NRS 116.1206 Provisionsof governing documents in violation of chapter deemed to conform with chapterby operation of law; procedure for certain amendments to governing documents.

NRS 116.12065 Noticeof changes to governing documents.

ARTICLE 2

CREATION, ALTERATION AND TERMINATION OFCOMMON-INTEREST COMMUNITIES

NRS 116.2101 Creationof common-interest communities.

NRS 116.2102 Unitboundaries.

NRS 116.2103 Constructionand validity of declaration and bylaws.

NRS 116.2104 Descriptionof units.

NRS 116.2105 Contentsof declaration.

NRS 116.2106 Leaseholdcommon-interest communities.

NRS 116.2107 Allocationof allocated interests.

NRS 116.2108 Limitedcommon elements.

NRS 116.2109 Platsand plans.

NRS 116.211 Exerciseof developmental rights.

NRS 116.2111 Alterationsof units; access to units.

NRS 116.2112 Relocationof boundaries between adjoining units.

NRS 116.2113 Subdivisionof units.

NRS 116.2114 Monumentsas boundaries.

NRS 116.2115 Usefor purposes of sales.

NRS 116.2116 Easementrights; validity of existing restrictions.

NRS 116.2117 Amendmentof declaration.

NRS 116.21175 Procedurefor seeking confirmation from district court of certain amendments todeclaration.

NRS 116.2118 Terminationof common-interest community.

NRS 116.21183 Rightsof creditors following termination.

NRS 116.21185 Respectiveinterests of units owners following termination.

NRS 116.21188 Effectof foreclosure or enforcement of lien or encumbrance.

NRS 116.2119 Rightsof secured lenders.

NRS 116.212 Masterassociations.

NRS 116.21205 Reallocationof costs of administering common elements of certain master associations.

NRS 116.2121 Mergeror consolidation of common-interest communities.

NRS 116.2122 Additionof unspecified real estate.

ARTICLE 3

MANAGEMENT OF THE COMMON-INTERESTCOMMUNITY

General Provisions

NRS 116.3101 Organizationof unit-owners association.

NRS 116.3102 Powersof unit-owners association.

NRS 116.3103 Powerof executive board to act on behalf of association; members and officers arefiduciaries; duty of care; application of business-judgment rule; limitationson power.

NRS 116.310305 Powerof executive board to impose construction penalties for failure of units ownerto adhere to certain schedules relating to design, construction, occupancy oruse of unit or improvement.

NRS 116.31031 Powerof executive board to impose fines and other sanctions for violations ofgoverning documents; procedural requirements; continuing violations; collectionof past due fines.

NRS 116.310315 Accountingfor fines in books and records of association; prohibition against applyingpayment for assessment, fee or other charge toward payment of fine; exceptions.

NRS 116.31032 Periodof declarants control of association; representation of units owners onexecutive board.

NRS 116.31034 Electionof members of executive board and officers of association; term of office ofmember of executive board; staggered terms; eligibility to serve on executiveboard; required disclosures; procedure for conducting elections; certificationby member of executive board of understanding of governing documents andprovisions of chapter.

NRS 116.31036 Removalof member of executive board; indemnification and defense of member ofexecutive board.

NRS 116.31038 Deliveryto association of property held or controlled by declarant.

NRS 116.31039 Deliveryto association of additional common elements constructed by declarant orsuccessor declarant.

NRS 116.310395 Deliveryto association of converted building reserve deficit.

NRS 116.3104 Transferof special declarants right.

NRS 116.31043 Liabilitiesand obligations of person who succeeds to special declarants rights.

NRS 116.31046 Successornot subject to certain claims against or other obligations of transferor ofspecial declarants right.

NRS 116.3105 Terminationof contracts and leases of declarant.

NRS 116.3106 Bylaws.

NRS 116.31065 Rules.

NRS 116.31067 Rightof units owners to display flag of the United States in certain areas;conditions and limitations on exercise of right. [Replaced in revision by NRS 116.320.]

NRS 116.3107 Upkeepof common-interest community.

Meetings and Voting

NRS 116.31075 Meetingsof rural agricultural residential common-interest communities: Compliance withOpen Meeting Law.

NRS 116.3108 Meetingsof units owners of association; frequency of meetings; calling specialmeetings or removal elections; requirements concerning notice and agendas;dissemination of schedule of fines; requirements concerning minutes ofmeetings; right of units owners to make audio recordings of meetings.

NRS 116.31083 Meetingsof executive board; frequency of meetings; requirements concerning notice andagendas; periodic review of certain financial and legal matters at meetings;requirements concerning minutes of meetings; right of units owners to makeaudio recordings of certain meetings.

NRS 116.31085 Rightof units owners to speak at certain meetings; limitations on right;limitations on power of executive board to meet in executive session; proceduregoverning hearings on alleged violations; requirements concerning minutes ofcertain meetings.

NRS 116.31087 Rightof units owners to have certain complaints placed on agenda of meeting ofexecutive board.

NRS 116.31088 Meetingsregarding civil actions; requirements for commencing or ratifying certain civilactions; right of units owners to request dismissal of certain civil actions;disclosure of terms and conditions of settlements.

NRS 116.3109 Quorum.

NRS 116.311 Votingby units owners; use of proxies; voting by lessees of leased units;association prohibited from voting as owner of unit.

NRS 116.31105 Votingby delegates or representatives; procedure for electing delegates orrepresentatives.

Liabilities, Insurance and Fiscal Affairs

NRS 116.3111 Tortand contract liability.

NRS 116.3112 Conveyanceor encumbrance of common elements.

NRS 116.31123 Transientcommercial use of units within certain planned communities. [Replaced inrevision by NRS 116.340.]

NRS 116.31125 Associationof planned community prohibited from taking certain actions regarding property,buildings and structures within planned community; validity of existingrestrictions. [Replaced in revision by NRS116.345.]

NRS 116.3113 Insurance:General requirements.

NRS 116.31133 Insurance:Policies; use of proceeds; certificates or memoranda of insurance.

NRS 116.31135 Insurance:Repair or replacement of damaged or destroyed portion of community.

NRS 116.31138 Insurance:Variance or waiver of provisions in community restricted to nonresidential use.

NRS 116.3114 Surplusfunds.

NRS 116.31142 Preparationand presentation of financial statements.

NRS 116.31144 Auditand review of financial statements.

NRS 116.31145 Prohibitionagainst application of assessment, fee or other charge paid by units ownertoward fine imposed against units owner. [Replaced in revision by NRS 116.310315.]

NRS 116.3115 Assessmentsfor common expenses; funding of adequate reserves; collection of interest onpast due assessments; calculation of assessments for particular types of commonexpenses; notice of meetings regarding assessments for capital improvements.

NRS 116.31151 Annualdistribution to units owners of operating and reserve budgets or summaries ofsuch budgets; ratification of budget.

NRS 116.31152 Studyof reserves; duties of executive board regarding study; person who conductsstudy required to hold permit; contents of study; submission of summary ofstudy to Division; use of money credited against residential construction taxfor upkeep of park facilities and related improvements identified in study.

NRS 116.31153 Signaturesrequired for withdrawals from reserve account of association.

NRS 116.31155 Feesimposed on associations or master associations to pay for costs ofadministering Office of Ombudsman and Commission; administrative penalties forfailure to pay; interest on unpaid fees; limitations on amount of fees andpenalties.

NRS 116.31158 Registrationof associations with Ombudsman; contents of form for registration.

Liens

NRS 116.3116 Liensagainst units for assessments.

NRS 116.31162 Foreclosureof liens: Mailing of notice of delinquent assessment; recording of notice ofdefault and election to sell; period during which units owner may pay lien toavoid foreclosure; limitations on type of lien that may be foreclosed.

NRS 116.31163 Foreclosureof liens: Mailing of notice of default and election to sell to certaininterested persons.

NRS 116.311635 Foreclosureof liens: Providing notice of time and place of sale; service of notice ofsale; contents of notice of sale; proof of service.

NRS 116.31164 Foreclosureof liens: Procedure for conducting sale; purchase of unit by association;execution and delivery of deed; use of proceeds of sale.

NRS 116.31166 Foreclosureof liens: Effect of recitals in deed; purchaser not responsible for properapplication of purchase money; title vested in purchaser without equity orright of redemption.

NRS 116.31168 Foreclosureof liens: Requests by interested persons for notice of default and election tosell; right of association to waive default and withdraw notice or proceedingto foreclose.

NRS 116.3117 Liensagainst association.

Books, Records and Other Documents

NRS 116.31175 Maintenanceand availability of books, records and other papers of association: Generalrequirements; exceptions; general records concerning certain violations;enforcement by Ombudsman; limitations on amount that may be charged to conductreview.

NRS 116.31177 Maintenanceand availability of certain financial records of association; provision ofcopies to units owners and Ombudsman.

NRS 116.3118 Maintenanceand availability of certain financial records necessary to provide informationrequired for resale of units; right of units owners to inspect, examine,photocopy and audit records of association.

Miscellaneous Rights, Duties and Restrictions

NRS 116.31183 Retaliatoryaction prohibited.

NRS 116.31185 Prohibitionagainst certain personnel soliciting or accepting compensation, gratuity orremuneration under certain circumstances.

NRS 116.31187 Prohibitionagainst certain personnel contracting with association or accepting commission,personal profit or compensation from association; exceptions.

NRS 116.3119 Associationas trustee.

NRS 116.320 Rightof units owners to display flag of the United States in certain areas;conditions and limitations on exercise of right.

NRS 116.325 Rightof units owners to exhibit political signs in certain areas; conditions andlimitations on exercise of right.

NRS 116.330 Rightof units owners to install or maintain drought tolerant landscaping; conditionsand limitations on exercise of right; installation of drought tolerantlandscaping within common elements.

NRS 116.335 Associationprohibited from requiring units owner to obtain approval to rent or leaseunit; exceptions.

NRS 116.340 Transientcommercial use of units within certain planned communities.

NRS 116.345 Associationof planned community prohibited from taking certain actions regarding property,buildings and structures within planned community; validity of existingrestrictions.

NRS 116.350 Limitationsregarding regulation of certain roads, streets, alleys or other thoroughfares;permissible regulation of parking or storage of certain vehicles.

ARTICLE 4

PROTECTION OF PURCHASERS

NRS 116.4101 Applicability;exceptions.

NRS 116.4102 Liabilityfor preparation and delivery of public offering statement.

NRS 116.4103 Publicoffering statement: General provisions.

NRS 116.41035 Publicoffering statement: Limitations for certain small offerings.

NRS 116.4104 Publicoffering statement: Common-interest communities subject to developmentalrights.

NRS 116.4105 Publicoffering statement: Time shares.

NRS 116.4106 Publicoffering statement: Common-interest community containing converted building.

NRS 116.4107 Publicoffering statement: Common-interest community registered with Securities andExchange Commission or State of Nevada.

NRS 116.4108 Purchasersright to cancel.

NRS 116.4109 Resalesof units.

NRS 116.41095 Requiredform of information statement.

NRS 116.411 Escrowof deposits; furnishing of bond in lieu of deposit.

NRS 116.4111 Releaseof liens.

NRS 116.4112 Convertedbuildings.

NRS 116.4113 Expresswarranties of quality.

NRS 116.4114 Impliedwarranties of quality.

NRS 116.4115 Exclusionor modification of warranties of quality.

NRS 116.4116 Statuteof limitations for warranties.

NRS 116.4117 Effectof violations on rights of action; civil action for damages for failure orrefusal to comply with provisions of chapter or governing documents; attorneysfees.

NRS 116.4118 Labelingof promotional material.

NRS 116.4119 Declarantsobligation to complete and restore.

NRS 116.412 Substantialcompletion of units.

ADMINISTRATION AND ENFORCEMENT OF CHAPTER

General Provisions

NRS 116.600 Commissionfor Common-Interest Communities: Creation; appointment and qualifications ofmembers; terms of office; compensation.

NRS 116.605 Commissionfor Common-Interest Communities: Courses of instruction for members.

NRS 116.610 Commissionfor Common-Interest Communities: Election of officers; meetings; quorum.

NRS 116.615 Administrationof chapter; regulations of Commission and Real Estate Administrator; delegationof authority; publications.

NRS 116.620 Employmentof personnel by Real Estate Division; duties of Attorney General; legalopinions by Attorney General.

NRS 116.625 Ombudsmanfor Owners in Common-Interest Communities: Creation of office; appointment;qualifications; powers and duties.

NRS 116.630 Accountfor Common-Interest Communities: Creation; administration; sources; uses.

NRS 116.635 Immunity.

NRS 116.640 Serviceof notice and other information upon Commission.

NRS 116.645 Authorityfor Real Estate Division to conduct business electronically; regulations; fees;use of unsworn declaration; exclusions.

General Powers and Duties of Commission forCommon-Interest Communities

NRS 116.660 Issuanceand enforcement of subpoenas.

NRS 116.662 Witnesses:Payment of fees and mileage.

NRS 116.665 Conductinghearings and other proceedings; collection of information; development and promotionof educational guidelines; accreditation of programs of education and research.

NRS 116.670 Establishmentof standards for subsidizing arbitration, mediation and educational programs;acceptance of gifts, grants and donations; agreements and cooperation withother entities.

NRS 116.675 Appointmentof hearing panels; delegation of powers and duties; appeals to Commission.

NRS 116.680 Useof audio or video teleconference for hearings.

Regulation of Community Managers

NRS 116.700 Personprohibited from acting as community manager without permit or certificate;regulations governing standards of practice; investigations; disciplinaryaction; exceptions. [Repealed.]

NRS 116.705 Regulationsgoverning certificates issued to community managers; fees. [Repealed.]

NRS 116.710 Paymentof child support: Statement by applicant for certificate; grounds for denial ofcertificate; duty of Division. [Repealed.]

NRS 116.715 Suspensionof certificate for failure to pay child support or comply with certainsubpoenas or warrants; reinstatement of certificate. [Repealed.]

NRS 116.720 Expiration,revocation or surrender of permit or certificate does not prohibit disciplinaryaction against holder of permit or certificate. [Repealed.]

NRS 116.725 Administrativefine for engaging in certain conduct without permit, certificate orauthorization; procedure for imposition of fine; judicial review; exceptions.[Repealed.]

Investigation of Violations; Remedial andDisciplinary Action

NRS 116.745 Violationdefined.

NRS 116.750 Jurisdictionof Real Estate Division, Ombudsman, Commission and hearing panels.

NRS 116.755 Rights,remedies and penalties are cumulative and not exclusive; limitations on powerof Commission and hearing panels regarding internal activities of association.

NRS 116.757 Confidentialityof records: Certain records relating to complaint or investigation deemedconfidential; certain records relating to disciplinary action deemed publicrecords.

NRS 116.760 Rightof person aggrieved by alleged violation to file affidavit with Real EstateDivision; procedure for filing affidavit; administrative fine for filing falseor fraudulent affidavit.

NRS 116.765 Referralof affidavit to Ombudsman for assistance in resolving alleged violation; reportby Ombudsman; investigation by Real Estate Division; determination of whetherto file complaint with Commission.

NRS 116.770 Procedurefor hearing complaints: Time for holding hearing; continuances; notices;evidence; answers; defaults.

NRS 116.775 Representationby attorney.

NRS 116.780 Decisionson complaints.

NRS 116.785 Remedialand disciplinary action: Orders to cease and desist and to correct violations;administrative fines; removal from office or position; payment of costs;exemptions from liability.

NRS 116.790 Remedialand disciplinary action: Audit of association; requiring association to hirecommunity manager who holds certificate; appointment of receiver.

NRS 116.795 Injunctions.

_________

ARTICLE 1

GENERAL PROVISIONS

Part I

Definitions and Other General Provisions

NRS 116.001 Shorttitle. This chapter may be cited as theUniform Common-Interest Ownership Act.

(Added to NRS by 1991, 535)(Substituted in revisionfor NRS 116.1101)

NRS 116.003 Definitions. As used in this chapter and in the declaration and bylawsof an association, unless the context otherwise requires, the words and termsdefined in NRS 116.005 to 116.095, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1991, 535; A 2003, 1302, 2221; 2005, 2586)

NRS 116.005 Administratordefined. Administrator means the Real EstateAdministrator.

(Added to NRS by 1999, 2993; A 2003, 1302, 2221)(Substitutedin revision for NRS 116.110305)

NRS 116.007 Affiliateof a declarant defined.

1. Affiliate of a declarant means any person whocontrols, is controlled by or is under common control with a declarant.

2. A person controls a declarant if the person:

(a) Is a general partner, officer, director or employerof the declarant;

(b) Directly or indirectly or acting in concert withone or more other persons, or through one or more subsidiaries, owns, controls,holds with power to vote or holds proxies representing, more than 20 percent ofthe voting interest in the declarant;

(d) Has contributed more than 20 percent of the capitalof the declarant.

3. A person is controlled by a declarant if thedeclarant:

(a) Is a general partner, officer, director or employerof the person;

(d) Has contributed more than 20 percent of the capitalof the person.

4. Control does not exist if the powers described inthis section are held solely as security for an obligation and are notexercised.

