the time of a loss under the policy, there is other
insurance in the name of a unit’s owner covering the same risk covered by
the policy, the association’s policy provides primary insurance.
2. Any loss covered by the property policy under subsections 1 and
2 of NRS 116.3113 must be adjusted
with the association, but the proceeds for that loss are payable to any
trustee designated for that purpose, or otherwise to the association, and
not to any holder of a security interest. The trustee or the association
shall hold any proceeds in trust for the association, units’ owners and
lienholders as their interests may appear. Subject to the provisions of
NRS 116.31135 , the proceeds must be
disbursed first for the repair or restoration of the damaged property,
and the association, units’ owners, and lienholders are not entitled to
receive payment of any portion of the proceeds unless there is a surplus
of proceeds after the property has been completely repaired or restored,
or the common-interest community is terminated.
3. An insurer that has issued an insurance policy under this
section shall issue certificates or memoranda of insurance to the
association and, upon written request, to any unit’s owner or holder of a
security interest. The insurer issuing the policy may not cancel or
refuse to renew it until 30 days after notice of the proposed
cancellation or nonrenewal has been mailed to the association and to any
person to whom a certificate or memorandum of insurance has been issued
at their respective last known addresses.
(Added to NRS by 1991, 565; A 2003, 1210 )
1. Any portion of the common-interest community for which
insurance is required under NRS 116.3113 which is damaged or destroyed must be
repaired or replaced promptly by the association unless:
(a) The common-interest community is terminated, in which case NRS
116.2118 , 116.21183 and 116.21185 apply;
(b) Repair or replacement would be illegal under any state or local
statute or ordinance governing health or safety; or
(c) Eighty percent of the units’ owners, including every owner of a
unit or assigned limited common element that will not be rebuilt, vote
not to rebuild.
Ê The cost of repair or replacement in excess of insurance proceeds and
reserves is a common expense.
2. If the entire common-interest community is not repaired or
replaced, the proceeds attributable to the damaged common elements, must
be used to restore the damaged area to a condition compatible with the
remainder of the common-interest community, and except to the extent that
other persons will be distributees (subparagraph 2 of paragraph (l) of
subsection 1 of NRS 116.2105 ):
(a) The proceeds attributable to units and limited common elements
that are not rebuilt must be distributed to the owners of those units and
the owners of the units to which those limited common elements were
allocated, or to lienholders, as their interests may appear; and
(b) The remainder of the proceeds must be distributed to all the
units’ owners or lienholders, as their interests may appear, as follows:
(1) In a condominium, in proportion to the interests of all
the units in the common elements; and
(2) In a cooperative or planned community, in proportion to
the liabilities of all the units for common expenses.
3. If the units’ owners vote not to rebuild any unit, that unit’s
allocated interests are automatically reallocated upon the vote as if the
unit had been condemned under subsection 1 of NRS 116.1107 , and the association promptly shall prepare,
execute and record an amendment to the declaration reflecting the
reallocations.
(Added to NRS by 1991, 566; A 1993, 2370)
The provisions of NRS
116.3113 , 116.31133 and 116.31135 may be varied or waived in the case of a
common-interest community all of whose units are restricted to
nonresidential use.
(Added to NRS by 1991, 567)
Unless otherwise provided in the
declaration, any surplus funds of the association remaining after payment
of or provision for common expenses and any prepayment of reserves must
be paid to the units’ owners in proportion to their liabilities for
common expenses or credited to them to reduce their future assessments
for common expenses.
(Added to NRS by 1991, 567)
1. The Commission shall adopt regulations prescribing the
requirements for the preparation and presentation of financial statements
of an association pursuant to this chapter.
2. The regulations adopted by the Commission must include, without
limitation:
(a) The qualifications necessary for a person to prepare and
present financial statements of an association; and
(b) The standards and format to be followed in preparing and
presenting financial statements of an association.
(Added to NRS by 2005, 2584 )
1. Except as otherwise provided in subsection 2, the executive
board shall:
(a) If the annual budget of the association is less than $75,000,
cause the financial statement of the association to be audited by an
independent certified public accountant at least once every 4 fiscal
years.
(b) If the annual budget of the association is $75,000 or more but
less than $150,000, cause the financial statement of the association to
be:
(1) Audited by an independent certified public accountant at
least once every 4 fiscal years; and
(2) Reviewed by an independent certified public accountant
every fiscal year for which an audit is not conducted.
(c) If the annual budget of the association is $150,000 or more,
cause the financial statement of the association to be audited by an
independent certified public accountant every fiscal year.
2. For any fiscal year for which an audit of the financial
statement of the association will not be conducted pursuant to subsection
1, the executive board shall cause the financial statement for that
fiscal year to be audited by an independent certified public accountant
if, within 180 days before the end of the fiscal year, 15 percent of the
total number of voting members of the association submit a written
request for such an audit.
3. The Commission shall adopt regulations prescribing the
requirements for the auditing or reviewing of financial statements of an
association pursuant to this section. Such regulations must include,
without limitation:
(a) The qualifications necessary for a person to audit or review
financial statements of an association; and
(b) The standards and format to be followed in auditing or
reviewing financial statements of an association.
(Added to NRS by 2005, 2584 )
[Replaced in revision by NRS 116.310315 .]
1. Until the association makes an assessment for common expenses,
the declarant shall pay all common expenses. After an assessment has been
made by the association, assessments must be made at least annually,
based on a budget adopted at least annually by the association in
accordance with the requirements set forth in NRS 116.31151 . Unless the declaration imposes more
stringent standards, the budget must include a budget for the daily
operation of the association and a budget for the reserves required by
paragraph (b) of subsection 2.
2. Except for assessments under subsections 4 to 7, inclusive:
(a) All common expenses, including the reserves, must be assessed
against all the units in accordance with the allocations set forth in the
declaration pursuant to subsections 1 and 2 of NRS 116.2107 .
(b) The association shall establish adequate reserves, funded on a
reasonable basis, for the repair, replacement and restoration of the
major components of the common elements. The reserves may be used only
for those purposes, including, without limitation, repairing, replacing
and restoring roofs, roads and sidewalks, and must not be used for daily
maintenance. The association may comply with the provisions of this
paragraph through a funding plan that is designed to allocate the costs
for the repair, replacement and restoration of the major components of
the common elements over a period of years if the funding plan is
designed in an actuarially sound manner which will ensure that sufficient
money is available when the repair, replacement and restoration of the
major components of the common elements are necessary.
3. Any past due assessment for common expenses or installment
thereof bears interest at the rate established by the association not
exceeding 18 percent per year.
4. To the extent required by the declaration:
(a) Any common expense associated with the maintenance, repair,
restoration or replacement of a limited common element must be assessed
against the units to which that limited common element is assigned,
equally, or in any other proportion the declaration provides;
(b) Any common expense or portion thereof benefiting fewer than all
of the units must be assessed exclusively against the units benefited; and
(c) The costs of insurance must be assessed in proportion to risk
and the costs of utilities must be assessed in proportion to usage.
5. Assessments to pay a judgment against the association may be
made only against the units in the common-interest community at the time
the judgment was entered, in proportion to their liabilities for common
expenses.
6. If any common expense is caused by the misconduct of any unit’s
owner, the association may assess that expense exclusively against his
unit.
7. The association of a common-interest community created before
January 1, 1992, is not required to make an assessment against a vacant
lot located within the community that is owned by the declarant.
8. If liabilities for common expenses are reallocated, assessments
for common expenses and any installment thereof not yet due must be
recalculated in accordance with the reallocated liabilities.
9. The association shall provide written notice to each unit’s
owner of a meeting at which an assessment for a capital improvement is to
be considered or action is to be taken on such an assessment at least 21
calendar days before the date of the meeting.
(Added to NRS by 1991, 567; A 1993, 2371; 1995, 2230; 1997, 3119,
3120; 1999, 3008 ; 2001, 2491 ; 2005, 2603 )
1. Except as otherwise provided in subsection 2 and unless the
declaration of a common-interest community imposes more stringent
standards, the executive board shall, not less than 30 days or more than
60 days before the beginning of the fiscal year of the association,
prepare and distribute to each unit’s owner a copy of:
(a) The budget for the daily operation of the association. The
budget must include, without limitation, the estimated annual revenue and
expenditures of the association and any contributions to be made to the
reserve account of the association.
(b) The budget to provide adequate funding for the reserves
required by paragraph (b) of subsection 2 of NRS 116.3115 . The budget must include, without limitation:
(1) The current estimated replacement cost, estimated
remaining life and estimated useful life of each major component of the
common elements;
(2) As of the end of the fiscal year for which the budget is
prepared, the current estimate of the amount of cash reserves that are
necessary, and the current amount of accumulated cash reserves that are
set aside, to repair, replace or restore the major components of the
common elements;
(3) A statement as to whether the executive board has
determined or anticipates that the levy of one or more special
assessments will be necessary to repair, replace or restore any major
component of the common elements or to provide adequate funding for the
reserves designated for that purpose; and
(4) A general statement describing the procedures used for
the estimation and accumulation of cash reserves pursuant to subparagraph
(2), including, without limitation, the qualifications of the person
responsible for the preparation of the study of the reserves required by
NRS 116.31152 .
2. In lieu of distributing copies of the budgets of the
association required by subsection 1, the executive board may distribute
to each unit’s owner a summary of those budgets, accompanied by a written
notice that:
(a) The budgets are available for review at the business office of
the association or some other suitable location within the county where
the common-interest community is situated or, if it is situated in more
than one county, within one of those counties; and
(b) Copies of the budgets will be provided upon request.
3. Within 60 days after adoption of any proposed budget for the
common-interest community, the executive board shall provide a summary of
the proposed budget to each unit’s owner and shall set a date for a
meeting of the units’ owners to consider ratification of the proposed
budget not less than 14 days or more than 30 days after the mailing of
the summaries. Unless at that meeting a majority of all units’ owners, or
any larger vote specified in the declaration, reject the proposed budget,
the proposed budget is ratified, whether or not a quorum is present. If
the proposed budget is rejected, the periodic budget last ratified by the
units’ owners must be continued until such time as the units’ owners
ratify a subsequent budget proposed by the executive board.
(Added to NRS by 1999, 2993 ; A 2003, 2241 ; 2005, 2605 )
1. The executive board shall:
(a) At least once every 5 years, cause to be conducted a study of
the reserves required to repair, replace and restore the major components
of the common elements;
(b) At least annually, review the results of that study to
determine whether those reserves are sufficient; and
(c) At least annually, make any adjustments to the association’s
funding plan which the executive board deems necessary to provide
adequate funding for the required reserves.
2. The study of the reserves required by subsection 1 must be
conducted by a person who holds a permit issued pursuant to chapter 116A
of NRS.
3. The study of the reserves must include, without limitation:
(a) A summary of an inspection of the major components of the
common elements that the association is obligated to repair, replace or
restore;
(b) An identification of the major components of the common
elements that the association is obligated to repair, replace or restore
which have a remaining useful life of less than 30 years;
(c) An estimate of the remaining useful life of each major
component of the common elements identified pursuant to paragraph (b);
(d) An estimate of the cost of repair, replacement or restoration
of each major component of the common elements identified pursuant to
paragraph (b) during and at the end of its useful life; and
(e) An estimate of the total annual assessment that may be
necessary to cover the cost of repairing, replacement or restoration of
the major components of the common elements identified pursuant to
paragraph (b), after subtracting the reserves of the association as of
the date of the study, and an estimate of the funding plan that may be
necessary to provide adequate funding for the required reserves.
4. A summary of the study of the reserves required by subsection 1
must be submitted to the Division not later than 45 days after the date
that the executive board adopts the results of the study.
5. If a common-interest community was developed as part of a
planned unit development pursuant to chapter 278A of NRS and is subject to an agreement with a city
or county to receive credit against the amount of the residential
construction tax that is imposed pursuant to NRS 278.4983 and 278.4985 , the association that is organized for the
common-interest community may use the money from that credit for the
repair, replacement or restoration of park facilities and related
improvements if:
(a) The park facilities and related improvements are identified as
major components of the common elements of the association; and
(b) The association is obligated to repair, replace or restore the
park facilities and related improvements in accordance with the study of
the reserves required by subsection 1.
(Added to NRS by 1999, 2994 ; A 2003, 2241 ; 2005, 2606 )
Money in the reserve account of an association
required by paragraph (b) of subsection 2 of NRS 116.3115 may not be withdrawn without the signatures
of at least two members of the executive board or the signatures of at
least one member of the executive board and one officer of the
association who is not a member of the executive board.
(Added to NRS by 1999, 2995 )
1. Except as otherwise provided in subsection 2, an association
shall:
(a) If the association is required to pay the fee imposed by NRS
78.150 , 82.193 , 86.263 ,
87.531 or 88.591 , pay to the Administrator a fee established by
regulation of the Administrator for every unit in the association used
for residential use.
(b) If the association is organized as a trust or partnership, or
as any other authorized business entity, pay to the Administrator a fee
established by regulation of the Administrator for each unit in the
association.
2. If an association is subject to the governing documents of a
master association, the master association shall pay the fees required
pursuant to this section for each unit in the association that is subject
to the governing documents of the master association, unless the
governing documents of the master association provide otherwise. The
provisions of this subsection do not relieve any association that is
subject to the governing documents of a master association from its
ultimate responsibility to pay the fees required pursuant to this section
to the Administrator if they are not paid by the master association.
3. The fees required to be paid pursuant to this section must be:
(a) Paid at such times as are established by the Division.
(b) Deposited with the State Treasurer for credit to the Account
for Common-Interest Communities created by NRS 116.630 .
(c) Established on the basis of the actual costs of administering
the Office of the Ombudsman and the Commission and not on a basis which
includes any subsidy beyond those actual costs. In no event may the fees
required to be paid pursuant to this section exceed $3 per unit.
4. The Division shall impose an administrative penalty against an
association or master association that violates the provisions of this
section by failing to pay the fees owed by the association or master
association within the times established by the Division. The
administrative penalty that is imposed for each violation must equal 10
percent of the amount of the fees owed by the association or master
association or $500, whichever amount is less. The amount of the unpaid
fees owed by the association or master association bears interest at the
rate set forth in NRS 99.040 from the
date the fees are due until the date the fees are paid in full.
5. A unit’s owner may not be required to pay any portion of the
fees or any administrative penalties or interest required to be paid
pursuant to this section to both an association and a master association.
6. An association that is subject to the governing documents of a
master association may not be required to pay any portion of the fees or
any administrative penalties or interest required to be paid pursuant to
this section to the extent they have already been paid by the master
association.
7. A master association may not be required to pay any portion of
the fees or any administrative penalties or interest required to be paid
pursuant to this section to the extent they have already been paid by an
association that is subject to the governing documents of the master
association.
8. Upon the payment of the fees and any administrative penalties
and interest required by this section, the Administrator shall provide to
the association or master association evidence that it paid the fees and
the administrative penalties and interest in compliance with this section.
(Added to NRS by 1997, 3112; A 1999, 8 , 639 , 3010 , 3011 ; 2003, 2242 ; 2005, 2607 )
1. Each association shall, at the time it pays the fee required by
NRS 116.31155 , register with the
Ombudsman on a form prescribed by the Ombudsman.
2. The form for registration must include, without limitation, the
information required to be maintained pursuant to paragraph (e) of
subsection 4 of NRS 116.625 .
(Added to NRS by 1999, 2996 ; A 2003, 2243 )
Liens
1. The association has a lien on a unit for any construction
penalty that is imposed against the unit’s owner pursuant to NRS
116.310305 , any assessment levied
against that unit or any fines imposed against the unit’s owner from the
time the construction penalty, assessment or fine becomes due. Unless the
declaration otherwise provides, any penalties, fees, charges, late
charges, fines and interest charged pursuant to paragraphs (j) to (n),
inclusive, of subsection 1 of NRS 116.3102 are enforceable as assessments under this
section. If an assessment is payable in installments, the full amount of
the assessment is a lien from the time the first installment thereof
becomes due.
2. A lien under this section is prior to all other liens and
encumbrances on a unit except:
(a) Liens and encumbrances recorded before the recordation of the
declaration and, in a cooperative, liens and encumbrances which the
association creates, assumes or takes subject to;
(b) A first security interest on the unit recorded before the date
on which the assessment sought to be enforced became delinquent or, in a
cooperative, the first security interest encumbering only the unit’s
owner’s interest and perfected before the date on which the assessment
sought to be enforced became delinquent; and
(c) Liens for real estate taxes and other governmental assessments
or charges against the unit or cooperative.
Ê The lien is also prior to all security interests described in paragraph
(b) to the extent of the assessments for common expenses based on the
periodic budget adopted by the association pursuant to NRS 116.3115
which would have become due in the
absence of acceleration during the 6 months immediately preceding
institution of an action to enforce the lien. This subsection does not
affect the priority of mechanics’ or materialmen’s liens, or the priority
of liens for other assessments made by the association.
3. Unless the declaration otherwise provides, if two or more
associations have liens for assessments created at any time on the same
property, those liens have equal priority.
4. Recording of the declaration constitutes record notice and
perfection of the lien. No further recordation of any claim of lien for
assessment under this section is required.
5. A lien for unpaid assessments is extinguished unless
proceedings to enforce the lien are instituted within 3 years after the
full amount of the assessments becomes due.
6. This section does not prohibit actions to recover sums for
which subsection 1 creates a lien or prohibit an association from taking
a deed in lieu of foreclosure.
7. A judgment or decree in any action brought under this section
must include costs and reasonable attorney’s fees for the prevailing
party.
8. The association, upon written request, shall furnish to a
unit’s owner a statement setting forth the amount of unpaid assessments
against the unit. If the interest of the unit’s owner is real estate or
if a lien for the unpaid assessments may be foreclosed under NRS
116.31162 to 116.31168 , inclusive, the statement must be in
recordable form. The statement must be furnished within 10 business days
after receipt of the request and is binding on the association, the
executive board and every unit’s owner.
9. In a cooperative, upon nonpayment of an assessment on a unit,
the unit’s owner may be evicted in the same manner as provided by law in
the case of an unlawful holdover by a commercial tenant, and:
(a) In a cooperative where the owner’s interest in a unit is real
estate under NRS 116.1105 , the
association’s lien may be foreclosed under NRS 116.31162 to 116.31168 , inclusive.
(b) In a cooperative where the owner’s interest in a unit is
personal property under NRS 116.1105 ,
the association’s lien:
(1) May be foreclosed as a security interest under NRS
104.9101 to 104.9709 , inclusive; or
(2) If the declaration so provides, may be foreclosed under
NRS 116.31162 to 116.31168 , inclusive.
(Added to NRS by 1991, 567; A 1999, 390 ; 2003, 2243 , 2272 )
1. Except as otherwise provided in subsection 4, in a condominium,
in a planned community, in a cooperative where the owner’s interest in a
unit is real estate under NRS 116.1105 , or in a cooperative where the owner’s
interest in a unit is personal property under NRS 116.1105 and the declaration provides that a lien may
be foreclosed under NRS 116.31162 to
116.31168 , inclusive, the association
may foreclose its lien by sale after all of the following occur:
(a) The association has mailed by certified or registered mail,
return receipt requested, to the unit’s owner or his successor in
interest, at his address if known and at the address of the unit, a
notice of delinquent assessment which states the amount of the
assessments and other sums which are due in accordance with subsection 1
of NRS 116.3116 , a description of the
unit against which the lien is imposed and the name of the record owner
of the unit.
(b) Not less than 30 days after mailing the notice of delinquent
assessment pursuant to paragraph (a), the association or other person
conducting the sale has executed and caused to be recorded, with the
county recorder of the county in which the common-interest community or
any part of it is situated, a notice of default and election to sell the
unit to satisfy the lien which must contain the same information as the
notice of delinquent assessment and which must also comply with the
following:
(1) Describe the deficiency in payment.
(2) State the name and address of the person authorized by
the association to enforce the lien by sale.
(3) Contain, in 14-point bold type, the following warning:
WARNING! IF YOU FAIL TO PAY THE AMOUNT SPECIFIED IN THIS NOTICE, YOU
COULD LOSE YOUR HOME, EVEN IF THE AMOUNT IS IN DISPUTE!
(c) The unit’s owner or his successor in interest has failed to pay
the amount of the lien, including costs, fees and expenses incident to
its enforcement, for 90 days following the recording of the notice of
default and election to sell.
2. The notice of default and election to sell must be signed by
the person designated in the declaration or by the association for that
purpose or, if no one is designated, by the president of the association.
3. The period of 90 days begins on the first day following:
(a) The date on which the notice of default is recorded; or
(b) The date on which a copy of the notice of default is mailed by
certified or registered mail, return receipt requested, to the unit’s
owner or his successor in interest at his address, if known, and at the
address of the unit,
Ê whichever date occurs later.
4. The association may not foreclose a lien by sale based on a
fine or penalty for a violation of the governing documents of the
association unless:
(a) The violation poses an imminent threat of causing a substantial
adverse effect on the health, safety or welfare of the units’ owners or
residents of the common-interest community; or
(b) The penalty is imposed for failure to adhere to a schedule
required pursuant to NRS 116.310305 .
(Added to NRS by 1991, 569; A 1993, 2371; 1997, 3121; 1999, 3011
; 2003, 2244 , 2273 ; 2005, 2608 )
The association or
other person conducting the sale shall also mail, within 10 days after
the notice of default and election to sell is recorded, a copy of the
notice by first-class mail to:
1. Each person who has requested notice pursuant to NRS 107.090
or 116.31168 ;
2. Any holder of a recorded security interest encumbering the
unit’s owner’s interest who has notified the association, 30 days before
the recordation of the notice of default, of the existence of the
security interest; and
3. A purchaser of the unit, if the unit’s owner has notified the
association, 30 days before the recordation of the notice, that the unit
is the subject of a contract of sale and the association has been
requested to furnish the certificate required by NRS 116.4109 .
(Added to NRS by 1993, 2355; A 2005, 2609 )
1. The association or other person conducting the sale shall also,
after the expiration of the 90 days and before selling the unit:
(a) Give notice of the time and place of the sale in the manner and
for a time not less than that required by law for the sale of real
property upon execution, except that in lieu of following the procedure
for service on a judgment debtor pursuant to NRS 21.130 , service must be made on the unit’s owner as
follows:
(1) A copy of the notice of sale must be mailed, on or
before the date of first publication or posting, by certified or
registered mail, return receipt requested, to the unit’s owner or his
successor in interest at his address, if known, and to the address of the
unit; and
(2) A copy of the notice of sale must be served, on or
before the date of first publication or posting, in the manner set forth
in subsection 2; and
(b) Mail, on or before the date of first publication or posting, a
copy of the notice by first-class mail to:
(1) Each person entitled to receive a copy of the notice of
default and election to sell notice under NRS 116.31163 ;
(2) The holder of a recorded security interest or the
purchaser of the unit, if either of them has notified the association,
before the mailing of the notice of sale, of the existence of the
security interest, lease or contract of sale, as applicable; and
(3) The Ombudsman.
2. In addition to the requirements set forth in subsection 1, a
copy of the notice of sale must be served:
(a) By a person who is 18 years of age or older and who is not a
party to or interested in the sale by personally delivering a copy of the
notice of sale to an occupant of the unit who is of suitable age; or
(b) By posting a copy of the notice of sale in a conspicuous place
on the unit.
3. Any copy of the notice of sale required to be served pursuant
to this section must include:
(a) The amount necessary to satisfy the lien as of the date of the
proposed sale; and
(b) The following warning in 14-point bold type:
WARNING! A SALE OF YOUR PROPERTY IS IMMINENT! UNLESS YOU PAY THE AMOUNT
SPECIFIED IN THIS NOTICE BEFORE THE SALE DATE, YOU COULD LOSE YOUR HOME,
EVEN IF THE AMOUNT IS IN DISPUTE. YOU MUST ACT BEFORE THE SALE DATE. IF
YOU HAVE ANY QUESTIONS, PLEASE CALL (name and telephone number of the
contact person for the association). IF YOU NEED ASSISTANCE, PLEASE CALL
THE FORECLOSURE SECTION OF THE OMBUDSMAN’S OFFICE, NEVADA REAL ESTATE
DIVISION, AT (toll-free telephone number designated by the Division)
IMMEDIATELY.
4. Proof of service of any copy of the notice of sale required to
be served pursuant to this section must consist of:
(a) A certificate of mailing which evidences that the notice was
mailed through the United State Postal Service; or
(b) An affidavit of service signed by the person who served the
notice stating:
(1) The time of service, manner of service and location of
service; and
(2) The name of the person served or, if the notice was not
served on a person, a description of the location where the notice was
posted on the unit.
(Added to NRS by 1993, 2355; A 2003, 2245 ; 2005, 2609 )
1. The sale must be conducted in the county in which the
common-interest community or part of it is situated, and may be conducted
by the association, its agent or attorney, or a title insurance company
or escrow agent licensed to do business in this State, except that the
sale may be made at the office of the association if the notice of the
sale so provided, whether the unit is located within the same county as
the office of the association or not. The association or other person
conducting the sale may from time to time postpone the sale by such
advertisement and notice as it considers reasonable or, without further
advertisement or notice, by proclamation made to the persons assembled at
the time and place previously set and advertised for the sale.
2. On the day of sale originally advertised or to which the sale
is postponed, at the time and place specified in the notice or
postponement, the person conducting the sale may sell the unit at public
auction to the highest cash bidder. Unless otherwise provided in the
declaration or by agreement, the association may purchase the unit and
hold, lease, mortgage or convey it. The association may purchase by a
credit bid up to the amount of the unpaid assessments and any permitted
costs, fees and expenses incident to the enforcement of its lien.
3. After the sale, the person conducting the sale shall:
(a) Make, execute and, after payment is made, deliver to the
purchaser, or his successor or assign, a deed without warranty which
conveys to the grantee all title of the unit’s owner to the unit;
(b) Deliver a copy of the deed to the Ombudsman within 30 days
after the deed is delivered to the purchaser, or his successor or assign;
and
(c) Apply the proceeds of the sale for the following purposes in
the following order:
(1) The reasonable expenses of sale;
(2) The reasonable expenses of securing possession before
sale, holding, maintaining, and preparing the unit for sale, including
payment of taxes and other governmental charges, premiums on hazard and
liability insurance, and, to the extent provided for by the declaration,
reasonable attorney’s fees and other legal expenses incurred by the
association;
(3) Satisfaction of the association’s lien;
(4) Satisfaction in the order of priority of any subordinate
claim of record; and
(5) Remittance of any excess to the unit’s owner.
