[Rev. 2/10/2015 4:16:08
PM--2014R2]
CHAPTER 116 - COMMON-INTEREST OWNERSHIP
(UNIFORM ACT)
ARTICLE 1
GENERAL PROVISIONS
Part I
Definitions and Other General Provisions
NRS 116.001 Short
title.
NRS 116.003 Definitions.
NRS 116.005 “Administrator”
defined.
NRS 116.007 “Affiliate
of a declarant” defined.
NRS 116.009 “Allocated
interests” defined.
NRS 116.011 “Association”
and “unit-owners’ association” defined.
NRS 116.013 “Certificate”
defined.
NRS 116.015 “Commission”
defined.
NRS 116.017 “Common
elements” defined.
NRS 116.019 “Common
expenses” defined.
NRS 116.021 “Common-interest
community” defined.
NRS 116.023 “Community
manager” defined.
NRS 116.025 “Complaint”
defined.
NRS 116.027 “Condominium”
defined.
NRS 116.029 “Converted
building” defined.
NRS 116.031 “Cooperative”
defined.
NRS 116.033 “Dealer”
defined.
NRS 116.035 “Declarant”
defined.
NRS 116.037 “Declaration”
defined.
NRS 116.039 “Developmental
rights” defined.
NRS 116.041 “Dispose”
and “disposition” defined.
NRS 116.043 “Division”
defined.
NRS 116.045 “Executive
board” defined.
NRS 116.047 “Financial
statement” defined.
NRS 116.049 “Governing
documents” defined.
NRS 116.051 “Hearing
panel” defined.
NRS 116.053 “Identifying
number” defined.
NRS 116.055 “Leasehold
common-interest community” defined.
NRS 116.057 “Liability
for common expenses” defined.
NRS 116.059 “Limited
common element” defined.
NRS 116.0605 “Major
component of the common elements” defined.
NRS 116.061 “Management
of a common-interest community” defined.
NRS 116.063 “Master
association” defined.
NRS 116.064 “Nonresidential
condominium” defined.
NRS 116.065 “Offering”
defined.
NRS 116.067 “Ombudsman”
defined.
NRS 116.069 “Party
to the complaint” defined.
NRS 116.073 “Person”
defined.
NRS 116.075 “Planned
community” defined.
NRS 116.077 “Proprietary
lease” defined.
NRS 116.079 “Purchaser”
defined.
NRS 116.081 “Real
estate” defined.
NRS 116.083 “Residential
use” defined.
NRS 116.085 “Respondent”
defined.
NRS 116.087 “Security
interest” defined.
NRS 116.089 “Special
declarant’s rights” defined.
NRS 116.091 “Time
share” defined.
NRS 116.093 “Unit”
defined.
NRS 116.095 “Unit’s
owner” defined.
NRS 116.1104 Provisions
of chapter may not be varied by agreement, waived or evaded; exceptions.
NRS 116.11045 Provisions
of chapter do not invalidate or modify tariffs, rules and standards of public
utility; consistency of governing documents.
NRS 116.1105 Categorization
of property in certain common-interest communities.
NRS 116.1106 Applicability
of local ordinances, regulations and building codes.
NRS 116.1107 Eminent
domain.
NRS 116.1108 Supplemental
general principles of law applicable.
NRS 116.11085 Provisions
of chapter prevail over conflicting provisions governing certain business
entities generally.
NRS 116.1109 Construction
against implicit repeal; uniformity of application and construction.
NRS 116.1112 Unconscionable
agreement or term of contract.
NRS 116.1113 Obligation
of good faith.
NRS 116.1114 Remedies
to be liberally administered.
NRS 116.1118 Federal
Electronic Signatures in Global and National Commerce Act superseded;
exceptions.
Part II
Applicability
NRS 116.1201 Applicability;
regulations.
NRS 116.1203 Exception
for small planned communities.
NRS 116.1206 Provisions
of governing documents in violation of chapter deemed to conform with chapter
by operation of law; procedure for certain amendments to governing documents.
NRS 116.12065 Notice
of changes to governing documents.
NRS 116.12075 Applicability
to nonresidential condominiums.
NRS 116.1209 Other
exempt real estate arrangements; other exempt covenants.
ARTICLE 2
CREATION, ALTERATION AND TERMINATION OF
COMMON-INTEREST COMMUNITIES
NRS 116.2101 Creation
of common-interest communities.
NRS 116.2102 Unit
boundaries.
NRS 116.2103 Construction
and validity of declaration and bylaws.
NRS 116.2104 Description
of units.
NRS 116.2105 Contents
of declaration.
NRS 116.2106 Leasehold
common-interest communities.
NRS 116.2107 Allocation
of allocated interests.
NRS 116.2108 Limited
common elements.
NRS 116.2109 Plats.
NRS 116.211 Exercise
of developmental rights.
NRS 116.2111 Alterations
of units; access to units.
NRS 116.2112 Relocation
of boundaries between adjoining units.
NRS 116.2113 Subdivision
of units.
NRS 116.2114 Monuments
as boundaries.
NRS 116.2115 Use
for purposes of sales.
NRS 116.2116 Easement
rights; validity of existing restrictions.
NRS 116.2117 Amendment
of declaration.
NRS 116.21175 Procedure
for seeking confirmation from district court of certain amendments to
declaration.
NRS 116.2118 Termination
of common-interest community.
NRS 116.21183 Rights
of creditors following termination.
NRS 116.21185 Respective
interests of units’ owners following termination.
NRS 116.21188 Effect
of foreclosure or enforcement of lien or encumbrance.
NRS 116.2119 Rights
of secured lenders.
NRS 116.212 Master
associations.
NRS 116.21205 Reallocation
of costs of administering common elements of certain master associations.
NRS 116.2121 Merger
or consolidation of common-interest communities.
NRS 116.2122 Addition
of unspecified real estate.
NRS 116.2124 Termination
following catastrophe.
ARTICLE 3
MANAGEMENT OF COMMON-INTEREST
COMMUNITIES
General Provisions
NRS 116.3101 Organization
of unit-owners’ association.
NRS 116.3102 Powers
of unit-owners’ association; limitations.
NRS 116.3103 Power
of executive board to act on behalf of association; members and officers are
fiduciaries; duty of care; application of business-judgment rule and conflict
of interest rules; limitations on power.
NRS 116.310305 Power
of executive board to impose construction penalties for failure of unit’s owner
to adhere to certain schedules relating to design, construction, occupancy or
use of unit or improvement.
NRS 116.31031 Power
of executive board to impose fines and other sanctions for violations of
governing documents; limitations; procedural requirements; continuing
violations; collection of past due fines; statement of balance owed.
NRS 116.310312 Power
of executive board to enter grounds of unit to conduct certain maintenance or
remove or abate public nuisance; notice of security interest and hearing
required; imposition of fines and costs; lien against unit; limitation on
liability.
NRS 116.310313 Collection
of past due obligation; charge of reasonable fee to collect.
NRS 116.310315 Accounting
for fines imposed by association.
NRS 116.31032 Period
of declarant’s control of association; representation of units’ owners on
executive board.
NRS 116.31034 Election
of members of executive board and officers of association; term of office of
member of executive board; staggered terms; eligibility to serve on executive
board; required disclosures; procedure for conducting elections; certification
by member of executive board of understanding of governing documents and
provisions of chapter.
NRS 116.31035 Publications
containing mention of candidate or ballot question: Requirements; limitations.
NRS 116.31036 Removal
of member of executive board.
NRS 116.31037 Indemnification
and defense of member of executive board.
NRS 116.31038 Delivery
to association of property held or controlled by declarant.
NRS 116.31039 Delivery
to association of additional common elements constructed by declarant or
successor declarant.
NRS 116.310395 Delivery
to association of converted building reserve deficit.
NRS 116.3104 Transfer
of special declarant’s right.
NRS 116.31043 Liabilities
and obligations of person who succeeds to special declarant’s rights.
NRS 116.31046 Successor
not subject to certain claims against or other obligations of transferor of
special declarant’s right.
NRS 116.3105 Termination
of contracts and leases of declarant.
NRS 116.3106 Bylaws.
NRS 116.31065 Rules.
NRS 116.31068 Notice
to units’ owners.
NRS 116.3107 Upkeep
of common-interest community.
NRS 116.31073 Maintenance,
repair, restoration and replacement of security walls.
Meetings and Voting
NRS 116.31075 Meetings
of rural agricultural residential common-interest communities: Compliance with
Open Meeting Law.
NRS 116.3108 Meetings
of units’ owners of association; frequency of meetings; calling special
meetings; requirements concerning notice and agendas; requirements concerning
minutes of meetings; right of units’ owners to make audio recordings of
meetings.
NRS 116.31083 Meetings
of executive board; frequency of meetings; periodic review of certain financial
and legal matters at meetings; requirements concerning minutes of meetings;
right of units’ owners to make audio recordings of certain meetings.
NRS 116.31084 Voting
by member of executive board; disclosures; abstention from voting on certain
matters.
NRS 116.31085 Right
of units’ owners to speak at certain meetings; limitations on right;
limitations on power of executive board to meet in executive session; procedure
governing hearings on alleged violations; requirements concerning minutes of
certain meetings.
NRS 116.31086 Solicitation
of bids for association project; bids to be opened at meeting of executive
board.
NRS 116.31087 Right
of units’ owners to have certain complaints placed on agenda of meeting of
executive board.
NRS 116.31088 Meetings
regarding civil actions; requirements for commencing or ratifying certain civil
actions; right of units’ owners to request dismissal of certain civil actions;
disclosure of terms and conditions of settlements.
NRS 116.3109 Quorum.
NRS 116.311 Voting
by units’ owners; use of absentee ballots and proxies; voting by lessees of
leased units; association prohibited from voting as owner of unit; voting
without a meeting.
NRS 116.31105 Voting
by delegates or representatives; limitations; procedure for electing delegates
or representatives.
NRS 116.31107 Voting
by units’ owners: Prohibited acts; penalty.
Liabilities, Insurance and Fiscal Affairs
NRS 116.3111 Tort
and contract liability.
NRS 116.3112 Conveyance
or encumbrance of common elements.
NRS 116.3113 Insurance:
General requirements.
NRS 116.31133 Insurance:
Policies; use of proceeds; certificates or memoranda of insurance.
NRS 116.31135 Insurance:
Repair or replacement of damaged or destroyed portion of community.
NRS 116.31138 Insurance:
Variance or waiver of provisions in community restricted to nonresidential use.
NRS 116.311395 Funds
of association to be deposited or invested at certain financial institutions.
NRS 116.3114 Surplus
funds.
NRS 116.31142 Preparation
and presentation of financial statements.
NRS 116.31144 Audit
and review of financial statements.
NRS 116.3115 Assessments
for common expenses; funding of adequate reserves; collection of interest on
past due assessments; calculation of assessments for particular types of common
expenses; notice of meetings regarding assessments for capital improvements.
NRS 116.31151 Annual
distribution to units’ owners of operating and reserve budgets or summaries of
such budgets and policy for collection of fees, fines, assessments or costs;
ratification of budget.
NRS 116.31152 Study
of reserves; duties of executive board regarding study; qualifications of
person who conducts study; contents of study; submission of summary of study to
Division; use of money credited against residential construction tax for upkeep
of park facilities and related improvements identified in study.
NRS 116.31153 Signatures
required for withdrawals of certain association funds; exceptions.
NRS 116.31155 Fees
imposed on associations or master associations to pay for costs of administering
Office of Ombudsman and Commission; administrative penalties for failure to
pay; interest on unpaid fees; limitations on amount of fees and penalties;
procedure to recover fees, penalties or interest imposed in error.
NRS 116.31158 Registration
of associations with Ombudsman; contents of form for registration.
Liens
NRS 116.3116 Liens
against units for assessments.
NRS 116.31162 Foreclosure
of liens: Mailing of notice of delinquent assessment; recording of notice of
default and election to sell; period during which unit’s owner may pay lien to
avoid foreclosure; limitations on type of lien that may be foreclosed.
NRS 116.31163 Foreclosure
of liens: Mailing of notice of default and election to sell to certain
interested persons.
NRS 116.311635 Foreclosure
of liens: Providing notice of time and place of sale; service of notice of
sale; contents of notice of sale; proof of service.
NRS 116.31164 Foreclosure
of liens: Procedure for conducting sale; purchase of unit by association;
execution and delivery of deed; use of proceeds of sale.
NRS 116.31166 Foreclosure
of liens: Effect of recitals in deed; purchaser not responsible for proper
application of purchase money; title vested in purchaser without equity or
right of redemption.
NRS 116.31168 Foreclosure
of liens: Requests by interested persons for notice of default and election to
sell; right of association to waive default and withdraw notice or proceeding
to foreclose.
NRS 116.3117 Liens
against association.
Books, Records and Other Documents
NRS 116.31175 Maintenance
and availability of books, records and other papers of association: General
requirements; exceptions; general records concerning certain violations;
enforcement by Ombudsman; limitations on amount that may be charged to conduct
review.
NRS 116.3118 Maintenance
and availability of certain financial records necessary to provide information
required for resale of units; right of units’ owners to inspect, examine,
photocopy and audit records of association.
Miscellaneous Rights, Duties and Restrictions
NRS 116.31183 Retaliatory
action prohibited; separate action by unit’s owner.
NRS 116.31184 Threats,
harassment and other conduct prohibited; penalty.
NRS 116.31185 Prohibition
against certain personnel soliciting or accepting compensation, gratuity or
remuneration under certain circumstances.
NRS 116.31187 Prohibition
against certain personnel contracting with association or accepting commission,
personal profit or compensation from association; exceptions.
NRS 116.31189 Bribery
of community manager or member of executive board; penalties; exceptions.
NRS 116.3119 Association
as trustee.
NRS 116.320 Right
of units’ owners to display flag of the United States in certain areas;
conditions and limitations on exercise of right.
NRS 116.325 Right
of units’ owners to exhibit political signs in certain areas; conditions and
limitations on exercise of right.
NRS 116.330 Right
of units’ owners to install or maintain drought tolerant landscaping;
conditions and limitations on exercise of right; installation of drought
tolerant landscaping within common elements.
NRS 116.332 Right
of units’ owners to store containers for collection of solid waste or
recyclable materials; adoption of rules by association.
NRS 116.335 Association
prohibited from requiring unit’s owner to obtain approval to rent or lease
unit; exceptions.
NRS 116.340 Transient
commercial use of units within certain planned communities.
NRS 116.345 Association
of planned community prohibited from taking certain actions regarding property,
buildings and structures within planned community; validity of existing
restrictions.
NRS 116.350 Limitations
regarding regulation of certain roads, streets, alleys or other thoroughfares;
permissible regulation of parking or storage of certain vehicles.
ARTICLE 4
PROTECTION OF PURCHASERS
NRS 116.4101 Applicability;
exceptions.
NRS 116.4102 Liability
for preparation and delivery of public offering statement.
NRS 116.4103 Public
offering statement: General provisions.
NRS 116.41035 Public
offering statement: Limitations for certain small offerings.
NRS 116.4104 Public
offering statement: Common-interest communities subject to developmental
rights.
NRS 116.4105 Public
offering statement: Time shares.
NRS 116.4106 Public
offering statement: Common-interest community containing converted building.
NRS 116.4107 Public
offering statement: Common-interest community registered with Securities and
Exchange Commission or State of Nevada.
NRS 116.4108 Purchaser’s
right to cancel.
NRS 116.4109 Resales
of units.
NRS 116.41095 Required
form of information statement.
NRS 116.411 Escrow
of deposits; furnishing of bond in lieu of deposit.
NRS 116.4111 Release
of liens.
NRS 116.4112 Converted
buildings.
NRS 116.4113 Express
warranties of quality.
NRS 116.4114 Implied
warranties of quality.
NRS 116.4115 Exclusion
or modification of warranties of quality.
NRS 116.4116 Statute
of limitations for warranties.
NRS 116.4117 Effect
of violations on rights of action; civil action for damages for failure or
refusal to comply with provisions of chapter or governing documents; members of
executive board not personally liable to victims of crimes; circumstances under
which punitive damages may be awarded; attorney’s fees.
NRS 116.4118 Labeling
of promotional material.
NRS 116.4119 Declarant’s
obligation to complete and restore.
NRS 116.412 Substantial
completion of units.
ADMINISTRATION AND ENFORCEMENT OF CHAPTER
General Provisions
NRS 116.600 Commission
for Common-Interest Communities and Condominium Hotels: Creation; appointment and
qualifications of members; terms of office; compensation.
NRS 116.605 Commission
for Common-Interest Communities and Condominium Hotels: Courses of instruction
for members.
NRS 116.610 Commission
for Common-Interest Communities and Condominium Hotels: Election of officers;
meetings; quorum.
NRS 116.615 Administration
of chapter; regulations of Commission and Real Estate Administrator; delegation
of authority; publications.
NRS 116.620 Employment
of personnel by Real Estate Division; duties of Attorney General; legal
opinions by Attorney General.
NRS 116.623 Petitions
for declaratory orders or advisory opinions: Regulations; scope; contents of
petition; filing; period for response.
NRS 116.625 Ombudsman
for Owners in Common-Interest Communities and Condominium Hotels: Creation of
office; appointment; qualifications; powers and duties.
NRS 116.630 Account
for Common-Interest Communities and Condominium Hotels: Creation;
administration; sources; uses.
NRS 116.635 Immunity.
NRS 116.640 Service
of notice and other information upon Commission.
NRS 116.643 Authority
for Commission or Real Estate Administrator to adopt regulations requiring
additional disclosures for sale of unit.
NRS 116.645 Authority
for Real Estate Division to conduct business electronically; regulations; fees;
use of unsworn declaration; exclusions.
General Powers and Duties of Commission
NRS 116.660 Issuance
and enforcement of subpoenas.
NRS 116.662 Witnesses:
Payment of fees and mileage.