(Added to NRS by 1991, 535)(Substituted in revisionfor NRS 116.11031)

NRS 116.009 Allocatedinterests defined. Allocated interestsmeans the following interests allocated to each unit:

1. In a condominium, the undivided interest in thecommon elements, the liability for common expenses, and votes in theassociation;

2. In a cooperative, the liability for common expensesand the ownership and votes in the association; and

3. In a planned community, the liability for commonexpenses and votes in the association.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.110313)

NRS 116.011 Association and unit-owners association defined. Association or unit-owners association means theunit-owners association organized under NRS116.3101.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.110315)

NRS 116.013 Certificatedefined. Certificate means a certificate forthe management of a common-interest community issued by the Division pursuantto chapter 116A of NRS.

(Added to NRS by 2003, 2208; A 2005, 2587)

NRS 116.015 Commissiondefined. Commission means the Commission forCommon-Interest Communities created by NRS116.600.

(Added to NRS by 2003, 2208)

NRS 116.017 Commonelements defined. Common elements means:

1. In a condominium or cooperative, all portions ofthe common-interest community other than the units, including easements infavor of units or the common elements over other units; and

2. In a planned community, any real estate within theplanned community owned or leased by the association, other than a unit.

(Added to NRS by 1991, 536; A 1993,2356)(Substituted in revision for NRS 116.110318)

NRS 116.019 Commonexpenses defined. Common expenses meansexpenditures made by, or financial liabilities of, the association, togetherwith any allocations to reserves.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.11032)

NRS 116.021 Common-interestcommunity defined. Common-interestcommunity means real estate with respect to which a person, by virtue of hisownership of a unit, is obligated to pay for real estate other than that unit.Ownership of a unit does not include holding a leasehold interest of lessthan 20 years in a unit, including options to renew.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.110323)

NRS 116.023 Communitymanager defined. Community manager means aperson who provides for or otherwise engages in the management of acommon-interest community.

(Added to NRS by 2003, 2208)

NRS 116.025 Complaintdefined. Complaint means a complaint filedby the Administrator pursuant to NRS 116.765.

(Added to NRS by 2003, 2208)

NRS 116.027 Condominiumdefined. Condominium means a common-interestcommunity in which portions of the real estate are designated for separateownership and the remainder of the real estate is designated for commonownership solely by the owners of those portions. A common-interest communityis not a condominium unless the undivided interests in the common elements arevested in the units owners.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.110325)

NRS 116.029 Convertedbuilding defined. Converted building meansa building that at any time before creation of the common-interest communitywas occupied wholly or partially by persons other than purchasers and personswho occupy with the consent of purchasers.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.110328)

NRS 116.031 Cooperativedefined. Cooperative means a common-interestcommunity in which the real estate is owned by an association, each of whosemembers is entitled by virtue of his ownership in the association to exclusivepossession of a unit.

(Added to NRS by 1991, 536)(Substituted in revisionfor NRS 116.11033)

NRS 116.033 Dealerdefined. Dealer means a person in thebusiness of selling units for his own account.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110333)

NRS 116.035 Declarantdefined. Declarant means any person or groupof persons acting in concert who:

1. As part of a common promotional plan, offers todispose of his or its interest in a unit not previously disposed of; or

2. Reserves or succeeds to any special declarantsright.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110335)

NRS 116.037 Declarationdefined. Declaration means any instruments,however denominated, that create a common-interest community, including anyamendments to those instruments.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110338)

NRS 116.039 Developmentalrights defined. Developmental rights meansany right or combination of rights reserved by a declarant in the declarationto:

1. Add real estate to a common-interest community;

2. Create units, common elements or limited commonelements within a common-interest community;

3. Subdivide units or convert units into commonelements; or

4. Withdraw real estate from a common-interestcommunity.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.11034)

NRS 116.041 Disposeand disposition defined. Dispose ordisposition means a voluntary transfer to a purchaser of any legal orequitable interest in a unit, but the term does not include the transfer orrelease of a security interest.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110343)

NRS 116.043 Divisiondefined. Division means the Real Estate Divisionof the Department of Business and Industry.

(Added to NRS by 2003, 1301, 2208)

NRS 116.045 Executiveboard defined. Executive board means thebody, regardless of name, designated in the declaration to act on behalf of theassociation.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110345)

NRS 116.047 Financialstatement defined. Financial statementmeans a financial statement of an association that is prepared and presented inaccordance with the requirements established by the Commission pursuant to NRS 116.31142.

(Added to NRS by 1997, 3110; A 2005, 2587)

NRS 116.049 Governingdocuments defined. Governing documentsmeans:

1. The declaration for the common-interest community;

2. The articles of incorporation, articles ofassociation, articles of organization, certificate of registration, certificateof limited partnership, certificate of trust or other documents that are usedto organize the association for the common-interest community;

3. The bylaws and rules of the association; and

4. Any other documents that govern the operation ofthe common-interest community or the association.

(Added to NRS by 1997, 3111; A 2005, 2587)

NRS 116.051 Hearingpanel defined. Hearing panel means ahearing panel appointed by the Commission pursuant to NRS 116.675.

(Added to NRS by 2003, 2208)

NRS 116.053 Identifyingnumber defined. Identifying number means asymbol, address or legally sufficient description of real estate whichidentifies only one unit in a common-interest community.

(Added to NRS by 1991, 537; A 1993,2356)(Substituted in revision for NRS 116.110348)

NRS 116.055 Leaseholdcommon-interest community defined. Leaseholdcommon-interest community means a common-interest community in which all or aportion of the real estate is subject to a lease the expiration or terminationof which will terminate the common-interest community or reduce its size.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.11035)

NRS 116.057 Liabilityfor common expenses defined. Liability forcommon expenses means the liability for common expenses allocated to each unitpursuant to NRS 116.2107.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110353)

NRS 116.059 Limitedcommon element defined. Limited commonelement means a portion of the common elements allocated by the declaration orby operation of subsection 2 or 4 of NRS116.2102 for the exclusive use of one or more but fewer than all of theunits.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110355)

NRS 116.0605 Majorcomponent of the common elements defined. Majorcomponent of the common elements means any component of the common elements,including, without limitation, any amenity, improvement, furnishing, fixture,finish, system or equipment, that may, within 30 years after its originalinstallation, require repair, replacement or restoration in excess of routineannual maintenance which is included in the annual operating budget of anassociation.

(Added to NRS by 2005, 2581)

NRS 116.061 Managementof a common-interest community defined. Managementof a common-interest community means the physical, administrative or financialmaintenance and management of a common-interest community, or the supervisionof those activities, for a fee, commission or other valuable consideration.

(Added to NRS by 2003, 2209)

NRS 116.063 Masterassociation defined. Master associationmeans an organization described in NRS116.212, whether or not it is also an association described in NRS 116.3101.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110358)

NRS 116.065 Offeringdefined. Offering means any advertisement,inducement, solicitation or attempt to encourage any person to acquire anyinterest in a unit, other than as security for an obligation. An advertisementin a newspaper or other periodical of general circulation, or in any broadcastmedium to the general public, of a common-interest community not located inthis State, is not an offering if the advertisement states that an offering maybe made only in compliance with the law of the jurisdiction in which thecommon-interest community is located. The verb offer has a similar meaning.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.11036)

NRS 116.067 Ombudsmandefined. Ombudsman means the Ombudsman forOwners in Common-Interest Communities.

(Added to NRS by 2003, 2209)

NRS 116.069 Partyto the complaint defined. Party to thecomplaint means the Division and the respondent.

(Added to NRS by 2003, 2209)

NRS 116.071 Permitdefined. Repealed. (See chapter 494, Statutes of Nevada 2005,at page 2634.)

NRS 116.073 Persondefined. Person includes a government and governmentalsubdivision or agency.

(Added to NRS by 1991, 537)(Substituted in revisionfor NRS 116.110363)

NRS 116.075 Plannedcommunity defined. Planned community meansa common-interest community that is not a condominium or a cooperative. A condominiumor cooperative may be part of a planned community.

(Added to NRS by 1991, 538)(Substituted in revisionfor NRS 116.110368)

NRS 116.077 Proprietarylease defined. Proprietary lease means anagreement with the association pursuant to which a member is entitled toexclusive possession of a unit in a cooperative.

(Added to NRS by 1991, 538)(Substituted in revisionfor NRS 116.110373)

NRS 116.079 Purchaserdefined. Purchaser means a person, otherthan a declarant or a dealer, who by means of a voluntary transfer acquires alegal or equitable interest in a unit other than a leasehold interest(including options to renew) of less than 20 years, or as security for anobligation.

(Added to NRS by 1991, 538)(Substituted in revisionfor NRS 116.110375)

NRS 116.081 Realestate defined. Real estate means anyleasehold or other estate or interest in, over or under land, includingstructures, fixtures and other improvements and interests that by custom, usageor law pass with a conveyance of land though not described in the contract ofsale or instrument of conveyance. Real estate includes parcels with orwithout upper or lower boundaries, and spaces that may be filled with air orwater.

(Added to NRS by 1991, 538)(Substituted in revisionfor NRS 116.110378)

NRS 116.083 Residentialuse defined. Residential use means use as adwelling or for personal, family or household purposes by ordinary customers,whether rented to particular persons or not. Such uses include marina boatslips, piers, stable or agricultural stalls or pens, campground spaces orplots, parking spaces or garage spaces, storage spaces or lockers and gardenplots for individual use, but do not include spaces or units primarily used toderive commercial income from, or provide service to, the public.

(Added to NRS by 1991, 538; A 1999, 3355)(Substitutedin revision for NRS 116.11038)

NRS 116.085 Respondentdefined. Respondent means a person againstwhom:

1. An affidavit has been filed pursuant to NRS 116.760.

2. A complaint has been filed pursuant to NRS 116.765.

(Added to NRS by 2003, 2209)

NRS 116.087 Securityinterest defined. Security interest meansan interest in real estate or personal property, created by contract orconveyance, which secures payment or performance of an obligation. The termincludes a lien created by a mortgage, deed of trust, trust deed, securitydeed, contract for deed, land sales contract, lease intended as security,assignment of lease or rents intended as security, pledge of an ownershipinterest in an association and any other consensual lien or contract forretention of title intended as security for an obligation.

(Added to NRS by 1991, 538)(Substituted in revisionfor NRS 116.110383)

NRS 116.089 Specialdeclarants rights defined. Specialdeclarants rights means rights reserved for the benefit of a declarant to:

1. Complete improvements indicated on plats and plansor in the declaration (NRS 116.2109)or, in a cooperative, to complete improvements described in the public offeringstatement pursuant to subsection 2 of NRS116.4103;

2. Exercise any developmental right (NRS 116.211);

3. Maintain sales offices, management offices, signsadvertising the common-interest community and models (NRS 116.2115);

4. Use easements through the common elements for thepurpose of making improvements within the common-interest community or withinreal estate which may be added to the common-interest community (NRS 116.2116);

5. Make the common-interest community subject to amaster association (NRS 116.212);

6. Merge or consolidate a common-interest communitywith another common-interest community of the same form of ownership (NRS 116.2121); or

7. Appoint or remove any officer of the association orany master association or any member of an executive board during any period ofdeclarants control (NRS 116.31032).

(Added to NRS by 1991, 538)(Substituted in revisionfor NRS 116.110385)

NRS 116.091 Timeshare defined. Time share means the rightto use and occupy a unit on a recurrent periodic basis according to anarrangement allocating this right among various owners of time shares whetheror not there is an additional charge to the owner for occupying the unit.

(Added to NRS by 1991, 539)(Substituted in revisionfor NRS 116.110388)

NRS 116.093 Unitdefined. Unit means a physical portion ofthe common-interest community designated for separate ownership or occupancy,the boundaries of which are described pursuant to paragraph (e) of subsection 1of NRS 116.2105. If a unit in acooperative is owned by the units owner or is sold, conveyed, voluntarily orinvoluntarily encumbered, or otherwise transferred by the units owner, theinterest in that unit which is owned, sold, conveyed, encumbered or otherwisetransferred is the right to possession of that unit under a proprietary lease,coupled with the allocated interests of that unit, and the associationsinterest in that unit is not thereby affected.

(Added to NRS by 1991, 539)(Substituted in revisionfor NRS 116.11039)

NRS 116.095 Unitsowner defined. Units owner means adeclarant or other person who owns a unit, or a lessee of a unit in a leaseholdcommon-interest community whose lease expires simultaneously with any lease theexpiration or termination of which will remove the unit from thecommon-interest community, but does not include a person having an interest ina unit solely as security for an obligation. In a condominium or planned community,the declarant is the owner of any unit created by the declaration until thatunit is conveyed to another person. In a cooperative, the declarant is treatedas the owner of any unit to which allocated interests have been allocated (NRS 116.2107) until that unit has beenconveyed to another person.

(Added to NRS by 1991, 539)(Substituted in revisionfor NRS 116.110393)

NRS 116.1104 Provisionsof chapter may not be varied by agreement, waived or evaded; exceptions. Except as expressly provided in this chapter, itsprovisions may not be varied by agreement, and rights conferred by it may notbe waived. A declarant may not act under a power of attorney, or use any otherdevice, to evade the limitations or prohibitions of this chapter or thedeclaration.

(Added to NRS by 1991, 539)

NRS 116.1105 Categorizationof property in certain common-interest communities. In a cooperative,unless the declaration provides that the interest of a units owner in a unitand its allocated interests is real estate for all purposes, that interest ispersonal property.

(Added to NRS by 1991, 539; A 2005, 1231)

NRS 116.1106 Applicabilityof local ordinances, regulations and building codes.

1. A building code may not impose any requirement uponany structure in a common-interest community which it would not impose upon aphysically identical development under a different form of ownership.

2. In condominiums and cooperatives, no zoning,subdivision or other law, ordinance or regulation governing the use of realestate may prohibit the condominium or cooperative as a form of ownership orimpose any requirement upon a condominium or cooperative which it would notimpose upon a physically identical development under a different form ofownership.

3. Except as otherwise provided in subsections 1 and2, the provisions of this chapter do not invalidate or modify any provision ofany building code or zoning, subdivision or other law, ordinance, rule orregulation governing the use of real estate.

4. The provisions of this section do not prohibit alocal government from imposing different requirements and standards regarding designand construction on different types of structures in common-interestcommunities. For the purposes of this subsection, a townhouse in a plannedcommunity is a different type of structure from other structures incommon-interest communities, including, without limitation, other structuresthat are or will be owned as condominiums or cooperatives.

(Added to NRS by 1991, 540; A 2005, 2587)

NRS 116.1107 Eminentdomain.

1. If a unit is acquired by eminent domain or part ofa unit is acquired by eminent domain leaving the units owner with a remnantthat may not practically or lawfully be used for any purpose permitted by thedeclaration, the award must include compensation to the units owner for thatunit and its allocated interests, whether or not any common elements areacquired. Upon acquisition, unless the decree otherwise provides, that unitsallocated interests are automatically reallocated to the remaining units inproportion to the respective allocated interests of those units before thetaking, and the association shall promptly prepare, execute and record anamendment to the declaration reflecting the reallocations. Any remnant of aunit remaining after part of a unit is taken under this subsection isthereafter a common element.

2. Except as otherwise provided in subsection 1, ifpart of a unit is acquired by eminent domain, the award must compensate theunits owner for the reduction in value of the unit and its interest in thecommon elements, whether or not any common elements are acquired. Uponacquisition, unless the decree otherwise provides:

(a) That units allocated interests are reduced inproportion to the reduction in the size of the unit, or on any other basisspecified in the declaration; and

(b) The portion of the allocated interests divestedfrom the partially acquired unit are automatically reallocated to that unit andto the remaining units in proportion to the respective allocated interests ofthose units before the taking, with the partially acquired unit participatingin the reallocation on the basis of its reduced allocated interests.

3. If part of the common elements is acquired byeminent domain, the portion of the award attributable to the common elementstaken must be paid to the association. Unless the declaration providesotherwise, any portion of the award attributable to the acquisition of alimited common element must be equally divided among the owners of the units towhich that limited common element was allocated at the time of acquisition.

4. The judicial decree must be recorded in everycounty in which any portion of the common-interest community is located.

(Added to NRS by 1991, 540)

NRS 116.1108 Supplementalgeneral principles of law applicable. Theprinciples of law and equity, including the law of corporations, the law ofunincorporated associations, the law of real property, and the law relative tocapacity to contract, principal and agent, eminent domain, estoppel, fraud,misrepresentation, duress, coercion, mistake, receivership, substantialperformance, or other validating or invalidating cause supplement theprovisions of this chapter, except to the extent inconsistent with thischapter.

(Added to NRS by 1991, 541)

NRS 116.11085 Provisionsof chapter prevail over conflicting provisions governing certain businessentities generally. If a matter governed bythis chapter is also governed by chapter 78, 81, 82, 86, 87, 88 or 88A ofNRS and there is a conflict between the provisions of this chapter and theprovisions of those other chapters, the provisions of this chapter prevail.

(Added to NRS by 2003, 2221; A 2005, 2587)

NRS 116.1109 Constructionagainst implicit repeal; uniformity of application and construction.

1. This chapter being a general act intended as aunified coverage of its subject matter, no part of it may be construed to beimpliedly repealed by subsequent legislation if that construction canreasonably be avoided.

2. This chapter must be applied and construed so as toeffectuate its general purpose to make uniform the law with respect to thesubject of this chapter among states enacting it.

(Added to NRS by 1991, 541)

NRS 116.1112 Unconscionableagreement or term of contract.

1. The court, upon finding as a matter of law that acontract or clause of a contract was unconscionable at the time the contractwas made, may refuse to enforce the contract, enforce the remainder of thecontract without the unconscionable clause, or limit the application of anyunconscionable clause to avoid an unconscionable result.

