BR

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