NRS 116.665 Conducting
hearings and other proceedings; collection of information; development and
promotion of educational guidelines; accreditation of programs of education and
research.
NRS 116.670 Establishment
of standards for subsidizing arbitration, mediation and educational programs;
acceptance of gifts, grants and donations; agreements and cooperation with
other entities.
NRS 116.675 Appointment
of hearing panels; delegation of powers and duties; appeals to Commission.
NRS 116.680 Use
of audio or video teleconference for hearings.
Investigation of Violations; Remedial and Disciplinary Action
NRS 116.745 “Violation”
defined.
NRS 116.750 Jurisdiction
of Real Estate Division, Ombudsman, Commission and hearing panels.
NRS 116.755 Rights,
remedies and penalties are cumulative and not exclusive; limitations on power
of Commission and hearing panels regarding internal activities of association.
NRS 116.757 Confidentiality
of records: Certain records relating to complaint or investigation deemed
confidential; certain records relating to disciplinary action deemed public
records.
NRS 116.760 Right
of person aggrieved by alleged violation to file affidavit with Real Estate
Division; procedure for filing affidavit; administrative fine for filing false
or fraudulent affidavit.
NRS 116.765 Referral
of affidavit to Ombudsman for assistance in resolving alleged violation; report
by Ombudsman; investigation by Real Estate Division; determination of whether
to file complaint with Commission.
NRS 116.770 Procedure
for hearing complaints: Time for holding hearing; continuances; notices;
evidence; answers; defaults.
NRS 116.775 Representation
by attorney.
NRS 116.780 Decisions
on complaints.
NRS 116.785 Remedial
and disciplinary action: Orders to cease and desist and to correct violations;
administrative fines; removal from office or position; payment of costs;
exemptions from liability.
NRS 116.790 Remedial
and disciplinary action: Audit of association; requiring association to hire
community manager who holds certificate; appointment of receiver.
NRS 116.795 Injunctions.
_________
_________
ARTICLE 1
GENERAL PROVISIONS
Part I
Definitions and Other General Provisions
NRS 116.001 Short title. 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)
NRS 116.003 Definitions. As
used in this chapter and in the declaration and bylaws of an association, 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; 2009, 1608;
2011, 2415)
NRS 116.005 “Administrator” defined. “Administrator”
means the Real Estate Administrator.
(Added to NRS by 1999, 2993; A 2003, 1302, 2221)—(Substituted
in revision for NRS 116.110305)
NRS 116.007 “Affiliate of a declarant” defined. “Affiliate
of a declarant” means any person who controls, is controlled by or is under
common control with a declarant. For purposes of this section:
1. 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.
2. 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.
3. 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; A 2011, 2415)—(Substituted
in revision for NRS 116.11031)
NRS 116.009 “Allocated interests” defined. “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, the ownership interest 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; A 2011, 2416)—(Substituted
in revision for NRS 116.110313)
NRS 116.011 “Association” and “unit-owners’ association” defined. “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)
NRS 116.013 “Certificate” defined. “Certificate”
means a certificate for the management of a common-interest community or the
management of an association of a condominium hotel issued by the Division
pursuant to chapter 116A of NRS.
(Added to NRS by 2003, 2208; A 2005, 2587; 2007, 2268)
NRS 116.015 “Commission” defined. “Commission”
means the Commission for Common-Interest Communities and Condominium Hotels
created by NRS 116.600.
(Added to NRS by 2003, 2208; A 2007, 2268)
NRS 116.017 “Common elements” defined. “Common
elements” means:
1. In the case of:
(a) 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.
(b) A planned community, any real estate within a
planned community which is owned or leased by the association, other than a
unit.
2. In all common-interest communities, any
other interests in real estate for the benefit of units’ owners which are
subject to the declaration.
(Added to NRS by 1991, 536; A 1993, 2356; 2011, 2416)—(Substituted
in revision for NRS 116.110318)
NRS 116.019 “Common expenses” defined. “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)
NRS 116.021 “Common-interest community” defined.
1. “Common-interest community” means real
estate described in a declaration with respect to which a person, by virtue of
the person’s ownership of a unit, is obligated to pay for a share of real
estate taxes, insurance premiums, maintenance or improvement of, or services or
other expenses related to, common elements, other units or other real estate
described in that declaration.
2. The term does not include an agreement
described in NRS 116.1209.
3. For purposes of this section,
“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; A 2009, 1608)—(Substituted
in revision for NRS 116.110323)
NRS 116.023 “Community manager” defined. “Community
manager” means a person who provides for or otherwise engages in the management
of a common-interest community or the management of an association of a
condominium hotel.
(Added to NRS by 2003, 2208; A 2007, 2268)
NRS 116.025 “Complaint” defined. “Complaint”
means a complaint filed by the Administrator pursuant to NRS
116.765.
(Added to NRS by 2003, 2208)
NRS 116.027 “Condominium” defined. “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)
NRS 116.029 “Converted building” defined. “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)
NRS 116.031 “Cooperative” defined. “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 the member’s
ownership in the association to exclusive possession of a unit.
(Added to NRS by 1991, 536)—(Substituted
in revision for NRS 116.11033)
NRS 116.033 “Dealer” defined. “Dealer”
means a person in the business of selling units for his or her own account.
(Added to NRS by 1991, 537)—(Substituted
in revision for NRS 116.110333)
NRS 116.035 “Declarant” defined. “Declarant”
means any person or group of persons acting in concert who:
1. As part of a common promotional plan,
offers to dispose of the interest of the person or group of persons in a unit
not previously disposed of; or
2. Reserves or succeeds to any special
declarant’s right.
(Added to NRS by 1991, 537; A 2011, 2416)—(Substituted
in revision for NRS 116.110335)
NRS 116.037 “Declaration” defined. “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)
NRS 116.039 “Developmental rights” defined. “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)
NRS 116.041 “Dispose” and “disposition” defined. “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)
NRS 116.043 “Division” defined. “Division”
means the Real Estate Division of the Department of Business and Industry.
(Added to NRS by 2003, 1301, 2208)
NRS 116.045 “Executive board” defined. “Executive
board” means the body, regardless of name, designated in the declaration or
bylaws to act on behalf of the association.
(Added to NRS by 1991, 537; A 2011, 2416)—(Substituted
in revision for NRS 116.110345)
NRS 116.047 “Financial statement” defined. “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)
NRS 116.049 “Governing documents” defined. “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)
NRS 116.051 “Hearing panel” defined. “Hearing
panel” means a hearing panel appointed by the Commission pursuant to NRS 116.675.
(Added to NRS by 2003, 2208)
NRS 116.053 “Identifying number” defined. “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)
NRS 116.055 “Leasehold common-interest community” defined. “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)
NRS 116.057 “Liability for common expenses” defined. “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)
NRS 116.059 “Limited common element” defined. “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)
NRS 116.0605 “Major component of the common elements” defined. “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)
NRS 116.061 “Management of a common-interest community” defined. “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)
NRS 116.063 “Master association” defined. “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)
NRS 116.064 “Nonresidential condominium” defined. “Nonresidential
condominium” means a condominium in which all units are restricted exclusively
to nonresidential use.
(Added to NRS by 2009, 1607)
NRS 116.065 “Offering” defined. “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)
NRS 116.067 “Ombudsman” defined. “Ombudsman”
means the Ombudsman for Owners in Common-Interest Communities and Condominium
Hotels.
(Added to NRS by 2003, 2209; A 2007, 2268)
NRS 116.069 “Party to the complaint” defined. “Party
to the complaint” means the Division and the respondent.
(Added to NRS by 2003, 2209)
NRS 116.073 “Person” defined. “Person”
includes a government and governmental subdivision or agency.
(Added to NRS by 1991, 537)—(Substituted
in revision for NRS 116.110363)
NRS 116.075 “Planned community” defined. “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)
NRS 116.077 “Proprietary lease” defined. “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)
NRS 116.079 “Purchaser” defined. “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:
1. A leasehold interest, including options
to renew, of less than 20 years; or
2. As security for an obligation.
(Added to NRS by 1991, 538; A 2011, 2416)—(Substituted
in revision for NRS 116.110375)
NRS 116.081 “Real estate” defined. “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. The term 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; A 2011, 2416)—(Substituted
in revision for NRS 116.110378)
NRS 116.083 “Residential use” defined. “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)
NRS 116.085 “Respondent” defined. “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)
NRS 116.087 “Security interest” defined. “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)
NRS 116.089 “Special declarant’s rights” defined. “Special
declarant’s rights” means rights reserved for the benefit of a declarant to:
1. Complete improvements indicated on
plats or in the declaration or, in a cooperative, to complete improvements
described in the public offering statement pursuant to paragraph (b) of
subsection 1 of NRS 116.4103;
2. Exercise any developmental right;
3. Maintain sales offices, management
offices, signs advertising the common-interest community and models;
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;
5. Make the common-interest community
subject to a master association;
6. Merge or consolidate a common-interest community
with another common-interest community of the same form of ownership; 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.
(Added to NRS by 1991, 538; A 2009, 1608;
2011, 2416)—(Substituted
in revision for NRS 116.110385)
NRS 116.091 “Time share” defined. “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)
NRS 116.093 “Unit” defined. “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)
NRS 116.095 “Unit’s owner” defined. “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 until that unit has been conveyed to another person.
(Added to NRS by 1991, 539; A 2011, 2417)—(Substituted
in revision for NRS 116.110393)
NRS 116.1104 Provisions of chapter may not be varied by agreement, waived or
evaded; exceptions. Except as
expressly provided in this chapter, its provisions may not be varied by
agreement, and rights conferred by it may not be waived. Except as otherwise provided
in paragraph (b) of subsection 2 of NRS 116.12075,
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; A 2011, 2417)
NRS 116.11045 Provisions of chapter do not invalidate or modify tariffs, rules
and standards of public utility; consistency of governing documents.
1. The provisions of this chapter do not
invalidate or modify the tariffs, rules and standards of a public utility.
2. The governing documents of an
association must be consistent and not conflict with the tariffs, rules and
standards of a public utility. Any provision of the governing documents which
conflicts with the tariffs, rules and standards of a public utility is void and
may not be enforced against a purchaser.
3. As used in this section, “public
utility” has the meaning ascribed to it in NRS
704.020.
(Added to NRS by 2009, 974)
NRS 116.1105 Categorization of property in certain common-interest
communities. 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)
NRS 116.1106 Applicability of local ordinances, regulations and building
codes.
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)
NRS 116.1107 Eminent domain.
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.
5. The provisions of this section do not
authorize an association to exercise the power of eminent domain pursuant to chapter 37 of NRS, and an association may not
exercise the power of eminent domain, as provided in NRS 37.0097.
(Added to NRS by 1991, 540; A 2009, 2877)
NRS 116.1108 Supplemental general principles of law applicable. The principles of law and equity, including
the law of corporations and any other form of organization authorized by law of
this State, 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; A 2011, 2417)
NRS 116.11085 Provisions of chapter prevail over conflicting provisions
governing certain business entities generally. If
a matter governed by this chapter is also governed by chapter 78, 81,
82, 86, 87, 87A, 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; 2007, 485)
NRS 116.1109 Construction against implicit repeal; uniformity of application and
construction.
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)
NRS 116.1112 Unconscionable agreement or term of contract.
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)
NRS 116.1113 Obligation of good faith. 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)
NRS 116.1114 Remedies to be liberally administered. 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.
(Added to NRS by 1991, 541; A 2011, 2417)
NRS 116.1118 Federal Electronic Signatures in Global and National Commerce
Act superseded; exceptions. This
chapter modifies, limits and supersedes the federal Electronic Signatures in
Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq., but does not
modify, limit or supersede Section 101(c) of that Act, 15 U.S.C. § 7001(c), or
authorize electronic delivery of any of the notices described in Section 103(b)
of that Act, 15 U.S.C. § 7003(b).
(Added to NRS by 2011, 2414)
Part II
Applicability
NRS 116.1201 Applicability; regulations.
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, except that if the
limited-purpose association is created for a rural agricultural residential
common-interest community, the limited-purpose association is not required to
pay the fee unless the association intends to use the services of the
Ombudsman;
(2) Shall register with the Ombudsman
pursuant to NRS 116.31158;
(3) Shall comply with the provisions of:
(I) NRS
116.31038;
(II) NRS
116.31083 and 116.31152, unless the
limited-purpose association is created for a rural agricultural residential
common-interest community;
(III) NRS
116.31073, if the limited-purpose association is created for maintaining
the landscape of the common elements of the common-interest community; and
(IV) 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 or a part of this chapter does apply to that planned
community pursuant to NRS 116.12075. 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 NRS 116.4102 and 116.4103, and, to the extent applicable, NRS 116.41035 to 116.4107,
inclusive, apply to a contract for the disposition of a unit in that
common-interest community 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
55,000, 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;
(d) Except as otherwise provided in subsection 8
of NRS 116.31105, 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, except that, in the election or removal of a
member of the executive board, the voting rights of the units’ owners may not
be exercised by delegates or representatives;
(e) Prohibit a master association which governs a
time-share plan created pursuant to chapter
119A of NRS from providing for a representative form of government for the
time-share plan; or
(f) Prohibit a master association which governs a
planned community containing both units that are restricted exclusively to
nonresidential use and other units that are not so restricted and which is
exempt from the provisions of this chapter pursuant to paragraph (b) of
subsection 2 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; 2009, 1609,
2211, 2863, 2908, 2910; 2011, 1143,
2418)
NRS 116.1203 Exception for small planned communities.
1. Except as otherwise provided in
subsections 2 and 3, 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. The provisions of NRS 116.12065 and the definitions set forth in NRS 116.005 to 116.095,
inclusive, to the extent that the definitions are necessary to construe any of
those provisions, apply to a residential planned community containing more than
6 units.
3. 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 6 units.
(Added to NRS by 1991, 542; A 1993, 2357; 1999, 2999; 2001, 528; 2003, 2224, 2266; 2005, 1232, 2589; 2009, 1099,
2864; 2011, 2419;
2013, 1368,
2530)
NRS 116.1206 Provisions of governing documents in violation of chapter deemed
to conform with chapter by operation of law; procedure for certain amendments
to governing documents.
1. Any provision contained in a
declaration, bylaw or other governing document of a common-interest community
that violates the provisions of this chapter:
(a) 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.
(b) Is superseded by the provisions of this
chapter, regardless of whether the provision contained in the declaration,
bylaw or other governing document became effective before the enactment of the
provision of this chapter that is being violated.
2. In the case of amendments to the
declaration, bylaws or plats 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 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, except as otherwise provided in subsection 8 of NRS 116.2117, with the procedures and requirements
specified by those instruments. If an amendment grants to a person a right,
power or privilege permitted by this chapter, any correlative obligation,
liability or restriction in this chapter also applies to the person.
(Added to NRS by 1991, 543; A 1999, 2999; 2003, 2224; 2009, 1610,
2877; 2011, 2420)
NRS 116.12065 Notice of changes to governing documents. 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)
NRS 116.12075 Applicability to nonresidential condominiums.
1. The provisions of this chapter do not
apply to a nonresidential condominium except to the extent that the declaration
for the nonresidential condominium provides that:
(a) This entire chapter applies to the
condominium;
(b) Only the provisions of NRS
116.001 to 116.2122, inclusive, and 116.3116 to 116.31168,
inclusive, apply to the condominium; or
(c) Only the provisions of NRS 116.3116 to 116.31168,
inclusive, apply to the condominium.
2. If this entire chapter applies to a
nonresidential condominium, the declaration may also require, subject to NRS 116.1112, that:
(a) Notwithstanding NRS
116.3105, any management, maintenance operations or employment contract, lease
of recreational or parking areas or facilities and any other contract or lease
between the association and a declarant or an affiliate of a declarant
continues in force after the declarant turns over control of the association;
and
(b) Notwithstanding NRS
116.1104 and subsection 3 of NRS 116.311,
purchasers of units must execute proxies, powers of attorney or similar devices
in favor of the declarant regarding particular matters enumerated in those
instruments.
(Added to NRS by 2009, 1607;
A 2011,
2420)
NRS 116.1209 Other exempt real estate arrangements; other exempt covenants.
1. An agreement between the associations
for two or more common-interest communities to share the costs of real estate
taxes, insurance premiums, services, maintenance or improvements of real estate
or other activities specified in the agreement or declarations does not create a
separate common-interest community. If the declarants of the common-interest
communities are affiliates, the agreement may not unreasonably allocate the
costs among those common-interest communities.
2. An agreement between an association and
the owner of real estate that is not part of a common-interest community to
share the costs of real estate taxes, insurance premiums, services, maintenance
or improvements of real estate, or other activities specified in the agreement,
does not create a separate common-interest community. However, the assessments
against the units in the common-interest community required by the agreement
must be included in the periodic budget for the common-interest community, and
the agreement must be disclosed in all public offering statements and resale
certificates required by this chapter.
3. An agreement between the owners of
separately owned parcels of real estate to share costs or other obligations
associated with a party wall, road, driveway or well or other similar use does
not create a common-interest community unless the owners otherwise agree.
4. As used in this section, “party wall”
means any wall or fence constructed along the common boundary line between
parcels. The term does not include any shared building structure systems,
including, without limitation, foundations, walls and roof structures.
(Added to NRS by 2009, 1608)
ARTICLE 2
CREATION, ALTERATION AND TERMINATION OF COMMON-INTEREST
COMMUNITIES
NRS 116.2101 Creation 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)
NRS 116.2102 Unit boundaries. 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)
NRS 116.2103 Construction and validity of declaration and bylaws.
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. If a conflict exists between 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; 2011, 2421)
NRS 116.2104 Description of units. 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)
NRS 116.2105 Contents of declaration.
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 legally 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, 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 limit 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
for recorded easements and licenses 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, 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; 2009, 1611;
2011, 2421)
NRS 116.2106 Leasehold common-interest communities.
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 for the lease or a
statement of where the recorded lease may be inspected;
(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 may be 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 or her 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; A 2011, 2422)
NRS 116.2107 Allocation of allocated interests.
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, 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 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 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; 2011, 2423)
NRS 116.2108 Limited common elements.
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)
NRS 116.2109 Plats.
1. Plats are a part of the declaration,
and are required for all common-interest communities except cooperatives. Each
plat must be clear and legible and contain a certification that the plat
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, with reference
to an established datum, 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 plats
recorded pursuant to subsection 3 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. The plats 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, when the horizontal boundaries of part of a unit located outside a
building have the same elevation as the horizontal boundaries of the inside
part, the elevations need not be depicted on the plats.
5. Upon exercising any developmental
right, the declarant shall record new or amended plats necessary to conform to
the requirements of subsection 2.
6. Each plat must be certified by a
professional land surveyor.
(Added to NRS by 1991, 547; A 1993, 2360; 2009, 1612)
NRS 116.211 Exercise of developmental rights.
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
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; A 2009, 1613)
NRS 116.2111 Alterations of units; access to units.
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 or her 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 or
her unit.
(b) Charge any fee for a person to enter the
common-interest community to provide services to a unit, a unit’s owner or a
tenant of a unit’s owner or for any visitor to the common-interest community or
invitee of a unit’s owner or a tenant of a unit’s owner to enter the
common-interest community.
(c) 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.
(d) 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. An association may not unreasonably
restrict, prohibit or withhold approval for a unit’s owner to add shutters to
improve the security of the unit or to reduce the costs of energy for the unit,
including, without limitation, rolling shutters, that are attached to a portion
of an interior or exterior window, interior or exterior door or interior or
exterior wall which is not part of the unit and which is a common element or
limited common element if:
(a) The portion of the window, door or wall to
which the shutters are attached is adjoining the unit; and
(b) The shutters must necessarily be attached to
that portion of the window, door or wall during installation to achieve the
maximum benefit in improving the security of the unit or reducing the costs of energy
for the unit.
5. If a unit’s owner adds shutters
pursuant to subsection 4, the unit’s owner is responsible for the maintenance
of the shutters.
6. For the purposes of subsection 4, a
covenant, restriction or condition which does not unreasonably restrict the
addition of shutters and which is contained in the governing documents of a
common-interest community or a policy established by a common-interest
community is enforceable so long as the covenant, restriction or condition was:
(a) In existence on July 1, 2009; or
(b) Contained in the governing documents in
effect on the close of escrow of the first sale of a unit in the
common-interest community.
7. A unit’s owner may not add to the unit
a system that uses wind energy as described in subparagraph (4) of paragraph
(c) of subsection 2 unless the unit’s owner 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; 2009, 246, 2878)
NRS 116.2112 Relocation of boundaries between adjoining units.
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 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 necessary to show or describe the altered
boundaries between adjoining units, and their dimensions and identifying
numbers.
(Added to NRS by 1991, 550; A 2009, 1614)
NRS 116.2113 Subdivision of units.
1. If the declaration expressly so
permits, a unit may be subdivided into two or more units. Subject to the
declaration and law other than this chapter, 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, 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 or on any other basis the
declaration requires.
(Added to NRS by 1991, 550; A 2009, 1614;
2011, 2424)
NRS 116.2114 Monuments as boundaries. 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 or her willful misconduct or relieve a declarant or any other
person of liability for failure to adhere to any plats or, in a cooperative, to
any representation in the public offering statement.
(Added to NRS by 1991, 550; A 2009, 1614)
NRS 116.2115 Use for purposes of sales. 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)
NRS 116.2116 Easement rights; validity of existing restrictions.
1. Subject to 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. Subject to paragraph (f) of subsection
1 of NRS 116.3102 and NRS
116.3112, the units’ owners have an easement in the common elements for
purposes of access to their units.
3. Subject to the declaration and any
rules adopted by the association, the units’ owners have a right to use the
common elements that are not limited common elements and all real estate that
must become common elements for the purposes for which they were intended.
4. 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.
5. The provisions of subsection 4 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; 2011, 2424)
NRS 116.2117 Amendment of declaration.
1. Except as otherwise provided in NRS 116.21175, and except in cases of amendments
that may be executed by a declarant under subsection 5 of NRS 116.2109 or NRS 116.211,
or by the association under NRS 116.1107, 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 subsections 4, 7 and 8, the declaration,
including any plats, 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, unless the declaration specifies a different percentage for all
amendments or for specified subjects of amendment. If the declaration requires
the approval of another person as a condition of its effectiveness, the
amendment is not valid without that approval.
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, change the allocated interests of a unit or
change the uses to which any unit is restricted, in the absence of unanimous
consent of only those units’ owners whose units are 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.
6. An amendment to the declaration which
prohibits or materially restricts the permitted uses of a unit or the number or
other qualifications of persons who may occupy units may not be enforced
against a unit’s owner who was the owner of the unit on the date of the
recordation of the amendment as long as the unit’s owner remains the owner of
that unit.
7. A provision in the declaration creating
special declarant’s rights that have not expired may not be amended without the
consent of the declarant.
8. If any provision of this chapter or of
the declaration requires the consent of a holder of a security interest in a
unit, or an insurer or guarantor of such interest, as a condition to the
effectiveness of an amendment to the declaration, that consent is deemed
granted if:
(a) The holder, insurer or guarantor has not
requested, in writing, notice of any proposed amendment; or
(b) Notice of any proposed amendment is required
or has been requested and a written refusal to consent is not received by the
association within 60 days after the association delivers notice of the
proposed amendment to the holder, insurer or guarantor, by certified mail,
return receipt requested, to the address for notice provided by the holder,
insurer or guarantor in a prior written request for notice.
(Added to NRS by 1991, 551; A 1993, 2362; 1999, 395, 396; 2005, 2589; 2009, 1615,
1733; 2011, 2424)
NRS 116.21175 Procedure for seeking confirmation from district court of
certain amendments to declaration.
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)
NRS 116.2118 Termination of common-interest community.
1. Except in the case of a taking of all
the units by eminent domain, in the case of foreclosure against an entire
cooperative of a security interest that has priority over the declaration, or
in the circumstances described in NRS 116.2124, 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, and with any other approvals
required by the declaration. 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 or her
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 or her 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 or her 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 a 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; A 2011, 2426)
NRS 116.21183 Rights of creditors following termination.
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 the creditor 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)
NRS 116.21185 Respective interests of units’ owners following termination. 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)
NRS 116.21188 Effect of foreclosure or enforcement of lien or encumbrance.
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)
NRS 116.2119 Rights of secured lenders. 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)
NRS 116.212 Master associations.
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)
NRS 116.21205 Reallocation of costs of administering common elements of
certain master associations. 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 700,000 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; A 2011, 1144)
NRS 116.2121 Merger or consolidation of common-interest communities.
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)
NRS 116.2122 Addition of unspecified real estate. 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)
NRS 116.2124 Termination following catastrophe. If
substantially all the units in a common-interest community have been destroyed
or are uninhabitable and the available methods for giving notice under NRS 116.3108 of a meeting of units’ owners to
consider termination under NRS 116.2118 will not
likely result in receipt of the notice, the executive board or any other person
holding an interest in the common-interest community may commence an action in
the district court of the county in which the common-interest community is
located seeking to terminate the common-interest community. During the pendency
of the action, the court may issue whatever orders it considers appropriate,
including, without limitation, an order for the appointment of a receiver.
After a hearing, the court may terminate the common-interest community or
reduce its size and may issue any other order the court considers to be in the
best interest of the units’ owners and persons holding an interest in the
common-interest community.
(Added to NRS by 2011, 2414)
ARTICLE 3
MANAGEMENT OF COMMON-INTEREST COMMUNITIES
General Provisions
NRS 116.3101 Organization of unit-owners’ association.
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. Except for a residential planned
community containing not more than 12 units, the association must have an
executive board.
4. The association must:
(a) Be organized as a profit or nonprofit
corporation, association, limited-liability company, trust, partnership or any
other form of organization authorized by the law of this State;
(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 applicable provisions of chapters 78, 81,
82, 86, 87, 87A, 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; 2007, 485; 2011, 2427)
NRS 116.3102 Powers of unit-owners’ association; limitations.
1. Except as otherwise provided in this
chapter, and subject to the provisions of the declaration, the association:
(a) Shall adopt and, except as otherwise provided
in the bylaws, may amend bylaws and may adopt and amend rules and regulations.
(b) Shall adopt and may amend budgets in
accordance with the requirements set forth in NRS
116.31151, may collect assessments for common expenses from the units’
owners and may invest funds of the association in accordance with the
requirements set forth in NRS 116.311395.
(c) May hire and discharge managing agents and
other employees, agents and independent contractors.
(d) May institute, defend or intervene in
litigation or in arbitration, mediation 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) May make contracts and incur liabilities. Any
contract between the association and a private entity for the furnishing of
goods or services must not include a provision granting the private entity the
right of first refusal with respect to extension or renewal of the contract.
(f) May regulate the use, maintenance, repair,
replacement and modification of common elements.
(g) May cause additional improvements to be made
as a part of the common elements.
(h) May 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) May grant easements, leases, licenses and
concessions through or over the common elements.
(j) May 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, including, without limitation, any services provided pursuant to NRS 116.310312.
(k) May impose charges for late payment of
assessments pursuant to NRS 116.3115.
(l) May impose construction penalties when
authorized pursuant to NRS 116.310305.
(m) May 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) May 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) May provide for the indemnification of its
officers and executive board and maintain directors and officers liability
insurance.
(p) May 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) May exercise any other powers conferred by
the declaration or bylaws.
(r) May exercise all other powers that may be
exercised in this State by legal entities of the same type as the association.
(s) May 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) May exercise any other powers necessary and
proper for the governance and operation of the association.
2. The declaration may not limit the power
of the association to deal with the declarant if the limit is more restrictive
than the limit imposed on the power of the association to deal with other
persons.
3. The executive board may determine
whether to take enforcement action by exercising the association’s power to
impose sanctions or commence an action for a violation of the declaration,
bylaws or rules, including whether to compromise any claim for unpaid
assessments or other claim made by or against it. The executive board does not
have a duty to take enforcement action if it determines that, under the facts
and circumstances presented:
(a) The association’s legal position does not
justify taking any or further enforcement action;
(b) The covenant, restriction or rule being
enforced is, or is likely to be construed as, inconsistent with current law;
(c) Although a violation may exist or may have occurred,
it is not so material as to be objectionable to a reasonable person or to
justify expending the association’s resources; or
(d) It is not in the association’s best interests
to pursue an enforcement action.
4. The executive board’s decision under
subsection 3 not to pursue enforcement under one set of circumstances does not
prevent the executive board from taking enforcement action under another set of
circumstances, but the executive board may not be arbitrary or capricious in
taking enforcement action.
5. Notwithstanding any provision of this
chapter or the governing documents to the contrary, an association may not
impose any assessment pursuant to this chapter or the governing documents on
the owner of any property in the common-interest community that is exempt from
taxation pursuant to NRS 361.125. For
the purposes of this subsection, “assessment” does not include any charge for
any utility services, including, without limitation, telecommunications,
broadband communications, cable television, electricity, natural gas, sewer
services, garbage collection, water or for any other service which is delivered
to and used or consumed directly by the property in the common-interest
community that is exempt from taxation pursuant to NRS 361.125.
(Added to NRS by 1991, 556; A 1999, 3000; 2003, 2227, 2267; 2005, 2590; 2009, 1009,
2796, 2879, 2911; 2011, 2427)
NRS 116.3103 Power of executive board to act on behalf of association;
members and officers are fiduciaries; duty of care; application of
business-judgment rule and conflict of interest rules; limitations on power.
1. Except as otherwise provided in the
declaration, the bylaws, this section or other provisions of this chapter, the
executive board acts on behalf of the association. In the performance of their
duties, the officers and members of the executive board are fiduciaries and
shall act on an informed basis, in good faith and in the honest belief that
their actions are in the best interest of the association. Officers and members
of the executive board:
(a) Are required to exercise the ordinary and
reasonable care of officers and directors of a nonprofit corporation, subject
to the business-judgment rule; and
(b) Are subject to conflict of interest rules
governing the officers and directors of a nonprofit corporation organized under
the law of this State.
2. The executive board may not act to:
(a) Amend the declaration.
(b) Terminate the common-interest community.
(c) Elect members of the executive board, but
unless the governing documents provide that a vacancy on the executive board
must be filled by a vote of the membership of the association, the executive
board may fill vacancies in its membership for the unexpired portion of any
term or until the next regularly scheduled election of executive board members,
whichever is earlier. Any executive board member elected to a previously vacant
position which was temporarily filled by board appointment may only be elected
to fulfill the remainder of the unexpired portion of the term.
(d) Determine the qualifications, powers, duties
or terms of office of members of the executive board.
3. The executive board shall adopt budgets
as provided in NRS 116.31151.
(Added to NRS by 1991, 557; A 1993, 2364; 2001, 3193; 2003, 225; 2005, 2592; 2009, 1734,
2797; 2011, 2430)
NRS 116.310305 Power of executive board to impose construction penalties for
failure of unit’s owner to adhere to certain schedules relating to design,
construction, occupancy or use of unit or improvement.
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 right to assess and collect a
construction penalty is 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;
(b) The association has included notice of the
maximum amount of the construction penalty and schedule as part of any public
offering statement or resale package required by this chapter; and
(c) The unit’s owner receives notice of the
alleged violation which informs the unit’s owner that he or she 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; A 2011, 2430)
NRS 116.31031 Power of executive board to impose fines and other sanctions for
violations of governing documents; limitations; procedural requirements;
continuing violations; collection of past due fines; statement of balance owed.
1. Except as otherwise provided in this
section, if a unit’s owner or a tenant or an invitee of a unit’s owner or a
tenant 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 the invitee of the unit’s owner or the tenant 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 the invitee of the unit’s owner or the tenant 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 the invitee of the unit’s owner or the tenant for each violation,
except that:
(1) A fine may not be imposed for a
violation that is the subject of a construction penalty pursuant to NRS 116.310305; and
(2) A fine may not be imposed against a
unit’s owner or a tenant or invitee of a unit’s owner or a tenant for a
violation of the governing documents which involves a vehicle and which is
committed by a person who is delivering goods to, or performing services for,
the unit’s owner or tenant or invitee of the unit’s owner or the tenant.
Ê 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 $1,000, whichever is less. The limitations on the amount
of the fine do not apply to any 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 against a unit’s owner for a violation of any
provision of the governing documents of an association committed by an invitee
of the unit’s owner or the tenant unless the unit’s owner:
(a) Participated in or authorized the violation;
(b) Had prior notice of the violation; or
(c) Had an opportunity to stop the violation and
failed to do so.
3. 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.
4. The executive board may not impose a
fine pursuant to subsection 1 unless:
(a) Not less than 30 days before the alleged
violation, the unit’s owner and, if different, 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 alleged
violation; and
(b) Within a reasonable time after the discovery
of the alleged violation, the unit’s owner and, if different, the person
against whom the fine will be imposed has been provided with:
(1) Written notice:
(I) Specifying in detail the alleged
violation, the proposed action to cure the alleged violation, the amount of the
fine, and the date, time and location for a hearing on the alleged violation; and
(II) Providing a clear and detailed
photograph of the alleged violation, if the alleged violation relates to the
physical condition of the unit or the grounds of the unit or an act or a
failure to act of which it is possible to obtain a photograph; and
(2) A reasonable opportunity to cure the
alleged violation or to contest the alleged violation at the hearing.
Ê For the
purposes of this subsection, a unit’s owner shall not be deemed to have
received written notice unless written notice is mailed to the address of the
unit and, if different, to a mailing address specified by the unit’s owner.
5. The executive board must schedule the
date, time and location for the hearing on the alleged violation so that the
unit’s owner and, if different, 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.
6. The executive board must hold a hearing
before it may impose the fine, unless the fine is paid before the hearing or
unless the unit’s owner and, if different, the person against whom the fine
will be imposed:
(a) Executes a written waiver of the right to the
hearing; or
(b) Fails to appear at the hearing after being
provided with proper notice of the hearing.
7. 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 providing the opportunity to cure the violation and without the notice
and an opportunity to be heard required by paragraph (b) of subsection 4.
8. If the governing documents so provide,
the executive board may appoint a committee, with not less than three members,
to conduct hearings on alleged 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.
9. A member of the executive board shall
not participate in any hearing or cast any vote relating to a fine imposed
pursuant to subsection 1 if the member has not paid all assessments which are
due to the association by the member. If a member of the executive board:
(a) Participates in a hearing in violation of
this subsection, any action taken at the hearing is void.
(b) Casts a vote in violation of this subsection,
the vote is void.
10. 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.
11. Any past due fine must not bear
interest, but may include any costs incurred by the association during a civil
action to enforce the payment of the past due fine.
12. If requested by a person upon whom a
fine was imposed, not later than 60 days after receiving any payment of a fine,
an association shall provide to the person upon whom the fine was imposed a
statement of the remaining balance owed.
(Added to NRS by 1997, 3112; A 1999, 3001; 2003, 2228, 2268; 2005, 2592; 2009, 2797,
2880, 2913; 2011, 2431;
2013, 267)
NRS 116.310312 Power of executive board to enter grounds of unit to conduct
certain maintenance or remove or abate public nuisance; notice of security
interest and hearing required; imposition of fines and costs; lien against
unit; limitation on liability.
1. A person who holds a security interest
in a unit must provide the association with the person’s contact information as
soon as reasonably practicable, but not later than 30 days after the person:
(a) Files an action for recovery of a debt or
enforcement of any right secured by the unit pursuant to NRS 40.430; or
(b) Records or has recorded on his or her behalf
a notice of a breach of obligation secured by the unit and the election to sell
or have the unit sold pursuant to NRS
107.080.
