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
- 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.

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.

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.

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.

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.

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.

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