2. Whenever it is claimed, or appears to the court,that a contract or any clause of a contract is or may be unconscionable, theparties, to aid the court in making the determination, must be afforded areasonable opportunity to present evidence as to:

(a) The commercial setting of the negotiations; and

(b) The effect and purpose of the contract or clause.

(Added to NRS by 1991, 541)

NRS 116.1113 Obligationof good faith. Every contract or duty governedby this chapter imposes an obligation of good faith in its performance orenforcement.

(Added to NRS by 1991, 541)

NRS 116.1114 Remediesto be liberally administered.

1. The remedies provided by this chapter must beliberally administered to the end that the aggrieved party is put in as good aposition as if the other party had fully performed. Consequential, special orpunitive damages may not be awarded except as specifically provided in thischapter or by other rule of law.

2. Any right or obligation declared by this chapter isenforceable by judicial proceeding.

(Added to NRS by 1991, 541)

Part II

Applicability

NRS 116.1201 Applicability;regulations.

1. Except as otherwise provided in this section and NRS 116.1203, this chapter applies to allcommon-interest communities created within this State.

2. This chapter does not apply to:

(a) A limited-purpose association, except that alimited-purpose association:

(1) Shall pay the fees requiredpursuant to NRS 116.31155;

(2) Shall register with theOmbudsman pursuant to NRS 116.31158;

(3) Shall comply with the provisionsof:

(I) NRS 116.31038, 116.31083 and 116.31152; and

(II) NRS 116.31075, if the limited-purposeassociation is created for a rural agricultural residential common-interestcommunity;

(4) Shall comply with the provisionsof NRS 116.4101 to 116.412, inclusive, as required by theregulations adopted by the Commission pursuant to paragraph (b) of subsection5; and

(5) Shall not enforce any restrictionsconcerning the use of units by the units owners, unless the limited-purpose associationis created for a rural agricultural residential common-interest community.

(b) A planned community in which all units arerestricted exclusively to nonresidential use unless the declaration providesthat this chapter does apply to that planned community. This chapter applies toa planned community containing both units that are restricted exclusively tononresidential use and other units that are not so restricted only if thedeclaration so provides or if the real estate comprising the units that may beused for residential purposes would be a planned community in the absence ofthe units that may not be used for residential purposes.

(c) Common-interest communities or units locatedoutside of this State, but the provisions of NRS116.4102 to 116.4108, inclusive,apply to all contracts for the disposition thereof signed in this State by anyparty unless exempt under subsection 2 of NRS116.4101.

(d) A common-interest community that was created beforeJanuary 1, 1992, is located in a county whose population is less than 50,000,and has less than 50 percent of the units within the community put toresidential use, unless a majority of the units owners otherwise elect inwriting.

(e) Except as otherwise provided in this chapter, timeshares governed by the provisions of chapter119A of NRS.

3. The provisions of this chapter do not:

(a) Prohibit a common-interest community created beforeJanuary 1, 1992, from providing for separate classes of voting for the unitsowners;

(b) Require a common-interest community created beforeJanuary 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;

(c) Invalidate any assessments that were imposed on orbefore October 1, 1999, by a common-interest community created before January1, 1992; or

(d) Prohibit a common-interest community created beforeJanuary 1, 1992, or a common-interest community described in NRS 116.31105 from providing for a representativeform of government.

4. The provisions of chapters117 and 278A of NRS do not apply tocommon-interest communities.

5. The Commission shall establish, by regulation:

(a) The criteria for determining whether anassociation, a limited-purpose association or a common-interest communitysatisfies the requirements for an exemption or limited exemption from anyprovision of this chapter; and

(b) The extent to which a limited-purpose associationmust comply with the provisions of NRS116.4101 to 116.412, inclusive.

6. As used in this section, limited-purposeassociation means an association that:

(a) Is created for the limited purpose of maintaining:

(1) The landscape ofthe common elements of a common-interest community;

(2) Facilities forflood control; or

(3) A ruralagricultural residential common-interest community; and

(b) Is not authorized by its governing documents toenforce any restrictions concerning the use of units by units owners, unlessthe limited-purpose association is created for a rural agricultural residentialcommon-interest community.

(Added to NRS by 1991, 542; A 1999, 2998; 2001, 2488; 2003, 2223; 2005, 2587)

NRS 116.1203 Exceptionfor small planned communities.

1. Except as otherwise provided in subsection 2, if aplanned community contains no more than 12 units and is not subject to anydevelopmental rights, it is subject only to NRS116.1106 and 116.1107 unless thedeclaration provides that this entire chapter is applicable.

2. Except for NRS116.3104, 116.31043, 116.31046 and 116.31138, the provisions of NRS 116.3101 to 116.350, inclusive, and the definitions setforth in NRS 116.005 to 116.095, inclusive, to the extent that suchdefinitions are necessary in construing any of those provisions, apply to aresidential planned community containing more than six units.

(Added to NRS by 1991, 542; A 1993, 2357; 1999, 2999; 2001, 528; 2003, 2224, 2266; 2005, 1232, 2589)

NRS 116.1206 Provisionsof governing documents in violation of chapter deemed to conform with chapterby operation of law; procedure for certain amendments to governing documents.

1. Any provision contained in a declaration, bylaw orother governing document of a common-interest community that violates theprovisions of this chapter shall be deemed to conform with those provisions byoperation of law, and any such declaration, bylaw or other governing documentis not required to be amended to conform to those provisions.

2. In the case of amendments to the declaration,bylaws or plats and plans of any common-interest community created beforeJanuary 1, 1992:

(a) If the result accomplished by the amendment waspermitted by law before January 1, 1992, the amendment may be made either inaccordance with that law, in which case that law applies to that amendment, orit may be made under this chapter; and

(b) If the result accomplished by the amendment ispermitted by this chapter, and was not permitted by law before January 1, 1992,the amendment may be made under this chapter.

3. An amendment to the declaration, bylaws or platsand plans authorized by this section to be made under this chapter must beadopted in conformity with the applicable provisions of chapter 117 or 278Aof NRS and with the procedures and requirements specified by those instruments.If an amendment grants to any person any rights, powers or privileges permittedby this chapter, all correlative obligations, liabilities and restrictions inthis chapter also apply to that person.

(Added to NRS by 1991, 543; A 1999, 2999; 2003, 2224)

NRS 116.12065 Noticeof changes to governing documents. If anychange is made to the governing documents of an association, the secretary orother officer specified in the bylaws of the association shall, within 30 daysafter the change is made, prepare and cause to be hand-delivered or sentprepaid by United States mail to the mailing address of each unit or to anyother mailing address designated in writing by the units owner, a copy of thechange that was made.

(Added to NRS by 1999, 2997)

ARTICLE 2

CREATION, ALTERATION AND TERMINATION OF COMMON-INTERESTCOMMUNITIES

NRS 116.2101 Creationof common-interest communities. Acommon-interest community may be created pursuant to this chapter only byrecording a declaration executed in the same manner as a deed and, in acooperative, by conveying the real estate subject to that declaration to theassociation. The declaration must be recorded in every county in which anyportion of the common-interest community is located and must be indexed in thegrantees index in the name of the common-interest community and the associationand in the grantors index in the name of each person executing thedeclaration.

(Added to NRS by 1991, 543)

NRS 116.2102 Unitboundaries. Except as otherwise provided bythe declaration:

1. If walls, floors or ceilings are designated as boundariesof a unit, all lath, furring, wallboard, plasterboard, plaster, paneling,tiles, wallpaper, paint, finished flooring and any other materials constitutingany part of the finished surfaces thereof are a part of the unit, and all otherportions of the walls, floors or ceilings are a part of the common elements.

2. If any chute, flue, duct, wire, conduit, bearingwall, bearing column or any other fixture lies partially within and partiallyoutside the designated boundaries of a unit, any portion thereof serving onlythat unit is a limited common element allocated solely to that unit, and anyportion thereof serving more than one unit or any portion of the commonelements is a part of the common elements.

3. Subject to subsection 2, all spaces, interiorpartitions and other fixtures and improvements within the boundaries of a unitare a part of the unit.

4. Any shutters, awnings, window boxes, doorsteps,stoops, porches, balconies, pads and mounts for heating and air-conditioningsystems, patios and all exterior doors and windows or other fixtures designedto serve a single unit, but located outside the units boundaries, are limitedcommon elements allocated exclusively to that unit.

(Added to NRS by 1991, 543)

NRS 116.2103 Constructionand validity of declaration and bylaws.

1. The inclusion in a governing document of anassociation of a provision that violates any provision of this chapter does notrender any other provisions of the governing document invalid or otherwiseunenforceable if the other provisions can be given effect in accordance withtheir original intent and the provisions of this chapter.

2. The rule against perpetuities and NRS 111.103 to 111.1039, inclusive, do not apply todefeat any provision of the declaration, bylaws, rules or regulations adoptedpursuant to NRS 116.3102.

3. In the event of a conflict between the provisionsof the declaration and the bylaws, the declaration prevails except to theextent the declaration is inconsistent with this chapter.

4. Title to a unit and common elements is not renderedunmarketable or otherwise affected by reason of an insubstantial failure of thedeclaration to comply with this chapter. Whether a substantial failure impairsmarketability is not affected by this chapter.

(Added to NRS by 1991, 544; A 2003, 2225)

NRS 116.2104 Descriptionof units. A description of a unit which setsforth the name of the common-interest community, the file number and book orother information to show where the declaration is recorded, the county inwhich the common-interest community is located and the identifying number ofthe unit, is a legally sufficient description of that unit and all rights,obligations and interests appurtenant to that unit which were created by thedeclaration or bylaws.

(Added to NRS by 1991, 544; A 1993, 2357)

NRS 116.2105 Contentsof declaration.

1. The declaration must contain:

(a) The names of the common-interest community and theassociation and a statement that the common-interest community is either acondominium, cooperative or planned community;

(b) The name of every county in which any part of thecommon-interest community is situated;

(d) A statement of the maximum number of units that thedeclarant reserves the right to create;

(e) In a condominium or planned community, adescription of the boundaries of each unit created by the declaration,including the units identifying number or, in a cooperative, a description,which may be by plats or plans, of each unit created by the declaration,including the units identifying number, its size or number of rooms, and itslocation within a building if it is within a building containing more than oneunit;

(f) A description of any limited common elements, otherthan those specified in subsections 2 and 4 of NRS 116.2102, as provided in paragraph (g)of subsection 2 of NRS 116.2109 and, ina planned community, any real estate that is or must become common elements;

(g) A description of any real estate, except realestate subject to developmental rights, that may be allocated subsequently aslimited common elements, other than limited common elements specified insubsections 2 and 4 of NRS 116.2102, togetherwith a statement that they may be so allocated;

(h) A description of any developmental rights and otherspecial declarants rights reserved by the declarant, together with a legallysufficient description of the real estate to which each of those rightsapplies, and a time within which each of those rights must be exercised;

(i) If any developmental right may be exercised withrespect to different parcels of real estate at different times, a statement tothat effect together with:

(1) Either a statement fixing the boundaries ofthose portions and regulating the order in which those portions may besubjected to the exercise of each developmental right or a statement that noassurances are made in those regards; and

(2) A statement whether, if any developmentalright is exercised in any portion of the real estate subject to thatdevelopmental right, that developmental right must be exercised in all or inany other portion of the remainder of that real estate;

(j) Any other conditions or limitations under which therights described in paragraph (h) may be exercised or will lapse;

(k) An allocation to each unit of the allocatedinterests in the manner described in NRS116.2107;

(l) Any restrictions:

(1) On use, occupancy and alienation of theunits; and

(2) On the amount for which a unit may be soldor on the amount that may be received by a units owner on sale, condemnationor casualty to the unit or to the common-interest community, or on terminationof the common-interest community;

(m) The file number and book or other information toshow where easements and licenses are recorded appurtenant to or included inthe common-interest community or to which any portion of the common-interestcommunity is or may become subject by virtue of a reservation in thedeclaration; and

(n) All matters required by NRS 116.2106 to 116.2109, inclusive, 116.2115 and 116.2116 and 116.31032.

2. The declaration may contain any other matters thedeclarant considers appropriate.

(Added to NRS by 1991, 544; A 1993, 2357)

NRS 116.2106 Leaseholdcommon-interest communities.

1. Any lease the expiration or termination of whichmay terminate the common-interest community or reduce its size must berecorded. Every lessor of those leases in a condominium or planned communityshall sign the declaration. The declaration must state:

(a) The recording data where the lease is recorded;

(b) The date on which the lease is scheduled to expire;

(d) Any right of the units owners to redeem thereversion and the manner whereby those rights maybe exercised, or a statementthat they do not have those rights;

(e) Any right of the units owners to remove anyimprovements within a reasonable time after the expiration or termination ofthe lease, or a statement that they do not have those rights; and

(f) Any rights of the units owners to renew the leaseand the conditions of any renewal, or a statement that they do not have thoserights.

2. After the declaration for a leasehold condominiumor leasehold planned community is recorded, neither the lessor nor the lessorssuccessor in interest may terminate the leasehold interest of a units ownerwho makes timely payment of his share of the rent and otherwise complies withall covenants which, if violated, would entitle the lessor to terminate thelease. The leasehold interest of a units owner in a condominium or plannedcommunity is not affected by failure of any other person to pay rent or fulfillany other covenant.

3. Acquisition of the leasehold interest of any unitsowner by the owner of the reversion or remainder does not merge the leaseholdand freehold interests unless the leasehold interests of all units ownerssubject to that reversion or remainder are acquired.

4. If the expiration or termination of a leasedecreases the number of units in a common-interest community, the allocatedinterests must be reallocated in accordance with subsection 1 of NRS 116.1107 as if those units had beentaken by eminent domain. Reallocations must be confirmed by an amendment to thedeclaration prepared, executed and recorded by the association.

(Added to NRS by 1991, 545)

NRS 116.2107 Allocationof allocated interests.

1. The declaration must allocate to each unit:

(a) In a condominium, a fraction or percentage ofundivided interests in the common elements and in the common expenses of theassociation (NRS 116.3115) and aportion of the votes in the association;

(b) In a cooperative, a proportionate ownership in theassociation, a fraction or percentage of the common expenses of the association(NRS 116.3115) and a portion of thevotes in the association; and

(c) In a planned community, a fraction or percentage ofthe common expenses of the association (NRS116.3115) and a portion of the votes in the association.

2. The declaration must state the formulas used toestablish allocations of interests. Those allocations may not discriminate infavor of units owned by the declarant or an affiliate of the declarant.

3. If units may be added to or withdrawn from thecommon-interest community, the declaration must state the formulas to be usedto reallocate the allocated interests among all units included in thecommon-interest community after the addition or withdrawal.

4. The declaration may provide:

(a) That different allocations of votes are made to theunits on particular matters specified in the declaration;

(b) For cumulative voting only for the purpose ofelecting members of the executive board; and

Except asotherwise provided in NRS 116.31032, adeclarant may not utilize cumulative or class voting for the purpose of evadingany limitation imposed on declarants by this chapter nor may units constitute aclass because they are owned by a declarant.

5. Except for minor variations because of rounding,the sum of the liabilities for common expenses and, in a condominium, the sumof the undivided interests in the common elements allocated at any time to allthe units must each equal one if stated as a fraction or 100 percent if statedas a percentage. In the event of discrepancy between an allocated interest andthe result derived from application of the pertinent formula, the allocatedinterest prevails.

6. In a condominium, the common elements are notsubject to partition, and any purported conveyance, encumbrance, judicial saleor other voluntary or involuntary transfer of an undivided interest in thecommon elements made without the unit to which that interest is allocated isvoid.

7. In a cooperative, any purported conveyance,encumbrance, judicial sale or other voluntary or involuntary transfer of anownership interest in the association made without the possessory interest inthe unit to which that interest is related is void.

(Added to NRS by 1991, 546; A 1993, 2359)

NRS 116.2108 Limitedcommon elements.

1. Except for the limited common elements described insubsections 2 and 4 of NRS 116.2102,the declaration must specify to which unit or units each limited common elementis allocated. An allocation may not be altered without the consent of theunits owners whose units are affected.

2. Except as the declaration otherwise provides, a limitedcommon element may be reallocated by an amendment to the declaration executedby the units owners between or among whose units the reallocation is made. Thepersons executing the amendment shall provide a copy thereof to theassociation, which shall record it. The amendment must be recorded in the namesof the parties and the common-interest community.

3. A common element not previously allocated as alimited common element may be so allocated only pursuant to provisions in thedeclaration made in accordance with paragraph (g) of subsection 1 of NRS 116.2105. The allocations must be madeby amendments to the declaration.

(Added to NRS by 1991, 547)

NRS 116.2109 Platsand plans.

1. Plats and plans are a part of the declaration, andare required for all common-interest communities except cooperatives. Each platand plan must be clear and legible and contain a certification that the plat orplan contains all information required by this section.

2. Each plat must comply with the provisions of chapter 278 of NRS and show:

(a) The name and a survey of the area which is thesubject of the plat;

(b) A sufficient description of the real estate;

(d) The location and dimensions of all easements havinga specific location and dimension which serve or burden any portion of thecommon-interest community;

(e) The location and dimensions of any vertical unitboundaries and that units identifying number;

(f) The location with reference to an established datumof any horizontal unit boundaries not shown or projected on plans recordedpursuant to subsection 4 and that units identifying number; and

(g) The location and dimensions of limited commonelements, including porches, balconies and patios, other than parking spacesand the other limited common elements described in subsections 2 and 4 of NRS 116.2102.

3. To the extent not shown or projected on the plats,plans of the units must show or project any units in which the declarant hasreserved the right to create additional units or common elements (paragraph (h)of subsection 1 of NRS 116.2105),identified appropriately.

4. Unless the declaration provides otherwise, thehorizontal boundaries of part of a unit located outside a building have thesame elevation as the horizontal boundaries of the inside part and need not bedepicted on the plats and plans of the units.

5. A declarant shall also provide a plan ofdevelopment for the common-interest community with its initial phase ofdevelopment. The declarant shall revise the plan of development with eachsubsequent phase. The plan of development may show the intended location anddimensions of any contemplated improvement to be constructed anywhere withinthe common-interest community. Any contemplated improvement shown must belabeled either MUST BE BUILT or NEED NOT BE BUILT. The plan of developmentmust also show or project:

(a) The location and dimensions of all real estate notsubject to developmental rights, or subject only to the developmental right towithdraw, and the location and dimensions of all existing improvements withinthat real estate;

(b) A sufficient description of any real estate subjectto developmental rights, labeled to identify the rights applicable to eachparcel; and

(c) A sufficient description of any real estate inwhich the units owners will own only an estate for years, labeled asleasehold real estate.

6. Upon exercising any developmental right, the declarantshall record new or amended plats necessary to conform to the requirements ofsubsection 2 and provide new or amended plans of the units and a new or amendedplan of development or new certifications of those plans if the plans otherwiseconform to the requirements of subsections 3 and 5.

7. Each plat must be certified by an independentprofessional land surveyor. The plans of the units must be certified by anindependent professional engineer or architect. If the plan of development isnot certified by an independent professional land surveyor or an independentprofessional engineer or architect, it must be acknowledged by the declarant.

(Added to NRS by 1991, 547; A 1993, 2360)

NRS 116.211 Exerciseof developmental rights.

1. To exercise any developmental right reserved underparagraph (h) of subsection 1 of NRS116.2105, the declarant shall prepare, execute and record an amendment tothe declaration (NRS 116.2117) and in acondominium or planned community comply with NRS116.2109. The declarant is the owner of any units thereby created. The amendmentto the declaration must assign an identifying number to each new unit created,and, except in the case of subdivision or conversion of units described insubsection 2, reallocate the allocated interests among all units. The amendmentmust describe any common elements and any limited common elements therebycreated and, in the case of limited common elements, designate the unit towhich each is allocated to the extent required by NRS 116.2108.

2. Developmental rights may be reserved within anyreal estate added to the common-interest community if the amendment adding thatreal estate includes all matters required by NRS116.2105 or 116.2106, as the casemay be, and, in a condominium or planned community, the plats and plans includeall matters required by NRS 116.2109.This provision does not extend the time limit on the exercise of developmentalrights imposed by the declaration pursuant to paragraph (h) of subsection 1 of NRS 116.2105.

3. Whenever a declarant exercises a developmentalright to subdivide or convert a unit previously created into additional units,common elements, or both:

(a) If the declarant converts the unit entirely tocommon elements, the amendment to the declaration must convey it to theassociation or reallocate all the allocated interests of that unit among theother units as if that unit had been taken by eminent domain (NRS 116.1107); and

(b) If the declarant subdivides the unit into two ormore units, whether or not any part of the unit is converted into commonelements, the amendment to the declaration must reallocate all the allocatedinterests of the unit among the units created by the subdivision in anyreasonable manner prescribed by the declarant.

4. If the declaration provides, pursuant to paragraph(h) of subsection 1 of NRS 116.2105,that all or a portion of the real estate is subject to a right of withdrawal:

(a) If all the real estate is subject to withdrawal,and the declaration does not describe separate portions of real estate subjectto that right, none of the real estate may be withdrawn after a unit has beenconveyed to a purchaser; and

(b) If any portion is subject to withdrawal, it may notbe withdrawn after a unit in that portion has been conveyed to a purchaser.

(Added to NRS by 1991, 548)

NRS 116.2111 Alterationsof units; access to units.

1. Except as otherwise provided in this section andsubject to the provisions of the declaration and other provisions of law, aunits owner:

(a) May make any improvements or alterations to hisunit that do not impair the structural integrity or mechanical systems orlessen the support of any portion of the common-interest community;

(b) May not change the appearance of the commonelements, or the exterior appearance of a unit or any other portion of thecommon-interest community, without permission of the association; and

(c) After acquiring an adjoining unit or an adjoiningpart of an adjoining unit, may remove or alter any intervening partition orcreate apertures therein, even if the partition in whole or in part is a commonelement, if those acts do not impair the structural integrity or mechanicalsystems or lessen the support of any portion of the common-interest community.Removal of partitions or creation of apertures under this paragraph is not analteration of boundaries.

2. An association may not:

(a) Unreasonably restrict, prohibit or otherwise impedethe lawful rights of a units owner to have reasonable access to his unit.

(b) Unreasonably restrict, prohibit or withholdapproval for a units owner to add to a unit:

(1) Improvements such as ramps, railings orelevators that are necessary to improve access to the unit for any occupant ofthe unit who has a disability;

(2) Additional locks to improve the security ofthe unit;

(3) Shutters to improve the security of the unitor to reduce the costs of energy for the unit; or

(4) A system that uses wind energy to reduce thecosts of energy for the unit if the boundaries of the unit encompass 2 acres ormore within the common-interest community.

(c) With regard to approving or disapproving anyimprovement or alteration made to a unit, act in violation of any state orfederal law.

3. Any improvement or alteration made pursuant tosubsection 2 that is visible from any other portion of the common-interestcommunity must be installed, constructed or added in accordance with theprocedures set forth in the governing documents of the association and must beselected or designed to the maximum extent practicable to be compatible withthe style of the common-interest community.

4. A units owner may not add to the unit a systemthat uses wind energy as described in subparagraph 4 of paragraph (b) ofsubsection 2 unless he first obtains the written consent of each owner ofproperty within 300 feet of any boundary of the unit.

(Added to NRS by 1991, 549; A 2003, 2225; 2005, 1819)

NRS 116.2112 Relocationof boundaries between adjoining units.

1. Subject to the provisions of the declaration andother provisions of law, the boundaries between adjoining units may berelocated by an amendment to the declaration upon application to theassociation by the owners of those units. If the owners of the adjoining unitshave specified a reallocation between their units of their allocated interests,the application must state the proposed reallocations. Unless the executiveboard determines, within 30 days, that the reallocations are unreasonable, theassociation shall prepare an amendment that identifies the units involved andstates the reallocations. The amendment must be executed by those unitsowners, contain words of conveyance between them, and, on recordation, beindexed in the name of the grantor and the grantee, and in the grantees indexin the name of the association.

2. The association:

(a) In a condominium or planned community shall prepareand record plats or plans necessary to show the altered boundaries betweenadjoining units, and their dimensions and identifying numbers; and

(b) In a cooperative shall prepare and recordamendments to the declaration, including any plans, necessary to show ordescribe the altered boundaries between adjoining units, and their dimensionsand identifying numbers.

(Added to NRS by 1991, 550)

NRS 116.2113 Subdivisionof units.

1. If the declaration expressly so permits, a unit maybe subdivided into 2 or more units. Subject to the provisions of thedeclaration and other provisions of law, upon application of the units ownerto subdivide a unit, the association shall prepare, execute and record anamendment to the declaration, including in a condominium or planned communitythe plats and plans, subdividing that unit.

2. The amendment to the declaration must be executedby the owner of the unit to be subdivided, assign an identifying number to eachunit created, and reallocate the allocated interests formerly allocated to thesubdivided unit to the new units in any reasonable manner prescribed by theowner of the subdivided unit.

(Added to NRS by 1991, 550)

NRS 116.2114 Monumentsas boundaries. The existing physical boundariesof a unit or the physical boundaries of a unit reconstructed in substantialaccordance with the description contained in the original declaration are itslegal boundaries, rather than the boundaries derived from the descriptioncontained in the original declaration, regardless of vertical or lateralmovement of the building or minor variance between those boundaries and theboundaries derived from the description contained in the original declaration.This section does not relieve a units owner of liability in case of hiswillful misconduct or relieve a declarant or any other person of liability forfailure to adhere to any plats and plans or, in a cooperative, to anyrepresentation in the public offering statement.

(Added to NRS by 1991, 550)

NRS 116.2115 Usefor purposes of sales. A declarant maymaintain offices for sales and management, and models in units or on commonelements in the common-interest community only if the declaration so provides.Subject to any limitations in the declaration, a declarant may maintain signson the common elements advertising the common-interest community. This sectionis subject to the provisions of other state law and to local ordinances.

(Added to NRS by 1991, 550; A 1993, 2361)

NRS 116.2116 Easementrights; validity of existing restrictions.

1. Subject to the provisions of the declaration, adeclarant has an easement through the common elements as may be reasonablynecessary to discharge the declarants obligations or exercise specialdeclarants rights, whether arising under this chapter or reserved in thedeclaration.

2. In a planned community, subject to the provisionsof paragraph (f) of subsection 1 of NRS116.3102 and NRS 116.3112, theunits owners have an easement:

(a) In the common elements for purposes of access totheir units; and

(b) To use the common elements and all real estate thatmust become common elements (paragraph (f) of subsection 1 of NRS 116.2105) for all other purposes.

3. Unless the terms of an easement in favor of anassociation prohibit a residential use of a servient estate, if the owner ofthe servient estate has obtained all necessary approvals required by law or anycovenant, condition or restriction on the property, the owner may use suchproperty in any manner authorized by law without obtaining any additionalapproval from the association. Nothing in this subsection authorizes an ownerof a servient estate to impede the lawful and contractual use of the easement.

4. The provisions of subsection 3 do not abrogate anyeasement, restrictive covenant, decision of a court, agreement of a party orany contract, governing document or declaration of covenants, conditions andrestrictions, or any other decision, rule or regulation that a local governingbody or other entity that makes decisions concerning land use or planning isauthorized to make or enact that exists before October 1, 1999, including,without limitation, a zoning ordinance, permit or approval process or any otherrequirement of a local government or other entity that makes decisionsconcerning land use or planning.

(Added to NRS by 1991, 551; A 1999, 3355)

NRS 116.2117 Amendmentof declaration.

1. Except as otherwise provided in NRS 116.21175, and except in cases ofamendments that may be executed by a declarant under subsection 6 of NRS 116.2109 or NRS 116.211, or by the association under NRS 116.1107, subsection 4 of NRS 116.2106, subsection 3 of NRS 116.2108, subsection 1 of NRS 116.2112 or NRS 116.2113, or by certain units ownersunder subsection 2 of NRS 116.2108,subsection 1 of NRS 116.2112,subsection 2 of NRS 116.2113 orsubsection 2 of NRS 116.2118, andexcept as otherwise limited by subsection 4, the declaration, including anyplats and plans, may be amended only by vote or agreement of units owners ofunits to which at least a majority of the votes in the association are allocated,or any larger majority the declaration specifies. The declaration may specify asmaller number only if all of the units are restricted exclusively tononresidential use.

2. No action to challenge the validity of an amendmentadopted by the association pursuant to this section may be brought more than 1year after the amendment is recorded.

3. Every amendment to the declaration must be recordedin every county in which any portion of the common-interest community is locatedand is effective only upon recordation. An amendment, except an amendmentpursuant to NRS 116.2112, must beindexed in the grantees index in the name of the common-interest community andthe association and in the grantors index in the name of the parties executingthe amendment.

4. Except to the extent expressly permitted orrequired by other provisions of this chapter, no amendment may change theboundaries of any unit, the allocated interests of a unit or the uses to whichany unit is restricted, in the absence of unanimous consent of the unitsowners affected and the consent of a majority of the owners of the remainingunits.

5. Amendments to the declaration required by this chapterto be recorded by the association must be prepared, executed, recorded andcertified on behalf of the association by any officer of the associationdesignated for that purpose or, in the absence of designation, by the presidentof the association.

(Added to NRS by 1991, 551; A 1993, 2362; 1999, 395, 396; 2005, 2589)

NRS 116.21175 Procedurefor seeking confirmation from district court of certain amendments todeclaration.

1. Except as otherwise limited by subsection 4 of NRS 116.2117, if:

(a) To approve an amendment to the declaration pursuantto NRS 116.2117, the declarationrequires:

(1) In a single-class voting structure, morethan a majority of the total number of votes allocated to the single class tobe cast in favor of the amendment; or

(2) In a multiclass voting structure, more thana majority of the total number of votes allocated to one or more of themultiple classes to be cast in favor of the amendment; and

(b) An amendment fails to receive the number of votesrequired by the declaration to be approved but:

(1) In a single-class voting structure, receivesa majority of the total number of votes allocated to the single class; or

(2) In a multiclass voting structure, receivesin each of the multiple classes a majority of the total number of votesallocated to that class,

theassociation or any units owner may file a petition with the district court inany county in which any portion of the common-interest community is located askingfor an order waiving the supermajority requirements of the declaration and confirmingthe amendment as validly approved.

2. If the association or any units owner files apetition pursuant to subsection 1, the petition:

(a) Must contain sufficient information specifying:

(1) The actions that have been taken to obtainthe number of votes required to approve the amendment under the declaration andwhether those actions have conformed with the procedures set forth in thedeclaration;

(2) The amount of time that has been allowed forthe units owners to vote upon the amendment;

(3) The number and percentage of affirmativevotes required in each voting class to approve the amendment under thedeclaration;

(4) The number and percentage of affirmative andnegative votes actually received in each voting class with regard to theamendment; and

(5) Any other matters the petitioner considersrelevant to the courts determination; and

(b) Must include, as exhibits to the petition, copiesof:

(1) The governing documents;

(2) The complete text of the amendment and astatement explaining the need for the amendment and its purposes andobjectives;

(3) All notices and materials used in the effortto persuade the units owners to approve the amendment; and

(4) Any other documents the petitioner considersrelevant to the courts determination.

3. Upon receiving the petition, the court shall:

(a) Set the matter for hearing; and

(b) Issue an ex parte order setting forth the manner inwhich the petitioner must give written notice of the hearing to all the unitsowners in the association.

4. The court may grant the petition if it finds thatthe petitioner has presented evidence establishing that:

(a) The petitioner has given at least 15 days writtennotice of the hearing to:

(1) All the units owners in the association;

(2) Each city, if any, and each county in whichany portion of the common-interest community is located; and

(3) All other persons or entities that areentitled to notice under the declaration;

(b) The voting process regarding the amendment wasconducted in accordance with all applicable provisions of the governingdocuments and state law;

(c) A reasonably diligent effort was made to allow alleligible units owners and, if required by the governing documents, all lendersto vote on the amendment;

(d) The amendment:

(1) In a single-class voting structure, receiveda majority of the total number of votes allocated to the single class; or

(2) In a multiclass voting structure, receivedin each of the multiple classes a majority of the total number of votesallocated to that class; and

(e) The amendment is reasonable.

5. If the court grants the petition, the court shallenter an order waiving the supermajority requirements of the declaration andconfirming the amendment as validly approved.

6. An amendment confirmed by a final court orderpursuant to this section is not effective until a certified copy of theamendment and the final court order have been recorded in each county in whichany portion of the common-interest community is located. The amendment must beprepared, executed, recorded and certified on behalf of the association by anyofficer of the association designated for that purpose or, in the absence ofdesignation, by the president of the association, and the final court ordermust be recorded along with the amendment.

7. After the amendment and the final court order havebeen recorded pursuant to this section, the declaration, as amended, has thesame force and effect as if the amendment had been approved in compliance withevery requirement imposed by the governing documents.

8. Not later than 30 days after the date on which theamendment and the final court order are recorded pursuant to this section, theassociation shall mail to all the units owners in the association:

(a) A copy of the amendment and the final court order;and

(b) A statement explaining that the amendment and thefinal court order have been recorded and that the declaration has been amendedpursuant to this section.

(Added to NRS by 2005, 2581)

NRS 116.2118 Terminationof common-interest community.

1. Except in the case of a taking of all the units byeminent domain (NRS 116.1107) or in thecase of foreclosure against an entire cooperative of a security interest that haspriority over the declaration, a common-interest community may be terminatedonly by agreement of units owners to whom at least 80 percent of the votes inthe association are allocated, or any larger percentage the declaration specifies.The declaration may specify a smaller percentage only if all of the units are restrictedexclusively to nonresidential uses.

2. An agreement to terminate must be evidenced by theexecution of an agreement to terminate, or ratifications thereof, in the samemanner as a deed, by the requisite number of units owners. The agreement mustspecify a date after which the agreement will be void unless it is recordedbefore that date. An agreement to terminate and all ratifications thereof mustbe recorded in every county in which a portion of the common-interest communityis situated and is effective only upon recordation.

3. In the case of a condominium or planned communitycontaining only units having horizontal boundaries described in thedeclaration, an agreement to terminate may provide that all of the commonelements and units of the common-interest community must be sold followingtermination. If, pursuant to the agreement, any real estate in thecommon-interest community is to be sold following termination, the agreementmust set forth the minimum terms of the sale.

4. In the case of a condominium or planned communitycontaining any units not having horizontal boundaries described in thedeclaration, an agreement to terminate may provide for sale of the commonelements, but it may not require that the units be sold following termination,unless the declaration as originally recorded provided otherwise or all theunits owners consent to the sale.