2. If an action or notice described in
subsection 1 has been filed or recorded regarding a unit and the association
has provided the unit’s owner with notice and an opportunity for a hearing in
the manner provided in NRS 116.31031, the
association, including its employees, agents and community manager, may, but is
not required to, enter the grounds of the unit, whether or not the unit is
vacant, to take any of the following actions if the unit’s owner refuses or
fails to take any action or comply with any requirement imposed on the unit’s
owner within the time specified by the association as a result of the hearing:
(a) Maintain the exterior of the unit in
accordance with the standards set forth in the governing documents, including,
without limitation, any provisions governing maintenance, standing water or
snow removal.
(b) Remove or abate a public nuisance on the
exterior of the unit which:
(1) Is visible from any common area of the
community or public streets;
(2) Threatens the health or safety of the
residents of the common-interest community;
(3) Results in blighting or deterioration
of the unit or surrounding area; and
(4) Adversely affects the use and
enjoyment of nearby units.
3. If a unit is vacant and the association
has provided the unit’s owner with notice and an opportunity for a hearing in
the manner provided in NRS 116.31031, the
association, including its employees, agents and community manager, may enter
the grounds of the unit to maintain the exterior of the unit or abate a public
nuisance as described in subsection 2 if the unit’s owner refuses or fails to
do so.
4. The association may order that the
costs of any maintenance or abatement conducted pursuant to subsection 2 or 3,
including, without limitation, reasonable inspection fees, notification and
collection costs and interest, be charged against the unit. The association
shall keep a record of such costs and interest charged against the unit and has
a lien on the unit for any unpaid amount of the charges. The lien may be
foreclosed under NRS 116.31162 to 116.31168, inclusive.
5. A lien described in subsection 4 bears
interest from the date that the charges become due at a rate determined
pursuant to NRS 17.130 until the
charges, including all interest due, are paid.
6. Except as otherwise provided in this
subsection, a lien described in subsection 4 is prior and superior to all
liens, claims, encumbrances and titles other than the liens described in
paragraphs (a) and (c) of subsection 2 of NRS 116.3116.
If the federal regulations of the Federal Home Loan Mortgage Corporation or the
Federal National Mortgage Association require a shorter period of priority for
the lien, the period during which the lien is prior and superior to other
security interests shall be determined in accordance with those federal
regulations. Notwithstanding the federal regulations, the period of priority of
the lien must not be less than the 6 months immediately preceding the
institution of an action to enforce the lien.
7. A person who purchases or acquires a
unit at a foreclosure sale pursuant to NRS
40.430 or a trustee’s sale pursuant to NRS
107.080 is bound by the governing documents of the association and shall
maintain the exterior of the unit in accordance with the governing documents of
the association. Such a unit may only be removed from a common-interest
community in accordance with the governing documents pursuant to this chapter.
8. Notwithstanding any other provision of
law, an association, its directors or members of the executive board,
employees, agents or community manager who enter the grounds of a unit pursuant
to this section are not liable for trespass.
9. As used in this section:
(a) “Exterior of the unit” includes, without
limitation, all landscaping outside of a unit and the exterior of all property
exclusively owned by the unit owner.
(b) “Vacant” means a unit:
(1) Which reasonably appears to be
unoccupied;
(2) On which the owner has failed to
maintain the exterior to the standards set forth in the governing documents the
association; and
(3) On which the owner has failed to pay
assessments for more than 60 days.
(Added to NRS by 2009, 1007)
NRS 116.310313 Collection of past due obligation; charge of reasonable fee to
collect.
1. An association may charge a unit’s
owner reasonable fees to cover the costs of collecting any past due obligation.
The Commission shall adopt regulations establishing the amount of the fees that
an association may charge pursuant to this section.
2. The provisions of this section apply to
any costs of collecting a past due obligation charged to a unit’s owner,
regardless of whether the past due obligation is collected by the association
itself or by any person acting on behalf of the association, including, without
limitation, an officer or employee of the association, a community manager or a
collection agency.
3. As used in this section:
(a) “Costs of collecting” includes any fee,
charge or cost, by whatever name, including, without limitation, any collection
fee, filing fee, recording fee, fee related to the preparation, recording or
delivery of a lien or lien rescission, title search lien fee, bankruptcy search
fee, referral fee, fee for postage or delivery and any other fee or cost that
an association charges a unit’s owner for the investigation, enforcement or
collection of a past due obligation. The term does not include any costs
incurred by an association if a lawsuit is filed to enforce any past due
obligation or any costs awarded by a court.
(b) “Obligation” means any assessment, fine,
construction penalty, fee, charge or interest levied or imposed against a
unit’s owner pursuant to any provision of this chapter or the governing
documents.
(Added to NRS by 2009, 2795)
NRS 116.310315 Accounting for fines imposed by association. If an association has imposed a fine against a
unit’s owner or a tenant or an invitee of a unit’s owner or a tenant pursuant
to NRS 116.31031 for violations of the governing
documents of the association, the association shall establish a compliance
account to account for the fine, which must be separate from any account
established for assessments.
(Added to NRS by 1997, 3112; A 2005, 1715; 2009, 2882,
2915)—(Substituted
in revision for NRS 116.31145)
NRS 116.31032 Period of declarant’s control of association; representation of
units’ owners on executive board.
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 a declarant,
may appoint and remove the officers of the association and members of the
executive board. A declarant may voluntarily surrender the right to appoint and
remove officers and members of the executive board before termination of that
period and, 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. Regardless of the
period provided in the declaration, a period of declarant’s control terminates
no later than the earliest of:
(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;
(c) Five years after any right to add new units
was last exercised; or
(d) The day the declarant, after giving notice to
units’ owners, records an instrument voluntarily surrendering all rights to
control activities of the association.
2. 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 one-third 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; 2011, 2433)
NRS 116.31034 Election of members of executive board and officers of
association; term of office of member of executive board; staggered terms;
eligibility to serve on executive board; required disclosures; procedure for
conducting elections; certification by member of executive board of
understanding of governing documents and provisions of chapter.
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, all of whom must be units’
owners. The executive board shall elect the officers of the association. Unless
the governing documents provide otherwise, the officers of the association are
not required to be units’ owners. 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 3 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 the unit’s owner’s 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 or her 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. Before the secretary or other officer
specified in the bylaws of the association causes notice to be given to each
unit’s owner of his or her eligibility to serve as a member of the executive
board pursuant to subsection 4, the executive board may determine that if, at
the closing of the prescribed period for nominations for membership on the
executive board, the number of candidates nominated for membership on the
executive board is equal to or less than the number of members to be elected to
the executive board at the election, then the secretary or other officer
specified in the bylaws of the association will cause notice to be given to
each unit’s owner informing each unit’s owner that:
(a) The association will not prepare or mail any
ballots to units’ owners pursuant to this section and the nominated candidates
shall be deemed to be duly elected to the executive board unless:
(1) A unit’s owner who is qualified to
serve on the executive board nominates himself or herself for membership on the
executive board by submitting a nomination to the executive board within 30
days after the notice provided by this subsection; and
(2) The number of units’ owners who submit
such a nomination causes the number of candidates nominated for membership on
the executive board to be greater than the number of members to be elected to
the executive board.
(b) Each unit’s owner who is qualified to serve
as a member of the executive board may nominate himself or herself for
membership on the executive board by submitting a nomination to the executive
board within 30 days after the notice provided by this subsection.
6. If the notice described in subsection 5
is given and if, at the closing of the prescribed period for nominations for
membership on the executive board described in subsection 5, the number of
candidates nominated for membership on the executive board is equal to or less
than the number of members to be elected to the executive board, then:
(a) The association will not prepare or mail any
ballots to units’ owners pursuant to this section;
(b) The nominated candidates shall be deemed to
be duly elected to the executive board not later than 30 days after the date of
the closing of the period for nominations described in subsection 5; and
(c) The association shall send to each unit’s
owner notification that the candidates nominated have been elected to the
executive board.
7. If the notice described in subsection 5
is given and if, at the closing of the prescribed period for nominations for
membership on the executive board described in subsection 5, the number of
candidates nominated for membership on the executive board is greater than the
number of members to be elected to the executive board, then the association
shall:
(a) Prepare and mail ballots to the units’ owners
pursuant to this section; and
(b) Conduct an election for membership on the
executive board pursuant to this section.
8. Each person who is nominated as a
candidate for membership on the executive board pursuant to subsection 4 or 5
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 or her candidacy information. Except as
otherwise provided in this subsection, the association shall distribute the
disclosures, on behalf of the candidate, to each member of the association with
the ballot or, in the event ballots are not prepared and mailed pursuant to
subsection 6, in the next regular mailing of the association. The association
is not obligated to distribute any disclosure pursuant to this subsection if
the disclosure contains information that is believed to be defamatory, libelous
or profane.
9. 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, the person’s spouse or
the person’s 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, the person’s spouse or the person’s 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.
10. 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, the person shall file proof in the records of the association
that:
(a) The person 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.
11. Except as otherwise provided in
subsection 6 or NRS 116.31105, the election of
any member of the executive board must be conducted by secret written ballot in
the following manner:
(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
membership on 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.
12. An association shall not adopt any
rule or regulation that has the effect of prohibiting or unreasonably
interfering with a candidate in the candidate’s campaign for election as a
member of the executive board, except that the candidate’s campaign may be
limited to 90 days before the date that ballots are required to be returned to
the association.
13. A candidate who has submitted a
nomination form for election as a member of the executive board may request
that the association or its agent either:
(a) Send before the date of the election and at
the association’s expense, 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 a candidate informational statement. The candidate
informational statement:
(1) Must be no longer than a single, typed
page;
(2) Must not contain any defamatory,
libelous or profane information; and
(3) May be sent with the secret ballot
mailed pursuant to subsection 11 or in a separate mailing; or
(b) To allow the candidate to communicate
campaign material directly to the units’ owners, provide to the candidate, in
paper format at a cost not to exceed 25 cents per page for the first 10 pages
and 10 cents per page thereafter, in the format of a compact disc at a cost of
not more than $5 or by electronic mail at no cost:
(1) A list of the mailing address of each
unit, which must not include the names of the units’ owners or the name of any
tenant of a unit’s owner; or
(2) If the members of the association are
owners of time shares within a time share plan created pursuant to chapter 119A of NRS and:
(I) The voting rights of those
owners are exercised by delegates or representatives pursuant to NRS 116.31105, the mailing address of the delegates
or representatives.
(II) The voting rights of those
owners are not exercised by delegates or representatives, the mailing address
of the association established pursuant to NRS
119A.520. If the mailing address of the association is provided to the
candidate pursuant to this sub-subparagraph, the association must send to each
owner of a time share within the time share plan the campaign material provided
by the candidate. If the campaign material will be sent by mail, the candidate
who provides the campaign material must provide to the association a separate
copy of the campaign material for each owner and must pay the actual costs of
mailing before the campaign material is mailed. If the campaign material will
be sent by electronic transmission, the candidate must provide to the
association one copy of the campaign material in an electronic format.
Ê The
information provided pursuant to this paragraph must not include the name of
any unit’s owner or any tenant of a unit’s owner. If a candidate who makes a
request for the information described in this paragraph fails or refuses to
provide a written statement signed by the candidate which states that the
candidate is making the request to allow the candidate to communicate campaign
material directly to units’ owners and that the candidate will not use the
information for any other purpose, the association or its agent may refuse the
request.
14. An association and its directors,
officers, employees and agents are immune from criminal or civil liability for
any act or omission which arises out of the publication or disclosure of any
information related to any person and which occurs in the course of carrying
out any duties required pursuant to subsection 13.
15. Each member of the executive board
shall, within 90 days after his or her appointment or election, certify in
writing to the association, on a form prescribed by the Administrator, that the
member has read and understands the governing documents of the association and
the provisions of this chapter to the best of his or her 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; 2009, 1250,
2883, 2915; 2011, 660)
NRS 116.31035 Publications containing mention of candidate or ballot question:
Requirements; limitations.
1. If an official publication contains any
mention of a candidate or ballot question, the official publication must, upon
request and under the same terms and conditions, provide equal space to all
candidates or to a representative of an organization which supports the passage
or defeat of the ballot question.
2. If an official publication contains the
views or opinions of the association, the executive board, a community manager
or an officer, employee or agent of an association concerning an issue of
official interest, the official publication must, upon request and under the
same terms and conditions, provide equal space to opposing views and opinions
of a unit’s owner of the common-interest community.
3. If an association has a closed-circuit
television station and that station interviews, or provides time to, a
candidate or a representative of an organization which supports the passage or
defeat of a ballot question, the closed-circuit television station must, under
the same terms and conditions, allow equal time for all candidates or a
representative of an opposing view to the ballot question.
4. The association and its officers,
employees and agents are immune from criminal or civil liability for any act or
omission which arises out of the publication or disclosure of any information
related to any person and which occurs in the course of carrying out any duties
required pursuant to subsection 1, 2 or 3.
5. As used in this section:
(a) “Issue of official interest” means:
(1) Any issue on which the executive board
or the units’ owners will be voting, including, without limitation, elections;
and
(2) The enactment or adoption of rules or
regulations that will affect the common-interest community.
(b) “Official publication” means:
(1) An official website;
(2) An official newsletter or other
similar publication that is circulated to each unit’s owner; or
(3) An official bulletin board that is
available to each unit’s owner.
(Added to NRS by 2011, 2414)
NRS 116.31036 Removal of member of executive board.
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. A removal election may be called 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. To call 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 subsection 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 a removal
election is called pursuant to this subsection and:
(a) The voting rights of the units’ owners will
be exercised through the use of secret written ballots pursuant to this
section:
(1) The secret written ballots for the
removal election must be sent in the manner required by this section not less
than 15 days or more than 60 days after the date on which the petition is
received; and
(2) 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 and not later than 90 days after the date on which the
petition was received.
(b) The voting rights of the owners of time
shares 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 90 days after the date on which the petition is
received.
Ê The
association shall not adopt any rule or regulation which prevents or
unreasonably interferes with the collection of the required percentage of
signatures for a petition pursuant to this subsection.
3. Except as otherwise provided in NRS 116.31105, the removal of any member of the
executive board must be conducted by secret written ballot in the following
manner:
(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.
(Added to NRS by 1993, 2354; A 2003, 2231; 2005, 2596; 2009, 2799,
2885, 2917; 2011, 2434)
NRS 116.31037 Indemnification and defense of member of executive board. If a member of an executive board is named as
a respondent or sued for liability for actions undertaken in his or her role as
a member of the board, the association shall indemnify the member for his or
her losses or claims, and undertake all costs of defense, unless it is proven
that the member 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.
(Added to NRS by 2011, 2414)
NRS 116.31038 Delivery to association of property held or controlled by
declarant. 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 the declarant, 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 the last audit 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. The
declarant shall pay the costs of the ancillary audit. The ancillary audit must
be delivered within 210 days after the date the period of the declarant’s
control ends.
3. A complete study of the reserves of the
association, conducted by a person who is registered as a reserve study
specialist pursuant to chapter 116A of NRS.
At the time the control of the declarant ends, the declarant 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, the declarant has failed to pay his or her 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 the
declarant 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; 2009, 2918)
NRS 116.31039 Delivery to association of additional common elements
constructed by declarant or successor declarant.
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)
NRS 116.310395 Delivery to association of converted building reserve deficit.
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 close of escrow of a unit.
(Added to NRS by 2005, 2581; A 2009, 2920)
NRS 116.3104 Transfer of special declarant’s right.
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 the transferor 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 the person’s 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)
NRS 116.31043 Liabilities and obligations of person who succeeds to special
declarant’s rights. 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 or her 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 previous declarant’s 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 or her
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 or her acts and
omissions under NRS 116.31032.
(Added to NRS by 1991, 561; A 1993, 2367)
NRS 116.31046 Successor not subject to certain claims against or other
obligations of transferor of special declarant’s right. 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)
NRS 116.3105 Termination of contracts and leases of declarant.
1. Within 2 years
after the executive board elected by the units’ owners pursuant to NRS 116.31034 takes office, the association may
terminate without penalty, upon not less than 90 days’ notice to the other
party, any of the following if it was entered into before that executive board
was elected:
(a) Any management, maintenance, operations or
employment contract, or lease of recreational or parking areas or facilities;
or
(b) Any other contract or lease between the
association and a declarant or an affiliate of a declarant.
2. The association may terminate without
penalty, at any time after the executive board elected by the units’ owners
pursuant to NRS 116.31034 takes office upon not
less than 90 days’ notice to the other party, any contract or lease that is not
in good faith or was unconscionable to the units’ owners at the time entered
into.
3. This section does not apply to:
(a) 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
(b) A proprietary lease.
(Added to NRS by 1991, 561; A 1993, 2368; 2011, 2435)
NRS 116.3106 Bylaws.
1. The bylaws of the association must:
(a) Provide the number of members of the
executive board and the titles of the officers of the association;
(b) Provide for election by the executive board
of a president, treasurer, secretary and any other officers of the association
the bylaws specify;
(c) Specify 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) Specify the powers the executive board or the
officers of the association may delegate to other persons or to a community
manager;
(e) Specify the officers who may prepare,
execute, certify and record amendments to the declaration on behalf of the
association;
(f) Provide procedural rules for conducting
meetings of the association;
(g) Specify a method for the units’ owners to
amend the bylaws;
(h) Provide procedural rules for conducting
elections;
(i) Contain any provision necessary to satisfy
requirements in this chapter or the declaration concerning meetings, voting,
quorums and other activities of the association; and
(j) Provide for any matter required by law of
this State other than this chapter to appear in the bylaws of organizations of
the same type as the association.
2. Except as otherwise provided in this
chapter or the declaration, the bylaws may provide for any other necessary or
appropriate matters, including, without limitation, matters that could be
adopted as rules.
3. The bylaws must be written in plain
English.
(Added to NRS by 1991, 562; A 1993, 2368; 1997, 3117; 2003, 2232; 2011, 2436)
NRS 116.31065 Rules. 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)
NRS 116.31068 Notice to units’ owners.
1. Except as otherwise provided in
subsection 3, an association shall deliver any notice required to be given by
the association under this chapter to any mailing or electronic mail address a
unit’s owner designates. Except as otherwise provided in subsection 3, if a
unit’s owner has not designated a mailing or electronic mail address to which a
notice must be delivered, the association may deliver notices by:
(a) Hand delivery to each unit’s owner;
(b) Hand delivery, United States mail, postage
paid, or commercially reasonable delivery service to the mailing address of
each unit;
(c) Electronic means, if the unit’s owner has
given the association an electronic mail address; or
(d) Any other method reasonably calculated to
provide notice to the unit’s owner.
2. The ineffectiveness of a good faith
effort to deliver notice by an authorized means does not invalidate action
taken at or without a meeting.
3. The provisions of this section do not
apply:
(a) To a notice required to be given pursuant to NRS 116.3116 to 116.31168,
inclusive; or
(b) If any other provision of this chapter
specifies the manner in which a notice must be given by an association.
(Added to NRS by 2011, 2413)
NRS 116.3107 Upkeep of common-interest community.
1. Except to the extent provided by the
declaration, subsection 2 and NRS 116.31135, the
association has the duty to provide for the maintenance, repair and replacement
of the common elements, and each unit’s owner has the duty to provide for the
maintenance, repair and replacement of his or her unit. Each unit’s owner shall
afford to the association and the other units’ owners, and to their agents or employees,
access through his or her 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; 2009, 2886)
NRS 116.31073 Maintenance, repair, restoration and replacement of security
walls.
1. Except as otherwise provided in
subsection 2 and NRS 116.31135, the association
is responsible for the maintenance, repair, restoration and replacement of any
security wall which is located within the common-interest community.
2. The provisions of this section do not
apply if the governing documents provide that a unit’s owner or an entity other
than the association is responsible for the maintenance, repair, restoration
and replacement of the security wall.
3. For the purpose of carrying out the
maintenance, repair, restoration and replacement of a security wall pursuant to
this section:
(a) The association, the members of its executive
board and its officers, employees, agents and community manager may enter the
grounds of a unit after providing written notice and, notwithstanding any other
provision of law, are not liable for trespass.
(b) Any such maintenance, repair, restoration and
replacement of a security wall must be performed:
(1) During normal business hours;
(2) Within a reasonable length of time;
and
(3) In a manner that does not adversely
affect access to a unit or the legal rights of a unit’s owner to enjoy the use
of his or her unit.
(c) Notwithstanding any other provision of law,
the executive board is prohibited from imposing an assessment without obtaining
prior approval of the units’ owners unless the total amount of the assessment
is less than 5 percent of the annual budget of the association.
4. As used in this section, “security
wall” means any wall composed of stone, brick, concrete, concrete blocks,
masonry or similar building material, including, without limitation, ornamental
iron or other fencing material, together with footings, pilasters, outriggers,
grillwork, gates and other appurtenances, constructed around the perimeter of a
residential subdivision with respect to which a final map has been recorded
pursuant to NRS 278.360 to 278.460, inclusive, to protect the several
tracts in the subdivision and their occupants from vandalism.
(Added to NRS by 2009, 2862)
Meetings and Voting
NRS 116.31075 Meetings of rural agricultural residential common-interest
communities: Compliance with Open Meeting Law. 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)
NRS 116.3108 Meetings of units’ owners of association; frequency of meetings;
calling special meetings; requirements concerning notice and agendas;
requirements concerning minutes of meetings; right of units’ owners to make
audio recordings of meetings.
1. A meeting of the units’ owners must be
held at least once each year at a time and place stated in or fixed in
accordance with the bylaws. 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. An association shall hold a special
meeting of the units’ owners to address any matter affecting the
common-interest community or the association if its president, a majority of
the executive board or units’ owners constituting at least 10 percent, or any
lower percentage specified in the bylaws, of the total number of votes in the
association request that the secretary call such a meeting. To call a special
meeting, 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 subsection 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. The association shall not adopt any
rule or regulation which prevents or unreasonably interferes with the
collection of the required percentage of signatures for a petition pursuant to
this subsection.
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 given
to the units’ owners in the manner set forth in NRS
116.31068. 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, in
electronic format at no charge to the unit’s owner or, if the association is
unable to provide the copy or summary in electronic format, in paper format at
a cost not to exceed 25 cents per page for the first 10 pages, and 10 cents per
page thereafter.
(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
regarding any matter affecting the common-interest community or the association
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. 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. Except as otherwise provided in this subsection, a copy of the
minutes or a summary of the minutes must be provided to any unit’s owner upon
request, in electronic format at no charge to the unit’s owner or, if the
association is unable to provide the copy or summary in electronic format, in
paper format at a cost not to exceed 25 cents per page for the first 10 pages,
and 10 cents per page thereafter.
6. Except as otherwise provided in
subsection 7, 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 the unit’s owner requests that the minutes reflect his
or her remarks or, if the unit’s owner has prepared written remarks, a copy of
his or her prepared remarks if the unit’s owner submits a copy for inclusion.
7. 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.
8. The association shall maintain the
minutes of each meeting of the units’ owners until the common-interest
community is terminated.
9. 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 or her
intent to record the meeting to the other units’ owners who are in attendance
at the meeting.
10. 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.
11. 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; 2009, 2800,
2886, 2920; 2011, 2436)
NRS 116.31083 Meetings of executive board; frequency of meetings; periodic
review of certain financial and legal matters at meetings; requirements
concerning minutes of meetings; right of units’ owners to make audio recordings
of certain meetings.
1. A meeting of the executive board must
be held at least once every quarter, and not less than once every 100 days and
must be held at a time other than during standard business hours at least twice
annually.
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) Given to the units’ owners in the manner set
forth in NRS 116.31068; or
(b) 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 audio recording, the
minutes or a summary of the minutes of the meeting provided to the unit’s owner
upon request, in electronic format at no charge to the unit’s owner or, if the
association is unable to provide the copy or summary in electronic format, in
paper format at a cost not to exceed 25 cents per page for the first 10 pages,
and 10 cents per page thereafter.
(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. A period required to be devoted to
comments by the units’ owners and discussion of those comments must be
scheduled for both the beginning and the end of each meeting. During the period
devoted to comments by the units’ owners and discussion of those comments at
the beginning of each meeting, comments by the units’ owners and discussion of
those comments must be limited to items listed on the agenda. 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 quarter, and not
less than once every 100 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 each meeting of the executive board to be
audio recorded and the minutes to be recorded or otherwise taken at each
meeting of the executive board, but if the executive board is meeting in
executive session, the meeting must not be audio recorded. Not more than 30
days after each such meeting, the secretary or other officer specified in the
bylaws shall cause the audio recording of the meeting, the minutes of the
meeting and a summary of the minutes of the meeting to be made available to the
units’ owners. Except as otherwise provided in this subsection, a copy of the
audio recording, the minutes or a summary of the minutes must be provided to
any unit’s owner upon request, in electronic format at no charge to the unit’s
owner or, if the association is unable to provide the copy or summary in
electronic format, in paper format at a cost not to exceed 25 cents per page
for the first 10 pages, and 10 cents per page thereafter.
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 the unit’s owner
requests that the minutes reflect his or her remarks or, if the unit’s owner
has prepared written remarks, a copy of his or her prepared remarks if the
unit’s owner 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 or her 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; 2009, 2803,
2889, 2922; 2011, 2439)
NRS 116.31084 Voting by member of executive board; disclosures; abstention
from voting on certain matters.
1. A member of an executive board who
stands to gain any personal profit or compensation of any kind from a matter
before the executive board shall:
(a) Disclose the matter to the executive board;
and
(b) Abstain from voting on any such matter.
2. A member of an executive board who has
a member of his or her household or any person related to the member by blood,
adoption or marriage within the third degree of consanguinity or affinity who
stands to gain any personal profit or compensation of any kind from a matter
before the executive board shall disclose the matter to the executive board
before voting on any such matter.
3. For the purposes of this section:
(a) An employee of a declarant or an affiliate of
a declarant who is a member of the executive board shall not, solely by reason
of such employment or affiliation, be deemed to gain any personal profit or
compensation.
(b) A member of an executive board shall not be
deemed to gain any personal profit or compensation solely because the member of
the executive board is the owner of a unit in the common-interest community.
(Added to NRS by 2009, 1099,
2908)
NRS 116.31085 Right of units’ owners to speak at certain meetings; limitations
on right; limitations on power of executive board to meet in executive session;
procedure governing hearings on alleged violations; requirements concerning
minutes of certain meetings.
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 open or consider bids for an association project as
defined in NRS 116.31086, or to enter into, renew,
modify, terminate or take any other action regarding a contract.
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.
(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;
(b) Is entitled to due process, as set forth in
the standards adopted by regulation by the Commission, which must include,
without limitation, the right to counsel, the right to present witnesses and
the right to present information relating to any conflict of interest of any
member of the hearing panel; and
(c) Is not entitled to attend the deliberations
of the executive board.
5. The provisions of subsection 4
establish the minimum protections that the executive board must provide before
it may make a decision. The provisions of subsection 4 do not preempt any
provisions of the governing documents that provide greater protections.
6. 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 the person’s designated representative.
7. 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; 2009, 1100,
2891)
NRS 116.31086 Solicitation of bids for association project; bids to be opened
at meeting of executive board.
1. If an association solicits bids for an
association project, the bids must be opened during a meeting of the executive
board.
2. As used in this section, “association
project” includes, without limitation, a project that involves the maintenance,
repair, replacement or restoration of any part of the common elements or which
involves the provision of services to the association.
(Added to NRS by 2009, 1099)
NRS 116.31087 Right of units’ owners to have certain complaints placed on
agenda of meeting of executive board.
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, upon the written
request of the unit’s owner, 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 the unit’s owner submits
a written request that the subject of the complaint be placed on the agenda of
the next regularly scheduled meeting of 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; A 2009, 2892)
NRS 116.31088 Meetings regarding civil actions; requirements for commencing or
ratifying certain civil actions; right of units’ owners to request dismissal of
certain civil actions; disclosure of terms and conditions of settlements.
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 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 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)
NRS 116.3109 Quorum.
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 units’ owners if persons entitled to cast 20 percent of the
votes in the association:
(a) Are present in person;
(b) Are present by proxy;
(c) Have cast absentee ballots in accordance with
paragraph (d) of subsection 2 of NRS 116.311; or
(d) Are present by any combination of paragraphs
(a), (b) and (c).
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 number, a quorum of the executive board is present for purposes of
determining the validity of any action taken at a meeting of the executive
board only if individuals entitled to cast a majority of the votes on that
board are present at the time a vote regarding that action is taken. If a
quorum is present when a vote is taken, the affirmative vote of a majority of
the members present is the act of the executive board unless a greater vote is
required by the declaration or bylaws.
4. Meetings of the association must be
conducted in accordance with the most recent edition of Robert’s Rules of
Order Newly Revised, unless the bylaws or a resolution of the executive
board adopted before the meeting provide otherwise.
(Added to NRS by 1991, 563; A 1999, 3006; 2003, 2237; 2011, 2441)
NRS 116.311 Voting by units’ owners; use of absentee ballots and proxies;
voting by lessees of leased units; association prohibited from voting as owner
of unit; voting without a meeting.
1. Unless prohibited or limited by the
declaration or bylaws and except as otherwise provided in this section, units’
owners may vote at a meeting in person, by absentee ballot pursuant to
paragraph (d) of subsection 2, by a proxy pursuant to subsections 3 to 8,
inclusive, or, when a vote is conducted without a meeting, by electronic or
paper ballot pursuant to subsection 9.
2. At a meeting of units’ owners, the
following requirements apply:
(a) Units’ owners who are present in person may
vote by voice vote, show of hands, standing or any other method for determining
the votes of units’ owners, as designated by the person presiding at the
meeting.
(b) If only one of several owners of a unit is
present, 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 the
unit without protest being made promptly to the person presiding over the
meeting by any of the other owners of the unit.
(c) Unless a greater number or fraction of the
votes in the association is required by this chapter or the declaration, a
majority of the votes cast determines the outcome of any action of the
association.
(d) Subject to subsection 1, a unit’s owner may
vote by absentee ballot without being present at the meeting. The association
promptly shall deliver an absentee ballot to an owner who requests it if the
request is made at least 3 days before the scheduled meeting. Votes cast by
absentee ballot must be included in the tally of a vote taken at that meeting.
(e) When a unit’s owner votes by absentee ballot,
the association must be able to verify that the ballot is cast by the unit’s
owner having the right to do so.
3. 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 or her
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.
4. 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, and such a designation includes any recessed session of
that meeting.
(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 and any recessed
session of that meeting the number of proxies pursuant to which the holder will
be casting votes.
5. A proxy terminates immediately after
the conclusion of the meeting, and any recessed sessions of the meeting, for
which it is executed.
6. Except as otherwise provided in this
subsection, 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. A vote may be
cast pursuant to a proxy for the election or removal of a member of the
executive board of a master association which governs a time-share plan created
pursuant to chapter 119A of NRS if the
proxy is exercised through a delegate or representative authorized pursuant to NRS 116.31105.
7. 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.
8. A proxy is void if the proxy or the
holder of the proxy violates any provision of subsections 3 to 7, inclusive.
9. Unless prohibited or limited by the
declaration or bylaws, an association may conduct a vote without a meeting.
Except as otherwise provided in NRS 116.31034 and
116.31036, if an association conducts a vote
without a meeting, the following requirements apply:
(a) The association shall notify the units’
owners that the vote will be taken by ballot.
(b) The association shall deliver a paper or
electronic ballot to every unit’s owner entitled to vote on the matter.
(c) The ballot must set forth each proposed
action and provide an opportunity to vote for or against the action.
(d) When the association delivers the ballots, it
shall also:
(1) Indicate the number of responses
needed to meet the quorum requirements;
(2) State the percentage of votes
necessary to approve each matter other than election of directors;
(3) Specify the time and date by which a
ballot must be delivered to the association to be counted, which time and date
may not be fewer than 3 days after the date the association delivers the
ballot; and
(4) Describe the time, date and manner by
which units’ owners wishing to deliver information to all units’ owners
regarding the subject of the vote may do so.
(e) Except as otherwise provided in the
declaration or bylaws, a ballot is not revoked after delivery to the
association by death or disability of or attempted revocation by the person who
cast that vote.
(f) Approval by ballot pursuant to this
subsection is valid only if the number of votes cast by ballot equals or
exceeds the quorum required to be present at a meeting authorizing the action.
10. 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) This section applies 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.
11. 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; 2009, 2924;
2011, 2442)
NRS 116.31105 Voting by delegates or representatives; limitations; procedure
for electing delegates or representatives.
1. Except as otherwise provided in
subsection 8, 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 except that, in the election or removal of a
member of the executive board, the voting rights of the units’ owners may not
be exercised by delegates or representatives.
2. Except as otherwise provided in
subsection 8, 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 except that, in the election or removal of a member of the
executive board, the voting rights of the units’ owners may not be exercised by
delegates or representatives.
3. In addition to a common-interest
community identified in subsections 1 and 2, if the declaration so provides,
the voting rights of the owners of time shares within a time-share plan created
pursuant to chapter 119A of NRS which is
governed by a master association may be exercised by delegates or
representatives.
4. 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.
5. For the purposes of subsection 3, each
time share that a developer has reserved the right to create pursuant to
paragraph (g) of subsection 2 of NRS
119A.380 must be counted in determining the number of time shares in a
time-share plan.
6. Notwithstanding any provision in the
declaration, the election of any delegate or representative must be conducted
by secret written ballot.
7. 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.
8. Except as otherwise provided in
subsection 9, the voting rights of the units’ owners in the association for a
common-interest community may be exercised by delegates or representatives only
during the period that the declarant is in control of the association and
during the 2-year period after the declarant’s control of the association is
terminated pursuant to NRS 116.31032.
9. The provisions of subsection 8 do not
apply to:
(a) A time-share plan created pursuant to chapter 119A of NRS which is governed by a
master association; or
(b) A condominium or cooperative containing both
units that are restricted exclusively to nonresidential use and other units
that are not so restricted.
(Added to NRS by 2003, 2220; A 2009, 2925,
2926)
NRS 116.31107 Voting by units’ owners: Prohibited acts; penalty.
1. A person shall not knowingly, willfully
and with the intent to fraudulently alter the true outcome of an election of a
member of the executive board or any other vote of the units’ owners engage in,
attempt to engage in, or conspire with another person to engage in, any of the
following acts:
(a) Changing or falsifying a voter’s ballot so
that the ballot does not reflect the voter’s true ballot.
(b) Forging or falsely signing a voter’s ballot.
(c) Fraudulently casting a vote for himself or
herself or for another person that the person is not authorized to cast.
(d) Rejecting, failing to count, destroying,
defacing or otherwise invalidating the valid ballot of another voter.
(e) Submitting a counterfeit ballot.
2. A person who violates this section is
guilty of a category D felony and shall be punished as provided in NRS 193.130.
(Added to NRS by 2009, 2875)
Liabilities, Insurance and Fiscal Affairs
NRS 116.3111 Tort and contract liability.
1. A unit’s owner is not liable, solely by
reason of being a unit’s owner, for an injury or damage arising out of the
condition or use of the common elements. 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.
2. An action alleging a wrong done by the
association, including, without limitation, an action arising out of the
condition or use of the common elements, may be maintained only 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.
3. Except as otherwise provided in
subsection 4 of NRS 116.4116 with respect to
warranty claims, any statute of limitation affecting the association’s right of
action against a declarant 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 or she is a
unit’s owner or a member or officer of the association. Liens resulting from
judgments against the association are governed by NRS
116.3117.