(Added to NRS by 1991, 569; A 1993, 2372; 2005, 2610 )
1. The recitals in a deed made pursuant to NRS 116.31164 of:
(a) Default, the mailing of the notice of delinquent assessment,
and the recording of the notice of default and election to sell;
(b) The elapsing of the 90 days; and
(c) The giving of notice of sale,
Ê are conclusive proof of the matters recited.
2. Such a deed containing those recitals is conclusive against the
unit’s former owner, his heirs and assigns, and all other persons. The
receipt for the purchase money contained in such a deed is sufficient to
discharge the purchaser from obligation to see to the proper application
of the purchase money.
3. The sale of a unit pursuant to NRS 116.31162 , 116.31163 and 116.31164 vests in the purchaser the title of the
unit’s owner without equity or right of redemption.
(Added to NRS by 1991, 570; A 1993, 2373)
1. The provisions of NRS 107.090
apply to the foreclosure of an association’s lien as if a deed of trust
were being foreclosed. The request must identify the lien by stating the
names of the unit’s owner and the common-interest community.
2. An association may, after recording a notice of default and
election to sell, waive the default and withdraw the notice or any
proceeding to foreclose. The association is thereupon restored to its
former position and has the same rights as though the notice had not been
recorded.
(Added to NRS by 1991, 570; A 1993, 2373)
1. In a condominium or planned community:
(a) Except as otherwise provided in paragraph (b), a judgment for
money against the association, if a copy of the docket or an abstract or
copy of the judgment is recorded, is not a lien on the common elements,
but is a lien in favor of the judgment lienholder against all of the
units in the common-interest community at the time the judgment was
entered. No other property of a unit’s owner is subject to the claims of
creditors of the association.
(b) If the association has granted a security interest in the
common elements to a creditor of the association pursuant to NRS 116.3112
, the holder of that security interest
shall exercise its right against the common elements before its judgment
lien on any unit may be enforced.
(c) Whether perfected before or after the creation of the
common-interest community, if a lien, other than a deed of trust or
mortgage, including a judgment lien or lien attributable to work
performed or materials supplied before creation of the common-interest
community, becomes effective against two or more units, the owner of an
affected unit may pay to the lienholder the amount of the lien
attributable to his unit, and the lienholder, upon receipt of payment,
promptly shall deliver a release of the lien covering that unit. The
amount of the payment must be proportionate to the ratio which that
owner’s liability for common expenses bears to the liabilities for common
expenses of all owners whose units are subject to the lien. After
payment, the association may not assess or have a lien against that
owner’s unit for any portion of the common expenses incurred in
connection with that lien.
(d) A judgment against the association must be indexed in the name
of the common-interest community and the association and, when so
indexed, is notice of the lien against the units.
2. In a cooperative:
(a) If the association receives notice of an impending foreclosure
on all or any portion of the association’s real estate, the association
shall promptly transmit a copy of that notice to each owner of a unit
located within the real estate to be foreclosed. Failure of the
association to transmit the notice does not affect the validity of the
foreclosure.
(b) Whether or not an owner’s unit is subject to the claims of the
association’s creditors, no other property of an owner is subject to
those claims.
(Added to NRS by 1993, 2355)
Books, Records and Other Documents
1. Except as otherwise provided in this subsection, the executive
board of an association shall, upon the written request of a unit’s
owner, make available the books, records and other papers of the
association for review during the regular working hours of the
association, including, without limitation, all contracts to which the
association is a party and all records filed with a court relating to a
civil or criminal action to which the association is a party. The
provisions of this subsection do not apply to:
(a) The personnel records of the employees of the association,
except for those records relating to the number of hours worked and the
salaries and benefits of those employees;
(b) The records of the association relating to another unit’s
owner, except for those records described in subsection 2; and
(c) A contract between the association and an attorney.
2. The executive board of an association shall maintain a general
record concerning each violation of the governing documents, other than a
violation involving a failure to pay an assessment, for which the
executive board has imposed a fine, a construction penalty or any other
sanction. The general record:
(a) Must contain a general description of the nature of the
violation and the type of the sanction imposed. If the sanction imposed
was a fine or construction penalty, the general record must specify the
amount of the fine or construction penalty.
(b) Must not contain the name or address of the person against whom
the sanction was imposed or any other personal information which may be
used to identify the person or the location of the unit, if any, that is
associated with the violation.
(c) Must be maintained in an organized and convenient filing system
or data system that allows a unit’s owner to search and review the
general records concerning violations of the governing documents.
3. If the executive board refuses to allow a unit’s owner to
review the books, records or other papers of the association, the
Ombudsman may:
(a) On behalf of the unit’s owner and upon written request, review
the books, records or other papers of the association during the regular
working hours of the association; and
(b) If he is denied access to the books, records or other papers,
request the Commission, or any member thereof acting on behalf of the
Commission, to issue a subpoena for their production.
4. The books, records and other papers of an association must be
maintained for at least 10 years. The provisions of this subsection do
not apply to:
(a) The minutes of a meeting of the units’ owners which must be
maintained in accordance with NRS 116.3108 ; or
(b) The minutes of a meeting of the executive board which must be
maintained in accordance with NRS 116.31083 .
5. The executive board shall not require a unit’s owner to pay an
amount in excess of $10 per hour to review any books, records, contracts
or other papers of the association pursuant to the provisions of this
section.
(Added to NRS by 1999, 2996 ; A 2003, 2245 )
1. The executive board of an association shall maintain and make
available for review at the business office of the association or some
other suitable location within the county where the common-interest
community is situated or, if it is situated in more than one county,
within one of those counties:
(a) The financial statement of the association;
(b) The budgets of the association required to be prepared pursuant
to NRS 116.31151 ; and
(c) The study of the reserves of the association required to be
conducted pursuant to NRS 116.31152 .
2. The executive board shall provide a copy of any of the records
required to be maintained pursuant to subsection 1 to a unit’s owner or
the Ombudsman within 14 days after receiving a written request therefor.
The executive board may charge a fee to cover the actual costs of
preparing a copy, but not to exceed 25 cents per page.
(Added to NRS by 1999, 2997 ; A 2003, 2246 )
1. The association shall keep financial records sufficiently
detailed to enable the association to comply with NRS 116.4109 .
2. All financial and other records of the association must be:
(a) Maintained and made available for review at the business office
of the association or some other suitable location within the county
where the common-interest community is situated or, if it is situated in
more than one county, within one of those counties; and
(b) Made reasonably available for any unit’s owner and his
authorized agents to inspect, examine, photocopy and audit.
(Added to NRS by 1991, 571; A 1995, 2231; 2003, 2247 )
Miscellaneous Rights, Duties and Restrictions
An executive board,
a member of an executive board or an officer, employee or agent of an
association shall not take, or direct or encourage another person to
take, any retaliatory action against a unit’s owner because the unit’s
owner has:
1. Complained in good faith about any alleged violation of any
provision of this chapter or the governing documents of the association;
or
2. Requested in good faith to review the books, records or other
papers of the association.
(Added to NRS by 2003, 2218 )
1. Except as otherwise provided in subsection 2, a member of an
executive board, an officer of an association or a community manager
shall not solicit or accept any form of compensation, gratuity or other
remuneration that:
(a) Would improperly influence or would appear to a reasonable
person to improperly influence the decisions made by those persons; or
(b) Would result or would appear to a reasonable person to result
in a conflict of interest for those persons.
2. Notwithstanding the provisions of subsection 1, a member of an
executive board, an officer of an association, a community manager or any
person working for a community manager shall not accept, directly or
indirectly, any gifts, incentives, gratuities, rewards or other items of
value from:
(a) An attorney, law firm or vendor, or any person working directly
or indirectly for the attorney, law firm or vendor, which total more than
the amount established by the Commission by regulation, not to exceed
$100 per year per such attorney, law firm or vendor; or
(b) A declarant, an affiliate of a declarant or any person
responsible for the construction of the applicable community or
association which total more than the amount established by the
Commission by regulation, not to exceed $100 per year per such declarant,
affiliate or person.
3. An attorney, law firm or vendor, or any person working directly
or indirectly for the attorney, law firm or vendor, shall not provide,
directly or indirectly, any gifts, incentives, gratuities, rewards or
other items of value to a member of the executive board, an officer of
the association, the community manager or any person working for the
community manager which total more than the amount established by the
Commission by regulation, not to exceed $100 per year per such member,
officer, community manager or person.
4. A declarant, an affiliate of a declarant or any person
responsible for the construction of a community or association, shall not
provide, directly or indirectly, any gifts, incentives, gratuities,
rewards or other items of value to a member of the executive board, an
officer of the association, the community manager or any person working
for the community manager which total more than the amount established by
the Commission by regulation, not to exceed $100 per year per such
member, officer, community manager or person.
5. In addition to the limitations set forth in subsection 1, a
community manager shall not solicit or accept any form of compensation,
fee or other remuneration that is based, in whole or in part, on:
(a) The number or amount of fines imposed against or collected from
units’ owners or tenants or guests of units’ owners pursuant to NRS
116.31031 for violations of the
governing documents of the association; or
(b) Any percentage or proportion of those fines.
6. The provisions of this section do not prohibit a community
manager from being paid compensation, a fee or other remuneration under
the terms of a contract between the community manager and an association
if:
(a) The scope of the respective rights, duties and obligations of
the parties under the contract comply with the standards of practice for
community managers adopted by the Commission pursuant to NRS 116A.400
;
(b) The compensation, fee or other remuneration is being paid to
the community manager for providing management of the common-interest
community; and
(c) The compensation, fee or other remuneration is not structured
in a way that would violate the provisions of subsection 1 or 5.
(Added to NRS by 2003, 2218 ; A 2005, 1716 , 2611 )
1. Except as otherwise provided in this section, a member of an
executive board or an officer of an association shall not:
(a) On or after October 1, 2003, enter into a contract or renew a
contract with the association to provide goods or services to the
association; or
(b) Otherwise accept any commission, personal profit or
compensation of any kind from the association for providing goods or
services to the association.
2. The provisions of this section do not prohibit a declarant, an
affiliate of a declarant or an officer, employee or agent of a declarant
or an affiliate of a declarant from:
(a) Receiving any commission, personal profit or compensation from
the association, the declarant or an affiliate of the declarant for any
goods or services furnished to the association;
(b) Entering into contracts with the association, the declarant or
affiliate of the declarant; or
(c) Serving as a member of the executive board or as an officer of
the association.
(Added to NRS by 2003, 2218 )
With respect to a third
person dealing with the association in the association’s capacity as a
trustee, the existence of trust powers and their proper exercise by the
association may be assumed without inquiry. A third person is not bound
to inquire whether the association has power to act as trustee or is
properly exercising trust powers. A third person, without actual
knowledge that the association is exceeding or improperly exercising its
powers, is fully protected in dealing with the association as if it
possessed and properly exercised the powers it purports to exercise. A
third person is not bound to assure the proper application of trust
assets paid or delivered to the association in its capacity as trustee.
(Added to NRS by 1991, 571)
1. Except as otherwise provided in subsection 2, the executive
board of an association shall not and the governing documents of that
association must not prohibit a unit’s owner from engaging in the display
of the flag of the United States within such physical portion of the
common-interest community as that owner has a right to occupy and use
exclusively.
2. The provisions of this section do not:
(a) Apply to the display of the flag of the United States for
commercial advertising purposes.
(b) Preclude an association from adopting, and do not preclude the
governing documents of an association from setting forth, rules that
reasonably restrict the placement and manner of the display of the flag
of the United States by a unit’s owner.
3. In any action commenced to enforce the provisions of this
section, the prevailing party is entitled to recover reasonable
attorney’s fees and costs.
4. As used in this section, “display of the flag of the United
States” means a flag of the United States that is:
(a) Made of cloth, fabric or paper;
(b) Displayed from a pole or staff or in a window; and
(c) Displayed in a manner that is consistent with 4 U.S.C. Chapter
1.
Ê The term does not include a depiction or emblem of the flag of the
United States that is made of balloons, flora, lights, paint, paving
materials, roofing, siding or any other similar building, decorative or
landscaping component.
(Added to NRS by 2003, 2966 )—(Substituted in revision for NRS
116.31067)
1. The executive board shall not and the governing documents must
not prohibit a unit’s owner or an occupant of a unit from exhibiting a
political sign within such physical portion of the common-interest
community as that owner or occupant has a right to occupy and use
exclusively if the political sign is not larger than 24 inches by 36
inches.
2. The provisions of this section establish the minimum rights of
a unit’s owner or an occupant of a unit to exhibit a political sign. The
provisions of this section do not preempt any provisions of the governing
documents that provide greater rights and do not require the governing
documents or the executive board to impose any restrictions on the
exhibition of political signs other than those established by other
provisions of law.
3. As used in this section, “political sign” means a sign that
expresses support for or opposition to a candidate, political party or
ballot question.
