November 22, 2020 - 12:14 pm
Updated November 25, 2020 - 6:34 pm
Q: I’m currently in a fight with my homeowners association, and your articles in the Review-Journal have been very helpful — thank you. Without getting into specifics, I have two questions I was wondering if you could give me your advice/guidance on:
Am I reading Nevada Revised Statute 116.31031(1)(b)(2) correctly, that the maximum fine for a continuing violation is $1,000 total excluding collection fees? So, in the case of an inoperable vehicle, the maximum fine is $1,000 including the original $100 and the weekly continuing violation fines?
In addition to violating the governing document, is the HOA in violation (of state laws) if it assessed weekly continuing violation fines for an inoperable vehicle that was removed and not in the community during the weekly “inspections?”
Again, thank you for all your advice.
A: Under NRS 116.31031 (7), if a fine is not cured within 14 days or within any longer period that may be established by the board, the violation shall be deemed a “continuing violation.” The board may impose an additional fine for the violation for each seven-day period or portion thereof that the violation is not cured. Any additional fine may be imposed without providing the opportunity to cure the violation and without the notice and opportunity to be heard.
A continuing violation fine can be assessed each week against a unit owner until the violation is cured.
As to the second question, if the vehicle was removed, you should have sent the violation response form back to your association indicating that the vehicle was gone from the community, but if you are bringing the inoperable vehicle back and forth into the community, the association should be able to fine you.
Q: Hello, does an HOA resale certificate certify that a home is in good standing? Over a year since I bought my house, the HOA notified me that my house is out of compliance for a modification that the previous owner made.
A: The resale certificate does not certify that a home is in good standing.
Per NRS 116.4109 pertaining to the resale of units, the following information should be included in the resale package at the expense of the unit owner and furnished to the purchaser:
■ Copy of the covenants, conditions and restrictions, bylaws, rules and regulations.
■ A statement setting forth the monthly assessment, and any unpaid obligation such as transfer fees, fines, interest, collection costs, etc.
■ A current copy of the operating budget and year-to-date financial statement.
■ A statement of any unsatisfied judgments or pending legal actions against the association.
■ A statement of any transfer fees, transaction fees or any other fees associated with the resale of the unit.
■ A statement describing all current and expected fees or charges for each unit including assessments, fines, late charges, penalties.
Under subsection 4a of this law, it states that the unit owner or his or her authorized agent shall include the documents and certificate in the resale package provided to the purchaser and neither the unit owner nor his or her authorized agent is liable to the purchaser of any erroneous information provided by the association and included in the documents and certificate.
Under subsection 5 of this law, a purchaser is not liable for any unpaid assessment or fee greater than the amount set forth in the documents and certificate prepared by the association.
Under subsection 7 of this law, there is a statement of demand that must set forth the amount of the monthly assessment and any unpaid obligation of any kind, including, without limitation, management fees, transfer fees, fines, penalties, interest, collection costs, foreclosure fees and attorney fees currently due from the selling unit’s owner. If the previous homeowner was not in compliance and if there was a fine, it should have shown up in the demand statement.
The current laws do not require the association to include the violation history of the seller.
Barbara Holland is a certified property manager and holds the supervisory community manager certificate with the state of Nevada. She is an author and educator on real estate management. Questions may be sent to firstname.lastname@example.org.