5. The association, on behalf of the units owners,may contract for the sale of real estate in a common-interest community, butthe contract is not binding on the units owners until approved pursuant tosubsections 1 and 2. If any real estate is to be sold following termination,title to that real estate, upon termination, vests in the association astrustee for the holders of all interests in the units. Thereafter, the associationhas all powers necessary and appropriate to effect the sale. Until the sale hasbeen concluded and the proceeds thereof distributed, the association continuesin existence with all powers it had before termination. Proceeds of the salemust be distributed to units owners and lienholders as their interests mayappear, in accordance with NRS 116.21183and 116.21185. Unless otherwisespecified in the agreement to terminate, as long as the association holds titleto the real estate, each units owner and his successors in interest have anexclusive right to occupancy of the portion of the real estate that formerlyconstituted the unit. During the period of that occupancy, each units ownerand his successors in interest remain liable for all assessments and otherobligations imposed on units owners by this chapter or the declaration.

6. In a condominium or planned community, if the realestate constituting the common-interest community is not to be sold followingtermination, title to the common elements and, in a common-interest communitycontaining only units having horizontal boundaries described in thedeclaration, title to all the real estate in the common-interest community,vests in the units owners upon termination as tenants in common in proportionto their respective interests as provided in NRS 116.21185, and liens on the unitsshift accordingly. While the tenancy in common exists, each units owner andhis successors in interest have an exclusive right to occupancy of the portionof the real estate that formerly constituted the unit.

7. Following termination of the common-interestcommunity, the proceeds of any sale of real estate, together with the assets ofthe association, are held by the association as trustee for units owners andholders of liens on the units as their interests may appear.

(Added to NRS by 1991, 551)

NRS 116.21183 Rightsof creditors following termination.

1. Following termination of a condominium or plannedcommunity, creditors of the association holding liens on the units, which wererecorded before termination, may enforce those liens in the same manner as anylienholder. All other creditors of the association are to be treated as if theyhad perfected liens on the units immediately before termination.

2. In a cooperative, the declaration may provide thatall creditors of the association have priority over any interests of unitsowners and creditors of units owners. In that event, following termination,creditors of the association holding liens on the cooperative which wererecorded before termination may enforce their liens in the same manner as anylienholder, and any other creditor of the association is to be treated as if hehad perfected a lien against the cooperative immediately before termination.Unless the declaration provides that all creditors of the association have thatpriority:

(a) The lien of each creditor of the association whichwas perfected against the association before termination becomes, upontermination, a lien against each units owners interest in the unit as of thedate the lien was perfected;

(b) Any other creditor of the association is to betreated upon termination as if the creditor had perfected a lien against eachunits owners interest immediately before termination;

(c) The amount of the lien of an associations creditordescribed in paragraphs (a) and (b) against each of the units owners interestmust be proportionate to the ratio which each units liability for commonexpenses bears to the liability for common expenses of all of the units;

(d) The lien of each creditor of each units ownerwhich was perfected before termination continues as a lien against that ownersunit as of the date the lien was perfected; and

(e) The assets of the association must be distributedto all units owners and all lienholders as their interests may appear in theorder described in this section.

Creditors ofthe association are not entitled to payment from any units owner in excess ofthe amount of the creditors lien against that owners interest.

(Added to NRS by 1991, 553)

NRS 116.21185 Respectiveinterests of units owners following termination. Therespective interests of units owners referred to in subsections 5, 6 and 7 of NRS 116.2118 and in NRS 116.21183 are as follows:

1. Except as otherwise provided in subsection 2, therespective interests of units owners are the fair market values of theirunits, allocated interests, and any limited common elements immediately beforethe termination, as determined by one or more independent appraisers selectedby the association. The decision of the independent appraisers must bedistributed to the units owners and becomes final unless disapproved within 30days after distribution by units owners to whom 25 percent of the votes in theassociation are allocated. The proportion of interest of any units owner tothat of all units owners is determined by dividing the fair market value ofthat unit and its allocated interests by the total fair market values of allthe units and their allocated interests.

2. If any unit or any limited common element isdestroyed to the extent that an appraisal of the fair market value theretobefore destruction cannot be made, the interests of all units owners are:

(a) In a condominium, their respective interests in thecommon elements immediately before the termination;

(b) In a cooperative, their respective ownershipsimmediately before the termination; and

(Added to NRS by 1991, 553)

NRS 116.21188 Effectof foreclosure or enforcement of lien or encumbrance.

1. In a condominium or planned community, except asotherwise provided in subsection 2, foreclosure or enforcement of a lien orencumbrance against the entire common-interest community does not terminate, ofitself, the common-interest community, and foreclosure or enforcement of a lienor encumbrance against a portion of the common-interest community, other thanwithdrawable real estate, does not withdraw that portion from thecommon-interest community. Foreclosure or enforcement of a lien or encumbranceagainst withdrawable real estate does not withdraw, of itself, that real estatefrom the common-interest community, but the person taking title thereto mayrequire from the association, upon request, an amendment excluding the realestate from the common-interest community.

2. In a condominium or planned community, if a lien orencumbrance against a portion of the real estate comprising the common-interestcommunity has priority over the declaration and the lien or encumbrance has notbeen partially released, the parties foreclosing the lien or encumbrance, uponforeclosure, may record an instrument excluding the real estate subject to thatlien or encumbrance from the common-interest community.

(Added to NRS by 1991, 554)

NRS 116.2119 Rightsof secured lenders. The declaration mayrequire that all or a specified number or percentage of the lenders who holdsecurity interests encumbering the units approve specified actions of theunits owners or the association as a condition to the effectiveness of thoseactions, but no requirement for approval may operate to:

1. Deny or delegate control over the generaladministrative affairs of the association by the units owners or the executiveboard;

2. Prevent the association or the executive board fromcommencing, intervening in or settling any litigation or proceeding; or

3. Prevent any trustee or the association fromreceiving and distributing any proceeds of insurance except pursuant to NRS 116.31133 and 116.31135.

(Added to NRS by 1991, 554)

NRS 116.212 Masterassociations.

1. If the declaration provides that any of the powersdescribed in NRS 116.3102 are to beexercised by or may be delegated to a profit or nonprofit corporation thatexercises those or other powers on behalf of one or more common-interest communitiesor for the benefit of the units owners of one or more common-interest communities,or on behalf of a common-interest community and a time-share plan createdpursuant to chapter 119A of NRS, allprovisions of this chapter applicable to unit-owners associations apply to anysuch corporation, except as modified by this section.

2. Unless it is acting in the capacity of anassociation described in NRS 116.3101,a master association may exercise the powers set forth in paragraph (b) ofsubsection 1 of NRS 116.3102 only tothe extent expressly permitted in:

(a) The declarations of common-interest communitieswhich are part of the master association or expressly described in thedelegations of power from those common-interest communities to the masterassociation; or

(b) The declaration of the common-interest communitywhich is a part of the master association and the time-share instrumentcreating the time-share plan governed by the master association.

3. If the declaration of any common-interest communityprovides that the executive board may delegate certain powers to a masterassociation, the members of the executive board have no liability for the actsor omissions of the master association with respect to those powers followingdelegation.

4. The rights and responsibilities of units ownerswith respect to the unit-owners association set forth in NRS 116.3103, 116.31032, 116.31034, 116.31036, 116.3108, 116.31085, 116.3109, 116.311, 116.31105 and 116.3112 apply in the conduct of theaffairs of a master association only to persons who elect the board of a masterassociation, whether or not those persons are otherwise units owners withinthe meaning of this chapter.

5. Even if a master association is also an associationdescribed in NRS 116.3101, thecertificate of incorporation or other instrument creating the masterassociation and the declaration of each common-interest community, the powersof which are assigned by the declaration or delegated to the masterassociation, may provide that the executive board of the master associationmust be elected after the period of the declarants control in any of thefollowing ways:

(a) All units owners of all common-interestcommunities subject to the master association may elect all members of themaster associations executive board.

(b) All members of the executive boards of allcommon-interest communities subject to the master association may elect allmembers of the master associations executive board.

(c) All units owners of each common-interest communitysubject to the master association may elect specified members of the masterassociations executive board.

(d) All members of the executive board of eachcommon-interest community subject to the master association may elect specifiedmembers of the master associations executive board.

(Added to NRS by 1991, 554; A 1993, 2362; 2001, 2489; 2003, 2226)

NRS 116.21205 Reallocationof costs of administering common elements of certain master associations. The executive board of a master association of anycommon-interest community that was created before January 1, 1975, and islocated in a county whose population is 400,000 or more may record an amendmentto the declaration pursuant to which the master association reallocates thecosts of administering the common elements of the master association among theunits of the common-interest community uniformly and based upon the actualcosts associated with each unit.

(Added to NRS by 2003, 2220)

NRS 116.2121 Mergeror consolidation of common-interest communities.

1. Any two or more common-interest communities of thesame form of ownership, by agreement of the units owners as provided insubsection 2, may be merged or consolidated into a single common-interestcommunity. In the event of a merger or consolidation, unless the agreementotherwise provides, the resultant common-interest community is the legalsuccessor, for all purposes, of all of the preexisting common-interestcommunities, and the operations and activities of all associations of thepreexisting common-interest communities are merged or consolidated into a singleassociation that holds all powers, rights, obligations, assets and liabilitiesof all preexisting associations.

2. An agreement of two or more common-interestcommunities to merge or consolidate pursuant to subsection 1 must be evidencedby an agreement prepared, executed, recorded and certified by the president ofthe association of each of the preexisting common-interest communitiesfollowing approval by owners of units to which are allocated the percentage ofvotes in each common-interest community required to terminate thatcommon-interest community. The agreement must be recorded in every county inwhich a portion of the common-interest community is located and is noteffective until recorded.

3. Every agreement for merger or consolidation mustprovide for the reallocation of the allocated interests in the new associationamong the units of the resultant common-interest community either by statingthe reallocations or the formulas upon which they are based or by stating thepercentage of overall allocated interests of the new common-interest communitywhich are allocated to all of the units comprising each of the preexistingcommon-interest communities, and providing that the portion of the percentagesallocated to each unit formerly constituting a part of the preexistingcommon-interest community must be equal to the percentages of allocated interestsallocated to that unit by the declaration of the preexisting common-interestcommunity.

(Added to NRS by 1991, 555)

NRS 116.2122 Additionof unspecified real estate. In a planned community,if the right is originally reserved in the declaration, the declarant, inaddition to any other developmental right, may amend the declaration at anytime during as many years as are specified in the declaration for addingadditional real estate to the planned community without describing the locationof that real estate in the original declaration; but the amount of real estateadded to the planned community pursuant to this section may not exceed 10 percentof the real estate described in paragraph (c) of subsection 1 of NRS 116.2105 and the declarant may not inany event increase the number of units in the planned community beyond thenumber stated in the original declaration pursuant to paragraph (d) of thatsubsection.

(Added to NRS by 1991, 556; A 1993, 2363)

ARTICLE 3

MANAGEMENT OF THE COMMON-INTEREST COMMUNITY

General Provisions

NRS 116.3101 Organizationof unit-owners association.

1. A unit-owners association must be organized nolater than the date the first unit in the common-interest community isconveyed.

2. The membership of the association at all timesconsists exclusively of all units owners or, following termination of thecommon-interest community, of all owners of former units entitled todistributions of proceeds under NRS116.2118, 116.21183 and 116.21185, or their heirs, successors orassigns.

3. The association must:

(a) Be organized as a profit or nonprofit corporation,association, limited-liability company, trust or partnership;

(b) Include in its articles of incorporation, articlesof association, articles of organization, certificate of registration,certificate of limited partnership, certificate of trust or other documents oforganization, or any amendment thereof, that the purpose of the corporation,association, limited-liability company, trust or partnership is to operate asan association pursuant to this chapter;

(c) Contain in its name the words common-interestcommunity, community association, master association, homeownersassociation or unit-owners association; and

(d) Comply with the provisions of chapters 78, 81,82, 86, 87, 88 and 88A of NRS when filing with the Secretary ofState its articles of incorporation, articles of association, articles oforganization, certificate of registration, certificate of limited partnership,certificate of trust or other documents of organization, or any amendmentthereof.

(Added to NRS by 1991, 556; A 2003, 20thSpecial Session, 130; 2005, 2590)

NRS 116.3102 Powersof unit-owners association.

1. Except as otherwise provided in subsection 2, andsubject to the provisions of the declaration, the association may do any or allof the following:

(a) Adopt and amend bylaws, rules and regulations.

(b) Adopt and amend budgets for revenues, expendituresand reserves and collect assessments for common expenses from the unitsowners.

(d) Institute, defend or intervene in litigation oradministrative proceedings in its own name on behalf of itself or two or moreunits owners on matters affecting the common-interest community.

(e) Make contracts and incur liabilities.

(f) Regulate the use, maintenance, repair, replacementand modification of common elements.

(g) Cause additional improvements to be made as a partof the common elements.

(h) Acquire, hold, encumber and convey in its own nameany right, title or interest to real estate or personal property, but:

(1) Common elements in a condominium or plannedcommunity may be conveyed or subjected to a security interest only pursuant to NRS 116.3112; and

(2) Part of a cooperative may be conveyed, orall or part of a cooperative may be subjected to a security interest, onlypursuant to NRS 116.3112.

(i) Grant easements, leases, licenses and concessionsthrough or over the common elements.

(j) Impose and receive any payments, fees or chargesfor the use, rental or operation of the common elements, other than limitedcommon elements described in subsections 2 and 4 of NRS 116.2102, and for services provided tothe units owners.

(k) Impose charges for late payment of assessments.

(l) Impose construction penalties when authorized pursuantto NRS 116.310305.

(m) Impose reasonable fines for violations of thegoverning documents of the association only if the association complies withthe requirements set forth in NRS116.31031.

(n) Impose reasonable charges for the preparation andrecordation of any amendments to the declaration or any statements of unpaidassessments, and impose reasonable fees, not to exceed the amounts authorizedby NRS 116.4109, for preparing andfurnishing the documents and certificate required by that section.

(o) Provide for the indemnification of its officers andexecutive board and maintain directors and officers liability insurance.

(p) Assign its right to future income, including theright to receive assessments for common expenses, but only to the extent thedeclaration expressly so provides.

(q) Exercise any other powers conferred by thedeclaration or bylaws.

(r) Exercise all other powers that may be exercised inthis State by legal entities of the same type as the association.

(s) Direct the removal of vehicles improperly parked onproperty owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on anyroad, street, alley or other thoroughfare within the common-interest communityin violation of the governing documents. In addition to complying with therequirements of NRS 487.038 and anyrequirements in the governing documents, if a vehicle is improperly parked asdescribed in this paragraph, the association must post written notice in aconspicuous place on the vehicle or provide oral or written notice to the owneror operator of the vehicle at least 48 hours before the association may directthe removal of the vehicle, unless the vehicle:

(1)Is blocking a fire hydrant, fire lane or parking space designated for thehandicapped; or

(2) Poses an imminent threat of causing asubstantial adverse effect on the health, safety or welfare of the unitsowners or residents of the common-interest community.

(t) Exercise any other powers necessary and proper forthe governance and operation of the association.

2. The declaration may not impose limitations on thepower of the association to deal with the declarant which are more restrictivethan the limitations imposed on the power of the association to deal with otherpersons.

(Added to NRS by 1991, 556; A 1999, 3000; 2003, 2227, 2267; 2005, 2590)

NRS 116.3103 Powerof executive board to act on behalf of association; members and officers arefiduciaries; duty of care; application of business-judgment rule; limitationson power.

1. Except as otherwise provided in the declaration,the bylaws, this section or other provisions of this chapter, the executiveboard may act in all instances on behalf of the association. In the performanceof their duties, the officers and members of the executive board arefiduciaries. The members of the executive board are required to exercise theordinary and reasonable care of directors of a corporation, subject to thebusiness-judgment rule.

2. The executive board may not act on behalf of theassociation to amend the declaration, to terminate the common-interestcommunity, or to elect members of the executive board or determine theirqualifications, powers and duties or terms of office, but the executive boardmay fill vacancies in its membership for the unexpired portion of any term.

(Added to NRS by 1991, 557; A 1993, 2364; 2001, 3193; 2003, 225; 2005, 2592)

1. A units owner shall adhere to a schedule requiredby the association for:

(a) The completion of the design of a unit or thedesign of an improvement to a unit;

(b) The commencement of the construction of a unit orthe construction of an improvement to a unit;

(d) The issuance of a permit which is necessary for theoccupancy of a unit or for the use of an improvement to a unit.

2. The association may impose and enforce a constructionpenalty against a units owner who fails to adhere to a schedule as requiredpursuant to subsection 1 if:

(a) The maximum amount of the construction penalty andthe schedule are set forth in:

(1) The declaration;

(2) Another document related to thecommon-interest community that is recorded before the date on which the unitsowner acquired title to the unit; or

(3) A contract between the units owner and theassociation; and

(b) The units owner receives notice of the allegedviolation which informs him that he has a right to a hearing on the allegedviolation.

3. For the purposes of this chapter, a constructionpenalty is not a fine.

(Added to NRS by 2003, 2221, 2266)

NRS 116.31031 Powerof executive board to impose fines and other sanctions for violations ofgoverning documents; procedural requirements; continuing violations; collectionof past due fines.

1. Except as otherwise provided in this section, if aunits owner or a tenant or guest of a units owner violates any provision ofthe governing documents of an association, the executive board may, if thegoverning documents so provide:

(a) Prohibit, for a reasonable time, the units owneror the tenant or guest of the units owner from:

(1) Voting on matters related to thecommon-interest community.