(Added to NRS by 2005, 2585 )
1. The executive board shall not and the governing documents must
not prohibit a unit’s owner from installing or maintaining drought
tolerant landscaping within such physical portion of the common-interest
community as that owner has a right to occupy and use exclusively, except
that:
(a) Before installing drought tolerant landscaping, the unit’s
owner must submit a detailed description or plans for the drought
tolerant landscaping for architectural review and approval in accordance
with the procedures, if any, set forth in the governing documents of the
association; and
(b) The drought tolerant landscaping must be selected or designed
to the maximum extent practicable to be compatible with the style of the
common-interest community.
2. Installation of drought tolerant landscaping within any common
element or conversion of traditional landscaping or cultivated
vegetation, such as turf grass, to drought tolerant landscaping within
any common element shall not be deemed to be a change of use of the
common element unless:
(a) The common element has been designated as a park, open play
space or golf course on a recorded plat map; or
(b) The traditional landscaping or cultivated vegetation is
required by a governing body under the terms of any applicable zoning
ordinance, permit or approval or as a condition of approval of any final
subdivision map.
3. As used in this section, “drought tolerant landscaping” means
landscaping which conserves water, protects the environment and is
adaptable to local conditions.
(Added to NRS by 2005, 2583 )
1. Except as otherwise provided in the declaration, an association
may not require a unit’s owner to secure or obtain any approval from the
association in order to rent or lease his unit.
2. The provisions of this section do not prohibit an association
from enforcing any provisions which govern the renting or leasing of
units and which are contained in this chapter or in any other applicable
federal, state or local laws or regulations.
(Added to NRS by 2005, 2584 )
1. Except as otherwise provided in subsection 2, in a county whose
population is 400,000 or more, a person who owns, or directly or
indirectly has an interest in, one or more units within a planned
community that are restricted to residential use by the declaration, may
use that unit or one of those units for a transient commercial use only
if:
(a) The governing documents of the association and any master
association do not prohibit such use;
(b) The executive board of the association and any master
association approve the transient commercial use of the unit, except that
such approval is not required if the planned community and one or more
hotels are subject to the governing documents of a master association and
those governing documents do not prohibit such use; and
(c) The unit is properly zoned for the transient commercial use and
any license required by the local government for the transient commercial
use is obtained.
2. In a county whose population is 400,000 or more, a declarant
who owns, or directly or indirectly has an interest in, one or more units
within a planned community under the governing documents of the
association that are restricted to residential use by the declaration,
may use that unit or those units for a transient commercial use during
the period that the declarant is offering units for sale within the
planned community if such use complies with the requirements set forth in
paragraphs (a) and (c) of subsection 1.
3. The association and any master association may establish
requirements for the transient commercial use of a unit pursuant to the
provisions of this section, including, without limitation, the payment of
additional fees that are related to any increase in services or other
costs associated with the transient commercial use of the unit.
4. As used in this section:
(a) “Remuneration” means any compensation, money, rent or other
valuable consideration given in return for the occupancy, possession or
use of a unit.
(b) “Transient commercial use” means the use of a unit, for
remuneration, as a hostel, hotel, inn, motel, resort, vacation rental or
other form of transient lodging if the term of the occupancy, possession
or use of the unit is for less than 30 consecutive calendar days.
(Added to NRS by 2003, 2219 )—(Substituted in revision for NRS
116.31123)
1. An association of a planned community may not restrict,
prohibit or otherwise impede the lawful residential use of any property
that is within or encompassed by the boundaries of the planned community
and that is not designated as part of the planned community.
2. Except as otherwise provided in this subsection, an association
may not restrict the access of a person to any of his property. An
association may restrict access to and from a unit within a planned
community if the right to restrict such access was included in the
declaration or in a separate recorded instrument at the time that the
owner of the unit acquired title to the unit. The provisions of this
subsection do not prohibit an association from charging the owner of the
property a reasonable and nondiscriminatory fee to operate or maintain a
gate or other similar device designed to control access to the planned
community that would otherwise impede ingress or egress to the property.
3. An association may not expand, construct or situate a building
or structure that is not part of any plat or plan of the planned
community if the expansion, construction or situation of the building or
structure was not previously disclosed to the units’ owners of the
planned community unless the association obtains the written consent of a
majority of the units’ owners and residents of the planned community who
own property or reside within 500 feet of the proposed location of the
building or structure.
4. The provisions of this section do not abrogate any easement,
restrictive covenant, decision of a court, agreement of a party or any
contract, governing document or declaration of covenants, conditions and
restrictions, or any other decision, rule or regulation that a local
governing body or other entity that makes decisions concerning land use
or planning is authorized to make or enact that exists before October 1,
1999, including, without limitation, a zoning ordinance, permit or
approval process or any other requirement of a local government or other
entity that makes decisions concerning land use or planning.
(Added to NRS by 1999, 3354 )—(Substituted in revision for NRS
116.31125)
1. In a common-interest community which is not gated or enclosed
and the access to which is not restricted or controlled by a person or
device, the executive board shall not and the governing documents must
not provide for the regulation of any road, street, alley or other
thoroughfare the right-of-way of which is accepted by the State or a
local government for dedication as a road, street, alley or other
thoroughfare for public use.
2. The provisions of subsection 1 do not preclude an association
from adopting, and do not preclude the governing documents of an
association from setting forth, rules that reasonably restrict the
parking or storage of recreational vehicles, watercraft, trailers or
commercial vehicles in the common-interest community to the extent
authorized by law.
(Added to NRS by 2005, 2585 )
ARTICLE 4
PROTECTION OF PURCHASERS
1. NRS 116.4101 to 116.412
, inclusive, apply to all units subject
to this chapter, except as otherwise provided in this section or as
modified or waived by agreement of purchasers of units in a
common-interest community in which all units are restricted to
nonresidential use.
2. Neither a public offering statement nor a certificate of resale
need be prepared or delivered in the case of a:
(a) Gratuitous disposition of a unit;
(b) Disposition pursuant to court order;
(c) Disposition by a government or governmental agency;
(d) Disposition by foreclosure or deed in lieu of foreclosure;
(e) Disposition to a dealer;
(f) Disposition that may be cancelled at any time and for any
reason by the purchaser without penalty; or
(g) Disposition of a unit in a planned community which contains no
more than 12 units if:
(1) The declarant reasonably believes in good faith that the
maximum assessment stated in the declaration will be sufficient to pay
the expenses of the planned community; and
(2) The declaration cannot be amended to increase the
assessment during the period of the declarant’s control without the
consent of all units’ owners.
3. Except as otherwise provided in subsection 2, the provisions of
NRS 116.4101 to 116.412 , inclusive, do not apply to a planned
community described in NRS 116.1203 .
(Added to NRS by 1991, 571; A 1993, 2373; 1997, 3122; 1999, 3012
)
1. Except as otherwise provided in subsection 2, a declarant,
before offering any interest in a unit to the public, shall prepare a
public offering statement conforming to the requirements of NRS 116.4103
to 116.4106 , inclusive.
2. A declarant may transfer responsibility for the preparation of
all or a part of the public offering statement to a successor declarant
pursuant to NRS 116.3104 and 116.31043
, or to a dealer who intends to offer
units in the common-interest community. In the event of any such
transfer, the transferor shall provide the transferee with any
information necessary to enable the transferee to fulfill the
requirements of subsection 1.
3. Any declarant or dealer who offers a unit to a purchaser shall
deliver a public offering statement in the manner prescribed in
subsection 1 of NRS 116.4108 . The
declarant or his transferee under subsection 2 is liable under NRS
116.4108 and 116.4117 for any false or misleading statement set
forth therein or for any omission of a material fact therefrom with
respect to that portion of the public offering statement which he
prepared. If a declarant or dealer did not prepare any part of a public
offering statement that he delivers, he is not liable for any false or
misleading statement set forth therein or for any omission of a material
fact therefrom unless he had actual knowledge of the statement or
omission or, in the exercise of reasonable care, should have known of the
statement or omission.
4. If a unit is part of a common-interest community and is part of
any other real estate in connection with the sale of which the delivery
of a public offering statement is required under the laws of this State,
a single public offering statement conforming to the requirements of NRS
116.4103 to 116.4106 , inclusive, as those requirements relate to
the real estate in which the unit is located, and to any other
requirements imposed under the laws of this State, may be prepared and
delivered in lieu of providing two or more public offering statements. If
the requirements of this chapter conflict with those of another law of
this State, the requirements of this chapter prevail.
(Added to NRS by 1991, 571; A 1993, 2374; 2001, 2493 )
1. Except as otherwise provided in NRS 116.41035 , a public offering statement must set forth
or fully and accurately disclose each of the following:
(a) The name and principal address of the declarant and of the
common-interest community, and a statement that the common-interest
community is either a condominium, cooperative or planned community.
(b) A general description of the common-interest community,
including to the extent possible, the types, number and declarant’s
schedule of commencement and completion of construction of buildings, and
amenities that the declarant anticipates including in the common-interest
community.
(c) The estimated number of units in the common-interest community.
(d) Copies of the declaration, bylaws, and any rules or regulations
of the association, but a plat or plan is not required.
(e) A current year-to-date financial statement, including the most
recent audited or reviewed financial statement, and the projected budget
for the association, either within or as an exhibit to the public
offering statement, for 1 year after the date of the first conveyance to
a purchaser, and thereafter the current budget of the association. The
budget must include, without limitation:
(1) A statement of the amount included in the budget as
reserves for repairs, replacement and restoration pursuant to NRS
116.3115 ; and
(2) The projected monthly assessment for common expenses for
each type of unit, including the amount established as reserves pursuant
to NRS 116.3115 .
(f) A description of any services or subsidies being provided by
the declarant or an affiliate of the declarant, not reflected in the
budget.
(g) Any initial or special fee due from the purchaser at closing,
together with a description of the purpose and method of calculating the
fee.
(h) The terms and significant limitations of any warranties
provided by the declarant, including statutory warranties and limitations
on the enforcement thereof or on damages.
(i) A statement that unless the purchaser or his agent has
personally inspected the unit, the purchaser may cancel, by written
notice, his contract for purchase until midnight of the fifth calendar
day following the date of execution of the contract, and the contract
must contain a provision to that effect.
(j) A statement of any unsatisfied judgments or pending suits
against the association, and the status of any pending suits material to
the common-interest community of which a declarant has actual knowledge.
(k) Any current or expected fees or charges to be paid by units’
owners for the use of the common elements and other facilities related to
the common-interest community.
(l) The information statement set forth in NRS 116.41095 .
2. A declarant is not required to revise a public offering
statement more than once each calendar quarter, if the following warning
is given prominence in the statement: “THIS PUBLIC OFFERING STATEMENT IS
CURRENT AS OF (insert a specified date). RECENT DEVELOPMENTS REGARDING
(here refer to particular provisions of NRS 116.4103 and 116.4105 ) MAY NOT BE REFLECTED IN THIS STATEMENT.”
(Added to NRS by 1991, 572; A 1993, 2375; 1997, 3122; 1999, 3012
; 2005, 2612 )
If a common-interest community composed of not more
than 12 units is not subject to any developmental rights and no power is
reserved to a declarant to make the common-interest community part of a
larger common-interest community, group of common-interest communities or
other real estate, a public offering statement may but need not include
the information otherwise required by paragraphs (h) and (k) of
subsection 1 of NRS 116.4103 .
(Added to NRS by 1991, 573; A 1993, 553, 2376)
If the declaration provides
that a common-interest community is subject to any developmental rights,
the public offering statement must disclose, in addition to the
information required by NRS 116.4103 :
1. The maximum number of units that may be created;
2. A statement of how many or what percentage of the units that
may be created will be restricted exclusively to residential use, or a
statement that no representations are made regarding restrictions of use;
3. A statement of the extent to which any buildings or other
improvements that may be erected pursuant to any developmental right in
any part of the common-interest community will be compatible with
existing buildings and improvements in the common-interest community in
terms of architectural style, quality of construction, and size, or a
statement that no assurances are made in those regards;
4. General descriptions of all other improvements that may be made
and limited common elements that may be created within any part of the
common-interest community pursuant to any developmental right reserved by
the declarant, or a statement that no assurances are made in that regard;
5. A statement of any limitations as to the locations of any
building or other improvement that may be constructed or made within any
part of the common-interest community pursuant to any developmental right
reserved by the declarant, or a statement that no assurances are made in
that regard;
6. A statement that any limited common elements created pursuant
to any developmental right reserved by the declarant will be of the same
general types and sizes as the limited common elements within other parts
of the common-interest community, or a statement of the types and sizes
planned, or a statement that no assurances are made in that regard;
7. A statement that the proportion of limited common elements to
units created pursuant to any developmental right reserved by the
declarant will be approximately equal to the proportion existing within
other parts of the common-interest community, or a statement of any other
assurances in that regard, or a statement that no assurances are made in
that regard;
8. A statement that all restrictions in the declaration affecting
use, occupancy and alienation of units will apply to any units created
pursuant to any developmental right reserved by the declarant, or a
statement of any differentiations that may be made as to those units, or
a statement that no assurances are made in that regard; and
9. A statement of the extent to which any assurances made pursuant
to this section apply or do not apply if any developmental right is not
exercised by the declarant.
(Added to NRS by 1991, 573)
If the
declaration provides that ownership or occupancy of any units, is or may
be in time shares, the public offering statement shall disclose, in
addition to the information required by NRS 116.4103 and 116.41035 :
1. The number and identity of units in which time shares may be
created;
2. The total number of time shares that may be created;
3. The minimum duration of any time shares that may be created; and
4. The extent to which the creation of time shares will or may
affect the enforceability of the association’s lien for assessments
provided in NRS 116.3116 and 116.31162
.
(Added to NRS by 1991, 574)
1. The public offering statement of a common-interest community
containing any converted building must contain, in addition to the
information required by NRS 116.4103
and 116.41035 :
(a) A statement by the declarant, based on a report prepared by an
independent registered architect or licensed professional engineer,
describing the present condition of all structural components and
mechanical and electrical installations material to the use and enjoyment
of the building;
(b) A list of any outstanding notices of uncured violations of
building codes or other municipal regulations, together with the
estimated cost of curing those violations; and
(c) The budget to maintain the reserves required pursuant to
paragraph (b) of subsection 2 of NRS 116.3115 which must include, without limitation:
(1) The current estimated replacement cost, estimated
remaining life and estimated useful life of each major component of the
common elements;
(2) As of the end of the fiscal year for which the budget
was prepared, the current estimate of the amount of cash reserves that
are necessary to repair, replace and restore the major components of the
common elements and the current amount of accumulated cash reserves that
are set aside for such repairs, replacements and restorations;
(3) A statement as to whether the declarant has determined
or anticipates that the levy of one or more special assessments will be
required within the next 10 years to repair, replace and restore any
major component of the common elements or to provide adequate reserves
for that purpose;
(4) A general statement describing the procedures used for
the estimation and accumulation of cash reserves described in
subparagraph (2), including, without limitation, the qualifications of
the person responsible for the preparation of the study of reserves
required pursuant to NRS 116.31152 ;
and
(5) The funding plan that is designed to allocate the costs
for the repair, replacement and restoration of the major components of
the common elements over a period of years.
2. This section applies only to a common-interest community
comprised of a converted building or buildings containing more than 12
units that may be occupied for residential use.
(Added to NRS by 1991, 574; A 1997, 1060; 2005, 2613 )
If an interest in a common-interest community is currently registered
with the Securities and Exchange Commission of the United States or with
the State of Nevada pursuant to chapter 119 ,
119A or 119B
of NRS, a declarant satisfies all requirements of this chapter relating
to the preparation of a public offering statement if he delivers to the
purchaser a copy of the public offering statement filed with the
Securities and Exchange Commission or the appropriate Nevada regulatory
authority. An interest in a common-interest community is not a security
under the provisions of chapter 90 of NRS.
(Added to NRS by 1991, 574)
1. A person required to deliver a public offering statement
pursuant to subsection 3 of NRS 116.4102 shall provide a purchaser with a copy of the
current public offering statement not later than the date on which an
offer to purchase becomes binding on the purchaser. Unless the purchaser
has personally inspected the unit, the purchaser may cancel, by written
notice, the contract of purchase until midnight of the fifth calendar day
following the date of execution of the contract, and the contract for
purchase must contain a provision to that effect.
2. If a purchaser elects to cancel a contract pursuant to
subsection 1, he may do so by hand delivering notice thereof to the
offeror or by mailing notice thereof by prepaid United States mail to the
offeror or to his agent for service of process. Cancellation is without
penalty, and all payments made by the purchaser before cancellation must
be refunded promptly.
3. If a person required to deliver a public offering statement
pursuant to subsection 3 of NRS 116.4102 fails to provide a purchaser to whom a unit
is conveyed with a current public offering statement, the purchaser is
entitled to actual damages, rescission or other relief, but if the
purchaser has accepted a conveyance of the unit, he is not entitled to
rescission.
(Added to NRS by 1991, 574; A 1993, 2376; 2003, 2247 )
1. Except in the case of a sale in which delivery of a public
offering statement is required, or unless exempt under subsection 2 of
NRS 116.4101 , a unit’s owner or his
authorized agent shall furnish to a purchaser a resale package containing
all of the following:
(a) A copy of the declaration, other than any plats and plans, the
bylaws, the rules or regulations of the association and the information
statement required by NRS 116.41095 ;
(b) A statement setting forth the amount of the monthly assessment
for common expenses and any unpaid assessment of any kind currently due
from the selling unit’s owner;
(c) A copy of the current operating budget of the association and
current year-to-date financial statement for the association, which must
include a summary of the reserves of the association required by NRS
116.31152 and which must include,
without limitation, a summary of the information described in paragraphs
(a) to (e), inclusive, of subsection 3 of NRS 116.31152 ; and
(d) A statement of any unsatisfied judgments or pending legal
actions against the association and the status of any pending legal
actions relating to the common-interest community of which the unit’s
owner has actual knowledge.
2. The purchaser may, by written notice, cancel the contract of
purchase until midnight of the fifth calendar day following the date of
receipt of the resale package described in subsection 1, and the contract
for purchase must contain a provision to that effect. If the purchaser
elects to cancel a contract pursuant to this subsection, he must hand
deliver the notice of cancellation to the unit’s owner or his authorized
agent or mail the notice of cancellation by prepaid United States mail to
the unit’s owner or his authorized agent. Cancellation is without
penalty, and all payments made by the purchaser before cancellation must
be refunded promptly. If the purchaser has accepted a conveyance of the
unit, the purchaser is not entitled to:
(a) Cancel the contract pursuant to this subsection; or
(b) Damages, rescission or other relief based solely on the ground
that the unit’s owner or his authorized agent failed to furnish the
resale package, or any portion thereof, as required by this section.
3. Within 10 days after receipt of a written request by a unit’s
owner or his authorized agent, the association shall furnish all of the
following to the unit’s owner or his authorized agent for inclusion in
the resale package:
(a) Copies of the documents required pursuant to paragraphs (a) and
(c) of subsection 1; and
(b) A certificate containing the information necessary to enable
the unit’s owner to comply with paragraphs (b) and (d) of subsection 1.
4. If the association furnishes the documents and certificate
pursuant to subsection 3:
(a) The unit’s owner or his authorized agent shall include the
documents and certificate in the resale package provided to the
purchaser, and neither the unit’s owner nor his authorized agent is
liable to the purchaser for any erroneous information provided by the
association and included in the documents and certificate.
(b) The association may charge the unit’s owner a reasonable fee to
cover the cost of preparing the certificate furnished pursuant to
subsection 3. Such a fee must be based on the actual cost the association
incurs to fulfill the requirements of this section in preparing the
certificate. The Commission shall adopt regulations establishing the
maximum amount of the fee that an association may charge for preparing
the certificate.
(c) The association may charge the unit’s owner a reasonable fee,
not to exceed 25 cents per page, to cover the cost of copying the other
documents furnished pursuant to subsection 3.
(d) Except for the fees allowed pursuant to paragraphs (b) and (c),
the association may not charge the unit’s owner any other fees for
preparing or furnishing the documents and certificate pursuant to
subsection 3.
5. Neither a purchaser nor the purchaser’s interest in a unit is
liable for any unpaid assessment or fee greater than the amount set forth
in the documents and certificate prepared by the association. If the
association fails to furnish the documents and certificate within the 10
days allowed by this section, the seller is not liable for the delinquent
assessment.
6. Upon the request of a unit’s owner or his authorized agent, or
upon the request of a purchaser to whom the unit’s owner has provided a
resale package pursuant to this section or his authorized agent, the
association shall make the entire study of the reserves of the
association which is required by NRS 116.31152 reasonably available for the unit’s owner,
purchaser or authorized agent to inspect, examine, photocopy and audit.
The study must be made available at the business office of the
association or some other suitable location within the county where the
common-interest community is situated or, if it is situated in more than
one county, within one of those counties.
(Added to NRS by 1991, 575; A 1993, 2376; 1997, 3124; 2001, 2494
; 2003, 2247 ; 2005, 2614 )
The
information statement required by NRS 116.4103 and 116.4109 must be in substantially the following form:
BEFORE YOU PURCHASE PROPERTY IN A
COMMON-INTEREST COMMUNITY
DID YOU KNOW . . .
1. YOU GENERALLY HAVE 5 DAYS TO CANCEL THE PURCHASE AGREEMENT?
When you enter into a purchase agreement to buy a home or unit in a
common-interest community, in most cases you should receive either a
public offering statement, if you are the original purchaser of the home
or unit, or a resale package, if you are not the original purchaser. The
law generally provides for a 5-day period in which you have the right to
cancel the purchase agreement. The 5-day period begins on different
starting dates, depending on whether you receive a public offering
statement or a resale package. Upon receiving a public offering statement
or a resale package, you should make sure you are informed of the
deadline for exercising your right to cancel. In order to exercise your
right to cancel, the law generally requires that you hand deliver the
notice of cancellation to the seller within the 5-day period, or mail the
notice of cancellation to the seller by prepaid United States mail within
the 5-day period. For more information regarding your right to cancel,
see Nevada Revised Statutes 116.4108, if you received a public offering
statement, or Nevada Revised Statutes 116.4109, if you received a resale
package.
2. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU CAN USE YOUR
PROPERTY?
These restrictions are contained in a document known as the Declaration
of Covenants, Conditions and Restrictions. The CC&Rs become a part of the
title to your property. They bind you and every future owner of the
property whether or not you have read them or had them explained to you.
The CC&Rs, together with other “governing documents” (such as association
bylaws and rules and regulations), are intended to preserve the character
and value of properties in the community, but may also restrict what you
can do to improve or change your property and limit how you use and enjoy
your property. By purchasing a property encumbered by CC&Rs, you are
agreeing to limitations that could affect your lifestyle and freedom of
choice. You should review the CC&Rs, and other governing documents before
purchasing to make sure that these limitations and controls are
acceptable to you.
3. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS LONG AS YOU OWN
YOUR PROPERTY?
As an owner in a common-interest community, you are responsible for
paying your share of expenses relating to the common elements, such as
landscaping, shared amenities and the operation of any homeowners’
association. The obligation to pay these assessments binds you and every
future owner of the property. Owners’ fees are usually assessed by the
homeowners’ association and due monthly. You have to pay dues whether or
not you agree with the way the association is managing the property or
spending the assessments. The executive board of the association may have
the power to change and increase the amount of the assessment and to levy
special assessments against your property to meet extraordinary expenses.
In some communities, major components of the common elements of the
community such as roofs and private roads must be maintained and replaced
by the association. If the association is not well managed or fails to
provide adequate funding for reserves to repair, replace and restore
common elements, you may be required to pay large, special assessments to
accomplish these tasks.
4. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU COULD LOSE YOUR
HOME?
If you do not pay these assessments when due, the association usually has
the power to collect them by selling your property in a nonjudicial
foreclosure sale. If fees become delinquent, you may also be required to
pay penalties and the association’s costs and attorney’s fees to become
current. If you dispute the obligation or its amount, your only remedy to
avoid the loss of your home may be to file a lawsuit and ask a court to
intervene in the dispute.
5. YOU MAY BECOME A MEMBER OF A HOMEOWNERS’ ASSOCIATION THAT HAS
THE POWER TO AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?
Many common-interest communities have a homeowners’ association. In a new
development, the association will usually be controlled by the developer
until a certain number of units have been sold. After the period of
developer control, the association may be controlled by property owners
like yourself who are elected by homeowners to sit on an executive board
and other boards and committees formed by the association. The
association, and its executive board, are responsible for assessing
homeowners for the cost of operating the association and the common or
shared elements of the community and for the day to day operation and
management of the community. Because homeowners sitting on the executive
board and other boards and committees of the association may not have the
experience or professional background required to understand and carry
out the responsibilities of the association properly, the association may
hire professional community managers to carry out these responsibilities.
Homeowners’ associations operate on democratic principles. Some decisions
require all homeowners to vote, some decisions are made by the executive
board or other boards or committees established by the association or
governing documents. Although the actions of the association and its
executive board are governed by state laws, the CC&Rs and other documents
that govern the common-interest community, decisions made by these
persons will affect your use and enjoyment of your property, your
lifestyle and freedom of choice, and your cost of living in the
community. You may not agree with decisions made by the association or
its governing bodies even though the decisions are ones which the
association is authorized to make. Decisions may be made by a few persons
on the executive board or governing bodies that do not necessarily
reflect the view of the majority of homeowners in the community. If you
do not agree with decisions made by the association, its executive board
or other governing bodies, your remedy is typically to attempt to use the
democratic processes of the association to seek the election of members
of the executive board or other governing bodies that are more responsive
to your needs. If you have a dispute with the association, its executive
board or other governing bodies, you may be able to resolve the dispute
through the complaint, investigation and intervention process
administered by the Office of the Ombudsman for Owners in Common-Interest
Communities, the Nevada Real Estate Division and the Commission for
Common-Interest Communities. However, to resolve some disputes, you may
have to mediate or arbitrate the dispute and, if mediation or arbitration
is unsuccessful, you may have to file a lawsuit and ask a court to
resolve the dispute. In addition to your personal cost in mediation or
arbitration, or to prosecute a lawsuit, you may be responsible for paying
your share of the association’s cost in defending against your claim.
6. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE PURCHASERS OF YOUR
PROPERTY WITH INFORMATION ABOUT LIVING IN YOUR COMMON-INTEREST COMMUNITY?
