EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 116.1203 is hereby amended to read as follows:

1-2 116.1203 1. Except as otherwise provided in subsection 2, if a

2-1 2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,

2-2 the provisions of NRS 116.3101 to 116.3119, inclusive, and 116.11031 to

2-3 116.110393, inclusive, to the extent necessary in construing any of those

2-4 sections, apply to a residential planned community containing more than six

2-5 units.

2-6 Sec. 2. NRS 116.1203 is hereby amended to read as follows:

2-7 116.1203 1. Except as otherwise provided in subsection 2, if a

2-8 planned community:

2-9 (a) Contains no more than 12 units and is not subject to any

2-10 developmental rights; or

2-11 (b) Provides, in its declaration, that the annual average liability for

2-12 common expenses of all units restricted to residential purposes, exclusive

2-13 of optional users’ fees and any insurance premiums paid by the association,

2-14 may not exceed $500 per unit,

2-15 it is subject only to NRS 116.1105, 116.1106 [, 116.1107 and 116.31155]

2-16 and 116.1107 unless the declaration provides that this entire chapter is

2-17 applicable.

2-18 2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,

2-19 the provisions of NRS 116.3101 to 116.3119, inclusive, and 116.11031 to

2-20 116.110393, inclusive, to the extent necessary in construing any of those

2-21 sections, apply to a residential planned community containing more than six

2-22 units.

2-23 Sec. 3. NRS 116.31031 is hereby amended to read as follows:

2-24 116.31031 If a unit’s owner, or a tenant or guest of a unit’s owner,

2-43 exceed $50 per day for each day after the 10th day or other authorized

3-1 period until the person complies with the provision. Compliance with the

3-2 requirements of subsection 6 of NRS 116.31065 is not required for the

3-3 imposition of such an additional fine.

3-4 Sec. 4. NRS 116.31034 is hereby amended to read as follows:

3-5 116.31034 1. Except as otherwise provided in subsection 5 of NRS

3-22 provisions of this chapter.

3-23 Sec. 5. NRS 116.31038 is hereby amended to read as follows:

3-24 116.31038 Within 30 days after units’ owners other than the declarant

4-1 (a) The original or a certified copy of the recorded declaration as

4-2 amended, the association’s articles of incorporation if the association is

4-3 incorporated, bylaws, minute books and other books and records of the

4-4 association and any rules or regulations which may have been adopted.

4-5 [2.] (b) An accounting for money of the association and financial

4-6 statements from the date the association received money to the date the

4-7 period of the declarant’s control ends. The financial statements must fairly

4-8 and accurately report the association’s financial condition prepared in

4-9 accordance with generally accepted accounting principles.

4-10 [3.] (c) The association’s money or control thereof.

4-11 [4.] (d) All of the declarant’s tangible personal property that has been

4-12 represented by the declarant as property of the association or, unless the

4-13 declarant has disclosed in the public offering statement that all such

4-14 personal property used in the common-interest community will remain the

4-15 declarant’s property, all of the declarant’s tangible personal property that is

4-16 necessary for, and has been used exclusively in, the operation and

4-17 enjoyment of the common elements, and inventories of these properties.

4-18 [5.] (e) A copy of any plans and specifications used in the construction

4-19 of the improvements in the common-interest community which were

4-20 completed within 2 years before the declaration was recorded.

4-21 [6.] (f) All insurance policies then in force, in which the units’ owners,

4-22 the association, or its directors and officers are named as insured persons.

4-23 [7.] (g) Copies of any certificates of occupancy that may have been

4-24 issued with respect to any improvements comprising the common-interest

4-25 community other than units in a planned community.

4-26 [8.] (h) Any renewable permits and approvals issued by governmental

4-27 bodies applicable to the common-interest community which are in force

4-28 and any other permits and approvals so issued and applicable which are

4-29 required by law to be kept on the premises of the community.

4-30 [9.] (i) Written warranties of the contractor, subcontractors, suppliers

4-31 and manufacturers that are still effective.

4-32 [10.] (j) A roster of owners and mortgagees of units and their addresses

4-33 and telephone numbers, if known, as shown on the declarant’s records.

4-34 [11.] (k) Contracts of employment in which the association is a

4-35 contracting party.

4-36 [12.] (l) Any contract for service in which the association is a

4-37 contracting party or in which the association or the units’ owners have any

4-38 obligation to pay a fee to the persons performing the services.

4-39 Sec. 6. NRS 116.3108 is hereby amended to read as follows:

4-40 116.3108 1. A meeting of the units’ owners of an association must be

4-42 at least once every 90 days. Special meetings of the association may be

5-1 called by the president, a majority of the executive board or by units’

5-2 owners having 10 percent, or any lower percentage specified in the bylaws,

5-3 of the votes in the association.

5-4 2. Not less than 10 [nor] or more than 60 days in advance of any

5-5 annual or special meeting, the secretary or other officer specified in the

5-6 bylaws shall cause notice to be hand-delivered or sent prepaid by United

5-7 States mail to the mailing address of each unit or to any other mailing

5-8 address designated in writing by the unit’s owner. [The notice of any

5-9 meeting must state the time and place of the meeting and include a copy of

5-10 the agenda for the meeting. The notice must include notification of the right

5-11 of a unit’s owner to:

5-12 (a) Have a copy of the minutes or a summary of the minutes of the

5-13 meeting distributed to him upon request if he pays the association the cost

5-14 of making the distribution.

5-15 (b) Speak to the association or executive board, unless the executive

5-16 board is meeting in executive session.

5-17 3. The] If the date, time or place of an annual or special meeting is

5-18 changed, the secretary or other officer specified in the bylaws shall cause

5-19 notice to be given in the manner set forth in this subsection at least 3

5-20 days before the date and time of the meeting as originally scheduled or

5-21 the rescheduled date and time of the meeting, whichever occurs first.

5-22 3. Not less than 10 or more than 60 days in advance of a meeting of

5-23 the executive board, except when the board is meeting in executive

5-24 session, the secretary or other officer specified in the bylaws shall cause

5-25 notice of a meeting of the executive board to be:

5-26 (a) Delivered to the units’ owners in the manner set forth in

5-27 subsection 2; or

5-28 (b) Posted in at least two conspicuous places in the common elements.

5-29 If the date, time or place of a meeting of the executive board is changed,

5-30 the secretary or other officer specified in the bylaws shall cause notice to

5-31 be given in the manner set forth in this subsection at least 3 days before

5-32 the date and time of the meeting as originally scheduled or the

5-33 rescheduled date and time of the meeting, whichever occurs first.

5-34 4. Notice of a meeting given pursuant to subsections 2 and 3 must

5-35 state the date, time and place of the meeting and include a copy of the

5-36 agenda for the meeting.

5-37 5. An agenda for [the] a meeting must consist of:

5-38 (a) A clear and complete statement of the topics scheduled to be

5-39 considered during the meeting, including, without limitation, any proposed

5-40 amendment to the declaration or bylaws, any fees or assessments to be

5-41 imposed or increased by the association, any budgetary changes and any

5-42 proposal to remove an officer or member of the executive board.

6-1 (b) A list describing the items on which action may be taken and clearly

6-2 denoting that action may be taken on those items.

6-3 (c) A period devoted to comments by units’ owners and discussion of

6-4 those comments. Except in emergencies, no action may be taken upon a

6-5 matter raised under this item of the agenda until the matter itself has been

6-6 specifically included on an agenda as an item upon which action may be

6-7 taken pursuant to paragraph (b).

6-8 [4.] 6. If the association adopts a policy imposing a fine on a unit’s

6-9 owner for the violation of the bylaws or other rules established by the

6-10 association, the secretary or other officer specified in the bylaws shall

6-11 prepare and cause to be hand delivered or sent prepaid by United States

6-12 mail to the mailing address of each unit or to any other mailing address

6-13 designated in writing by the unit’s owner, a schedule of the fines that may

6-14 be imposed for those violations.

6-15 [5.] 7. Not more than 30 days after any meeting, the secretary or other

6-16 officer specified in the bylaws shall cause the minutes or a summary of the

6-17 minutes of the meeting to be made available to the units’ owners. A copy of

6-18 the minutes or a summary of the minutes must be provided to any unit’s

6-19 owner who pays the association the cost of providing the copy to him.

6-20 Sec. 7. NRS 116.31085 is hereby amended to read as follows:

6-21 116.31085 1. Except as otherwise provided in this section, a unit’s

6-43 authorized pursuant to NRS 116.31065, and the board has included the

7-1 matter on the agenda for the meeting. The unit’s owner may attend the

7-2 portion of such a meeting at which the board discusses the alleged

7-3 violation and the unit’s owner may speak for a reasonable period

7-4 established by the board. The board may deliberate on its decision

7-5 regarding the alleged violation outside the presence of the unit’s owner.

7-6 Sec. 8. NRS 116.311 is hereby amended to read as follows:

7-7 116.311 1. If only one of several owners of a unit is present at a

7-35 4. No votes allocated to a unit owned by the association may be cast.

7-36 Sec. 9. NRS 116.3115 is hereby amended to read as follows:

7-37 116.3115 1. Until the association makes an assessment for common

7-42 provisions of chapter 119A of NRS, and unless the declaration imposes

8-1 more stringent standards, the budget must include a budget for the daily

8-2 operation of the association and the money for the reserve [required by]

8-3 maintained pursuant to paragraph (b) of subsection 2.

8-4 2. Except for assessments [under] pursuant to subsections 4, 5 and 6:

8-5 (a) All common expenses, including a reserve, must be assessed against

8-6 all the units in accordance with the allocations set forth in the declaration

8-7 pursuant to subsections 1 and 2 of NRS 116.2107.

8-8 (b) The association shall [establish a] maintain the reserve for the repair

8-9 and replacement of the major components of the common elements [.] that

8-10 was delivered to the association by the declarant pursuant to subsection 1

8-11 of NRS 116.31038. The reserve may be used only for common expenses

8-12 that involve major repairs or replacement, including, without limitation,

8-13 repairing and replacing roofs, roads and sidewalks, and must not be used

8-14 for daily maintenance. At least once every 5 years, the association shall

8-15 cause a study of its reserve to be conducted to determine the adequacy of

8-16 the reserve. Such a study must be conducted by a person who is engaged

8-17 in the business of conducting such studies and who has no personal or

8-18 financial commitment to the executive board of the association. The

8-19 association shall make a copy of the study available to any unit’s owner

8-20 who requests a copy. The association may charge a reasonable fee to the

8-21 unit’s owner for the costs of copying the study.

8-22 3. Any past due assessment for common expenses or installment

8-23 thereof bears interest at the rate established by the association not

8-24 exceeding 18 percent per year.

8-25 4. To the extent required by the declaration:

8-26 (a) Any common expense associated with the maintenance, repair or

8-27 replacement of a limited common element must be assessed against the

8-28 units to which that limited common element is assigned, equally, or in any

8-29 other proportion the declaration provides;

8-30 (b) Any common expense or portion thereof benefiting fewer than all of

8-31 the units must be assessed exclusively against the units benefited; and

8-32 (c) The costs of insurance must be assessed in proportion to risk and the

8-33 costs of utilities must be assessed in proportion to usage.

8-34 5. Assessments to pay a judgment against the association may be made

8-35 only against the units in the common-interest community at the time the

8-36 judgment was entered, in proportion to their liabilities for common

8-37 expenses.

8-38 6. If any common expense is caused by the misconduct of any unit’s

8-39 owner, the association may assess that expense exclusively against his unit.

8-40 7. If liabilities for common expenses are reallocated, assessments for

8-41 common expenses and any installment thereof not yet due must be

8-42 recalculated in accordance with the reallocated liabilities.

9-1 8. The association shall provide written notice to the owner of each

9-2 unit of a meeting at which an assessment for a capital improvement or the

9-3 commencement of a civil action is to be considered or action is to be taken

9-4 on such an assessment at least 21 calendar days before the meeting. Except

9-5 as otherwise provided in this subsection, the association may commence a

9-6 civil action only upon a vote or agreement of the owners of units to which

9-7 at least a majority of the votes of the members of the association are

9-8 allocated. The provisions of this subsection do not apply to a civil action

9-9 that is commenced:

9-10 (a) By an association for a time-share project governed by the

9-11 provisions of chapter 119A of NRS;

9-12 (b) To enforce the payment of an assessment;

9-13 (c) To enforce the declaration, bylaws or rules of the association;

9-14 (d) To proceed with a counterclaim; or

9-15 (e) To protect the health, safety and welfare of the members of the

9-16 association.

9-17 Sec. 10. NRS 116.31155 is hereby amended to read as follows:

9-18 116.31155 1. An association [that is not a master association and

9-36 a basis which includes any subsidy for the office.

9-37 Sec. 11. NRS 116.31162 is hereby amended to read as follows:

9-38 116.31162 1. Except as otherwise provided in subsection 4, in a

10-1 (a) The association has mailed by certified or registered mail, return

10-2 receipt requested, to the unit’s owner or his successor in interest, at his

10-3 address if known, and at the address of the unit, a notice of delinquent

10-4 assessment which states the amount of the assessments and other sums

10-5 which are due in accordance with subsection 1 of NRS 116.3116, a

10-6 description of the unit against which the lien is imposed, and the name of

10-7 the record owner of the unit;

10-8 (b) The association or other person conducting the sale has executed and

10-9 caused to be recorded, with the county recorder of the county in which the

10-10 common-interest community or any part of it is situated, a notice of default

10-11 and election to sell the unit to satisfy the lien, which contains the same

10-12 information as the notice of delinquent assessment, but must also describe

10-13 the deficiency in payment and the name and address of the person

10-14 authorized by the association to enforce the lien by sale; and

10-15 (c) The unit’s owner or his successor in interest has failed to pay the

10-16 amount of the lien, including costs, fees and expenses incident to its

10-17 enforcement, for 60 days following the recording of the notice of default

10-18 and election to sell.