(2) Using the common elements. The provisions ofthis subparagraph do not prohibit the units owner or the tenant or guest ofthe units owner from using any vehicular or pedestrian ingress or egress to goto or from the unit, including any area used for parking.

(b) Impose a fine against the units owner or thetenant or guest of the units owner for each violation, except that a fine maynot be imposed for a violation that is the subject of a construction penaltypursuant to NRS 116.310305. If the violationposes an imminent threat of causing a substantial adverse effect on the health,safety or welfare of the units owners or residents of the common-interestcommunity, the amount of the fine must be commensurate with the severity of theviolation and must be determined by the executive board in accordance with thegoverning documents. If the violation does not pose an imminent threat ofcausing a substantial adverse effect on the health, safety or welfare of theunits owners or residents of the common-interest community, the amount of thefine must be commensurate with the severity of the violation and must bedetermined by the executive board in accordance with the governing documents,but the amount of the fine must not exceed $100 for each violation or a totalamount of $1000, whichever is less. The limitations on the amount of the finedo not apply to any interest, charges or costs that may be collected by theassociation pursuant to this section if the fine becomes past due.

2. The executive board may not impose a fine pursuantto subsection 1 unless:

(a) Not less than 30 days before the violation, theperson against whom the fine will be imposed had been provided with writtennotice of the applicable provisions of the governing documents that form thebasis of the violation; and

(b) Within a reasonable time after the discovery of theviolation, the person against whom the fine will be imposed has been providedwith:

(1) Written notice specifying the details of theviolation, the amount of the fine, and the date, time and location for ahearing on the violation; and

(2) A reasonable opportunity to contest theviolation at the hearing.

3. The executive board must schedule the date, timeand location for the hearing on the violation so that the person against whomthe fine will be imposed is provided with a reasonable opportunity to preparefor the hearing and to be present at the hearing.

4. The executive board must hold a hearing before itmay impose the fine, unless the person against whom the fine will be imposed:

(a) Pays the fine;

(b) Executes a written waiver of the right to thehearing; or

5. If a fine is imposed pursuant to subsection 1 andthe violation is not cured within 14 days, or within any longer period that maybe established by the executive board, the violation shall be deemed acontinuing violation. Thereafter, the executive board may impose an additionalfine for the violation for each 7-day period or portion thereof that theviolation is not cured. Any additional fine may be imposed without notice andan opportunity to be heard.

6. If the governing documents so provide, theexecutive board may appoint a committee, with not less than three members, toconduct hearings on violations and to impose fines pursuant to this section.While acting on behalf of the executive board for those limited purposes, thecommittee and its members are entitled to all privileges and immunities and aresubject to all duties and requirements of the executive board and its members.

7. The provisions of this section establish theminimum procedural requirements that the executive board must follow before itmay impose a fine. The provisions of this section do not preempt any provisionsof the governing documents that provide greater procedural protections.

8. Any past due fine:

(a) Bears interest at the rate established by theassociation, not to exceed the legal rate per annum.

(b) May include any costs of collecting the past duefine at a rate established by the association. If the past due fine is for aviolation that does not threaten the health, safety or welfare of the residentsof the common-interest community, the rate established by the association forthe costs of collecting the past due fine:

(1) May not exceed $20, if the outstandingbalance is less than $200.

(2) May not exceed $50, if the outstandingbalance is $200 or more, but is less than $500.

(3) May not exceed $100, if the outstandingbalance is $500 or more, but is less than $1,000.

(4) May not exceed $250, if the outstandingbalance is $1,000 or more, but is less than $5,000.

(5) May not exceed $500, if the outstandingbalance is $5,000 or more.

9. As used in this section:

(a) Costs of collecting includes, without limitation,any collection fee, filing fee, recording fee, referral fee, fee for postage ordelivery, and any other fee or cost that an association may reasonably chargeto the units owner for the collection of a past due fine. The term does notinclude any costs incurred by an association during a civil action to enforcethe payment of a past due fine.

(b) Outstanding balance means the amount of a pastdue fine that remains unpaid before any interest, charges for late payment orcosts of collecting the past due fine are added.

(Added to NRS by 1997, 3112; A 1999, 3001; 2003, 2228, 2268; 2005, 2592)

NRS 116.310315 Accountingfor fines in books and records of association; prohibition against applyingpayment for assessment, fee or other charge toward payment of fine; exceptions. If an association has imposed a fine against a unitsowner or a tenant or guest of a units owner pursuant to NRS 116.31031 for violations of thegoverning documents of the association, the association:

1. Shall, in the books and records of the association,account for the fine separately from any assessment, fee or other charge; and

2. Shall not apply, in whole or in part, any paymentmade by the units owner for any assessment, fee or other charge toward thepayment of the outstanding balance of the fine or any costs of collecting thefine, unless the units owner provides written authorization which directs theassociation to apply the payment made by the units owner in such a manner.

(Added to NRS by 1997, 3112; A 2005, 1715)(Substitutedin revision for NRS 116.31145)

NRS 116.31032 Periodof declarants control of association; representation of units owners onexecutive board.

1. Except as otherwise provided in this section, thedeclaration may provide for a period of declarants control of the association,during which a declarant, or persons designated by him, may appoint and removethe officers of the association and members of the executive board. Regardlessof the period provided in the declaration, a period of declarants controlterminates no later than:

(a) Sixty days after conveyance of 75 percent of theunits that may be created to units owners other than a declarant or, if theassociation exercises powers over a common-interest community pursuant to thischapter and a time-share plan pursuant to chapter119A of NRS, 120 days after conveyance of 80 percent of the units that maybe created to units owners other than a declarant;

(b) Five years after all declarants have ceased tooffer units for sale in the ordinary course of business; or

whicheveroccurs earlier.

2. A declarant may voluntarily surrender the right toappoint and remove officers and members of the executive board beforetermination of that period, but in that event the declarant may require, forthe duration of the period of declarants control, that specified actions ofthe association or executive board, as described in a recorded instrumentexecuted by the declarant, be approved by the declarant before they become effective.

3. Not later than 60 days after conveyance of 25percent of the units that may be created to units owners other than adeclarant, at least one member and not less than 25 percent of the members ofthe executive board must be elected by units owners other than the declarant.Not later than 60 days after conveyance of 50 percent of the units that may becreated to units owners other than a declarant, not less than 33 1/3 percentof the members of the executive board must be elected by units owners otherthan the declarant.

(Added to NRS by 1993, 2353; A 2001, 2490)

NRS 116.31034 Electionof members of executive board and officers of association; term of office of memberof executive board; staggered terms; eligibility to serve on executive board;required disclosures; procedure for conducting elections; certification bymember of executive board of understanding of governing documents andprovisions of chapter.

1. Except as otherwise provided in subsection 5 of NRS 116.212, not later than the terminationof any period of declarants control, the units owners shall elect anexecutive board of at least three members, at least a majority of whom must beunits owners. Unless the governing documents provide otherwise, the remainingmembers of the executive board do not have to be units owners. The executiveboard shall elect the officers of the association. The members of the executiveboard and the officers of the association shall take office upon election.

2. The term of office of a member of the executiveboard may not exceed 2 years, except for members who are appointed by thedeclarant. Unless the governing documents provide otherwise, there is nolimitation on the number of terms that a person may serve as a member of theexecutive board.

3. The governing documents of the association mustprovide for terms of office that are staggered in such a manner that, to theextent possible, an equal number of members of the executive board are electedat each election. The provisions of this subsection do not apply to:

(a) Members of the executive board who are appointed bythe declarant; and

(b) Members of the executive board who serve a term of1 year or less.

4. Not less than 30 days before the preparation of aballot for the election of members of the executive board, the secretary orother officer specified in the bylaws of the association shall cause notice tobe given to each units owner of his eligibility to serve as a member of theexecutive board. Each units owner who is qualified to serve as a member of theexecutive board may have his name placed on the ballot along with the names ofthe nominees selected by the members of the executive board or a nominatingcommittee established by the association.

5. Each person whose name is placed on the ballot as acandidate for a member of the executive board must:

(a) Make a good faith effort to disclose any financial,business, professional or personal relationship or interest that would resultor would appear to a reasonable person to result in a potential conflict ofinterest for the candidate if the candidate were to be elected to serve as a memberof the executive board; and

(b) Disclose whether the candidate is a member in goodstanding. For the purposes of this paragraph, a candidate shall not be deemedto be in good standing if the candidate has any unpaid and past dueassessments or construction penalties that are required to be paid to theassociation.

Thecandidate must make all disclosures required pursuant to this subsection inwriting to the association with his candidacy information. The associationshall distribute the disclosures to each member of the association with theballot in the manner established in the bylaws of the association.

6. Unless a person is appointed by the declarant:

(a) A person may not be a member of the executive boardor an officer of the association if the person, his spouse or his parent orchild, by blood, marriage or adoption, performs the duties of a communitymanager for that association.

(b) A person may not be a member of the executive boardof a master association or an officer of that master association if the person,his spouse or his parent or child, by blood, marriage or adoption, performs theduties of a community manager for:

(1) That master association; or

(2) Any association that is subject to thegoverning documents of that master association.

7. An officer, employee, agent or director of acorporate owner of a unit, a trustee or designated beneficiary of a trust thatowns a unit, a partner of a partnership that owns a unit, a member or managerof a limited-liability company that owns a unit, and a fiduciary of an estatethat owns a unit may be an officer of the association or a member of theexecutive board. In all events where the person serving or offering to serve asan officer of the association or a member of the executive board is not therecord owner, he shall file proof in the records of the association that:

(a) He isassociated with the corporate owner, trust, partnership, limited-liabilitycompany or estate as required by this subsection; and

(b) Identifiesthe unit or units owned by the corporate owner, trust, partnership,limited-liability company or estate.

8. The election of any member of the executive boardmust be conducted by secret written ballot unless the declaration of theassociation provides that voting rights may be exercised by delegates orrepresentatives as set forth in NRS116.31105. If the election of any member of the executive board isconducted by secret written ballot:

(a) The secretary or other officer specified in thebylaws of the association shall cause a secret ballot and a return envelope tobe sent, prepaid by United States mail, to the mailing address of each unitwithin the common-interest community or to any other mailing address designatedin writing by the units owner.

(b) Each units owner must be provided with at least 15days after the date the secret written ballot is mailed to the units owner toreturn the secret written ballot to the association.

(d) Only the secret written ballots that are returnedto the association may be counted to determine the outcome of the election.

(e) The secret written ballots must be opened and countedat a meeting of the association. A quorum is not required to be present whenthe secret written ballots are opened and counted at the meeting.

(f) The incumbent members of the executive board andeach person whose name is placed on the ballot as a candidate for a member ofthe executive board may not possess, be given access to or participate in theopening or counting of the secret written ballots that are returned to theassociation before those secret written ballots have been opened and counted ata meeting of the association.

9. Each member of the executive board shall, within 90days after his appointment or election, certify in writing to the association,on a form prescribed by the Administrator, that he has read and understands thegoverning documents of the association and the provisions of this chapter tothe best of his ability. The Administrator may require the association tosubmit a copy of the certification of each member of the executive board ofthat association at the time the association registers with the Ombudsmanpursuant to NRS 116.31158.

(Added to NRS by 1993, 2353; A 1997, 3117; 1999, 3001; 2003, 2229; 2005, 2594)

NRS 116.31036 Removalof member of executive board; indemnification and defense of member ofexecutive board.

1. Notwithstanding any provision of the declaration orbylaws to the contrary, any member of the executive board, other than a memberappointed by the declarant, may be removed from the executive board, with orwithout cause, if at a removal election held pursuant to this section thenumber of votes cast in favor of removal constitutes:

(a) At least 35 percent of the total number ofvoting members of the association; and

(b) At least a majority of all votes cast in thatremoval election.

2. The removal of any member of the executive boardmust be conducted by secret written ballot unless the declaration of theassociation provides that voting rights may be exercised by delegates orrepresentatives as set forth in NRS116.31105. If the removal of a member of the executive board is conductedby secret written ballot:

(b) Each units owner must be provided with at least 15days after the date the secret written ballot is mailed to the units owner toreturn the secret written ballot to the association.

(d) The secret written ballots must be opened andcounted at a meeting of the association. A quorum is not required to be presentwhen the secret written ballots are opened and counted at the meeting.

(e) The incumbent members of the executive board,including, without limitation, the member who is subject to the removal, maynot possess, be given access to or participate in the opening or counting ofthe secret written ballots that are returned to the association before thosesecret written ballots have been opened and counted at a meeting of theassociation.

3. If a member of an executive board is named as arespondent or sued for liability for actions undertaken in his role as a memberof the board, the association shall indemnify him for his losses or claims, andundertake all costs of defense, unless it is proven that he acted with willfulor wanton misfeasance or with gross negligence. After such proof, theassociation is no longer liable for the cost of defense, and may recover costsalready expended from the member of the executive board who so acted. Membersof the executive board are not personally liable to the victims of crimesoccurring on the property. Punitive damages may not be recovered against theassociation, but may be recovered from persons whose activity gave rise to thedamages.

4. The provisions of this section do not prohibit theCommission from taking any disciplinary action against a member of an executiveboard pursuant to NRS 116.745 to 116.795, inclusive.

(Added to NRS by 1993, 2354; A 2003, 2231; 2005, 2596)

NRS 116.31038 Deliveryto association of property held or controlled by declarant. In addition to any applicable requirement set forth in NRS 116.310395, within 30 days afterunits owners other than the declarant may elect a majority of the members ofthe executive board, the declarant shall deliver to the association allproperty of the units owners and of the association held by or controlled byhim, including:

1. The original or a certified copy of the recordeddeclaration as amended, the articles of incorporation, articles of association,articles of organization, certificate of registration, certificate of limitedpartnership, certificate of trust or other documents of organization for theassociation, the bylaws, minute books and other books and records of theassociation and any rules or regulations which may have been adopted.

2. An accounting for money of the association andaudited financial statements for each fiscal year and any ancillary period fromthe date of inception of the association to the date the period of thedeclarants control ends. The financial statements must fairly and accuratelyreport the associations financial position.

3. A complete study of the reserves of theassociation, conducted by a person who holds a permit to conduct such a studyissued pursuant to chapter 116A of NRS. Atthe time the control of the declarant ends, he shall:

(a) Except as otherwise provided in this paragraph,deliver to the association a reserve account that contains the declarantsshare of the amounts then due, and control of the account. If the declarationwas recorded before October 1, 1999, and, at the time the control of thedeclarant ends, he has failed to pay his share of the amounts due, theexecutive board shall authorize the declarant to pay the deficiency ininstallments for a period of 3 years, unless the declarant and the executiveboard agree to a shorter period.

(b) Disclose, in writing, the amount by which he hassubsidized the associations dues on a per unit or per lot basis.

4. The associations money or control thereof.

5. All of the declarants tangible personal propertythat has been represented by the declarant as property of the association or,unless the declarant has disclosed in the public offering statement that allsuch personal property used in the common-interest community will remain thedeclarants property, all of the declarants tangible personal property that isnecessary for, and has been used exclusively in, the operation and enjoyment ofthe common elements, and inventories of these properties.

6. A copy of any plans and specifications used in theconstruction of the improvements in the common-interest community which werecompleted within 2 years before the declaration was recorded.

7. All insurance policies then in force, in which theunits owners, the association, or its directors and officers are named asinsured persons.

8. Copies of any certificates of occupancy that mayhave been issued with respect to any improvements comprising the common-interestcommunity other than units in a planned community.

9. Any renewable permits and approvals issued bygovernmental bodies applicable to the common-interest community which are inforce and any other permits and approvals so issued and applicable which arerequired by law to be kept on the premises of the community.

10. Written warranties of the contractor,subcontractors, suppliers and manufacturers that are still effective.

11. A roster of owners and mortgagees of units andtheir addresses and telephone numbers, if known, as shown on the declarantsrecords.

12. Contracts of employment in which the associationis a contracting party.

13. Any contract for service in which the associationis a contracting party or in which the association or the units owners haveany obligation to pay a fee to the persons performing the services.

(Added to NRS by 1993, 2354; A 1999, 3002; 2001, 2490; 2005, 2597)

NRS 116.31039 Deliveryto association of additional common elements constructed by declarant orsuccessor declarant.

1. If a common-interest community is developed inseparate phases and any declarant or successor declarant is constructing anycommon elements that will be added to the associations common elements afterthe date on which the units owners other than the declarant may elect amajority of the members of the executive board, the declarant or successordeclarant who is constructing such additional common elements is responsiblefor:

(a) Paying all expenses related to the additionalcommon elements which are incurred before the conveyance of the additionalcommon elements to the association; and

(b) Except as otherwise provided in NRS 116.31038, delivering to the associationthat declarants share of the amount specified in the study of the reserves completedpursuant to subsection 2.

2. Before conveying the additional common elements tothe association, the declarant or successor declarant who constructed theadditional common elements shall deliver to the association a study of thereserves for the additional common elements which satisfies the requirements ofNRS 116.31152.

3. As used in this section, successor declarantincludes, without limitation, any successor declarant who does not control theassociation established by the initial declarant.

(Added to NRS by 2003, 2219)

NRS 116.310395 Deliveryto association of converted building reserve deficit.

1. At the time of each close of escrow of a unit in aconverted building, the declarant shall deliver to the association the amountof the converted building reserve deficit allocated to that unit.

2. The allocation to a unit of the amount of anyconverted building reserve deficit must be made in the same manner asassessments are allocated to that unit.

3. As used in this section, converted buildingreserve deficit means the amount necessary to replace the major components ofthe common elements needing replacement within 10 years after the date of thefirst sale of a unit.

(Added to NRS by 2005, 2581)

NRS 116.3104 Transferof special declarants right.

1. A special declarants right created or reservedunder this chapter may be transferred only by an instrument evidencing thetransfer recorded in every county in which any portion of the common-interestcommunity is located. The instrument is not effective unless executed by thetransferee.

2. Upon transfer of any special declarants right, theliability of a transferor declarant is as follows:

(a) A transferor is not relieved of any obligation orliability arising before the transfer and remains liable for warranties imposedupon him by this chapter. Lack of privity does not deprive any units owner ofstanding to maintain an action to enforce any obligation of the transferor.

(b) If a successor to any special declarants right isan affiliate of a declarant, the transferor is jointly and severally liablewith the successor for any obligations or liabilities of the successor relatingto the common-interest community.

(c) If a transferor retains any special declarantsrights, but transfers other special declarants rights to a successor who isnot an affiliate of the declarant, the transferor is liable for any obligationsor liabilities imposed on a declarant by this chapter or by the declarationrelating to the retained special declarants rights and arising after thetransfer.

(d) A transferor has no liability for any act oromission or any breach of a contractual obligation or warranty arising from theexercise of a special declarants right by a successor declarant who is not anaffiliate of the transferor.

3. Unless otherwise provided in a mortgage, deed oftrust or other agreement creating a security interest, in case of foreclosureof a security interest, sale by a trustee under an agreement creating asecurity interest, tax sale, judicial sale or sale under the Bankruptcy Code ora receivership, of any units owned by a declarant or real estate in acommon-interest community subject to developmental rights, a person acquiring titleto all the property being foreclosed or sold, but only upon his request,succeeds to all special declarants rights related to that property held bythat declarant, or only to any rights reserved in the declaration pursuant to NRS 116.2115 and held by that declarant tomaintain models, offices for sales and signs. The judgment or instrumentconveying title must provide for transfer of only the special declarantsrights requested.

4. Upon foreclosure of a security interest, sale by atrustee under an agreement creating a security interest, tax sale, judicialsale or sale under the Bankruptcy Code or a receivership of all interests in acommon-interest community owned by a declarant:

(a) The declarant ceases to have any specialdeclarants rights; and

(b) The period of declarants control (NRS 116.31032) terminates unless thejudgment or instrument conveying title provides for transfer of all specialdeclarants rights held by that declarant to a successor declarant.

(Added to NRS by 1991, 560; A 1993, 2366)

NRS 116.31043 Liabilitiesand obligations of person who succeeds to special declarants rights. The liabilities and obligations of a person who succeedsto special declarants rights are as follows:

1. A successor to any special declarants right who isan affiliate of a declarant is subject to all obligations and liabilitiesimposed on the transferor by this chapter or by the declaration.

2. A successor to any special declarants right, otherthan a successor described in subsection 3 or 4 or a successor who is anaffiliate of a declarant, is subject to the obligations and liabilities imposedby this chapter or the declaration:

(a) On a declarant which relate to the successorsexercise or nonexercise of special declarants rights; or

(b) On his transferor, other than:

(1) Misrepresentations by any previousdeclarant;

(2) Warranties on improvements made by anyprevious declarant, or made before the common-interest community was created;

(3) Breach of any fiduciary obligation by anyprevious declarant or his appointees to the executive board; or

(4) Any liability or obligation imposed on thetransferor as a result of the transferors acts or omissions after thetransfer.

3. A successor to only a right reserved in thedeclaration to maintain models, offices for sales and signs (NRS 116.2115), may not exercise any otherspecial declarants right, and is not subject to any liability or obligation asa declarant, except the obligation to provide a public offering statement andany liability arising as a result thereof.

4. A successor to all special declarants rights heldby a transferor who succeeded to those rights pursuant to a deed or otherinstrument of conveyance in lieu of foreclosure or a judgment or instrumentconveying title under subsection 3 of NRS116.3104, may declare in a recorded instrument the intention to hold thoserights solely for transfer to another person. Thereafter, until transferringall special declarants rights to any person acquiring title to any unit orreal estate subject to developmental rights owned by the successor, or untilrecording an instrument permitting exercise of all those rights, that successormay not exercise any of those rights other than any right held by histransferor to control the executive board in accordance with NRS 116.31032 for the duration of anyperiod of declarants control, and any attempted exercise of those rights isvoid. So long as a successor declarant may not exercise special declarantsrights under this subsection, the successor declarant is not subject to anyliability or obligation as a declarant other than liability for his acts andomissions under NRS 116.31032.

(Added to NRS by 1991, 561; A 1993, 2367)

NRS 116.31046 Successornot subject to certain claims against or other obligations of transferor ofspecial declarants right. NRS 116.3104 and 116.31043 do not subject any successor toa special declarants right to any claims against or other obligations of atransferor declarant, other than claims and obligations arising under thischapter or the declaration.

(Added to NRS by 1991, 561)

NRS 116.3105 Terminationof contracts and leases of declarant. If enteredinto before the executive board elected by the units owners pursuant to NRS 116.31034 takes office, anymanagement contract, employment contract, or lease of recreational or parkingareas or facilities, any other contract or lease between the association and adeclarant or an affiliate of a declarant or any contract or lease that is notin good faith or was unconscionable to the units owners at the time enteredinto under the circumstances then prevailing may be terminated without penaltyby the association at any time after the executive board elected by the unitsowners takes office upon not less than 90 days notice to the other party. Thissection does not apply to any lease the termination of which would terminatethe common-interest community or reduce its size, unless the real estatesubject to that lease was included in the common-interest community for thepurpose of avoiding the right of the association to terminate a lease underthis section, or to a proprietary lease.

(Added to NRS by 1991, 561; A 1993, 2368)

NRS 116.3106 Bylaws.

1. The bylaws of the association must provide:

(a) The number of members of the executive board andthe titles of the officers of the association;

(b) For election by the executive board of a president,treasurer, secretary and any other officers of the association the bylawsspecify;

(c) The qualifications, powers and duties, terms ofoffice and manner of electing and removing officers of the association andmembers of the executive board and filling vacancies;

(d) Which powers, if any, that the executive board orthe officers of the association may delegate to other persons or to a communitymanager;

(e) Which of its officers may prepare, execute, certifyand record amendments to the declaration on behalf of the association;

(f) Procedural rules for conducting meetings of theassociation;

(g) A method for amending the bylaws; and

(h) Procedural rules for conducting elections.

2. Except as otherwise provided in the declaration,the bylaws may provide for any other matters the association deems necessaryand appropriate.

3. The bylaws must be written in plain English.

(Added to NRS by 1991, 562; A 1993, 2368; 1997, 3117;2003, 2232)

NRS 116.31065 Rules. The rules adopted by an association:

1. Must be reasonably related to the purpose for whichthey are adopted.

2. Must be sufficiently explicit in their prohibition,direction or limitation to inform a person of any action or omission requiredfor compliance.

3. Must not be adopted to evade any obligation of theassociation.

4. Must be consistent with the governing documents ofthe association and must not arbitrarily restrict conduct or require theconstruction of any capital improvement by a units owner that is not requiredby the governing documents of the association.

5. Must be uniformly enforced under the same orsimilar circumstances against all units owners. Any rule that is not souniformly enforced may not be enforced against any units owner.

6. May be enforced by the association through theimposition of a fine only if the association complies with the requirements setforth in NRS 116.31031.

(Added to NRS by 1997, 3111; A 1999, 3004; 2003, 2269)

NRS 116.31067 Rightof units owners to display flag of the United States in certain areas;conditions and limitations on exercise of right. [Replaced in revisionby NRS 116.320.]

NRS 116.3107 Upkeepof common-interest community.

1. Except to the extent provided by the declaration,subsection 2 and NRS 116.31135, theassociation is responsible for maintenance, repair and replacement of thecommon elements, and each units owner is responsible for maintenance, repairand replacement of his unit. Each units owner shall afford to the associationand the other units owners, and to their agents or employees, access throughhis unit reasonably necessary for those purposes. If damage is inflicted on thecommon elements or on any unit through which access is taken, the units ownerresponsible for the damage, or the association if it is responsible, is liablefor the prompt repair thereof.

2. In addition to the liability that a declarant as aunits owner has under this chapter, the declarant alone is liable for allexpenses in connection with real estate subject to developmental rights. Noother units owner and no other portion of the common-interest community issubject to a claim for payment of those expenses. Unless the declarationprovides otherwise, any income or proceeds from real estate subject todevelopmental rights inures to the declarant.

3. In a planned community, if all developmental rightshave expired with respect to any real estate, the declarant remains liable forall expenses of that real estate unless, upon expiration, the declarationprovides that the real estate becomes common elements or units.

(Added to NRS by 1991, 562; A 1993, 2368)

Meetings and Voting

NRS 116.31075 Meetingsof rural agricultural residential common-interest communities: Compliance withOpen Meeting Law. In conducting any meetings,a rural agricultural residential common-interest community must comply with theprovisions set forth in chapter 241 of NRSconcerning open meetings which are generally applicable to public bodies.

(Added to NRS by 2003, 2221)

1. A meeting of the units owners must be held atleast once each year. If the governing documents do not designate an annualmeeting date of the units owners, a meeting of the units owners must be held1 year after the date of the last meeting of the units owners. If the unitsowners have not held a meeting for 1 year, a meeting of the units owners mustbe held on the following March 1.

2. Special meetings of the units owners may be calledby the president, by a majority of the executive board or by units ownersconstituting at least 10 percent, or any lower percentage specified in thebylaws, of the total number of voting members of the association. The same numberof units owners may also call a removal election pursuant to NRS 116.31036. To call a special meetingor a removal election, the units owners must submit a written petition whichis signed by the required percentage of the total number of voting members ofthe association pursuant to this section and which is mailed, return receiptrequested, or served by a process server to the executive board or thecommunity manager for the association. If the petition calls for a specialmeeting, the executive board shall set the date for the special meeting so thatthe special meeting is held not less than 15 days or more than 60 days afterthe date on which the petition is received. If the petition calls for a removalelection and:

(a) The voting rights of the units owners will beexercised by delegates or representatives as set forth in NRS 116.31105, the executive board shallset the date for the removal election so that the removal election is held notless than 15 days or more than 60 days after the date on which the petition isreceived; or

(b) The voting rights of the units owners will beexercised through the use of secret written ballots pursuant to NRS 116.31036, the secret written ballotsfor the removal election must be sent in the manner required by NRS 116.31036 not less than 15 days ormore than 60 days after the date on which the petition is received, and theexecutive board shall set the date for the meeting to open and count the secretwritten ballots so that the meeting is held not more than 15 days after the deadlinefor returning the secret written ballots.

3. Not less than 15 days or more than 60 days inadvance of any meeting of the units owners, the secretary or other officerspecified in the bylaws shall cause notice of the meeting to be hand-delivered,sent prepaid by United States mail to the mailing address of each unit or toany other mailing address designated in writing by the units owner or, if theassociation offers to send notice by electronic mail, sent by electronic mailat the request of the units owner to an electronic mail address designated inwriting by the units owner. The notice of the meeting must state the time andplace of the meeting and include a copy of the agenda for the meeting. The noticemust include notification of the right of a units owner to:

(a) Have a copy of the minutes or a summary of theminutes of the meeting provided to the units owner upon request and, ifrequired by the executive board, upon payment to the association of the cost ofproviding the copy to the units owner.

(b) Speak to the association or executive board, unlessthe executive board is meeting in executive session.

4. The agenda for a meeting of the units owners mustconsist of:

(a) A clear and complete statement of the topicsscheduled to be considered during the meeting, including, without limitation,any proposed amendment to the declaration or bylaws, any fees or assessments tobe imposed or increased by the association, any budgetary changes and any proposalto remove an officer of the association or member of the executive board.

(b) A list describing the items on which action may betaken and clearly denoting that action may be taken on those items. In anemergency, the units owners may take action on an item which is not listed onthe agenda as an item on which action may be taken.

(c) A period devoted to comments by units owners anddiscussion of those comments. Except in emergencies, no action may be takenupon a matter raised under this item of the agenda until the matter itself hasbeen specifically included on an agenda as an item upon which action may betaken pursuant to paragraph (b).

5. If the association adopts a policy imposing finesfor any violations of the governing documents of the association, the secretaryor other officer specified in the bylaws shall prepare and cause to behand-delivered or sent prepaid by United States mail to the mailing address ofeach unit or to any other mailing address designated in writing by the units owner,a schedule of the fines that may be imposed for those violations.

6. The secretary or other officer specified in thebylaws shall cause minutes to be recorded or otherwise taken at each meeting ofthe units owners. Not more than 30 days after each such meeting, the secretaryor other officer specified in the bylaws shall cause the minutes or a summaryof the minutes of the meeting to be made available to the units owners. A copyof the minutes or a summary of the minutes must be provided to any units ownerupon request and, if required by the executive board, upon payment to theassociation of the cost of providing the copy to the units owner.

7. Except as otherwise provided in subsection 8, theminutes of each meeting of the units owners must include:

(a) The date, time and place of the meeting;

(b) The substance of all matters proposed, discussed ordecided at the meeting; and

(c) The substance of remarks made by any units ownerat the meeting if he requests that the minutes reflect his remarks or, if hehas prepared written remarks, a copy of his prepared remarks if he submits acopy for inclusion.

8. The executive board may establish reasonablelimitations on materials, remarks or other information to be included in theminutes of a meeting of the units owners.

9. The association shall maintain the minutes of eachmeeting of the units owners until the common-interest community is terminated.

10. A units owner may record on audiotape or anyother means of sound reproduction a meeting of the units owners if the unitsowner, before recording the meeting, provides notice of his intent to recordthe meeting to the other units owners who are in attendance at the meeting.

11. The units owners may approve, at the annualmeeting of the units owners, the minutes of the prior annual meeting of theunits owners and the minutes of any prior special meetings of the unitsowners. A quorum is not required to be present when the units owners approvethe minutes.

12. As used in this section, emergency means anyoccurrence or combination of occurrences that:

(a) Could not have been reasonably foreseen;

(b) Affects the health, welfare and safety of theunits owners or residents of the common-interest community;

(d) Makes it impracticable to comply with theprovisions of subsection 3 or 4.

(Added to NRS by 1991, 562; A 1995, 2230; 1997, 3118;1999, 3004; 2001, 470; 2003, 2232, 2270; 2005, 2598)

1. A meeting of the executive board must be held atleast once every 90 days.

2. Except in an emergency or unless the bylaws of anassociation require a longer period of notice, the secretary or other officerspecified in the bylaws of the association shall, not less than 10 days beforethe date of a meeting of the executive board, cause notice of the meeting to begiven to the units owners. Such notice must be:

(a) Sent prepaid by United States mail to the mailingaddress of each unit within the common-interest community or to any othermailing address designated in writing by the units owner;

(b) If the association offers to send notice byelectronic mail, sent by electronic mail at the request of the units owner toan electronic mail address designated in writing by the units owner; or

3. In an emergency, the secretary or other officerspecified in the bylaws of the association shall, if practicable, cause noticeof the meeting to be sent prepaid by United States mail to the mailing addressof each unit within the common-interest community. If delivery of the notice inthis manner is impracticable, the notice must be hand-delivered to each unitwithin the common-interest community or posted in a prominent place or placeswithin the common elements of the association.

4. The notice of a meeting of the executive board muststate the time and place of the meeting and include a copy of the agenda forthe meeting or the date on which and the locations where copies of the agendamay be conveniently obtained by the units owners. The notice must includenotification of the right of a units owner to:

(b) Speak to the association or executive board, unlessthe executive board is meeting in executive session.

5. The agenda of the meeting of the executive boardmust comply with the provisions of subsection 4 of NRS 116.3108. The period required to bedevoted to comments by the units owners and discussion of those comments mustbe scheduled for the beginning of each meeting. In an emergency, the executiveboard may take action on an item which is not listed on the agenda as an itemon which action may be taken.

6. At least once every 90 days, unless the declarationor bylaws of the association impose more stringent standards, the executiveboard shall review, at a minimum, the following financial information at one ofits meetings:

(a) A current year-to-date financial statement of theassociation;

(b) A current year-to-date schedule of revenues andexpenses for the operating account and the reserve account, compared to thebudget for those accounts;

(d) A current reconciliation of the reserve account ofthe association;

(e) The latest account statements prepared by thefinancial institutions in which the accounts of the association are maintained;and

(f) The current status of any civil action or claimsubmitted to arbitration or mediation in which the association is a party.

7. The secretary or other officer specified in thebylaws shall cause minutes to be recorded or otherwise taken at each meeting ofthe executive board. Not more than 30 days after each such meeting, thesecretary or other officer specified in the bylaws shall cause the minutes or asummary of the minutes of the meetings to be made available to the unitsowners. A copy of the minutes or a summary of the minutes must be provided toany units owner upon request and, if required by the executive board, uponpayment to the association of the cost of providing the copy to the unitsowner.