(Added to NRS by 1991, 563; A 2011, 2444)
NRS 116.3112 Conveyance or encumbrance of common elements.
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)
NRS 116.3113 Insurance: General requirements.
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 and subject to
reasonable deductibles:
(a) Property insurance on the common elements
and, in a planned community, also on property that must become common elements,
insuring against risks of direct physical loss commonly insured against, which
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) Commercial general 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 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; and
(c) Crime insurance which includes coverage for
dishonest acts by members of the executive board and the officers, employees,
agents, directors and volunteers of the association and which extends coverage
to any business entity that acts as the community manager of the association
and the employees of that entity. Such insurance may not contain a conviction
requirement, and the minimum amount of the policy must be not less than an
amount equal to 3 months of aggregate assessments on all units plus reserve
funds or $5,000,000, whichever is less.
2. In the case of a building that contains
units divided by horizontal boundaries described in the declaration, or
vertical boundaries that comprise common walls between units, 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 given to all units’ owners. The declaration may
require the association to carry any other insurance, and the association 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 the
unit’s owner’s own benefit.
(Added to NRS by 1991, 565; A 2011, 2445)
NRS 116.31133 Insurance: Policies; use of proceeds; certificates or memoranda
of insurance.
1. Insurance policies carried pursuant to NRS 116.3113 must provide that:
(a) Each unit’s owner is an insured person under
the policy with respect to liability arising out of the unit’s owner’s 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 or her household;
(c) No act or omission by any unit’s owner,
unless acting within the scope of his or her authority on behalf of the
association, voids the policy or is 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 insurance trustee designated for that purpose, or otherwise to the
association, and not to any holder of a security interest. The insurance
trustee or the association shall hold any insurance proceeds in trust for the
association, units’ owners and lienholders as their interests may appear.
Subject to 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, each unit’s owner and each holder of a
security interest 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; 2011, 2445)
NRS 116.31135 Insurance: Repair or replacement of damaged or destroyed portion
of community.
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.
2. The cost of repair or replacement in
excess of insurance proceeds, deductibles and reserves is a common expense. If
the entire common-interest community is not repaired or replaced:
(a) The insurance 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
(b) Except to the extent that other persons will
be distributees:
(1) The insurance 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
(2) The remainder of the proceeds must be
distributed to all the units’ owners or lienholders, as their interests may
appear, as follows:
(I) In a condominium, in proportion
to the interests of all the units in the common elements; and
(II) 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; 2011, 2446)
NRS 116.31138 Insurance: Variance or waiver of provisions in community
restricted to nonresidential use. 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)
NRS 116.311395 Funds of association to be deposited or invested at certain
financial institutions.
1. Except as otherwise provided in
subsection 2, an association, a member of the executive board, or a community
manager shall deposit or invest all funds of the association at a financial
institution which:
(a) Is located in this State;
(b) Is qualified to conduct business in this
State; or
(c) Has consented to be subject to the
jurisdiction, including the power to subpoena, of the courts of this State and
the Division.
2. Except as otherwise provided by the
governing documents, in addition to the requirements of subsection 1, an
association shall deposit, maintain and invest all funds of the association:
(a) In a financial institution whose accounts are
insured by the Federal Deposit Insurance Corporation, the National Credit Union
Share Insurance Fund or the Securities Investor Protection Corporation;
(b) With a private insurer approved pursuant to NRS 678.755; or
(c) In a government security backed by the full
faith and credit of the Government of the United States.
3. The Commission shall adopt regulations
prescribing the contents of the declaration to be executed and signed by a
financial institution located outside of this State to submit to consent to the
jurisdiction of the courts of this State and the Division.
(Added to NRS by 2009, 1733)
NRS 116.3114 Surplus funds. 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)
NRS 116.31142 Preparation and presentation of financial statements.
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)
NRS 116.31144 Audit and review of financial statements.
1. Except as otherwise provided in
subsection 2, the executive board shall:
(a) If the annual budget of the association is
$45,000 or more but less than $75,000, cause the financial statement of the
association to be reviewed by an independent certified public accountant during
the year immediately preceding the year in which a study of the reserves of the
association is to be conducted pursuant to NRS
116.31152.
(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 reviewed by an independent certified public accountant every
fiscal year.
(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. Except as otherwise provided in this
subsection, for any fiscal year, the executive board of an association 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. The provisions of this
subsection do not apply to an association described in paragraph (c) of
subsection 1.
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; A 2009, 462; 2011, 988)
NRS 116.3115 Assessments for common expenses; funding of adequate reserves;
collection of interest on past due assessments; calculation of assessments for
particular types of common expenses; notice of meetings regarding assessments
for capital improvements.
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, or as otherwise provided in this chapter:
(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 and any other
portion of the common-interest community that the association is obligated to maintain,
repair, replace or restore. 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 and any other portion of the
common-interest community that the association is obligated to maintain,
repair, replace or restore 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 or any other portion of the common-interest community
that the association is obligated to maintain, repair, replace or restore are
necessary. Notwithstanding any provision of the governing documents to the
contrary, to establish adequate reserves pursuant to this paragraph, including,
without limitation, to establish or carry out a funding plan, the executive
board may, without seeking or obtaining the approval of the units’ owners,
impose any necessary and reasonable assessments against the units in the
common-interest community. Any such assessments imposed by the executive board
must be based on the study of the reserves of the association conducted
pursuant to NRS 116.31152.
3. Any assessment for common expenses or
installment thereof that is 60 days or more past due bears interest at a rate
equal to the prime rate at the largest bank in Nevada as ascertained by the
Commissioner of Financial Institutions on January 1 or July 1, as the case may
be, immediately preceding the date the assessment becomes past due, plus 2
percent. The rate must be adjusted accordingly on each January 1 and July 1
thereafter until the balance is satisfied.
4. Except as otherwise provided in the
governing documents:
(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 benefiting fewer than all
of the units or their owners may be assessed exclusively against the units or
units’ owners 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 damage to a unit or other part of
the common-interest community, or if any other common expense is caused by the
willful misconduct or gross negligence of any unit’s owner, tenant or invitee
of a unit’s owner or tenant, the association may assess that expense
exclusively against his or her unit, even if the association maintains
insurance with respect to that damage or common expense, unless the damage or
other common expense is caused by a vehicle and is committed by a person who is
delivering goods to, or performing services for, the unit’s owner, tenant or
invitee of the unit’s owner or tenant.
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; 2009, 1734,
2805, 2892; 2011, 2447)
NRS 116.31151 Annual distribution to units’ owners of operating and reserve
budgets or summaries of such budgets and policy for collection of fees, fines,
assessments or costs; ratification of budget.
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 and any other portion of the common-interest
community that the association is obligated to maintain, repair, replace or
restore;
(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 and any other portion of the common-interest community
that the association is obligated to maintain, repair, replace or restore;
(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 any other portion of the common-interest
community that the association is obligated to maintain, repair, replace or
restore 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 but not to exceed 60 miles
from the physical location of the common-interest community; 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.
4. The executive board shall, at the same
time and in the same manner that the executive board makes the budget available
to a unit’s owner pursuant to this section, make available to each unit’s owner
the policy established for the association concerning the collection of any
fees, fines, assessments or costs imposed against a unit’s owner pursuant to
this chapter. The policy must include, without limitation:
(a) The responsibility of the unit’s owner to pay
any such fees, fines, assessments or costs in a timely manner; and
(b) The association’s rights concerning the
collection of such fees, fines, assessments or costs if the unit’s owner fails
to pay the fees, fines, assessments or costs in a timely manner.
(Added to NRS by 1999, 2993; A 2003, 2241; 2005, 2605; 2009, 1205,
1735, 2806)
NRS 116.31152 Study of reserves; duties of executive board regarding study;
qualifications of person who conducts study; contents of study; submission of
summary of study to Division; use of money credited against residential
construction tax for upkeep of park facilities and related improvements
identified in study.
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 and any other portion of the
common-interest community that the association is obligated to maintain,
repair, replace or restore;
(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. Except as otherwise provided in this
subsection, 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. If the common-interest
community contains 20 or fewer units and is located in a county whose
population is less than 55,000, the study of the reserves required by
subsection 1 may be conducted by any person whom the executive board deems
qualified to conduct the study.
3. The study of the reserves must include,
without limitation:
(a) A summary of an inspection of the major
components of the common elements and any other portion of the common-interest
community that the association is obligated to maintain, repair, replace or
restore;
(b) An identification of the major components of
the common elements and any other portion of the common-interest community that
the association is obligated to maintain, 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 and any other portion of the
common-interest community that the association is obligated to maintain,
repair, replace or restore identified pursuant to paragraph (b);
(d) An estimate of the cost of maintenance,
repair, replacement or restoration of each major component of the common
elements and any other portion of the common-interest community 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 maintaining, repairing, replacement
or restoration of the major components of the common elements and any other
portion of the common-interest community 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; 2009, 1736,
2213; 2011, 1144)
NRS 116.31153 Signatures required for withdrawals of certain association
funds; exceptions.
1. 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.
2. Except as otherwise provided in
subsection 3, money in the operating account of an association may not be
withdrawn without the signatures of at least one member of the executive board
or one officer of the association and a member of the executive board, an
officer of the association or the community manager.
3. Money in the operating account of an
association may be withdrawn without the signatures required pursuant to
subsection 2 to:
(a) Transfer money to the reserve account of the
association at regular intervals;
(b) Make automatic payments for utilities;
(c) Make an electronic transfer of money to a
state agency pursuant to NRS 353.1467;
or
(d) Make an electronic transfer of money to the
United States Government, or any agency thereof, pursuant to any federal law
requiring transfers of money to be made by an electronic means authorized by
the United States Government or the agency thereof.
4. An association may use electronic
signatures to withdraw money in the operating account of the association if:
(a) The electronic transfer of money is made
pursuant to a written agreement entered into between the association and the
financial institution where the operating account of the association is
maintained;
(b) The executive board has expressly authorized
the electronic transfer of money; and
(c) The association has established internal
accounting controls which comply with generally accepted accounting principles
to safeguard the assets of the association.
5. As used in this section, “electronic
transfer of money” has the meaning ascribed to it in NRS 353.1467.
(Added to NRS by 1999, 2995; A 2009, 2927;
2011, 1879)
NRS 116.31155 Fees imposed on associations or master associations to pay for
costs of administering Office of Ombudsman and Commission; administrative
penalties for failure to pay; interest on unpaid fees; limitations on amount of
fees and penalties; procedure to recover fees, penalties or interest imposed in
error.
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,
87.541, 87A.560 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 and Condominium Hotels 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.
9. Any person, association or master
association which has been requested or required to pay any fees,
administrative penalties or interest pursuant to this section and which
believes that such fees, administrative penalties or interest has been imposed
in error may, without exhausting any available administrative remedies, bring
an action in a court of competent jurisdiction to recover:
(a) Any amount paid in error for any fees,
administrative penalties or interest during the immediately preceding 3 years;
(b) Interest on the amount paid in error at the
rate set forth in NRS 99.040; and
(c) Reasonable costs and attorney’s fees.
(Added to NRS by 1997, 3112; A 1999, 8, 639, 3010, 3011; 2003, 2242; 2005, 2607; 2007, 485, 2268; 2009, 2893)
NRS 116.31158 Registration of associations with Ombudsman; contents of form
for registration.
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
NRS 116.3116 Liens against units for assessments.
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 any charges incurred by the association on a unit pursuant to NRS 116.310312 and 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 9 months immediately preceding
institution of an action to enforce the lien, unless federal regulations
adopted by the Federal Home Loan Mortgage Corporation or the Federal National
Mortgage Association require a shorter period of priority for the lien. If
federal regulations adopted by the Federal Home Loan Mortgage Corporation or
the Federal National Mortgage Association require a shorter period of priority
for the lien, the period during which the lien is prior to all security interests
described in paragraph (b) must be determined in accordance with those federal
regulations, except that notwithstanding the provisions of the federal
regulations, the period of priority for the lien must not be less than 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. The holder of the security interest
described in paragraph (b) of subsection 2 or the holder’s authorized agent may
establish an escrow account, loan trust account or other impound account for
advance contributions for the payment of assessments for common expenses based
on the periodic budget adopted by the association pursuant to NRS 116.3115 if the unit’s owner and the holder of
that security interest consent to the establishment of such an account. If such
an account is established, payments from the account for assessments for common
expenses must be made in accordance with the same due dates as apply to
payments of such assessments by a unit’s owner.
4. 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.
5. 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.
6. 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.
7. 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.
8. A judgment or decree in any action
brought under this section must include costs and reasonable attorney’s fees
for the prevailing party.
9. 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.
10. 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.
11. In an action by an association to
collect assessments or to foreclose a lien created under this section, the
court may appoint a receiver to collect all rents or other income from the unit
alleged to be due and owing to a unit’s owner before commencement or during
pendency of the action. The receivership is governed by chapter 32 of NRS. The court may order the
receiver to pay any sums held by the receiver to the association during
pendency of the action to the extent of the association’s common expense
assessments based on a periodic budget adopted by the association pursuant to NRS 116.3115.
(Added to NRS by 1991, 567; A 1999, 390; 2003, 2243, 2272; 2009, 1010,
1207; 2011, 2448;
2013, 3787)
NRS 116.31162 Foreclosure of liens: Mailing of notice of delinquent
assessment; recording of notice of default and election to sell; period during
which unit’s owner may pay lien to avoid foreclosure; limitations on type of
lien that may be foreclosed.
1. Except as otherwise provided in subsection
5 or 6, 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 or her
successor in interest, at his or her 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 or her 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 or her successor in interest at his or her address, if
known, and at the address of the unit,
Ê whichever
date occurs later.
4. An association may not mail to a unit’s
owner or his or her successor in interest a letter of its intent to mail a
notice of delinquent assessment pursuant to paragraph (a) of subsection 1, mail
the notice of delinquent assessment or take any other action to collect a past
due obligation from a unit’s owner or his or her successor in interest unless,
not earlier than 60 days after the obligation becomes past due, the association
mails to the address on file for the unit’s owner:
(a) A schedule of the fees that may be charged if
the unit’s owner fails to pay the past due obligation;
(b) A proposed repayment plan; and
(c) A notice of the right to contest the past due
obligation at a hearing before the executive board and the procedures for
requesting such a hearing.
5. 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.
6. The association may not foreclose a
lien by sale if:
(a) The unit is owner-occupied housing encumbered
by a deed of trust;
(b) The beneficiary under the deed of trust, the
successor in interest of the beneficiary or the trustee has recorded a notice
of default and election to sell with respect to the unit pursuant to subsection
2 of NRS 107.080; and
(c) The trustee of record has not recorded the
certificate provided to the trustee pursuant to subparagraph (1) or (2) of
paragraph (d) of subsection 2 of NRS
107.086.
Ê As used in
this subsection, “owner-occupied housing” has the meaning ascribed to it in NRS 107.086.
(Added to NRS by 1991, 569; A 1993, 2371; 1997, 3121; 1999, 3011; 2003, 2244, 2273; 2005, 2608; 2013, 3483,
3789)
NRS 116.31163 Foreclosure of liens: Mailing of notice of default and election
to sell to certain interested persons. 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)
NRS 116.311635 Foreclosure of liens: Providing notice of time and place of
sale; service of notice of sale; contents of notice of sale; proof of service.
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 or her
successor in interest at his or her 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 certified or registered mail, return
receipt requested, 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 States 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; 2013, 3790)
NRS 116.31164 Foreclosure of liens: Procedure for conducting sale; purchase of
unit by association; execution and delivery of deed; use of proceeds of sale.
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 or her 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 or her
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)
NRS 116.31166 Foreclosure of liens: Effect of recitals in deed; purchaser not
responsible for proper application of purchase money; title vested in purchaser
without equity or right of redemption.
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 or her 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)
NRS 116.31168 Foreclosure of liens: Requests by interested persons for notice
of default and election to sell; right of association to waive default and
withdraw notice or proceeding to foreclose.
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)
NRS 116.3117 Liens against association.
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
other real property of the association and 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 or her 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 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; A 2011, 2450)
Books, Records and Other Documents
NRS 116.31175 Maintenance and availability of books, records and other papers
of association: General requirements; exceptions; general records concerning
certain violations; enforcement by Ombudsman; limitations on amount that may be
charged to conduct review.
1. Except as otherwise provided in
subsection 4, 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 at the business office of the association or a
designated business location not to exceed 60 miles from the physical location
of the common-interest community and during the regular working hours of the
association, including, without limitation:
(a) The financial statement of the association;
(b) The budgets of the association required to be
prepared pursuant to NRS 116.31151;
(c) The study of the reserves of the association
required to be conducted pursuant to NRS 116.31152;
and
(d) 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.
2. The executive board shall provide a
copy of any of the records described in paragraphs (a), (b) and (c) of
subsection 1 to a unit’s owner or the Ombudsman within 21 days after receiving
a written request therefor. Such records must be provided in electronic format
at no charge to the unit’s owner or, if the association is unable to provide
the records in electronic format, the executive board may charge a fee to cover
the actual costs of preparing a copy, but the fee may not exceed 25 cents per
page for the first 10 pages, and 10 cents per page thereafter.
3. If the executive board fails to provide
a copy of any of the records pursuant to subsection 2 within 21 days, the
executive board must pay a penalty of $25 for each day the executive board
fails to provide the records.
4. The provisions of subsection 1 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, including, without limitation, any architectural plan or
specification submitted by a unit’s owner to the association during an approval
process required by the governing documents, except for those records described
in subsection 5; and
(c) Any document, including, without limitation,
minutes of an executive board meeting, a reserve study and a budget, if the
document:
(1) Is in the process of being developed
for final consideration by the executive board; and
(2) Has not been placed on an agenda for
final approval by the executive board.
5. 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.
6. 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 the Ombudsman 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.
7. 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.
8. 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 subsection 1.
(Added to NRS by 1999, 2996; A 2003, 2245; 2009, 1737,
2807, 2894, 2928; 2011, 1879,
2451)
NRS 116.3118 Maintenance and availability of certain financial records necessary
to provide information required for resale of units; right of units’ owners to
inspect, examine, photocopy and audit records of association.
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 or her authorized agents to inspect, examine, photocopy and
audit.
(Added to NRS by 1991, 571; A 1995, 2231; 2003, 2247)
Miscellaneous Rights, Duties and Restrictions
NRS 116.31183 Retaliatory action prohibited; separate action by unit’s owner.
1. An executive board, a member of an
executive board, a community manager 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:
(a) Complained in good faith about any alleged
violation of any provision of this chapter or the governing documents of the
association;
(b) Recommended the selection or replacement of
an attorney, community manager or vendor; or
(c) Requested in good faith to review the books,
records or other papers of the association.
2. In addition to any other remedy
provided by law, upon a violation of this section, a unit’s owner may bring a
separate action to recover:
(a) Compensatory damages; and
(b) Attorney’s fees and costs of bringing the
separate action.
(Added to NRS by 2003, 2218; A 2009, 2808,
2895)
NRS 116.31184 Threats, harassment and other conduct prohibited; penalty.
1. A community manager, an agent or
employee of the community manager, a member of the executive board, an officer,
employee or agent of an association, a unit’s owner or a guest or tenant of a
unit’s owner shall not willfully and without legal authority threaten, harass
or otherwise engage in a course of conduct against any other person who is the
community manager of his or her common-interest community or an agent or
employee of that community manager, a member of the executive board of his or
her association, an officer, employee or agent of his or her association, another
unit’s owner in his or her common-interest community or a guest or tenant of a
unit’s owner in his or her common-interest community which:
(a) Causes harm or serious emotional distress, or
the reasonable apprehension thereof, to that person; or
(b) Creates a hostile environment for that
person.
2. A person who violates the provisions of
subsection 1 is guilty of a misdemeanor.
(Added to NRS by 2013, 2529)
NRS 116.31185 Prohibition against certain personnel soliciting or accepting
compensation, gratuity or remuneration under certain circumstances.
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 set forth as NRS 116A.630 and 116A.640 and any additional standards of
practice adopted by the Commission by regulation 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; 2009, 2808)
NRS 116.31187 Prohibition against certain personnel contracting with
association or accepting commission, personal profit or compensation from
association; exceptions.
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 financing, goods
or services to the association; or
(b) Otherwise accept any commission, personal
profit or compensation of any kind from the association for providing
financing, 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 financing, 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; A 2009, 2896,
2929)
NRS 116.31189 Bribery of community manager or member of executive board;
penalties; exceptions.
1. Except as otherwise provided in
subsection 3, a community manager or member of the executive board who asks for
or receives, directly or indirectly, any compensation, gratuity or reward, or
any promise thereof, upon an agreement or understanding that his or her vote,
opinion or action upon any matter then pending or which may be brought before
him or her in his or her capacity as a community manager or member of the
executive board, will be influenced thereby, is guilty of a category D felony
and shall be punished as provided in NRS
193.130.
2. Except as otherwise provided in
subsection 3, a person who offers or gives, directly or indirectly, any
compensation, gratuity or reward, or any promise thereof, upon an agreement or
understanding that the vote, opinion or action of a community manager or member
of the executive board upon any matter then pending or which may be brought before
the community manager or member of the executive board in his or her capacity
as a community manager or member of the executive board will be influenced
thereby, is guilty of a category D felony and shall be punished as provided in NRS 193.130.
3. The provisions of this section do not
prohibit:
(a) An employee of a declarant or an affiliate of
a declarant who is a member of an executive board from asking for or receiving,
directly or indirectly, any compensation, gratuity or reward, or any promise
thereof, from the declarant or affiliate.
(b) A declarant or an affiliate of a declarant
whose employee is a member of an executive board from offering or giving,
directly or indirectly, any compensation, gratuity or reward, or any promise
thereof, to the employee who is a member of the executive board.
(c) A community manager from asking for or
receiving, directly or indirectly, or an employer of a community manager from
offering or giving, directly or indirectly, any compensation for work performed
by the community manager pursuant to the laws of this State.
(Added to NRS by 2009, 2876)
NRS 116.3119 Association as trustee. 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)
NRS 116.320 Right of units’ owners to display flag of the United States in
certain areas; conditions and limitations on exercise of right.
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)
NRS 116.325 Right of units’ owners to exhibit political signs in certain
areas; conditions and limitations on exercise of right.
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 one or more political signs within such physical portion of the
common-interest community as that owner or occupant has a right to occupy and
use exclusively, subject to the following conditions:
(a) All political signs exhibited must not be larger
than 24 inches by 36 inches.
(b) If the unit is occupied by a tenant, the
unit’s owner may not exhibit any political sign unless the tenant consents, in
writing, to the exhibition of the political sign.
(c) All political signs exhibited are subject to
any applicable provisions of law governing the posting of political signs.
(d) A unit’s owner or an occupant of a unit may
exhibit as many political signs as desired, but may not exhibit more than one
political sign for each candidate, political party or ballot question.
2. The provisions of this section
establish the minimum rights of a unit’s owner or an occupant of a unit to
exhibit political signs. 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 in any federal, state or local election or
any election of an association.
(Added to NRS by 2005, 2585; A 2009, 2896)
NRS 116.330 Right of units’ owners to install or maintain drought tolerant
landscaping; conditions and limitations on exercise of right; installation of
drought tolerant landscaping within common elements.
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, including, without limitation, the front yard or back yard of the
unit’s owner, 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.
Ê The
provisions of this subsection must be construed liberally in favor of
effectuating the purpose of encouraging the use of drought tolerant
landscaping, and the executive board shall not and the governing documents must
not unreasonably deny or withhold approval for the installation of drought
tolerant landscaping or unreasonably determine that the drought tolerant
landscaping is not 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. The term includes, without limitation,
the use of mulches such as decorative rock and artificial turf.
(Added to NRS by 2005, 2583; A 2009, 2896)
NRS 116.332 Right of units’ owners to store containers for collection of
solid waste or recyclable materials; adoption of rules by association.
1. Except as otherwise provided in this
section, an association of a planned community may not regulate or restrict the
manner in which containers for the collection of solid waste or recyclable
materials are stored on the premises of a residential unit with curbside
service.
2. An association of a planned community
may adopt rules, in accordance with the procedures set forth in the governing
documents, as defined in subsections 1 and 2 of NRS
116.049, or the bylaws of the association, that reasonably restrict the
manner in which containers for the collection of solid waste or recyclable
materials are stored on the premises of a residential unit with curbside
service during the time the containers are not within the collection area,
including, without limitation, rules prescribing the location at which the
containers are stored during that time. The rules adopted by the association:
(a) Must:
(1) Comply with all applicable codes and
regulations; and
(2) Allow the unit’s owner, or a tenant of
the unit’s owner, to store containers for the collection of solid waste or
recyclable materials outside any building or garage on the premises of the unit
during the time the containers are not within the collection area.
(b) May:
(1) Provide that the containers for the
collection of solid waste or recyclable materials must be stored in the rear or
side yard of the unit, if such locations exist, and in such a manner that the
containers are screened from view from the street, a sidewalk or any adjacent
property; and
(2) Include, without limitation, rules
prescribing the size, location, color and material of any device, structure or
item used to screen containers for the collection of solid waste or recyclable
materials from view from the street, a sidewalk or any adjacent property and
the manner of attachment of the device, structure or item to the structure on
the premises where the containers are stored.
3. An association of a planned community
may adopt rules that reasonably restrict the conditions under which containers
for the collection of solid waste or recyclable materials are placed in the
collection area, including, without limitation:
(a) The boundaries of the collection area;
(b) The time at which the containers may be
placed in the collection area; and
(c) The length of time for which the containers
may be kept in the collection area.
4. As used in this section:
(a) “Collection area” means the area designated
for the collection of the contents of containers for the collection of solid
waste or recyclable materials.
(b) “Curbside service” means the collection of
solid waste or recyclable materials on an individual basis for each residential
unit by an entity that is authorized to collect solid waste or recyclable
materials.
(c) “Recyclable material” has the meaning
ascribed to it in NRS 444A.013.
(d) “Residential unit” means an attached or
detached unit intended or designed to be occupied by one family.
(e) “Solid waste” has the meaning ascribed to it
in NRS 444.490.
(Added to NRS by 2013, 1367)
NRS 116.335 Association prohibited from requiring unit’s owner to obtain
approval to rent or lease unit; exceptions.
1. Unless, at the time a unit’s owner
purchased his or her unit, the declaration prohibited the unit’s owner from
renting or leasing his or her unit, the association may not prohibit the unit’s
owner from renting or leasing his or her unit.
2. Unless, at the time a unit’s owner
purchased his or her unit, the declaration required the unit’s owner to secure
or obtain any approval from the association in order to rent or lease his or
her unit, an association may not require the unit’s owner to secure or obtain
any approval from the association in order to rent or lease his or her unit.
3. If a declaration contains a provision
establishing a maximum number or percentage of units in the common-interest
community which may be rented or leased, that provision of the declaration may
not be amended to decrease that maximum number or percentage of units in the
common-interest community which may be rented or leased.
4. If the governing documents of an
association require a unit’s owner who leases or rents his or her unit, or the
tenant of a unit’s owner, to register with the association or its agent or
otherwise submit to the association or its agent information concerning the
lease or rental agreement or the tenant, the association or its agent:
(a) Must conduct such activities in accordance
with the governing documents;
(b) May not require the unit’s owner or tenant of
the unit’s owner to provide information which the association or its agent does
not require to be provided to the association or its agent by a unit’s owner
who occupies his or her unit, except that the association or its agent may
require the unit’s owner to provide a copy of the lease or rental agreement;
and
(c) May not charge a fee to the unit’s owner for
the registration or submission of information.
5. 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.
6. Notwithstanding any other provision of
law or the declaration to the contrary:
(a) If a unit’s owner is prohibited from renting
or leasing a unit because the maximum number or percentage of units which may
be rented or leased in the common-interest community have already been rented
or leased, the unit’s owner may seek a waiver of the prohibition from the
executive board based upon a showing of economic hardship, and the executive
board may grant such a waiver and approve the renting or leasing of the unit.
(b) If the declaration contains a provision
establishing a maximum number or percentage of units in the common-interest
community which may be rented or leased, in determining the maximum number or
percentage of units in the common-interest community which may be rented or
leased, the number of units owned by the declarant must not be counted or
considered.
(Added to NRS by 2005, 2584; A 2009, 1100;
2011, 2137)
NRS 116.340 Transient commercial use of units within certain planned
communities.
1. Except as otherwise provided in
subsection 2, 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. 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; A 2009, 1101)—(Substituted
in revision for NRS 116.31123)
NRS 116.345 Association of planned community prohibited from taking certain
actions regarding property, buildings and structures within planned community;
validity of existing restrictions.
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 or her 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 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. An association may not interrupt any
utility service furnished to a unit’s owner or a tenant of a unit’s owner
except for the nonpayment of utility charges when due. The interruption of any
utility service pursuant to this subsection must be performed in a manner which
is consistent with all laws, regulations and governing documents relating to
the interruption of any utility service. An association shall in every case
send a written notice of its intent to interrupt any utility service to the
unit’s owner or the tenant of the unit’s owner at least 10 days before the
association interrupts any utility service.
5. 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; A 2009, 1615,
2897, 2930)—(Substituted
in revision for NRS 116.31125)
NRS 116.350 Limitations regarding regulation of certain roads, streets,
alleys or other thoroughfares; permissible regulation of parking or storage of
certain vehicles.
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. Except as otherwise provided in
subsection 3, 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.
3. In any common-interest community, the executive
board shall not and the governing documents must not prohibit a person from:
(a) Parking a utility service vehicle that has a
gross vehicle weight rating of 20,000 pounds or less:
(1) In an area designated for parking for
visitors, in a designated parking area or common parking area, or on the
driveway of the unit of a subscriber or consumer, while the person is engaged
in any activity relating to the delivery of public utility services to
subscribers or consumers; or
(2) In an area designated for parking for
visitors, in a designated parking area or common parking area, or on the
driveway of his or her unit, if the person is:
(I) A unit’s owner or a tenant of a
unit’s owner; and
(II) Bringing the vehicle to his or
her unit pursuant to his or her employment with the entity which owns the
vehicle for the purpose of responding to emergency requests for public utility
services; or
(b) Parking a law enforcement vehicle or
emergency services vehicle:
(1) In an area designated for parking for
visitors, in a designated parking area or common parking area, or on the
driveway of the unit of a person to whom law enforcement or emergency services
are being provided, while the person is engaged in his or her official duties;
or
(2) In an area designated for parking for
visitors, in a designated parking area or common parking area, or on the
driveway of his or her unit, if the person is:
(I) A unit’s owner or a tenant of a
unit’s owner; and
(II) Bringing the vehicle to his or
her unit pursuant to his or her employment with the entity which owns the
vehicle for the purpose of responding to requests for law enforcement services
or emergency services.
4. An association may require that a
person parking a utility service vehicle, law enforcement vehicle or emergency
services vehicle as set forth in subsection 3 provide written confirmation from
his or her employer that the person is qualified to park his or her vehicle in
the manner set forth in subsection 3.
5. As used in this section:
(a) “Emergency services vehicle” means a vehicle:
(1) Owned by any governmental agency or
political subdivision of this State; and
(2) Identified by the entity which owns
the vehicle as a vehicle used to provide emergency services.
(b) “Law enforcement vehicle” means a vehicle:
(1) Owned by any governmental agency or
political subdivision of this State; and
(2) Identified by the entity which owns
the vehicle as a vehicle used to provide law enforcement services.
(c) “Utility service vehicle” means any motor
vehicle:
(1) Used in the furtherance of repairing,
maintaining or operating any structure or any other physical facility necessary
for the delivery of public utility services, including, without limitation, the
furnishing of electricity, gas, water, sanitary sewer, telephone, cable or
community antenna service; and
(2) Except for any emergency use, operated
primarily within the service area of a utility’s subscribers or consumers,
without regard to whether the motor vehicle is owned, leased or rented by the
utility.
(Added to NRS by 2005, 2585; A 2009, 974)
ARTICLE 4
PROTECTION OF PURCHASERS
NRS 116.4101 Applicability; exceptions.
1. NRS 116.4101
to 116.412, inclusive, apply to all units subject
to this chapter, except as otherwise provided in subsection 2 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;
(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; or
(h) Disposition of a unit restricted to
nonresidential purposes.
(Added to NRS by 1991, 571; A 1993, 2373; 1997, 3122; 1999, 3012; 2011, 2453)
NRS 116.4102 Liability for preparation and delivery of public offering
statement.
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 or her 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 or she prepared. If a declarant or dealer did not prepare
any part of a public offering statement that he or she delivers, he or she is
not liable for any false or misleading statement set forth therein or for any
omission of a material fact therefrom unless he or she 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)
NRS 116.4103 Public offering statement: General provisions.
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 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 is not required.
(e) The financial information required by
subsection 2.
(f) A description of any services or subsidies
being provided by the declarant or an affiliate of the declarant, not reflected
in the budget that the declarant provides, or expenses which the declarant pays
and which the declarant expects may become at any subsequent time a common
expense of the association and the projected common expense assessment
attributable to each of those services or expenses for the association and for
each type of unit.
(g) Any initial or special fee due from the
purchaser or seller at closing, including, without limitation, any transfer
fees, whether payable to the association, the community manager of the
association or any third party, 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
or her agent has personally inspected the unit, the purchaser may cancel, by
written notice, his or her 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 judgment or
pending action against the association, and the status of any pending action
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) In addition to any other document, a
statement describing all current and expected fees or charges for each unit,
including, without limitation, association fees, fines, assessments, late charges
or penalties, interest rates on delinquent assessments, additional costs for
collecting past due fines and charges for opening or closing any file for each
unit.
(m) Any restraints on alienation of any portion
of the common-interest community and any restrictions:
(1) On the leasing or renting of 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 the sale or
condemnation of or casualty loss to the unit or to the common-interest community,
or on termination of the common-interest community.
(n) A description of any arrangement described in
NRS 116.1209 binding the association.
(o) The information statement set forth in NRS 116.41095.
2. The public offering statement must
contain any current balance sheet and a 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, a statement of who prepared the budget and a
statement of the budget’s assumptions concerning occupancy and inflation factors.
The budget must include:
(a) A statement of the amount included in the
budget as a reserve for repairs, replacement and restoration pursuant to NRS 116.3115;
(b) A statement of any other reserves;
(c) The projected common expense assessment by
category of expenditures for the association; and
(d) The projected monthly common expense
assessment for each type of unit, including the amount established as reserves
pursuant to NRS 116.3115.
3. 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; 2009, 1616,
2809; 2011, 2453)
NRS 116.41035 Public offering statement: Limitations for certain small
offerings. 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 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; 2011, 2455)
NRS 116.4104 Public offering statement: Common-interest communities subject
to developmental rights. 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)
NRS 116.4105 Public offering statement: Time shares. 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)
NRS 116.4106 Public offering statement: Common-interest community containing
converted building.
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)
NRS 116.4107 Public offering statement: Common-interest community registered
with Securities and Exchange Commission or State of Nevada. 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 the declarant 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)
NRS 116.4108 Purchaser’s right to cancel.
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, the purchaser 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 or her 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, the purchaser is not entitled to rescission.
(Added to NRS by 1991, 574; A 1993, 2376; 2003, 2247)
NRS 116.4109 Resales of units.
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 or her
authorized agent shall, at the expense of the unit’s owner, furnish to a
purchaser a resale package containing all of the following:
(a) A copy of the declaration, other than any
plats, the bylaws, the rules or regulations of the association and the
information statement required by NRS 116.41095.
(b) A statement from the association setting
forth the amount of the monthly assessment for common expenses and any unpaid
obligation of any kind, including, without limitation, management fees, transfer
fees, fines, penalties, interest, collection costs, foreclosure fees and
attorney’s fees 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.
(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.
(e) A statement of any transfer fees, transaction
fees or any other fees associated with the resale of a unit.
(f) In addition to any other document, a
statement describing all current and expected fees or charges for each unit,
including, without limitation, association fees, fines, assessments, late
charges or penalties, interest rates on delinquent assessments, additional
costs for collecting past due fines and charges for opening or closing any file
for each unit.
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, the
purchaser must hand deliver the notice of cancellation to the unit’s owner or
his or her authorized agent or mail the notice of cancellation by prepaid
United States mail to the unit’s owner or his or her 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 or her 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 or her authorized agent, the
association shall furnish all of the following to the unit’s owner or his or
her 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), (d), (e)
and (f) of subsection 1.
4. If the association furnishes the
documents and certificate pursuant to subsection 3:
(a) The unit’s owner or his or her authorized
agent shall include the documents and certificate in the resale package
provided to the purchaser, and neither the unit’s owner nor his or her
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 other documents furnished pursuant to
subsection 3 must be provided in electronic format to the unit’s owner. The
association may charge the unit’s owner a fee, not to exceed $20, to provide
such documents in electronic format. If the association is unable to provide
such documents in electronic format, the association may charge the unit’s
owner a reasonable fee, not to exceed 25 cents per page for the first 10 pages,
and 10 cents per page thereafter, to cover the cost of copying.
(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 purchaser is not liable for the delinquent
assessment.
6. Upon the request of a unit’s owner or
his or her 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 or
her 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.
7. A unit’s owner, the authorized agent of
the unit’s owner or the holder of a security interest on the unit may request a
statement of demand from the association. Not later than 10 days after receipt
of a written request from the unit’s owner, the authorized agent of the unit’s
owner or the holder of a security interest on the unit for a statement of
demand, the association shall furnish a statement of demand to the person who
requested the statement. The association may charge a fee of not more than $150
to prepare and furnish a statement of demand pursuant to this subsection and an
additional fee of not more than $100 to furnish a statement of demand within 3
days after receipt of a written request for a statement of demand. The
statement of demand:
(a) Must set forth the amount of the monthly
assessment for common expenses and any unpaid obligation of any kind,
including, without limitation, management fees, transfer fees, fines,
penalties, interest, collection costs, foreclosure fees and attorney’s fees
currently due from the selling unit’s owner; and
(b) Remains effective for the period specified in
the statement of demand, which must not be less than 15 business days after the
date of delivery by the association to the unit’s owner, the authorized agent
of the unit’s owner or the holder of a security interest on the unit, whichever
is applicable.
8. If the association becomes aware of an
error in a statement of demand furnished pursuant to subsection 7 during the
period in which the statement of demand is effective but before the consummation
of a resale for which a resale package was furnished pursuant to subsection 1,
the association must deliver a replacement statement of demand to the person
who requested the statement of demand. Unless the person who requested the
statement of demand receives a replacement statement of demand, the person may
rely upon the accuracy of the information set forth in the statement of demand
provided by the association for the resale. Payment of the amount set forth in
the statement of demand constitutes full payment of the amount due from the
selling unit’s owner.
(Added to NRS by 1991, 575; A 1993, 2376; 1997, 3124; 2001, 2494; 2003, 2247; 2005, 2614; 2009, 1102,
1617, 2810, 2819; 2011, 2047,
2455, 3542; 2013, 3792)
NRS 116.41095 Required form of information statement. 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. Certain provisions in the CC&Rs and other governing documents may be
superseded by contrary provisions of chapter 116 of the
Nevada Revised Statutes. The Nevada Revised Statutes are available at the
Internet address http://www.leg.state.nv.us/nrs/.
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 and Condominium Hotels, the Nevada Real Estate
Division and the Commission for Common-Interest Communities and Condominium
Hotels. 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 and
Condominium Hotels, 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; 2007, 2269; 2009, 1738)
NRS 116.411 Escrow of deposits; furnishing of bond in lieu of deposit.
1. Except as otherwise provided in
subsections 2, 3 and 4, 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 the
declarant 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.
4. Pursuant to subsection 1, 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 is deemed to be placed in escrow and
held in this State when the escrow holder has:
(a) The legal right to conduct business in this
State;
(b) A registered agent in this State pursuant to
subsection 1 of NRS 14.020; and
(c) Consented to the jurisdiction of the courts
of this State by:
(1) Maintaining a physical presence in
this State; or
(2) Executing a written instrument
containing such consent, with respect to any suit or claim, whether brought by
the declarant or purchaser, relating to or arising in connection with such sale
or the escrow agreement related thereto.
(Added to NRS by 1991, 575; A 1993, 2377; 1995, 1420; 2009, 2931)
NRS 116.4111 Release of liens.
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)
NRS 116.4112 Converted buildings.
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. If, during the 6-month
period before the recording of a declaration, a majority of the tenants or any
subtenants in possession of any portion of the property described in such
declaration has been required to vacate for reasons other than nonpayment of
rent, waste or conduct that disturbs other tenants’ peaceful enjoyment of the
premises, a rebuttable presumption is created that the owner of such property
intended to offer the vacated premises as units in a common-interest community
at all times during that 6-month period.
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; A 2007, 1280)
NRS 116.4113 Express warranties of quality.
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)
NRS 116.4114 Implied warranties of quality.
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 a declarant or dealer, 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. 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; A 2011, 2457)
NRS 116.4115 Exclusion or modification of warranties of quality.
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)
NRS 116.4116 Statute of limitations for warranties.
1. Unless a period of limitation is tolled
under NRS 116.3111 or affected by subsection 4, 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.
4. During the period of declarant control,
the association may authorize an independent committee of the executive board
to evaluate and enforce any warranty claims involving the common elements, and
to address those claims. Only members of the executive board elected by units’
owners other than the declarant and other persons appointed by those
independent members may serve on the committee, and the committee’s decision
must be free of any control by the declarant or any member of the executive
board or officer appointed by the declarant. All costs reasonably incurred by
the committee, including attorney’s fees, are common expenses, and must be
added to the budget annually adopted by the association in accordance with the
requirements of NRS 116.31151. If the committee
is so created, the period of limitation for a warranty claim considered by the
committee begins to run from the date of the first meeting of the committee.
(Added to NRS by 1991, 578; A 2011, 2457)
NRS 116.4117 Effect of violations on rights of action; civil action for
damages for failure or refusal to comply with provisions of chapter or
governing documents; members of executive board not personally liable to
victims of crimes; circumstances under which punitive damages may be awarded;
attorney’s fees.
1. Subject to the requirements set forth
in subsection 2, if a declarant, community manager 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 may bring a civil action for damages or
other 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 or other appropriate relief for 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;
(2) A community manager; or
(3) 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.
(c) By a class of units’ owners constituting at
least 10 percent of the total number of voting members of the association
against a community manager.
3. Members of the executive board are not
personally liable to the victims of crimes occurring on the property.
4. Except as otherwise provided in
subsection 5, punitive damages may be awarded for a willful and material
failure to comply with any provision of this chapter if the failure is
established by clear and convincing evidence.
5. Punitive damages may not be awarded
against:
(a) The association;
(b) The members of the executive board for acts
or omissions that occur in their official capacity as members of the executive
board; or
(c) The officers of the association for acts or omissions
that occur in their capacity as officers of the association.
6. The court may award reasonable
attorney’s fees to the prevailing party.
7. The civil remedy provided by this
section is in addition to, and not exclusive of, any other available remedy or
penalty.
8. 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 1991, 578; A 1993, 2377; 1997, 3125; 2009, 2812,
2898; 2011, 2458)
NRS 116.4118 Labeling of promotional material. 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)
NRS 116.4119 Declarant’s obligation to complete and restore.
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)
NRS 116.412 Substantial completion of units. 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
NRS 116.600 Commission for Common-Interest Communities and Condominium
Hotels: Creation; appointment and qualifications of members; terms of office;
compensation.
1. The Commission for Common-Interest
Communities and Condominium Hotels is hereby created.
2. The Commission consists of seven
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) Two members who are units’ owners residing in
this State but who are not required to have served as members of an executive
board;
(c) One member who is in the business of
developing common-interest communities in this State;
(d) One member who holds a certificate;
(e) One member who is a certified public accountant
licensed to practice in this State pursuant to the provisions of chapter 628 of NRS; and
(f) 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 four members of the Commission must be
residents of a county whose population is 700,000 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 the member’s 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; 2007, 2272; 2009, 2899;
2011, 1146)
NRS 116.605 Commission for Common-Interest Communities and Condominium
Hotels: Courses of instruction for members.
1. The Division shall employ one or more
training officers who are qualified by training and experience to provide to
each member of the Commission courses of instruction concerning rules of
procedure and substantive law appropriate for members of the Commission. Such
courses of instruction may be made available to the staff of the Division as
well as to community managers.
2. The training officer shall:
(a) Prepare and make available a manual
containing the policies and procedures to be followed by executive boards and
community managers; and
(b) Perform any other duties as directed by the
Division.
3. Each member of the Commission must
attend the courses of instruction described in subsection 1 not later than 6
months after the date that the member is first appointed to the Commission.
(Added to NRS by 2003, 2209; A 2009, 2899)
NRS 116.610 Commission for Common-Interest Communities and Condominium
Hotels: Election of officers; meetings; quorum.
1. At the first meeting of each fiscal
year, the Commission shall elect from its members a Chair, a Vice Chair and a
Secretary.
2. The Commission shall meet at least once
each calendar quarter and at other times on the call of the Chair 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 by 2003, 2210)
NRS 116.615 Administration of chapter; regulations of Commission and Real
Estate Administrator; delegation of authority; publications.
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)
NRS 116.620 Employment of personnel by Real Estate Division; duties of
Attorney General; legal opinions by Attorney General.
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 the Attorney General by the
Commission or the Division.
(Added to NRS by 2003, 2210)
NRS 116.623 Petitions for declaratory orders or advisory opinions:
Regulations; scope; contents of petition; filing; period for response.
1. The Division shall provide by
regulation for the filing and prompt disposition of petitions for declaratory
orders and advisory opinions as to the applicability or interpretation of:
(a) Any provision of this chapter or chapter 116A or 116B
of NRS;
(b) Any regulation adopted by the Commission, the
Administrator or the Division; or
(c) Any decision of the Commission, the
Administrator or the Division or any of its sections.
2. Declaratory orders disposing of
petitions filed pursuant to this section have the same status as agency
decisions.
3. A petition filed pursuant to this
section must:
(a) Set forth the name and address of the
petitioner; and
(b) Contain a clear and concise statement of the
issues to be decided by the Division in its declaratory order or advisory
opinion.
4. A petition filed pursuant to this
section is submitted for consideration by the Division when it is filed with
the Administrator.
5. The Division shall:
(a) Respond to a petition filed pursuant to this
section within 60 days after the date on which the petition is submitted for
consideration; and
(b) Upon issuing its declaratory order or
advisory opinion, mail a copy of the declaratory order or advisory opinion to
the petitioner.
(Added to NRS by 2009, 2876)
NRS 116.625 Ombudsman for Owners in Common-Interest Communities and
Condominium Hotels: Creation of office; appointment; qualifications; powers and
duties.
1. The Office of the Ombudsman for Owners
in Common-Interest Communities and Condominium Hotels 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 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 or referred to a program pursuant to NRS 38.300 to 38.360, inclusive;
(b) Assist owners in common-interest communities
and condominium hotels to understand their rights and responsibilities as set
forth in this chapter and chapter 116B of
NRS 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 chapter
116B of NRS 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 or the association of a condominium hotel and the
name of any other person who is authorized to manage the property at the site
of the common-interest community or condominium hotel;
(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 or condominium hotel;
(6) The total annual assessment made by
the association;
(7) The number of foreclosures which were
completed on units within the common-interest community or condominium hotel
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 or 116B.605 and, if so,
the date on which it was completed.
(Added to NRS by 1997, 3112; A 1999, 2997; 2003, 1302, 2222; 2007, 2273; 2013, 2300)
NRS 116.630 Account for Common-Interest Communities and Condominium Hotels:
Creation; administration; sources; uses.
1. There is hereby created the Account for
Common-Interest Communities and Condominium Hotels 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 or chapter
116B of NRS, including, without limitation, the fees collected pursuant to NRS 116.31155 and 116B.620, 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;
(b) If authorized by the Commission or any
regulations adopted by the Commission, the costs and expenses of subsidizing
proceedings for mediation, arbitration and a program conducted pursuant to NRS 38.300 to 38.360, inclusive; and
(c) If authorized by the Legislature or by the
Interim Finance Committee if the Legislature is not in session, the costs and
expenses of administering the Division.
(Added to NRS by 1997, 3113; A 1999, 8, 2998; 2003, 2223; 2007, 2274; 2010, 26th
Special Session, 79; 2013, 2301)
NRS 116.635 Immunity. 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)
NRS 116.640 Service of notice and other information upon Commission. 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)
NRS 116.643 Authority for Commission or Real Estate Administrator to adopt
regulations requiring additional disclosures for sale of unit. The Commission, or the Administrator with the
approval of the Commission, may adopt regulations to require any additional
disclosures in the case of a sale of a unit as it deems necessary.
(Added to NRS by 2009, 2908)
NRS 116.645 Authority for Real Estate Division to conduct business
electronically; regulations; fees; use of unsworn declaration; exclusions.
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 or NRS 53.250 to 53.390, inclusive, 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; A 2011, 15)
General Powers and Duties of Commission
NRS 116.660 Issuance and enforcement of subpoenas.
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 the
person 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)
NRS 116.662 Witnesses: Payment of fees and mileage.
1. Each witness who is subpoenaed and
appears at a hearing is entitled to receive for his or her 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)
NRS 116.665 Conducting hearings and other proceedings; collection of
information; development and promotion of educational guidelines; accreditation
of programs of education and research.
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, mediation and program procedures set forth in NRS 38.300 to 38.360, inclusive, and the decisions rendered
and awards made pursuant to those 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; A 2013, 2301)
NRS 116.670 Establishment of standards for subsidizing arbitration,
mediation and educational programs; acceptance of gifts, grants and donations;
agreements and cooperation with other entities. The
Commission may:
1. By regulation, establish standards for
subsidizing proceedings for mediation, arbitration and a program 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; A 2013, 2302)
NRS 116.675 Appointment of hearing panels; delegation of powers and duties;
appeals to Commission.
1. The Commission may appoint one or more
hearing panels. Each hearing panel must consist of one or more independent
hearing officers. An independent hearing officer may be, without limitation, a
member of the Commission or an employee of the Commission.
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 Chair 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; A 2009, 2899)
NRS 116.680 Use of audio or video teleconference for hearings. 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)
Investigation of Violations; Remedial and Disciplinary
Action
NRS 116.745 “Violation” defined. As
used in NRS 116.745 to 116.795,
inclusive, unless the context otherwise requires, “violation” means a violation
of:
1. Any provision of this chapter except NRS 116.31184;
2. Any regulation adopted pursuant to this
chapter; or
3. Any order of the Commission or a
hearing panel.
(Added to NRS by 2003, 2213; A 2005, 2620; 2013, 2530)
NRS 116.750 Jurisdiction of Real Estate Division, Ombudsman, Commission and
hearing panels.
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 is registered as a reserve
study specialist, or who conducts a study of reserves, 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 or her office,
employment, agency or position or who held the office, employment, agency or
position at the commencement of proceedings against him or her.
(b) Resigns his or her office, employment, agency
or position:
(1) After the commencement of proceedings
against him or her; 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; 2009, 2932)
NRS 116.755 Rights, remedies and penalties are cumulative and not exclusive;
limitations on power of Commission and hearing panels regarding internal
activities of association.
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)
NRS 116.757 Confidentiality of records: Certain records relating to
complaint or investigation deemed confidential; certain records relating to
disciplinary action deemed public records.
1. Except as otherwise provided in this
section and NRS 239.0115, 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. The Division shall not disclose any
information that is confidential pursuant to this subsection, in whole or in
part, to any person, including, without limitation, a person who is the subject
of an investigation or complaint, unless and until a formal complaint is filed
pursuant to subsection 2 and the disclosure is required pursuant to subsection
2.
2. A formal complaint filed by the
Administrator 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; A 2007, 2070; 2009, 2900)
NRS 116.760 Right of person aggrieved by alleged violation to file affidavit
with Real Estate Division; procedure for filing affidavit; administrative fine
for filing false or fraudulent affidavit.
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) 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)
NRS 116.765 Referral of affidavit to Ombudsman for assistance in resolving
alleged violation; report by Ombudsman; investigation by Real Estate Division;
determination of whether to file complaint with Commission.
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 or her 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)
NRS 116.770 Procedure for hearing complaints: Time for holding hearing;
continuances; notices; evidence; answers; defaults.
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 or
her 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 or her last
known address.
(Added to NRS by 2003, 2215)
NRS 116.775 Representation by attorney. Any
party to the complaint may be represented by an attorney at any hearing on the
complaint.
(Added to NRS by 2003, 2216)
NRS 116.780 Decisions on complaints.
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)
NRS 116.785 Remedial and disciplinary action: Orders to cease and desist and
to correct violations; administrative fines; removal from office or position;
payment of costs; exemptions from liability.
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 or her 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)
NRS 116.790 Remedial and disciplinary action: Audit of association;
requiring association to hire community manager who holds certificate;
appointment of receiver.
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, at the
expense 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; 2009, 2900)
NRS 116.795 Injunctions.
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)