10-19 2. The notice of default and election to sell must be signed by the

10-20 person designated in the declaration or by the association for that purpose,

10-21 or if no one is designated, by the president of the association.

10-22 3. The period of 60 days begins on the first day following the later of:

10-23 (a) The day on which the notice of default is recorded; or

10-24 (b) The day on which a copy of the notice of default is mailed by

10-25 certified or registered mail, return receipt requested, to the unit’s owner or

10-26 his successor in interest at his address if known, otherwise to the address of

10-27 the unit.

10-28 4. The association may not foreclose a lien by sale for the assessment

10-29 of a fine for a violation of the declaration, bylaws, rules or regulations of

10-30 the association, unless the [violation is of a type that threatens the health

10-31 and welfare of the residents of the common-interest community.] amount

10-32 of the fine was awarded to the association after mediation or arbitration

10-33 pursuant to NRS 38.300 to 38.360, inclusive, and the unit’s owner failed

10-34 to pay the fine within 30 days after the award or the termination of any

10-35 civil action based on the fine, whichever occurs later.

10-36 Sec. 12. NRS 116.4103 is hereby amended to read as follows:

10-37 116.4103 1. Except as otherwise provided in NRS 116.41035, a

10-42 either a condominium, cooperative or planned community.

11-1 (b) A general description of the common-interest community, including

11-2 to the extent possible, the types, number and declarant’s schedule of

11-3 commencement and completion of construction of buildings, and amenities

11-4 that the declarant anticipates including in the common-interest community.

11-5 (c) The estimated number of units in the common-interest community.

11-6 (d) Copies of the declaration, bylaws, and any rules or regulations of the

11-7 association, but a plat or plan is not required.

11-8 (e) A current financial statement and projected budget for the

11-9 association, either within or as an exhibit to the public offering statement,

11-10 for 1 year after the date of the first conveyance to a purchaser, and

11-11 thereafter the current budget of the association. The budget must include,

11-12 without limitation:

11-13 (1) A statement of the amount included in the budget as a reserve for

11-14 repairs and replacement; and

11-15 (2) The projected monthly assessment for common expenses for each

11-16 type of unit, including the amount [established] maintained as a reserve

11-17 pursuant to NRS 116.3115.

11-18 (f) A description of any services or subsidies being provided by the

11-19 declarant or an affiliate of the declarant, not reflected in the budget.

11-20 (g) Any initial or special fee due from the purchaser at closing, together

11-21 with a description of the purpose and method of calculating the fee.

11-22 (h) The terms and significant limitations of any warranties provided by

11-23 the declarant, including statutory warranties and limitations on the

11-24 enforcement thereof or on damages.

11-25 (i) A statement that unless the purchaser or his agent has personally

11-26 inspected the unit, the purchaser may cancel, by written notice, his contract

11-27 for purchase until midnight of the fifth calendar day following the date of

11-28 execution of the contract, and the contract must contain a provision to that

11-29 effect.

11-30 (j) A statement of any unsatisfied judgments or pending suits against the

11-31 association, and the status of any pending suits material to the common-

11-32 interest community of which a declarant has actual knowledge.

11-33 (k) Any current or expected fees or charges to be paid by units’ owners

11-34 for the use of the common elements and other facilities related to the

11-35 common-interest community.

11-36 (l) The information statement set forth in NRS 116.41095.

11-37 2. A declarant is not required to revise a public offering statement

11-38 more than once each calendar quarter, if the following warning is given

11-39 prominence in the statement: "THIS PUBLIC OFFERING STATEMENT

11-40 IS CURRENT AS OF (insert a specified date). RECENT

11-41 DEVELOPMENTS REGARDING (here refer to particular provisions of

11-42 NRS 116.4103 and 116.4105) MAY NOT BE REFLECTED IN THIS

11-43 STATEMENT."

12-1 Sec. 13. NRS 116.4109 is hereby amended to read as follows:

12-2 116.4109 1. [Except in the case of a sale in which delivery of] In a

12-32 unit’s owner is not liable for the delinquent assessment.

