2001 REGULAR SESSION (71st) A SB261 R2 1063
Adoption of this amendment will MAINTAIN a 2/3s majority vote requirement for final passage of SB261 R2 (§ 29).
ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not |Concurred In Not
Receded Not | Receded Not
Amend sec. 7, pages 7 and 8, by deleting lines 44 through 49 on page 7 and lines 1 through 22 on page 8, and inserting:
“116.4109 1. Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under subsection 2 of NRS 116.4101, a unit’s owner shall furnish to a purchaser before the execution of any contract for the sale of a unit, or otherwise before conveyance:
(a) A copy of the declaration, other than any plats and plans, the bylaws, the rules or regulations of the association and [, except for a time share governed by the provisions of chapter 119A of NRS,] the information statement required by NRS 116.41095;
(b) A statement setting forth the amount of the monthly assessment for common expenses , any other fees payable by a unit’s owner and any unpaid assessment of any kind currently due from the selling unit’s owner [;] that the purchaser will be obligated to pay;
(c) A statement setting forth any unpaid fines due from the selling unit’s owner that the purchaser will be obligated to pay;
(d) A statement listing all written notices of a violation of the governing documents of the association associated with the unit which the association has previously provided to the selling unit’s owner and which the purchaser will be obligated to correct or repair;
(e) The current operating budget of the association and a financial statement for the association; [and
(d)] (f) A statement of any unsatisfied judgments or pending legal actions [against] to which the association is a party and the status of any such pending legal actions [relating to the common-interest community of which the unit’s owner has actual knowledge.] ;
(g) A statement of any pending claims submitted to arbitration or mediation to which the association is a party; and
(h) A statement of any claim for a constructional defect of which the association has actual knowledge and for which the association will be a party.
2. The association, within 10 days after receipt of a written request by a unit’s owner, shall furnish a certificate addressed to the unit’s owner at the address included in the written request containing the information necessary to enable the unit’s owner to comply with this section. The certificate must be signed by a member of the executive board of the association or an authorized agent of the association. A unit’s owner providing a certificate pursuant to subsection 1 is not liable to the purchaser for any erroneous information provided by the association and included in the certificate.
3. [Neither] Except as otherwise provided in subsection 6, neither a purchaser nor the purchaser’s interest in a unit is liable to the association for [any] :
(a) Any unpaid assessment , [or] fee or fine greater than the amount [set forth in the certificate prepared by the association.] disclosed pursuant to this section; or
(b) The correction or repair of any violation of the governing documents of the association that is not disclosed pursuant to paragraph (d) of subsection 1.
4. If the association fails to furnish the certificate within the 10 days allowed by subsection 2, the seller is not liable to the association for [the] :
(a) Any delinquent assessment [.] , fee or fine owed to the association; or
(b) The correction or repair of any violation of the governing documents of the association associated with the unit that is required to be disclosed pursuant to paragraph (d) of subsection 1.
5. A certificate issued by an association pursuant to this section becomes effective on the date the certificate is signed pursuant to subsection 2.
6. The association is not liable to any person for undisclosed information if a unit’s owner does not make a written request for a certificate pursuant to subsection 2.”.
Amend the bill as a whole by adding a new section designated sec. 7.5, following sec. 7, to read as follows:
“Sec. 7.5. NRS 116.41095 is hereby amended to read as follows:
116.41095 The information statement required by NRS 116.4103 and 116.4109 must be in substantially the following form:
BEFORE YOU PURCHASE PROPERTY IN A
COMMON-INTEREST COMMUNITY
DID YOU KNOW . . .
1. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU CAN USE YOUR PROPERTY?
FLUSH
These restrictions are contained in a document known as the
Declaration of Covenants, Conditions and Restrictions (C, C & R’s) that
should be provided for your review before making your purchase. The C, C &
R’s become a part of the title to your property. They bind you and every future
owner of the property whether or not you have read them or had them explained
to you. The C, C & R’s, together with other “governing documents” (such as
association bylaws and rules and regulations), are intended to preserve the
character and value of properties in the community, but may also restrict what
you can do to improve or change your property and limit how you use and enjoy
your property. By purchasing a property encumbered by C, C & R’s, you are
agreeing to limitations that could affect your lifestyle and freedom of choice.
You should review the C, C & R’s and other governing documents before
purchasing to make sure that these limitations and controls are acceptable to
you.
2. YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS LONG AS YOU OWN YOUR PROPERTY?
FLUSH
As an owner in a common-interest community, you are
responsible for paying your share of expenses relating to the common elements,
such as landscaping, shared amenities and the operation of any homeowner’s
association. The obligation to pay these assessments binds you and every future
owner of the property. Owners’ fees are usually assessed by the homeowner’s
association and due monthly. You have to pay dues whether or not you agree with
the way the association is managing the property or spending the assessments.
The executive board of the association may have the power to change and
increase the amount of the assessment and to levy special assessments against
your property to meet extraordinary expenses. In some communities, major
components of the community such as roofs and private roads must be maintained
and replaced by the association. If the association is not well managed or
fails to maintain adequate reserves to repair, replace and restore common
elements, you may be required to pay large, special assessments to accomplish
these tasks.
3. IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU COULD LOSE YOUR HOME?
FLUSH
If you do not pay these assessments when due, the association
usually has the power to collect them by selling your property in a nonjudicial
foreclosure sale. If fees become delinquent, you may also be required to pay
penalties and the association’s costs and attorney’s fees to become current. If
you dispute the obligation or its amount, your only remedy to avoid the loss of
your home may be to file a lawsuit and ask a court to intervene in the dispute.
4. YOU MAY BECOME A MEMBER OF A HOMEOWNER’S ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?
FLUSH
Many common-interest communities have a homeowner’s
association. In a new development, the association will usually be controlled
by the developer until a certain number of units have been sold. After the
period of developer control, the association may be controlled by property
owners like yourself who are elected by homeowners to sit on an executive board
and other boards and committees formed by the association. The association, and
its executive board, are responsible for assessing homeowners for the cost of
operating the association and the common or shared elements of the community
and for the [day to day] day-to-day operation and management of the
community. Because homeowners sitting on the executive board and other boards
and committees of the association may not have the experience or professional
background required to understand and carry out the responsibilities of the
association properly, the association may hire professional managers to carry
out these responsibilities.
FLUSH
Homeowner’s associations operate on democratic principles.
Some decisions require all homeowners to vote, some decisions are made by the
executive board or other boards or committees established by the association or
governing documents. Although the actions of the association and its executive
board are governed by state laws, the C, C & R’s and other documents that
govern the common-interest community, decisions made by these persons will
affect your use and enjoyment of your property, your lifestyle and freedom of
choice, and your cost of living in the community. You may not agree with
decisions made by the association or its governing bodies even though the
decisions are ones which the association is authorized to make. Decisions may
be made by a few persons on the executive board or governing bodies that do not
necessarily reflect the view of the majority of homeowners in the community. If
you do not agree with decisions made by the association, its executive board or
other governing bodies, your remedy is typically to attempt to use the
democratic processes of the association to seek the election of members of the
executive board or other governing bodies that are more responsive to your
needs. If persons controlling the association or its management are not
complying with state laws or the governing documents, your remedy is typically
to seek to mediate or arbitrate the dispute and, if mediation or arbitration is
unsuccessful, file a lawsuit and ask a court to resolve the dispute. In
addition to your personal cost in mediation or arbitration, or to prosecute a
lawsuit, you may be responsible for paying your share of the association’s cost
in defending against your claim. There is no government agency in this state
that investigates or intervenes to resolve disputes in homeowner’s
associations.
5. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN YOUR COMMON-INTEREST COMMUNITY?
FLUSH
The law requires you to provide to a prospective purchaser of
your property, before you enter into a purchase agreement[, a] :
(a) A copy of the community’s governing documents, including the C, C & R’s, association bylaws, and rules and regulations, as well as a copy of this document. [You are also required to provide a]
(b) A copy of the association’s current financial statement, operating budget and information regarding the amount of the monthly assessment for common expenses, including the amount set aside as reserves for the repair, replacement and restoration of common elements. [You are also required to inform prospective purchasers]
(c) A statement setting forth any other fees payable by a unit’s owner and any unpaid assessment or fine that the purchaser will be obligated to pay.
(d) A statement listing all written notices of a violation of the governing documents of the association associated with the unit which the association has previously provided to you and which the purchaser will be obligated to correct or repair.
(e) A statement of any outstanding judgments or [lawsuits pending against] pending legal actions to which the association [of which you are aware. You are also required to provide a] is a party and the status of such pending legal actions.
(f) A statement of any pending claims submitted to arbitration or mediation to which the association is a party.
(g) A statement of any claim for a constructional defect of which the association has actual knowledge and for which the association will be a party.
(h) A copy of the minutes from the most recent meeting of the homeowner’s association or its executive board.
FLUSH
For more information regarding these requirements, see Nevada
Revised Statutes 116.4103[.] and 116.4109.
6. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED YOU BY THE STATE?
FLUSH
Pursuant to provisions of chapter 116 of Nevada Revised
Statutes, you have the right:
(a) To be notified of all meetings of the association and its executive board, except in cases of emergency.
(b) To attend and speak at all meetings of the association and its executive board, except in some cases where the executive board is authorized to meet in closed, executive session.
(c) To request a special meeting of the association upon petition of at least 10 percent of the homeowners.
(d) To inspect, examine, photocopy and audit financial and other records of the association.
(e) To be notified of all changes in the community’s rules and regulations and other actions by the association or board that affect you.
7. QUESTIONS?
FLUSH
Although they may be voluminous, you should take the time to
read and understand the documents that will control your ownership of a
property in a common-interest community. You may wish to ask your real estate
professional, lawyer or other person with experience to explain anything you do
not understand. You may also request assistance from the ombudsman for owners
in common-interest communities, Nevada Real Estate Division, at (telephone
number).
FLUSH
Buyer or prospective buyer’s initials: ______
FLUSH
Date: ______”.
Amend the title of the bill by deleting the first and second lines and inserting:
“AN ACT relating to property; limiting the applicability of provisions governing common-interest communities to the sale or transfer of time shares; revising the information that must be furnished by a unit’s owner in a common-interest community to a prospective purchaser before the sale of the unit; requiring a manager of”.
Amend the summary of the bill to read as follows: