79°F
weather icon Clear

Estate sales are different than garage sales

Updated June 22, 2018 - 4:56 pm

Q: We are moving out of state and want to have an estate sale in the cool month of January 2019. Our homeowners association rules state that this is a garage sale and must be held in May or September of each year. An estate sale is not the exact thing as a garage sale, and should not be so restrictive.

Can you help on this question? I am past president of two HOAs in California and this a dumb rule.

A: You are correct. An estate sale is not a garage sale. An estate sale or estate liquidation is a sale or auction to dispose of substantial portion of the materials owned by a person who is recently deceased or who must dispose of his or her personal property to facilitate a move. These sales are used when someone is in need of a way to sell items due to downsizing, moving, divorce, bankruptcy or death.

Often the estate sale is required due to a court decision.

In this case, the association can ask you for the proper documentation of this estate sale and grant the sale as an exemption.

Q: We have a self-managed co-op complex. An owner purchased several units a year or so ago. He asked for the names of all the owners in the complex at that time to make possible additional buys. The board refused as the owner information is confidential. Besides, statute says we can’t give out that information. So, he gets elected to the board as a director. He asked for and was given the names and addresses of the owners.

He now demands the phone numbers of the owners. I asked him why phone numbers. He said for communications. I refused to pass on these numbers because its an invasion of owners’ privacy. We have most numbers in our office for emergency calls (water leaks, electrical, drain stoppages, etc.). Most units are rented and many owners are out of state. I have advised him to make contact by letter to see if any are interested in selling and I think the board should have a copy of what another board member sends out to owners.

A: You are correct. There is a conflict of interest. Nevada Revised Statutes 116.3103 (1b) states that board members are subject to the conflict-of-interest rules governing the officers and directors of a nonprofit corporation organized under the laws of this state. Utilizing contact information of homeowners for the purpose of soliciting business would be considered a conflict of interest. In addition, associations are not required per NRS 116.31175 (4b) to provide records relating to unit owners.

The association board may want to have legal counsel write a formal letter to this board of director to establish proper protocol in this matter.

Q: I read and respect your column every Sunday in the RJ. I would like your opinion on this subject:

Our management accompany charged an additional fee of $150 per month for several months, until they were questioned about it. That was after it received a certified letter. The response was that the extra cost represent the fees the management company charges up front, but they are collected and paid back to the HOA when the owners pays their assessments. This is called a pass-through.

I contacted an HOA attorney and it was his opinion that this whole process is illegal for any management company to loan money to the HOA, collect it back, and then keep any late charges. He suggested that I contact the ombudsman’s office. I personally contacted the ombudsman’s office and they would not even discuss it because they had gotten in trouble before for discussing such issues.

Also, I should mention that the management company is not working off an approved yearly budget by the membership. This pass-through, according to the management company, is to be an item on the agenda for the next board meeting, which should be scheduled soon. Since this has been a practice of this management company for a number of months, why is it just now becoming an agenda item, and not until it was brought to their attention?

A: Based upon your email, I am assuming that the $150 fee pertains to your association’s collection policy. A delinquency or collection processing fee is charged to the association for the management company’s services. The homeowner is than charged the fee to reimburse the association. I don’t think this is a case where the management company actually loaned the association funds. This procedure may well be stated in the management agreement with the association. I would assume it is now on the agenda because the issue was raised and hopefully your concerns will be more clearly answered.

Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to holland744o@gmail.com.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Yes, HOA’s can be sued that’s why they carry insurance

Yes, associations can be sued, which is why associations carry multiple kinds of insurance. In your case, the lawsuit should be forwarded to the insurance company who provides the directors and officers insurance policy.

Bids for work must be opened at board meeting

When bids are requested, the law requires them to be sealed and opened at a board meeting at which time the amount of each bid is to be announced.

Rude neighbor frays everyone’s nerves

Sorry to hear that you have such a rude neighbor. The association’s only recourse is to fine the homeowner. Based upon the amount of the fines if they totaled over $500, the board may consider placing a lien on his property.

HOA violations and fines must follow state law

I thought it would be worthwhile to have an article on homeowners associations’ violations and fines so that our boards’ enforcement process and procedures follow state laws.

Community has dog poop problem

The dog has two spots in our yard where he relieves himself. When he pees, our grass turns yellow and dies. We have had to replace with new sod about three times. We have not been able to catch the culprit.

Homeowner annoyed by neighbors’ smoke alarms

Unfortunately, there is not too much an association can do, other than send the homeowner a letter to not only inform them of the problem but also to ask for contact information for any future issues.

HOA rejects request for satellite antenna

As for condominium associations, owners can install an antenna on balcony or patio if the patio or balcony is a limited common element, restricted for the owner’s exclusive use. Again, installation rules would be permissible and may require that the owner cover the antenna as long as such a requirement does not impair an owner’s ability to receive a signal or unreasonably delay or increase the cost of installation, maintenance or use.

FHA approval provides many advantanges

To obtain FHA approval does require some paperwork. The board would have to place this issue on an agenda and approve it, instructing the management company to pursue the action item.

Homeowner fights HOA over RV parking

The association should consider a revision in its rules, assuming the current regulation is not in the covenants, conditions and restrictions, which would allow a homeowner reasonable time to load and unload an RV. For many associations, their regulations allow 24 hours.

Roof rats are a problem

My wife and I live in a homeowners association duplex community. We now have roof rats in our crawl space. I’m sure we are liable to have the exterminator get rid of them.