12-33 Sec. 14. NRS 116.41095 is hereby amended to read as follows:

12-34 116.41095 The information statement required by NRS 116.4103 and

12-42 Covenants, Conditions and Restrictions (C, C & R’s) that should be

13-1 provided for your review before making your purchase. The C, C & R’s

13-2 become a part of the title to your property. They bind you and every future

13-3 owner of the property whether or not you have read them or had them

13-4 explained to you. The C, C & R’s, together with other "governing

13-5 documents" (such as association bylaws and rules and regulations), are

13-6 intended to preserve the character and value of properties in the

13-7 community, but may also restrict what you can do to improve or change

13-8 your property and limit how you use and enjoy your property. By

13-9 purchasing a property encumbered by C, C & R’s, you are agreeing to

13-10 limitations that could affect your lifestyle and freedom of choice. You

13-11 should review the C, C & R’s and other governing documents before

13-12 purchasing to make sure that these limitations and controls are acceptable

13-13 to you.

13-14 2. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS

13-15 LONG AS YOU OWN YOUR PROPERTY?

13-16 As an owner in a common-interest community, you are responsible for

13-17 paying your share of expenses relating to the common elements, such as

13-18 landscaping, shared amenities and the operation of any homeowner’s

13-19 association. The obligation to pay these assessments binds you and every

13-20 future owner of the property. Owners’ fees are usually assessed by the

13-21 homeowner’s association and due monthly. You have to pay dues whether

13-22 or not you agree with the way the association is managing the property or

13-23 spending the assessments. The executive board of the association may have

13-24 the power to change and increase the amount of the assessment and to levy

13-25 special assessments against your property to meet extraordinary expenses.

13-26 In some communities, major components of the community such as roofs

13-27 and private roads must be maintained and replaced by the association. If the

13-28 association is not well managed or fails to maintain adequate reserves to

13-29 repair and replace common elements, you may be required to pay large,

13-30 special assessments to accomplish these tasks.

13-31 3. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU

13-32 COULD LOSE YOUR HOME?

13-33 If you do not pay these assessments when due, the association usually has

13-34 the power to collect them by selling your property in a nonjudicial

13-35 foreclosure sale. If fees become delinquent, you may also be required to

13-36 pay penalties and the association’s costs and attorney’s fees to become

13-37 current. If you dispute the obligation or its amount, your only remedy to

13-38 avoid the loss of your home may be to file a lawsuit and ask a court to

13-39 intervene in the dispute.

14-1 4. YOU MAY BECOME A MEMBER OF A HOMEOWNER’S

14-2 ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU

14-3 USE AND ENJOY YOUR PROPERTY?

14-4 Many common-interest communities have a homeowner’s association. In a

14-5 new development, the association will usually be controlled by the

14-6 developer until a certain number of units have been sold. After the period

14-7 of developer control, the association may be controlled by property owners

14-8 like yourself who are elected by homeowners to sit on an executive board

14-9 and other boards and committees formed by the association. The

14-10 association, and its executive board, are responsible for assessing

14-11 homeowners for the cost of operating the association and the common or

14-12 shared elements of the community and for the day to day operation and

14-13 management of the community. Because homeowners sitting on the

14-14 executive board and other boards and committees of the association may

14-15 not have the experience or professional background required to understand

14-16 and carry out the responsibilities of the association properly, the association

14-17 may hire professional managers to carry out these responsibilities.

14-18 Homeowner’s associations operate on democratic principles. Some

14-19 decisions require all homeowners to vote, some decisions are made by the

14-20 executive board or other boards or committees established by the

14-21 association or governing documents. Although the actions of the

14-22 association and its executive board are governed by state laws, the C, C &

14-23 R’s and other documents that govern the common-interest community,

14-24 decisions made by these persons will affect your use and enjoyment of your

14-25 property, your lifestyle and freedom of choice, and your cost of living in

14-26 the community. You may not agree with decisions made by the association

14-27 or its governing bodies even though the decisions are ones which the

14-28 association is authorized to make. Decisions may be made by a few persons

14-29 on the executive board or governing bodies that do not necessarily reflect

14-30 the view of the majority of homeowners in the community. If you do not

14-31 agree with decisions made by the association, its executive board or other

14-32 governing bodies, your remedy is typically to attempt to use the democratic

14-33 processes of the association to seek the election of members of the

14-34 executive board or other governing bodies that are more responsive to your

14-35 needs. If persons controlling the association or its management are not

14-36 complying with state laws or the governing documents, your remedy is

14-37 typically to seek to mediate or arbitrate the dispute and, if mediation or

14-38 arbitration is unsuccessful, file a lawsuit and ask a court to resolve the

14-39 dispute. In addition to your personal cost in mediation or arbitration, or to

14-40 prosecute a lawsuit, you may be responsible for paying your share of the

14-41 association’s cost in defending against your claim. There is no government

14-42 agency in this state that investigates or intervenes to resolve disputes in

14-43 homeowner’s associations.

15-1 5. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS

15-2 OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN

15-3 YOUR COMMON-INTEREST COMMUNITY?

15-4 The law requires you to provide to a prospective purchaser of your

15-5 property, before you enter into a purchase agreement, a copy of the

15-6 community’s governing documents, including the C, C & R’s, association

15-7 bylaws, and rules and regulations, as well as a copy of this document. You

15-8 are also required to provide a copy of the association’s current financial

15-9 statement, operating budget and information regarding the amount of the

15-10 monthly assessment for common expenses, including the amount set aside

15-11 as reserves for repair and replacement of common elements. You are also

15-12 required to inform prospective purchasers of any outstanding judgments or

15-13 lawsuits pending against the association of which you are aware. You are

15-14 also required to provide a copy of the minutes from the most recent meeting

15-15 of the homeowner’s association or its executive board. For more

15-16 information regarding these requirements, see Nevada Revised Statutes

15-17 116.4103.

15-18 6. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN

15-19 A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED

15-20 YOU BY THE STATE?

15-21 Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you

15-22 have the right:

15-23 (a) To be notified of all meetings of the association and its executive

15-24 board, except in cases of emergency.

15-25 (b) To attend and speak at all meetings of the association and its

15-26 executive board, except in some cases where the executive board is

15-27 authorized to meet in closed, executive session.

15-28 (c) To request a special meeting of the association upon petition of at

15-29 least 10 percent of the homeowners.

15-30 (d) To inspect, examine, photocopy and audit financial and other

15-31 records of the association.

15-32 (e) To be notified of all changes in the community’s rules and

15-33 regulations and other actions by the association or board that affect you.

15-34 7. QUESTIONS?

15-35 Although they may be voluminous, you should take the time to read and

15-36 understand the documents that will control your ownership of a property in

15-37 a common-interest community. You may wish to ask your real estate

15-38 professional, lawyer or other person with experience to explain anything

15-39 you do not understand. You may also request assistance from the

15-40 ombudsman for owners in common-interest communities, Nevada Real

16-1 Estate Division, at (telephone number).

16-2 Buyer or prospective buyer’s initials:_____

16-3 Date:_____

16-4 Sec. 15. NRS 116.41095 is hereby amended to read as follows:

16-5 116.41095 The information statement required by NRS 116.4103 and

16-6 116.4109 must be in substantially the following form:

16-7 BEFORE YOU PURCHASE PROPERTY IN A

16-8 COMMON-INTEREST COMMUNITY

16-9 DID YOU KNOW . . .

16-10 1. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU

16-11 CAN USE YOUR PROPERTY?

16-12 These restrictions are contained in a document known as the Declaration of

16-13 Covenants, Conditions and Restrictions (C, C & R’s) that should be

16-14 provided for your review before making your purchase. The C, C & R’s

16-15 become a part of the title to your property. They bind you and every future

16-16 owner of the property whether or not you have read them or had them

16-17 explained to you. The C, C & R’s, together with other "governing

16-18 documents" (such as association bylaws and rules and regulations), are

16-19 intended to preserve the character and value of properties in the

16-20 community, but may also restrict what you can do to improve or change

16-21 your property and limit how you use and enjoy your property. By

16-22 purchasing a property encumbered by C, C & R’s, you are agreeing to

16-23 limitations that could affect your lifestyle and freedom of choice. You

16-24 should review the C, C & R’s and other governing documents before

16-25 purchasing to make sure that these limitations and controls are acceptable

16-26 to you.

16-27 2. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS

16-28 LONG AS YOU OWN YOUR PROPERTY?

16-29 As an owner in a common-interest community, you are responsible for

16-30 paying your share of expenses relating to the common elements, such as

16-31 landscaping, shared amenities and the operation of any homeowner’s

16-32 association. The obligation to pay these assessments binds you and every

16-33 future owner of the property. Owners’ fees are usually assessed by the

16-34 homeowner’s association and due monthly. You have to pay dues whether

16-35 or not you agree with the way the association is managing the property or

16-36 spending the assessments. The executive board of the association may have

16-37 the power to change and increase the amount of the assessment and to levy

16-38 special assessments against your property to meet extraordinary expenses.

17-1 In some communities, major components of the community such as roofs

17-2 and private roads must be maintained and replaced by the association. If the

17-3 association is not well managed or fails to maintain adequate reserves to

17-4 repair and replace common elements, you may be required to pay large,

17-5 special assessments to accomplish these tasks.

17-6 3. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU

17-7 COULD LOSE YOUR HOME?

17-8 If you do not pay these assessments when due, the association usually has

17-9 the power to collect them by selling your property in a nonjudicial

17-10 foreclosure sale. If fees become delinquent, you may also be required to

17-11 pay penalties and the association’s costs and attorney’s fees to become

17-12 current. If you dispute the obligation or its amount, your only remedy to

17-13 avoid the loss of your home may be to file a lawsuit and ask a court to

17-14 intervene in the dispute.

17-15 4. YOU MAY BECOME A MEMBER OF A HOMEOWNER’S

17-16 ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU

17-17 USE AND ENJOY YOUR PROPERTY?

17-18 Many common-interest communities have a homeowner’s association. In a

17-19 new development, the association will usually be controlled by the

17-20 developer until a certain number of units have been sold. After the period

17-21 of developer control, the association may be controlled by property owners

17-22 like yourself who are elected by homeowners to sit on an executive board

17-23 and other boards and committees formed by the association. The

17-24 association, and its executive board, are responsible for assessing

17-25 homeowners for the cost of operating the association and the common or

17-26 shared elements of the community and for the day to day operation and

17-27 management of the community. Because homeowners sitting on the

17-28 executive board and other boards and committees of the association may

17-29 not have the experience or professional background required to understand

17-30 and carry out the responsibilities of the association properly, the association

17-31 may hire professional managers to carry out these responsibilities.

17-32 Homeowner’s associations operate on democratic principles. Some

17-33 decisions require all homeowners to vote, some decisions are made by the

17-34 executive board or other boards or committees established by the

17-35 association or governing documents. Although the actions of the

17-36 association and its executive board are governed by state laws, the C, C &

17-37 R’s and other documents that govern the common-interest community,

17-38 decisions made by these persons will affect your use and enjoyment of your

17-39 property, your lifestyle and freedom of choice, and your cost of living in

17-40 the community. You may not agree with decisions made by the association

17-41 or its governing bodies even though the decisions are ones which the

17-42 association is authorized to make. Decisions may be made by a few persons

17-43 on the executive board or governing bodies that do not necessarily reflect

18-1 the view of the majority of homeowners in the community. If you do not

18-2 agree with decisions made by the association, its executive board or other

18-3 governing bodies, your remedy is typically to attempt to use the democratic

18-4 processes of the association to seek the election of members of the

18-5 executive board or other governing bodies that are more responsive to your

18-6 needs. If persons controlling the association or its management are not

18-7 complying with state laws or the governing documents, your remedy is

18-8 typically to seek to mediate or arbitrate the dispute and, if mediation or

18-9 arbitration is unsuccessful, file a lawsuit and ask a court to resolve the

18-10 dispute. In addition to your personal cost in mediation or arbitration, or to

18-11 prosecute a lawsuit, you may be responsible for paying your share of the

18-12 association’s cost in defending against your claim. There is no government

18-13 agency in this state that investigates or intervenes to resolve disputes in

18-14 homeowner’s associations.

18-15 5. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS

18-16 OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN

18-17 YOUR COMMON-INTEREST COMMUNITY?

18-18 The law requires you to provide to a prospective purchaser of your

18-19 property, before you enter into a purchase agreement, a copy of the

18-20 community’s governing documents, including the C, C & R’s, association

18-21 bylaws, and rules and regulations, as well as a copy of this document. You

18-22 are also required to provide a copy of the association’s current financial

18-23 statement, operating budget and information regarding the amount of the

18-24 monthly assessment for common expenses, including the amount set aside

18-25 as reserves for repair and replacement of common elements. You are also

18-26 required to inform prospective purchasers of any outstanding judgments or

18-27 lawsuits pending against the association of which you are aware. You are

18-28 also required to provide a copy of the minutes from the most recent meeting

18-29 of the homeowner’s association or its executive board. For more

18-30 information regarding these requirements, see Nevada Revised Statutes

18-31 116.4103.

18-32 6. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN

18-33 A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED

18-34 YOU BY THE STATE?

18-35 Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you

18-36 have the right:

18-37 (a) To be notified of all meetings of the association and its executive

18-38 board, except in cases of emergency.

18-39 (b) To attend and speak at all meetings of the association and its

18-40 executive board, except in some cases where the executive board is

18-41 authorized to meet in closed, executive session.

