Tract 12

Collections in Nevada Community Management

  • Licensing for Collection Agency

    • Under Nevada law, community managers can opt to proceed to the lien stage without needing a collections agency license.

    • Important to note that a collection agency license is a separate requirement under Nevada law.

    • Statute (likely NRS 642) indicates that a community manager does not need a license to collect assessments up to the lien point.

    • After the lien point, managers or management companies must have a collection agency license if collecting as a significant part of their business.

  • Correct Understanding of Laws

    • Law firms or title companies must have a collection license to collect assessments, regardless of the extent of their business in this area.

    • Correct interpretation ensures system compliance and upholds the authority to proceed as needed.

Lender Provisions and Public Offering Statements

  • Lender Provisions

    • Found in the CC&Rs (Covenants, Conditions, and Restrictions) and are crucial for compliance.

  • Public Offering Statement

    • Intended to disclose material facts affecting purchasing decisions.

    • The statement should contain:

      • Information critical for owners to present to lenders.

      • Details on easements in common areas.

      • Notification of potential home loss due to unpaid assessments.

    • Best answer: To disclose any material facts that may influence an owner's decision in purchasing property.

Rules, Fines, and Enforcement

  • NRS 116.3102 Overview

    • Authority of union-owned associations is outlined, including their power to impose reasonable fines for document violations.

    • The association must comply with NRS 116.3103 requirements to enforce fines effectively.

  • Enforcement Powers

    • Executive boards can impose fines, sanctions, and collection guidelines under NRS 116.

    • Violations range from improper vehicle parking to excessive alterations contravening community guidelines.

    • The rules must be:

      • Reasonably related to association purposes.

      • Explicit in prohibitions.

      • In accordance with governing documents.

      • Enforced uniformly to avoid arbitrary discrepancies.

  • Guidelines for Rule Adoption

    • Notice must be provided to unit owners before enforcing new rules, ensuring transparency and compliance.

    • Expectation of a fine schedule detailing specific violations and fines must be shared with owners.

Compliance Enforcement Mechanism

  • Operational Details

    • Fines must be reasonable and uniformly enforced.

    • Associations need a process in place for managing recurring violations, including appropriate notices and an opportunity for owners to cure violations.

    • The board must document decisions and maintain records of violations.

Communication Requirements

  • Notices and Hearings

    • Written notices should detail the nature of violations with photographic evidence whenever feasible.

    • Owners deserve fair notice and opportunities to respond.

    • Hearings must accommodate a standard notice period with a chance for owners to present their case.

Financial Management and Record Keeping

  • Management Responsibilities

    • Must maintain financial accounts, ensuring all transactions are accurate and timely.

    • Association funds should be managed responsibly, with a clear overview of accounts maintained independently from violation fines.

  • Record Keeping

    • Detailed records must be available for unit owners upon request and maintained per statutory guidelines.

    • Duration of record retention varies, with some needing to be kept indefinitely.

Educational and Legal Preparedness

  • Continuing Education

    • Community managers must complete ongoing education to remain compliant and up-to-date on evolving laws/statutes.

    • Fiduciary duties demand thorough understanding and practice of responsibilities as community managers.

Conclusion

Overall, understanding the statutes, community regulations, and enforcement mechanisms is critical for effective community management in Nevada.

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