The law requires you to provide a prospective purchaser of your property
with a copy of the community’s governing documents, including the CC&Rs,
association bylaws, and rules and regulations, as well as a copy of this
document. You are also required to provide a copy of the association’s
current year-to-date financial statement, including, without limitation,
the most recent audited or reviewed financial statement, a copy of the
association’s operating budget and information regarding the amount of
the monthly assessment for common expenses, including the amount set
aside as reserves for the repair, replacement and restoration of common
elements. You are also required to inform prospective purchasers of any
outstanding judgments or lawsuits pending against the association of
which you are aware. For more information regarding these requirements,
see Nevada Revised Statutes 116.4109.
7. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN A
COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED YOU BY THE STATE?
Pursuant to provisions of chapter 116 of
Nevada Revised Statutes, you have the right:
(a) To be notified of all meetings of the association and its
executive board, except in cases of emergency.
(b) To attend and speak at all meetings of the association and its
executive board, except in some cases where the executive board is
authorized to meet in closed, executive session.
(c) To request a special meeting of the association upon petition
of at least 10 percent of the homeowners.
(d) To inspect, examine, photocopy and audit financial and other
records of the association.
(e) To be notified of all changes in the community’s rules and
regulations and other actions by the association or board that affect you.
8. QUESTIONS?
Although they may be voluminous, you should take the time to read and
understand the documents that will control your ownership of a property
in a common-interest community. You may wish to ask your real estate
professional, lawyer or other person with experience to explain anything
you do not understand. You may also request assistance from the Office of
the Ombudsman for Owners in Common-Interest Communities, Nevada Real
Estate Division, at (telephone number).
Buyer or prospective buyer’s initials:_____
Date:_____
(Added to NRS by 1997, 3114; A 1999, 3013 ; 2003, 2248 ; 2005, 2616 )
1. Except as otherwise provided in subsections 2 and 3, a deposit
made in connection with the purchase or reservation of a unit from a
person required to deliver a public offering statement pursuant to
subsection 3 of NRS 116.4102 must be
placed in escrow and held either in this State or in the state where the
unit is located in an account designated solely for that purpose by a
licensed title insurance company, an independent bonded escrow company,
or an institution whose accounts are insured by a governmental agency or
instrumentality until:
(a) Delivered to the declarant at closing;
(b) Delivered to the declarant because of the purchaser’s default
under a contract to purchase the unit;
(c) Released to the declarant for an additional item, improvement,
optional item or alteration, but the amount so released:
(1) Must not exceed the lesser of the amount due the
declarant from the purchaser at the time of the release or the amount
expended by the declarant for the purpose; and
(2) Must be credited upon the purchase price; or
(d) Refunded to the purchaser.
2. A deposit or advance payment made for an additional item,
improvement, optional item or alteration may be deposited in escrow or
delivered directly to the declarant, as the parties may contract.
3. In lieu of placing a deposit in escrow pursuant to subsection
1, the declarant may furnish a bond executed by him as principal and by a
corporation qualified under the laws of this State as surety, payable to
the State of Nevada, and conditioned upon the performance of the
declarant’s duties concerning the purchase or reservation of a unit. Each
bond must be in a principal sum equal to the amount of the deposit. The
bond must be held until:
(a) Delivered to the declarant at closing;
(b) Delivered to the declarant because of the purchaser’s default
under a contract to purchase the unit; or
(c) Released to the declarant for an additional item, improvement,
optional item or alteration, but the amount so released must not exceed
the amount due the declarant from the purchaser at the time of the
release or the amount expended by the declarant for that purpose,
whichever is less.
(Added to NRS by 1991, 575; A 1993, 2377; 1995, 1420)
1. In the case of a sale of a unit where delivery of a public
offering statement is required pursuant to subsection 3 of NRS 116.4102
, a seller:
(a) Before conveying a unit, shall record or furnish to the
purchaser releases of all liens, except liens on real estate that a
declarant has the right to withdraw from the common-interest community,
that the purchaser does not expressly agree to take subject to or assume
and that encumber:
(1) In a condominium, that unit and its interest in the
common elements; and
(2) In a cooperative or planned community, that unit and any
limited common elements assigned thereto; or
(b) Shall provide a surety bond against the lien as provided for
liens on real estate in NRS 108.2413
to 108.2425 , inclusive.
2. Before conveying real estate to the association, the declarant
shall have that real estate released from:
(a) All liens the foreclosure of which would deprive units’ owners
of any right of access to or easement of support of their units; and
(b) All other liens on that real estate unless the public offering
statement describes certain real estate that may be conveyed subject to
liens in specified amounts.
(Added to NRS by 1991, 575; A 2003, 2618 )
1. A declarant of a common-interest community containing converted
buildings, and any dealer who intends to offer units in such a
common-interest community, shall give each of the residential tenants and
any residential subtenant in possession of a portion of a converted
building notice of the conversion and provide those persons with the
public offering statement no later than 120 days before the tenants and
any subtenant in possession are required to vacate. The notice must set
forth generally the rights of tenants and subtenants under this section
and must be hand-delivered to the unit or mailed by prepaid United States
mail to the tenant and subtenant at the address of the unit or any other
mailing address provided by a tenant. No tenant or subtenant may be
required to vacate upon less than 120 days’ notice, except by reason of
nonpayment of rent, waste or conduct that disturbs other tenants’
peaceful enjoyment of the premises, and the terms of the tenancy may not
be altered during that period. Failure to give notice as required by this
section is a defense to an action for possession.
2. For 60 days after delivery or mailing of the notice described
in subsection 1, the person required to give the notice shall offer to
convey each unit or proposed unit occupied for residential use to the
tenant who leases that unit. If a tenant fails to purchase the unit
during that 60-day period, the offeror may not offer to dispose of an
interest in that unit during the following 180 days at a price or on
terms more favorable to the offeree than the price or terms offered to
the tenant. This subsection does not apply to any unit in a converted
building if that unit will be restricted exclusively to nonresidential
use or the boundaries of the converted unit do not substantially conform
to the dimensions of the residential unit before conversion.
3. If a seller, in violation of subsection 2, conveys a unit to a
purchaser for value who has no knowledge of the violation, the
recordation of the deed conveying the unit or, in a cooperative, the
conveyance of the unit, extinguishes any right a tenant may have under
subsection 2 to purchase that unit if the deed states that the seller has
complied with subsection 2, but the conveyance does not affect the right
of a tenant to recover damages from the seller for a violation of
subsection 2.
4. If a notice of conversion specifies a date by which a unit or
proposed unit must be vacated and otherwise complies with the provisions
of NRS 40.251 and 40.280 , the notice also constitutes a notice to
vacate specified by those sections.
5. This section does not permit termination of a lease by a
declarant in violation of its terms.
(Added to NRS by 1991, 576)
1. Express warranties made by any seller to a purchaser of a unit,
if relied upon by the purchaser, are created as follows:
(a) Any affirmation of fact or promise that relates to the unit,
its use or rights appurtenant thereto, improvements to the
common-interest community that would directly benefit the unit or the
right to use or have the benefit of facilities not located in the
common-interest community creates an express warranty that the unit and
related rights and uses will conform to the affirmation or promise;
(b) Any model or description of the physical characteristics of the
common-interest community, including plans and specifications of or for
improvements, creates an express warranty that the common-interest
community will reasonably conform to the model or description;
(c) Any description of the quantity or extent of the real estate
comprising the common-interest community, including plats or surveys,
creates an express warranty that the common-interest community will
conform to the description, subject to customary tolerances; and
(d) A provision that a purchaser may put a unit only to a specified
use is an express warranty that the specified use is lawful.
2. Neither formal words, such as “warranty” or “guarantee,” nor a
specific intention to make a warranty is necessary to create an express
warranty of quality, but a statement purporting to be merely an opinion
or commendation of the real estate or its value does not create a
warranty.
3. Any conveyance of a unit transfers to the purchaser all express
warranties of quality made by previous sellers.
4. A warranty created by this section may be excluded or modified
by agreement of the parties.
(Added to NRS by 1991, 577; A 1993, 2770)
1. A declarant and any dealer warrant that a unit will be in at
least as good condition at the earlier of the time of the conveyance or
delivery of possession as it was at the time of contracting, reasonable
wear and tear excepted.
2. A declarant and any dealer impliedly warrant that a unit and
the common elements in the common-interest community are suitable for the
ordinary uses of real estate of its type and that any improvements made
or contracted for by him, or made by any person before the creation of
the common-interest community, will be:
(a) Free from defective materials; and
(b) Constructed in accordance with applicable law, according to
sound standards of engineering and construction, and in a workmanlike
manner.
3. In addition, a declarant and any dealer warrant to a purchaser
of a unit that may be used for residential use that an existing use,
continuation of which is contemplated by the parties, does not violate
applicable law at the earlier of the time of conveyance or delivery of
possession.
4. Warranties imposed by this section may be excluded or modified
as specified in NRS 116.4115 .
5. For purposes of this section, improvements made or contracted
for by an affiliate of a declarant are made or contracted for by the
declarant.
6. Any conveyance of a unit transfers to the purchaser all of the
declarant’s implied warranties of quality.
(Added to NRS by 1991, 577)
1. Except as limited by subsection 2 with respect to a purchaser
of a unit that may be used for residential use, implied warranties of
quality:
(a) May be excluded or modified by agreement of the parties; and
(b) Are excluded by expression of disclaimer, such as “as is,”
“with all faults,” or other language that in common understanding calls
the purchaser’s attention to the exclusion of warranties.
2. With respect to a purchaser of a unit that may be occupied for
residential use, no general disclaimer of implied warranties of quality
is effective, but a declarant and any dealer may disclaim liability in an
instrument signed by the purchaser for a specified defect or specified
failure to comply with applicable law, if the defect or failure entered
into and became a part of the basis of the bargain.
(Added to NRS by 1991, 578)
1. A judicial proceeding for breach of any obligation arising
under NRS 116.4113 or 116.4114 must be commenced within 6 years after the
cause of action accrues, but the parties may agree to reduce the period
of limitation to not less than 2 years. With respect to a unit that may
be occupied for residential use, an agreement to reduce the period of
limitation must be evidenced by a separate instrument executed by the
purchaser.
2. Subject to subsection 3, a cause of action for breach of
warranty of quality, regardless of the purchaser’s lack of knowledge of
the breach, accrues:
(a) As to a unit, at the time the purchaser to whom the warranty is
first made enters into possession if a possessory interest was conveyed
or at the time of acceptance of the instrument of conveyance if a
nonpossessory interest was conveyed; and
(b) As to each common element, at the time the common element is
completed or, if later, as to:
(1) A common element that may be added to the
common-interest community or portion thereof, at the time the first unit
therein is conveyed to a bona fide purchaser; or
(2) A common element within any other portion of the
common-interest community, at the time the first unit is conveyed to a
purchaser in good faith.
3. If a warranty of quality explicitly extends to future
performance or duration of any improvement or component of the
common-interest community, the cause of action accrues at the time the
breach is discovered or at the end of the period for which the warranty
explicitly extends, whichever is earlier.
(Added to NRS by 1991, 578)
1. If a declarant or any other person subject to this chapter
fails to comply with any of its provisions or any provision of the
declaration or bylaws, any person or class of persons suffering actual
damages from the failure to comply has a claim for appropriate relief.
2. Subject to the requirements set forth in NRS 38.310 and except as otherwise provided in NRS
116.3111 , a civil action for damages
caused by a failure or refusal to comply with any provision of this
chapter or the governing documents of an association may be brought:
(a) By the association against:
(1) A declarant; or
(2) A unit’s owner.
(b) By a unit’s owner against:
(1) The association;
(2) A declarant; or
(3) Another unit’s owner of the association.
3. Punitive damages may be awarded for a willful and material
failure to comply with this chapter if the failure is established by
clear and convincing evidence.
4. The court may award reasonable attorney’s fees to the
prevailing party.
5. The civil remedy provided by this section is in addition to,
and not exclusive of, any other available remedy or penalty.
(Added to NRS by 1991, 578; A 1993, 2377; 1997, 3125)
No promotional
material may be displayed or delivered to prospective purchasers which
describes or portrays an improvement that is not in existence unless the
description or portrayal of the improvement in the promotional material
is conspicuously labeled or identified either as “MUST BE BUILT” or as
“NEED NOT BE BUILT.”
(Added to NRS by 1991, 579)
1. Except for improvements labeled “NEED NOT BE BUILT,” the
declarant shall complete all improvements depicted on any site plan or
other graphic representation, including any plats or plans prepared
pursuant to NRS 116.2109 , whether or
not that site plan or other graphic representation is contained in the
public offering statement or in any promotional material distributed by
or for the declarant.
2. The declarant is subject to liability for the prompt repair and
restoration, to a condition compatible with the remainder of the
common-interest community, of any portion of the common-interest
community affected by the exercise of rights reserved pursuant to or
created by NRS 116.211 to 116.2113
, inclusive, 116.2115 or 116.2116 .
(Added to NRS by 1991, 579)
In the case of a
sale of a unit in which delivery of a public offering statement is
required, a contract of sale may be executed, but no interest in that
unit may be conveyed, until the declaration is recorded and the unit is
substantially completed, in accordance with local ordinances.
