Recording-2025-03-13T23:47:06.102Z

Exam Preparation Session

• Purpose of Session

  • Facilitated study session to prepare for practice test

  • Focused group tasks to enhance learning

  • Review questions and answers from practice tests

• Session Structure

  • Group study tasks followed by reports back to class

  • Online practice test to simulate exam conditions

  • Deeper review of relevant statutes and regulations

• Goals

  • Achieve a thorough understanding of test topics

  • Prepare effectively for the first practice test

Developer Transition and Association Management

• Managing Developer Accounts

  • Initial accounts may require significant turnaround efforts

  • Successful management of developer accounts can lead to further opportunities

• Characteristics of Developer Accounts

  • Typically, a well-organized team with business-focused meetings

  • Quick decision-making and minimal drama, focusing on business issues

• Responsibilities of the Management Company

  • Calendar essential tasks including reserve studies and unit sales tracking

  • Establish reliable vendor relationships from early on

Understanding Developments and Developers

• Definition of a Developer

  • Responsible for creating homeowners associations (HOAs) and initial control

• Authority of Developer

  • Full control until unit sales reach thresholds defined in state regulations

  • Initial governance set forth in Covenants, Conditions, and Restrictions (CC&Rs)

• Developer Board Transition Process

  • May include gradual transition of control to homeowner board

  • Requirements for homeowner representation on the board as sales progress

Developer Responsibilities During Transition

• Key Documents Required for Transfer

  • Original recorded declaration and amendments, bylaws, rules, financial statements

  • Reserve study conducted by a registered reserve specialist

• Legal Obligations of Developers

  • Have a plan for transitioning control disclosed in public offering statements

• ** Time Requirements and Timelines**

  • Developers must transfer control within 60 days after specified sale percentages are reached

  • Clear milestones for transition based on unit selling milestones (e.g., from 25% to 90% ownership)

Important Statutes to Study

• Key Statutes

  • NRS 116.3103 (controlling association appointments)

  • NRS 116.3103 (transition conditions and timelines)

• Election and Control Transition

  • Responsibilities of the management company in facilitating board elections

  • Understanding potential challenges in obtaining homeowner participation

Reserved Studies and Financial Responsibilities

• Importance of Reserve Studies

  • Declared necessity for properly funding community operations

  • Transfer of funding responsibilities at turnover and potential for underfunding

• Funding Levels by Developer

  • Requirements for compensating for the reserve deficit upon unit sales

  • Specific obligations regarding reserve account contributions and timelines

Educating and Empowering Homeowner Boards

• Empowerment and Education

  • Importance of involving homeowners in decisions during transition

  • Clear communication on roles, responsibilities, and expectations