18-42 (c) To request a special meeting of the association upon petition of at

18-43 least 10 percent of the homeowners.

19-1 (d) To inspect, examine, photocopy and audit financial and other

19-2 records of the association.

19-3 (e) To be notified of all changes in the community’s rules and

19-4 regulations and other actions by the association or board that affect you.

19-5 7. QUESTIONS?

19-6 Although they may be voluminous, you should take the time to read and

19-7 understand the documents that will control your ownership of a property in

19-8 a common-interest community. You may wish to ask your real estate

19-9 professional, lawyer or other person with experience to explain anything

19-10 you do not understand. [You may also request assistance from the

19-11 ombudsman for owners in common-interest communities, Nevada Real

19-12 Estate Division, at (telephone number).]

19-13 Buyer or prospective buyer’s initials:_____

19-14 Date:_____

19-15 Sec. 16. NRS 119A.165 is hereby amended to read as follows:

19-16 119A.165 1. If a matter governed by this chapter is also governed by

19-26 share project.

19-27 Sec. 17. NRS 78.150 is hereby amended to read as follows:

19-28 78.150 1. A corporation organized under the laws of this state shall,

19-42 year, file with the secretary of state, on a form furnished by him, an

20-1 amended list containing all of the information required in subsection 1. If

20-2 the corporation has had no changes in its required officers and directors

20-3 since its previous list was filed, no amended list need be filed if an officer

20-4 of the corporation certifies to the secretary of state as a true and accurate

20-5 statement that no changes in the required officers or directors has occurred.

20-6 3. Upon filing a list of officers and directors, or certifying that no

20-7 changes have occurred, the corporation shall pay to the secretary of state a

20-8 fee of $85.

20-9 4. The secretary of state shall, 60 days before the last day for filing the

20-10 annual list required by subsection 2, cause to be mailed to each corporation

20-11 which is required to comply with the provisions of NRS 78.150 to 78.185,

20-12 inclusive, and which has not become delinquent, a notice of the fee due

20-13 pursuant to subsection 3 and a reminder to file a list of officers and

20-14 directors or a certification of no change. Failure of any corporation to

20-15 receive a notice or form does not excuse it from the penalty imposed by

20-16 law.

20-17 5. If the list to be filed pursuant to the provisions of subsection 1 or 2 is

20-18 defective in any respect or the fee required by subsection 3 or 7 is not paid,

20-19 the secretary of state may return the list for correction or payment.

20-20 6. An annual list for a corporation not in default which is received by

20-21 the secretary of state more than 60 days before its due date shall be deemed

20-22 an amended list for the previous year.

20-23 [7. If the corporation is an association as defined in NRS 116.110315,

20-24 the secretary of state shall not accept the filing required by this section

20-25 unless it is accompanied by the fee required to be paid pursuant to NRS

20-26 116.31155.]

20-27 Sec. 18. NRS 116.1116, 116.1117 and 116.31155 are hereby repealed.

20-28 Sec. 19. 1. This section and sections 1 and 3 to 14, inclusive, of this

20-29 act become effective on October 1, 1999.

20-30 2. Sections 2 and 15 to 18, inclusive, of this act become effective on

20-31 July 1, 2001.

20-32 TEXT OF REPEALED SECTIONS

20-33 116.1116 Ombudsman for owners in common-interest

20-39 ombudsman for owners in common-interest communities. The ombudsman

21-1 for owners in common-interest communities is in the unclassified service of

21-2 the state.

21-3 3. The ombudsman for owners in common-interest communities must

21-4 be qualified by training and experience to perform the duties and functions

21-5 of his office.

21-6 4. The ombudsman for owners in common-interest communities shall:

21-7 (a) Assist in processing claims submitted to mediation or arbitration

21-8 pursuant to NRS 38.300 to 38.360, inclusive;

21-9 (b) Assist owners in common-interest communities to understand their

21-10 rights and responsibilities as set forth in this chapter and the governing

21-11 documents of their associations, including, without limitation, publishing

21-12 materials related to those rights and responsibilities; and

21-13 (c) Assist persons appointed or elected to serve on executive boards of

21-14 associations to carry out their duties.

21-15 116.1117 Fund for the ombudsman for owners in common-interest

21-43 :

22-1 (a) Deposited with the state treasurer for credit to the fund for the

22-2 ombudsman for owners in common-interest communities created pursuant

22-3 to NRS 116.1117.

22-4 (b) Established on the basis of the actual cost of administering the office

22-5 of the ombudsman for owners in common-interest communities and not on

22-6 a basis which includes any subsidy for the office.