(Added to NRS by 1991, 579; A 1993, 2377)
ADMINISTRATION AND ENFORCEMENT OF CHAPTER
General Provisions
1. The Commission for Common-Interest Communities is hereby
created.
2. The Commission consists of five members appointed by the
Governor. The Governor shall appoint to the Commission:
(a) One member who is a unit’s owner residing in this State and who
has served as a member of an executive board in this State;
(b) One member who is in the business of developing common-interest
communities in this State;
(c) One member who holds a certificate;
(d) One member who is a certified public accountant licensed to
practice in this State pursuant to the provisions of chapter 628 of NRS; and
(e) One member who is an attorney licensed to practice in this
State.
3. Each member of the Commission must be a resident of this State.
At least three members of the Commission must be residents of a county
whose population is 400,000 or more.
4. Each member of the Commission must have resided in a
common-interest community or have been actively engaged in a business or
profession related to common-interest communities for not less than 3
years immediately preceding the date of his appointment.
5. After the initial terms, each member of the Commission serves a
term of 3 years. Each member may serve not more than two consecutive full
terms. If a vacancy occurs during a member’s term, the Governor shall
appoint a person qualified under this section to replace the member for
the remainder of the unexpired term.
6. While engaged in the business of the Commission, each member is
entitled to receive:
(a) A salary of not more than $80 per day, as established by the
Commission; and
(b) The per diem allowance and travel expenses provided for state
officers and employees generally.
(Added to NRS by 2003, 2209 ; A 2005, 2619 )
1. The Division shall provide or arrange to have provided to each
member of the Commission courses of instruction concerning rules of
procedure and substantive law appropriate for members of the Commission.
2. Each member of the Commission must attend the courses of
instruction not later than 6 months after the date that the member is
first appointed to the Commission.
(Added to NRS by 2003, 2209 )
1. At the first meeting of each fiscal year, the Commission shall
elect from its members a Chairman, a Vice Chairman and a Secretary.
2. The Commission shall meet at least once each calendar quarter
and at other times on the call of the Chairman or a majority of its
members.
3. A majority of the members of the Commission constitutes a
quorum for the transaction of all business.
(Added to NRS 2003, 2210 )
1. The provisions of this chapter must be administered by the
Division, subject to the administrative supervision of the Director of
the Department of Business and Industry.
2. The Commission and the Division may do all things necessary and
convenient to carry out the provisions of this chapter, including,
without limitation, prescribing such forms and adopting such procedures
as are necessary to carry out the provisions of this chapter.
3. The Commission, or the Administrator with the approval of the
Commission, may adopt such regulations as are necessary to carry out the
provisions of this chapter.
4. The Commission may by regulation delegate any authority
conferred upon it by the provisions of this chapter to the Administrator
to be exercised pursuant to the regulations adopted by the Commission.
5. When regulations are proposed by the Administrator, in addition
to other notices required by law, the Administrator shall provide copies
of the proposed regulations to the Commission not later than 30 days
before the next meeting of the Commission. The Commission shall approve,
amend or disapprove any proposed regulations at that meeting.
6. All regulations adopted by the Commission, or adopted by the
Administrator with the approval of the Commission, must be published by
the Division, posted on its website and offered for sale at a reasonable
fee.
(Added to NRS by 2003, 2210 ; A 2005, 2619 )
1. Except as otherwise provided in this section and within the
limits of legislative appropriations, the Division may employ experts,
attorneys, investigators, consultants and other personnel as are
necessary to carry out the provisions of this chapter.
2. The Attorney General shall act as the attorney for the Division
in all actions and proceedings brought against or by the Division
pursuant to the provisions of this chapter.
3. The Attorney General shall render to the Commission and the
Division opinions upon all questions of law relating to the construction
or interpretation of this chapter, or arising in the administration
thereof, that may be submitted to him by the Commission or the Division.
(Added to NRS by 2003, 2210 )
1. The Office of the Ombudsman for Owners in Common-Interest
Communities is hereby created within the Division.
2. The Administrator shall appoint the Ombudsman. The Ombudsman is
in the unclassified service of the State.
3. The Ombudsman must be qualified by training and experience to
perform the duties and functions of his office.
4. In addition to any other duties set forth in this chapter, the
Ombudsman shall:
(a) Assist in processing claims submitted to mediation or
arbitration pursuant to NRS 38.300 to
38.360 , inclusive;
(b) Assist owners in common-interest communities to understand
their rights and responsibilities as set forth in this chapter and the
governing documents of their associations, including, without limitation,
publishing materials related to those rights and responsibilities;
(c) Assist members of executive boards and officers of associations
to carry out their duties;
(d) When appropriate, investigate disputes involving the provisions
of this chapter or the governing documents of an association and assist
in resolving such disputes; and
(e) Compile and maintain a registration of each association
organized within the State which includes, without limitation, the
following information:
(1) The name, address and telephone number of the
association;
(2) The name of each community manager for the
common-interest community and the name of any other person who is
authorized to manage the property at the site of the common-interest
community;
(3) The names, mailing addresses and telephone numbers of
the members of the executive board of the association;
(4) The name of the declarant;
(5) The number of units in the common-interest community;
(6) The total annual assessment made by the association;
(7) The number of foreclosures which were completed on units
within the common-interest community and which were based on liens for
the failure of the unit’s owner to pay any assessments levied against the
unit or any fines imposed against the unit’s owner; and
(8) Whether the study of the reserves of the association has
been conducted pursuant to NRS 116.31152 and, if so, the date on which it was
completed.
(Added to NRS by 1997, 3112; A 1999, 2997 ; 2003, 1302 , 2222 )—(Substituted in revision for NRS
116.1116)
1. There is hereby created the Account for Common-Interest
Communities in the State General Fund. The Account must be administered
by the Administrator.
2. Except as otherwise provided in subsection 3, all money
received by the Commission, a hearing panel or the Division pursuant to
this chapter, including, without limitation, the fees collected pursuant
to NRS 116.31155 , must be deposited
into the Account.
3. If the Commission imposes a fine or penalty, the Commission
shall deposit the money collected from the imposition of the fine or
penalty with the State Treasurer for credit to the State General Fund. If
the money is so deposited, the Commission may present a claim to the
State Board of Examiners for recommendation to the Interim Finance
Committee if money is required to pay attorney’s fees or the costs of an
investigation, or both.
4. The interest and income earned on the money in the Account,
after deducting any applicable charges, must be credited to the Account.
5. The money in the Account must be used solely to defray:
(a) The costs and expenses of the Commission and the Office of the
Ombudsman; and
(b) If authorized by the Commission or any regulations adopted by
the Commission, the costs and expenses of subsidizing proceedings for
mediation and arbitration conducted pursuant to NRS 38.300 to 38.360 ,
inclusive.
(Added to NRS by 1997, 3113; A 1999, 8 , 2998 ; 2003, 2223 )—(Substituted in revision for NRS
116.1117)
The Commission and its members, each
hearing panel and its members, the Administrator, the Ombudsman, the
Division, and the experts, attorneys, investigators, consultants and
other personnel of the Commission and the Division are immune from any
civil liability for any decision or action taken in good faith and
without malicious intent in carrying out the provisions of this chapter.
(Added to NRS by 2003, 2211 )
Any notice or other information that is required to be
served upon the Commission pursuant to the provisions of this chapter may
be delivered to the principal office of the Division.
(Added to NRS by 2003, 2210 )
1. The Administrator may adopt regulations which establish
procedures for the Division to conduct business electronically pursuant
to title 59 of NRS with persons who are regulated pursuant to this
chapter and with any other persons with whom the Division conducts
business. The regulations may include, without limitation, the
establishment of fees to pay the costs of conducting business
electronically with the Division.
2. In addition to the process authorized by NRS 719.280 , if the Division is conducting business electronically with a
person and a law requires a signature or record to be notarized,
acknowledged, verified or made under oath, the Division may allow the
person to substitute a declaration that complies with the provisions of
NRS 53.045 to satisfy the legal
requirement.
3. The Division may refuse to conduct business electronically with
a person who has failed to pay money which the person owes to the
Division or the Commission.
(Added to NRS by 2003, 1301 )
General Powers and Duties of Commission for Common-Interest Communities
1. To carry out the purposes of this chapter, the Commission, or
any member thereof acting on behalf of the Commission or acting on behalf
of a hearing panel, may issue subpoenas to compel the attendance of
witnesses and the production of books, records and other papers.
2. If any person fails to comply with a subpoena issued by the
Commission or any member thereof pursuant to this section within 20 days
after the date of service of the subpoena, the Commission may petition
the district court for an order of the court compelling compliance with
the subpoena.
3. Upon such a petition, the court shall enter an order directing
the person subpoenaed to appear before the court at a time and place to
be fixed by the court in its order, the time to be not more than 20 days
after the date of service of the order, and show cause why he has not
complied with the subpoena. A certified copy must be served upon the
person subpoenaed.
4. If it appears to the court that the subpoena was regularly
issued by the Commission or any member thereof pursuant to this section,
the court shall enter an order compelling compliance with the subpoena,
and upon failure to obey the order the person shall be dealt with as for
contempt of court.
(Added to NRS by 1999, 2996 ; A 2003, 2222 )—(Substituted in revision for NRS
116.11145)
1. Each witness who is subpoenaed and appears at a hearing is
entitled to receive for his attendance the same fees and mileage allowed
by law to a witness in a civil case.
2. The fees and mileage for the witness:
(a) Must be paid by the party at whose request the witness is
subpoenaed; or
(b) If the appearance of the witness is not requested by any party
but the witness is subpoenaed at the request of the Commission or a
hearing panel, must be paid by the Division.
(Added to NRS by 2005, 2586 )
1. The Commission shall conduct such hearings and other
proceedings as are required by the provisions of this chapter.
2. The Commission shall collect and maintain or cause to be
collected and maintained accurate information relating to:
(a) The number and kind of common-interest communities in this
State;
(b) The effect of the provisions of this chapter and any
regulations adopted pursuant thereto on the development and construction
of common-interest communities, the residential lending market for units
within common-interest communities and the operation and management of
common-interest communities;
(c) Violations of the provisions of this chapter and any
regulations adopted pursuant thereto;
(d) The accessibility and use of, and the costs related to, the
arbitration and mediation procedures set forth in NRS 38.300 to 38.360 ,
inclusive, and the decisions rendered and awards made pursuant to those
arbitration and mediation procedures;
(e) The number of foreclosures which were completed on units within
common-interest communities and which were based on liens for the failure
of the unit’s owner to pay any assessments levied against the unit or any
fines imposed against the unit’s owner;
(f) The study of the reserves required by NRS 116.31152 ; and
(g) Other issues that the Commission determines are of concern to
units’ owners, associations, community managers, developers and other
persons affected by common-interest communities.
3. The Commission shall develop and promote:
(a) Educational guidelines for conducting the elections of the
members of an executive board, the meetings of an executive board and the
meetings of the units’ owners of an association; and
(b) Educational guidelines for the enforcement of the governing
documents of an association through liens, penalties and fines.
4. The Commission shall recommend and approve for accreditation
programs of education and research relating to common-interest
communities, including, without limitation:
(a) The management of common-interest communities;
(b) The sale and resale of units within common-interest communities;
(c) Alternative methods that may be used to resolve disputes
relating to common-interest communities; and
(d) The enforcement, including by foreclosure, of liens on units
within common-interest communities for the failure of the unit’s owner to
pay any assessments levied against the unit or any fines imposed against
the unit’s owner.
(Added to NRS by 2003, 2211 )
The Commission may:
1. By regulation, establish standards for subsidizing proceedings
for mediation and arbitration conducted pursuant to NRS 38.300 to 38.360 ,
inclusive, to ensure that such proceedings are not lengthy and are
affordable and readily accessible to all parties;
2. By regulation, establish standards for subsidizing educational
programs for the benefit of units’ owners, members of executive boards
and officers of associations;
3. Accept any gifts, grants or donations; and
4. Enter into agreements with other entities that are required or
authorized to carry out similar duties in this State or in other
jurisdictions and cooperate with such entities to develop uniform
procedures for carrying out the provisions of this chapter and for
accumulating information needed to carry out those provisions.
(Added to NRS by 2003, 2212 )
1. The Commission may appoint one or more hearing panels. Each
hearing panel must consist of one or more independent hearing officers.
2. The Commission may by regulation delegate to one or more
hearing panels the power of the Commission to conduct hearings and other
proceedings, determine violations, impose fines and penalties and take
other disciplinary action authorized by the provisions of this chapter.
3. While acting under the authority of the Commission, a hearing
panel and its members are entitled to all privileges and immunities and
are subject to all duties and requirements of the Commission and its
members.
4. A final order of a hearing panel:
(a) May be appealed to the Commission if, not later than 20 days
after the date that the final order is issued by the hearing panel, any
party aggrieved by the final order files a written notice of appeal with
the Commission.
(b) Must be reviewed and approved by the Commission if, not later
than 40 days after the date that the final order is issued by the hearing
panel, the Division, upon the direction of the Chairman of the
Commission, provides written notice to all parties of the intention of
the Commission to review the final order.
(Added to NRS by 2003, 2210 )
The Commission or a hearing panel may conduct a hearing by means of an
audio or video teleconference to one or more locations if the audio or
video technology used at the hearing provides the persons present at each
location with the ability to hear and communicate with the persons
present at each other location.
(Added to NRS by 2003, 2211 )
Regulation of Community Managers
Repealed.
(See chapter 494, Statutes of Nevada 2005, at page 2634 .)
Repealed. (See chapter 494, Statutes of Nevada 2005, at
page 2634 .)
Repealed. (See chapter 494, Statutes of Nevada 2005, at page 2634 .)
Repealed. (See chapter 494, Statutes of Nevada 2005, at
page 2634 .)
Repealed. (See chapter 494, Statutes of Nevada
2005, at page 2634 .)
Repealed. (See chapter 494, Statutes
of Nevada 2005, at page 2634 .)
Investigation of Violations; Remedial and Disciplinary Action
As used in NRS 116.745 to 116.795 ,
inclusive, unless the context otherwise requires, “violation” means a
violation of any provision of this chapter, any regulation adopted
pursuant thereto or any order of the Commission or a hearing panel.
(Added to NRS by 2003, 2213 ; A 2005, 2620 )
1. In carrying out the provisions of NRS 116.745 to 116.795 ,
inclusive, the Division and the Ombudsman have jurisdiction to
investigate and the Commission and each hearing panel has jurisdiction to
take appropriate action against any person who commits a violation,
including, without limitation:
(a) Any association and any officer, employee or agent of an
association.
(b) Any member of an executive board.
(c) Any community manager who holds a certificate and any other
community manager.
(d) Any person who holds a permit to conduct a study of the
reserves of an association issued pursuant to chapter 116A of NRS.
(e) Any declarant or affiliate of a declarant.
(f) Any unit’s owner.
(g) Any tenant of a unit’s owner if the tenant has entered into an
agreement with the unit’s owner to abide by the governing documents of
the association and the provisions of this chapter and any regulations
adopted pursuant thereto.
2. The jurisdiction set forth in subsection 1 applies to any
officer, employee or agent of an association or any member of an
executive board who commits a violation and who:
(a) Currently holds his office, employment, agency or position or
who held his office, employment, agency or position at the commencement
of proceedings against him.
(b) Resigns his office, employment, agency or position:
(1) After the commencement of proceedings against him; or
(2) Within 1 year after the violation is discovered or
reasonably should have been discovered.
(Added to NRS by 2003, 2213 ; A 2005, 2620 )
1. The rights, remedies and penalties provided by NRS 116.745
to 116.795 , inclusive, are cumulative and do not abrogate
and are in addition to any other rights, remedies and penalties that may
exist at law or in equity.
2. If the Commission, a hearing panel or another agency or officer
elects to take a particular action or pursue a particular remedy or
penalty authorized by NRS 116.745 to
116.795 , inclusive, or another specific
statute, that election is not exclusive and does not preclude the
Commission, the hearing panel or another agency or officer from taking
any other actions or pursuing any other remedies or penalties authorized
by NRS 116.745 to 116.795 , inclusive, or another specific statute.
3. In carrying out the provisions of NRS 116.745 to 116.795 ,
inclusive, the Commission or a hearing panel shall not intervene in any
internal activities of an association except to the extent necessary to
prevent or remedy a violation.
(Added to NRS by 2003, 2214 )
1. Except as otherwise provided in this section, a written
affidavit filed with the Division pursuant to NRS 116.760 , all documents and other information filed
with the written affidavit and all documents and other information
compiled as a result of an investigation conducted to determine whether
to file a formal complaint with the Commission are confidential.
2. A formal complaint filed with the Commission and all documents
and other information considered by the Commission or a hearing panel
when determining whether to impose discipline or take other
administrative action pursuant to NRS 116.745 to 116.795 ,
inclusive, are public records.
(Added to NRS by 2005, 2586 )
1. Except as otherwise provided in this section, a person who is
aggrieved by an alleged violation may, not later than 1 year after the
person discovers or reasonably should have discovered the alleged
violation, file with the Division a written affidavit that sets forth the
facts constituting the alleged violation. The affidavit may allege any
actual damages suffered by the aggrieved person as a result of the
alleged violation.
2. An aggrieved person may not file such an affidavit unless the
aggrieved person has provided the respondent by certified mail, return
receipt requested, with written notice of the alleged violation set forth
in the affidavit. The notice must:
(a) Be mailed to the respondent’s last known address.
(b) Specify, in reasonable detail, the alleged violation, any
actual damages suffered by the aggrieved person as a result of the
alleged violation, and any corrective action proposed by the aggrieved
person.
3. A written affidavit filed with the Division pursuant to this
section must be:
(a) On a form prescribed by the Division.
(b) Be accompanied by evidence that:
(1) The respondent has been given a reasonable opportunity
after receiving the written notice to correct the alleged violation; and
(2) Reasonable efforts to resolve the alleged violation have
failed.
4. The Commission or a hearing panel may impose an administrative
fine of not more than $1,000 against any person who knowingly files a
false or fraudulent affidavit with the Division.
(Added to NRS by 2003, 2214 ; A 2005, 2620 )
1. Upon receipt of an affidavit that complies with the provisions
of NRS 116.760 , the Division shall
refer the affidavit to the Ombudsman.
2. The Ombudsman shall give such guidance to the parties as the
Ombudsman deems necessary to assist the parties to resolve the alleged
violation.
3. If the parties are unable to resolve the alleged violation with
the assistance of the Ombudsman, the Ombudsman shall provide to the
Division a report concerning the alleged violation and any information
collected by the Ombudsman during his efforts to assist the parties to
resolve the alleged violation.
4. Upon receipt of the report from the Ombudsman, the Division
shall conduct an investigation to determine whether good cause exists to
proceed with a hearing on the alleged violation.
5. If, after investigating the alleged violation, the Division
determines that the allegations in the affidavit are not frivolous, false
or fraudulent and that good cause exists to proceed with a hearing on the
alleged violation, the Administrator shall file a formal complaint with
the Commission and schedule a hearing on the complaint before the
Commission or a hearing panel.
(Added to NRS by 2003, 2215 )
1. Except as otherwise provided in subsection 2, if the
Administrator files a formal complaint with the Commission, the
Commission or a hearing panel shall hold a hearing on the complaint not
later than 90 days after the date that the complaint is filed.
2. The Commission or the hearing panel may continue the hearing
upon its own motion or upon the written request of a party to the
complaint, for good cause shown, including, without limitation, the
existence of proceedings for mediation or arbitration or a civil action
involving the facts that constitute the basis of the complaint.
3. The Division shall give the respondent written notice of the
date, time and place of the hearing on the complaint at least 30 days
before the date of the hearing. The notice must be:
(a) Delivered personally to the respondent or mailed to the
respondent by certified mail, return receipt requested, to his last known
address.
(b) Accompanied by:
(1) A copy of the complaint; and
(2) Copies of all communications, reports, affidavits and
depositions in the possession of the Division that are relevant to the
complaint.
4. At any hearing on the complaint, the Division may not present
evidence that was obtained after the notice was given to the respondent
pursuant to this section, unless the Division proves to the satisfaction
of the Commission or the hearing panel that:
(a) The evidence was not available, after diligent investigation by
the Division, before such notice was given to the respondent; and
(b) The evidence was given or communicated to the respondent
immediately after it was obtained by the Division.
5. The respondent must file an answer not later than 30 days after
the date that notice of the complaint is delivered or mailed by the
Division. The answer must:
(a) Contain an admission or a denial of the allegations contained
in the complaint and any defenses upon which the respondent will rely; and
(b) Be delivered personally to the Division or mailed to the
Division by certified mail, return receipt requested.
6. If the respondent does not file an answer within the time
required by subsection 5, the Division may, after giving the respondent
written notice of the default, request the Commission or the hearing
panel to enter a finding of default against the respondent. The notice of
the default must be delivered personally to the respondent or mailed to
the respondent by certified mail, return receipt requested, to his last
known address.
(Added to NRS by 2003, 2215 )
Any party to the
complaint may be represented by an attorney at any hearing on the
complaint.
(Added to NRS by 2003, 2216 )
1. After conducting its hearings on the complaint, the Commission
or the hearing panel shall render a final decision on the merits of the
complaint not later than 20 days after the date of the final hearing.
2. The Commission or the hearing panel shall notify all parties to
the complaint of its decision in writing by certified mail, return
receipt requested, not later than 60 days after the date of the final
hearing. The written decision must include findings of fact and
conclusions of law.
(Added to NRS by 2003, 2216 )
1. If the Commission or the hearing panel, after notice and
hearing, finds that the respondent has committed a violation, the
Commission or the hearing panel may take any or all of the following
actions:
(a) Issue an order directing the respondent to cease and desist
from continuing to engage in the unlawful conduct that resulted in the
violation.
(b) Issue an order directing the respondent to take affirmative
action to correct any conditions resulting from the violation.
(c) Impose an administrative fine of not more than $1,000 for each
violation.
2. If the respondent is a member of an executive board or an
officer of an association, the Commission or the hearing panel may order
the respondent removed from his office or position if the Commission or
the hearing panel, after notice and hearing, finds that:
(a) The respondent has knowingly and willfully committed a
violation; and
(b) The removal is in the best interest of the association.
3. If the respondent violates any order issued by the Commission
or the hearing panel pursuant to this section, the Commission or the
hearing panel, after notice and hearing, may impose an administrative
fine of not more than $1,000 for each violation.
4. If the Commission or the hearing panel takes any disciplinary
action pursuant to this section, the Commission or the hearing panel may
order the respondent to pay the costs of the proceedings incurred by the
Division, including, without limitation, the cost of the investigation
and reasonable attorney’s fees.
5. Notwithstanding any other provision of this section, unless the
respondent has knowingly and willfully committed a violation, if the
respondent is a member of an executive board or an officer of an
association:
(a) The association is liable for all fines and costs imposed
against the respondent pursuant to this section; and
(b) The respondent may not be held personally liable for those
fines and costs.
(Added to NRS by 2003, 2216 )
1. If the Commission or a hearing panel, after notice and hearing,
finds that the executive board or any person acting on behalf of the
association has committed a violation, the Commission or the hearing
panel may take any or all of the following actions:
(a) Order an audit of the association.
(b) Require the executive board to hire a community manager who
holds a certificate.
2. The Commission, or the Division with the approval of the
Commission, may apply to a court of competent jurisdiction for the
appointment of a receiver for an association if, after notice and a
hearing, the Commission or a hearing officer finds that any of the
following violations occurred:
(a) The executive board, or any member thereof, has been guilty of
fraud or collusion or gross mismanagement in the conduct or control of
its affairs;
(b) The executive board, or any member thereof, has been guilty of
misfeasance, malfeasance or nonfeasance; or
(c) The assets of the association are in danger of waste or loss
through attachment, foreclosure, litigation or otherwise.
3. In any application for the appointment of a receiver pursuant
to this section, notice of a temporary appointment of a receiver may be
given to the association alone, by process as in the case of an
application for a temporary restraining order or injunction. The hearing
thereon may be had after 5 days’ notice unless the court directs a longer
or different notice and different parties.
4. The court may, if good cause exists, appoint one or more
receivers pursuant to this section to carry out the business of the
association. The members of the executive board who have not been guilty
of negligence or active breach of duty must be preferred in making the
appointment.
5. The powers of any receiver appointed pursuant to this section
may be continued as long as the court deems necessary and proper. At any
time, for sufficient cause, the court may order the receivership
terminated.
6. Any receiver appointed pursuant to this section has, among the
usual powers, all the functions, powers, tenure and duties to be
exercised under the direction of the court as are conferred on receivers
and as provided in NRS 78.635 , 78.640
and 78.645 , whether or not the association is insolvent.
Such powers include, without limitation, the powers to:
(a) Take charge of the estate and effects of the association;
(b) Appoint an agent or agents;
(c) Collect any debts and property due and belonging to the
association and prosecute and defend, in the name of the association, or
otherwise, any civil action as may be necessary or proper for the
purposes of collecting debts and property;
(d) Perform any other act in accordance with the governing
documents of the association and this chapter that may be necessary for
the association to carry out its obligations; and
(e) By injunction, restrain the association from exercising any of
its powers or doing business in any way except by and through a receiver
appointed by the court.
(Added to NRS by 2003, 2217; A 2005, 2621)
1. If the Commission or the Division has reasonable cause to
believe, based on evidence satisfactory to it, that any person violated
or is about to violate any provision of this chapter, any regulation
adopted pursuant thereto or any order, decision, demand or requirement of
the Commission or Division or a hearing panel, the Commission or the
Division may bring an action in the district court for the county in
which the person resides or, if the person does not reside in this State,
in any court of competent jurisdiction within or outside this State, to
restrain or enjoin that person from engaging in or continuing to commit
the violations or from doing any act in furtherance of the violations.
2. The action must be brought in the name of the State of Nevada.
If the action is brought in a court of this State, an order or judgment
may be entered, when proper, issuing a temporary restraining order,
preliminary injunction or final injunction. A temporary restraining order
or preliminary injunction must not be issued without at least 5 days’
notice to the opposite party.
3. The court may issue the temporary restraining order,
preliminary injunction or final injunction without:
(a) Proof of actual damages sustained by any person.
(b) The filing of any bond.
(Added to NRS by 2003, 2217 ; A 2005, 2622 )