8. Except as otherwise provided in subsection 9 and NRS 116.31085, the minutes of eachmeeting of the executive board must include:

(a) The date, time and place of the meeting;

(b) Those members of the executive board who werepresent and those members who were absent at the meeting;

(d) A record of each members vote on any matterdecided by vote at the meeting; and

(e) The substance of remarks made by any units ownerwho addresses the executive board at the meeting if he requests that theminutes reflect his remarks or, if he has prepared written remarks, a copy ofhis prepared remarks if he submits a copy for inclusion.

9. The executive board may establish reasonablelimitations on materials, remarks or other information to be included in theminutes of its meetings.

10. The association shall maintain the minutes of eachmeeting of the executive board until the common-interest community isterminated.

11. A units owner may record on audiotape or anyother means of sound reproduction a meeting of the executive board, unless theexecutive board is meeting in executive session, if the units owner, beforerecording the meeting, provides notice of his intent to record the meeting tothe members of the executive board and the other units owners who are inattendance at the meeting.

12. As used in this section, emergency means anyoccurrence or combination of occurrences that:

(a) Could not have been reasonably foreseen;

(b) Affects the health, welfare and safety of theunits owners or residents of the common-interest community;

(d) Makes it impracticable to comply with theprovisions of subsection 2 or 5.

(Added to NRS by 1999, 2995; A 2001, 472; 2003, 2234; 2005, 2600)

1. Except as otherwise provided in this section, aunits owner may attend any meeting of the units owners or of the executiveboard and speak at any such meeting. The executive board may establishreasonable limitations on the time a units owner may speak at such a meeting.

2. An executive board may not meet in executivesession to enter into, renew, modify, terminate or take any other actionregarding a contract, unless it is a contract between the association and anattorney.

3. An executive board may meet in executive sessiononly to:

(a) Consult with the attorney for the association onmatters relating to proposed or pending litigation if the contents of thediscussion would otherwise be governed by the privilege set forth in NRS 49.035 to 49.115, inclusive, or to enter into, renew,modify, terminate or take any other action regarding a contract between theassociation and the attorney.

(b) Discuss thecharacter, alleged misconduct, professional competence, or physical or mentalhealth of a community manager or an employee of the association.

(c) Except asotherwise provided in subsection 4, discuss a violation of the governingdocuments, including, without limitation, the failure to pay an assessment.

(d) Discuss thealleged failure of a units owner to adhere to a schedule required pursuant to NRS 116.310305 if the alleged failuremay subject the units owner to a construction penalty.

4. An executive board shall meet in executive sessionto hold a hearing on an alleged violation of the governing documents unless theperson who may be sanctioned for the alleged violation requests in writing thatan open hearing be conducted by the executive board. If the person who may besanctioned for the alleged violation requests in writing that an open hearingbe conducted, the person:

(a) Is entitled to attend all portions of the hearingrelated to the alleged violation, including, without limitation, thepresentation of evidence and the testimony of witnesses; and

(b) Is not entitled to attend the deliberations of theexecutive board.

5. Except as otherwise provided in this subsection,any matter discussed by the executive board when it meets in executive sessionmust be generally noted in the minutes of the meeting of the executive board.The executive board shall maintain minutes of any decision made pursuant tosubsection 4 concerning an alleged violation and, upon request, provide a copyof the decision to the person who was subject to being sanctioned at thehearing or to his designated representative.

6. Except as otherwise provided in subsection 4, aunits owner is not entitled to attend or speak at a meeting of the executiveboard held in executive session.

(Added to NRS by 1997, 3111; A 1999, 3005; 2003, 2236, 2271; 2005, 2602)

NRS 116.31087 Rightof units owners to have certain complaints placed on agenda of meeting ofexecutive board.

1. If an executive board receives a written complaintfrom a units owner alleging that the executive board has violated anyprovision of this chapter or any provision of the governing documents of theassociation, the executive board shall, if action is required by the executiveboard, place the subject of the complaint on the agenda of the next regularlyscheduled meeting of the executive board.

2. Not later than 10 business days after the date thatthe association receives such a complaint, the executive board or an authorizedrepresentative of the association shall acknowledge the receipt of thecomplaint and notify the units owner that, if action is required by theexecutive board, the subject of the complaint will be placed on the agenda ofthe next regularly scheduled meeting of the executive board.

(Added to NRS by 2003, 2218)

1. The association shall provide written notice toeach units owner of a meeting at which the commencement of a civil action isto be considered at least 21 calendar days before the date of the meeting.Except as otherwise provided in this subsection, the association may commence acivil action only upon a vote or written agreement of the owners of units towhich at least a majority of the votes of the members of the association areallocated. The provisions of this subsection do not apply to a civil actionthat is commenced:

(a) To enforce the payment of an assessment;

(b) To enforce the declaration, bylaws or rules of theassociation;

(d) To proceed with a counterclaim; or

(e) To protect the health, safety and welfare of themembers of the association. If a civil action is commenced pursuant to thisparagraph without the required vote or agreement, the action must be ratifiedwithin 90 days after the commencement of the action by a vote or writtenagreement of the owners of the units to which at least a majority of votes ofthe members of the association are allocated. If the association, after makinga good faith effort, cannot obtain the required vote or agreement to commenceor ratify such a civil action, the association may thereafter seek to dismissthe action without prejudice for that reason only if a vote of writtenagreement of the owners of the units to which at least a majority of votes ofthe members of the association are allocated was obtained at the time theapproval to commence or ratify the action was sought.

2. At least 10 days before an association commences orseeks to ratify the commencement of a civil action, the association shallprovide a written statement to all the units owners that includes:

(a) A reasonable estimate of the costs of the civilaction, including reasonable attorneys fees;

(b) An explanation of the potential benefits of thecivil action and the potential adverse consequences if the association does notcommence the action or if the outcome of the action is not favorable to theassociation; and

3. No person other than a units owner may request thedismissal of a civil action commenced by the association on the ground that theassociation failed to comply with any provision of this section.

4. If any civil action in which the association is aparty is settled, the executive board shall disclose the terms and conditionsof the settlement at the next regularly scheduled meeting of the executiveboard after the settlement has been reached. The executive board may notapprove a settlement which contains any terms and conditions that would preventthe executive board from complying with the provisions of this subsection.

(Added to NRS by 2005, 2585)

NRS 116.3109 Quorum.

1. Except as otherwise provided in this section and NRS 116.31034, and except when thegoverning documents provide otherwise, a quorum is present throughout anymeeting of the association if the number of members of the association who arepresent in person or by proxy at the beginning of the meeting equals or exceeds20 percent of the total number of voting members of the association.

2. If the governing documents of an associationcontain a quorum requirement for a meeting of the association that is greaterthan the 20 percent required by subsection 1 and, after proper notice has beengiven for a meeting, the members of the association who are present in personor by proxy at the meeting are unable to hold the meeting because a quorum isnot present at the beginning of the meeting, the members who are present inperson at the meeting may adjourn the meeting to a time that is not less than48 hours or more than 30 days from the date of the meeting. At the subsequentmeeting:

(a) A quorum shall be deemed to be present if thenumber of members of the association who are present in person or by proxy atthe beginning of the subsequent meeting equals or exceeds 20 percent of thetotal number of voting members of the association; and

(b) If such a quorum is deemed to be present but theactual number of members who are present in person or by proxy at the beginningof the subsequent meeting is less than the number of members who are requiredfor a quorum under the governing documents, the members who are present inperson or by proxy at the subsequent meeting may take action only on thosematters that were included as items on the agenda of the original meeting.

Theprovisions of this subsection do not change the actual number of votes that arerequired under the governing documents for taking action on any particular matter.

3. Unless the governing documents specify a largerpercentage, a quorum is deemed present throughout any meeting of the executiveboard if persons entitled to cast 50 percent of the votes on that board arepresent at the beginning of the meeting.

(Added to NRS by 1991, 563; A 1999, 3006; 2003, 2237)

NRS 116.311 Votingby units owners; use of proxies; voting by lessees of leased units;association prohibited from voting as owner of unit.

1. If only one of several owners of a unit is presentat a meeting of the association, that owner is entitled to cast all the votesallocated to that unit. If more than one of the owners are present, the votesallocated to that unit may be cast only in accordance with the agreement of amajority in interest of the owners, unless the declaration expressly providesotherwise. There is majority agreement if any one of the owners cast the votesallocated to that unit without protest made promptly to the person presidingover the meeting by any of the other owners of the unit.

2. Except as otherwise provided in this section, votesallocated to a unit may be cast pursuant to a proxy executed by a units owner.A units owner may give a proxy only to a member of his immediate family, atenant of the units owner who resides in the common-interest community,another units owner who resides in the common-interest community, or adelegate or representative when authorized pursuant to NRS 116.31105. If a unit is owned by morethan one person, each owner of the unit may vote or register protest to thecasting of votes by the other owners of the unit through an executed proxy. Aunits owner may revoke a proxy given pursuant to this section only by actualnotice of revocation to the person presiding over a meeting of the association.

3. Before a vote may be cast pursuant to a proxy:

(a) The proxy must be dated.

(b) The proxy must not purport to be revocable withoutnotice.

(d) The proxy must designate each specific item on theagenda of the meeting for which the units owner has executed the proxy, exceptthat the units owner may execute the proxy without designating any specificitems on the agenda of the meeting if the proxy is to be used solely fordetermining whether a quorum is present for the meeting. If the proxydesignates one or more specific items on the agenda of the meeting for whichthe units owner has executed the proxy, the proxy must indicate, for eachspecific item designated in the proxy, whether the holder of the proxy mustcast a vote in the affirmative or the negative on behalf of the units owner.If the proxy does not indicate whether the holder of the proxy must cast a votein the affirmative or the negative for a particular item on the agenda of themeeting, the proxy must be treated, with regard to that particular item, as ifthe units owner were present but not voting on that particular item.

(e) The holder of the proxy must disclose at thebeginning of the meeting for which the proxy is executed the number of proxiespursuant to which the holder will be casting votes.

4. A proxy terminates immediately after the conclusionof the meeting for which it is executed.

5. A vote may not be cast pursuant to a proxy for theelection or removal of a member of the executive board of an association unlessthe proxy is exercised through a delegate or representative authorized pursuantto NRS 116.31105.

6. The holder of a proxy may not cast a vote on behalfof the units owner who executed the proxy in a manner that is contrary to theproxy.

7. A proxy is void if the proxy or the holder of theproxy violates any provision of subsections 1 to 6, inclusive.

8. If the declaration requires that votes on specifiedmatters affecting the common-interest community must be cast by the lessees ofleased units rather than the units owners who have leased the units:

(a) The provisions of subsections 1 to 7, inclusive,apply to the lessees as if they were the units owners;

(b) The units owners who have leased their units tothe lessees may not cast votes on those specified matters;

(c) The lessees are entitled to notice of meetings,access to records and other rights respecting those matters as if they were theunits owners; and

(d) The units owners must be given notice, in themanner provided in NRS 116.3108, of allmeetings at which the lessees are entitled to vote.

9. If any votes are allocated to a unit that is ownedby the association, those votes may not be cast, by proxy or otherwise, for anypurpose.

(Added to NRS by 1991, 563; A 1999, 3006; 2003, 2238)

NRS 116.31105 Votingby delegates or representatives; procedure for electing delegates orrepresentatives.

1. If the declaration so provides, in acommon-interest community that consists of at least 1,000 units, the votingrights of the units owners in the association for that common-interestcommunity may be exercised by delegates or representatives.

2. In addition to a common-interest communityidentified in subsection 1, if the declaration so provides, in acommon-interest community created before October 1, 1999, the voting rights ofthe units owners in the association for that common-interest community may beexercised by delegates or representatives.

3. For the purposes of subsection 1, each unit that adeclarant has reserved the right to create pursuant to NRS 116.2105 and for which developmentalrights exist must be counted in determining the number of units in acommon-interest community.

4. Notwithstanding any provision in the declaration,the election of any delegate or representative must be conducted by secretwritten ballot.

5. When an election of a delegate or representative isconducted by secret written ballot:

(a) The secretary or other officer of the associationspecified in the bylaws of the association shall cause a secret written ballotand a return envelope to be sent, prepaid by United States mail, to the mailingaddress of each unit within the common-interest community or to any othermailing address designated in writing by the units owner.

(b) Each units owner must be provided with at least 15days after the date the secret written ballot is mailed to the units owner toreturn the secret written ballot to the association.

(c) Only the secret written ballots that are returnedto the association in the manner prescribed on the ballot may be counted todetermine the outcome of the election.

(d) The secret written ballots must be opened andcounted at a meeting called for the purpose of electing delegates orrepresentatives. A quorum is not required to be present when the secret writtenballots are opened and counted at the meeting.

(e) A candidate for delegate or representative may notpossess, be given access to or participate in the opening or counting of thesecret written ballots that are returned to the association in the mannerprescribed on the ballot before those secret written ballots have been openedand counted at a meeting called for that purpose.

(Added to NRS by 2003, 2220)

Liabilities, Insurance and Fiscal Affairs

NRS 116.3111 Tortand contract liability. Neither theassociation nor any units owner except the declarant is liable for thatdeclarants torts in connection with any part of the common-interest communitywhich that declarant has the responsibility to maintain. Otherwise, an actionalleging a wrong done by the association must be brought against theassociation and not against any units owner. If the wrong occurred during anyperiod of declarants control and the association gives the declarantreasonable notice of and an opportunity to defend against the action, the declarantwho then controlled the association is liable to the association or to anyunits owner for all tort losses not covered by insurance suffered by theassociation or that units owner, and all costs that the association would nothave incurred but for a breach of contract or other wrongful act or omission.Whenever the declarant is liable to the association under this section, thedeclarant is also liable for all expenses of litigation, including reasonableattorneys fees, incurred by the association. Any statute of limitationaffecting the associations right of action under this section is tolled untilthe period of declarants control terminates. A units owner is not precludedfrom maintaining an action contemplated by this section because he is a unitsowner or a member or officer of the association.

(Added to NRS by 1991, 563)

NRS 116.3112 Conveyanceor encumbrance of common elements.

1. In a condominium or planned community, portions ofthe common elements may be conveyed or subjected to a security interest by theassociation if persons entitled to cast at least a majority of the votes in theassociation, including a majority of the votes allocated to units not owned bya declarant, or any larger percentage the declaration specifies, agree to thataction; but all owners of units to which any limited common element isallocated must agree in order to convey that limited common element or subjectit to a security interest. The declaration may specify a smaller percentageonly if all of the units are restricted exclusively to nonresidential uses.Proceeds of the sale are an asset of the association.

2. Part of a cooperative may be conveyed and all orpart of a cooperative may be subjected to a security interest by theassociation if persons entitled to cast at least a majority of the votes in theassociation, including a majority of the votes allocated to units not owned bya declarant, or any larger percentage the declaration specifies, agree to thataction; but, if fewer than all of the units or limited common elements are tobe conveyed or subjected to a security interest, then all units owners ofthose units, or the units to which those limited common elements are allocated,must agree in order to convey those units or limited common elements or subjectthem to a security interest. The declaration may specify a smaller percentageonly if all of the units are restricted exclusively to nonresidential uses.Proceeds of the sale are an asset of the association. Any purported conveyanceor other voluntary transfer of an entire cooperative, unless made pursuant to NRS 116.2118, is void.

3. An agreement to convey common elements in acondominium or planned community, or to subject them to a security interest, orin a cooperative, an agreement to convey any part of a cooperative or subjectit to a security interest, must be evidenced by the execution of an agreement,or ratifications thereof, in the same manner as a deed, by the requisite numberof units owners. The agreement must specify a date after which the agreementwill be void unless recorded before that date. The agreement and allratifications thereof must be recorded in every county in which a portion ofthe common-interest community is situated, and is effective only uponrecordation.

4. The association, on behalf of the units owners,may contract to convey an interest in a common-interest community pursuant tosubsection 1, but the contract is not enforceable against the association untilapproved pursuant to subsections 1, 2 and 3. Thereafter, the association hasall powers necessary and appropriate to effect the conveyance or encumbrance,including the power to execute deeds or other instruments.

5. Unless made pursuant to this section, any purportedconveyance, encumbrance, judicial sale or other voluntary transfer of commonelements or of any other part of a cooperative is void.

6. A conveyance or encumbrance of common elements orof a cooperative pursuant to this section does not deprive any unit of itsrights of access and support.

7. Unless the declaration otherwise provides, aconveyance or encumbrance of common elements pursuant to this section does notaffect the priority or validity of preexisting encumbrances.

8. In a cooperative, the association may acquire,hold, encumber or convey a proprietary lease without complying with thissection.

(Added to NRS by 1991, 564; A 1993, 2369)

NRS 116.31123 Transientcommercial use of units within certain planned communities. [Replacedin revision by NRS 116.340.]

NRS 116.3113 Insurance:General requirements.

1. Commencing not later than the time of the firstconveyance of a unit to a person other than a declarant, the association shallmaintain, to the extent reasonably available, both of the following:

(a) Property insurance on the common elements and, in aplanned community, also on property that must become common elements, insuringagainst all risks of direct physical loss commonly insured against or, in thecase of a converted building, against fire and extended coverage perils. Thetotal amount of insurance after application of any deductibles must be not lessthan 80 percent of the actual cash value of the insured property at the timethe insurance is purchased and at each renewal date, exclusive of land,excavations, foundations and other items normally excluded from propertypolicies.

(b) Liability insurance, including insurance formedical payments, in an amount determined by the executive board but not lessthan any amount specified in the declaration, covering all occurrences commonlyinsured against for death, bodily injury, and property damage arising out of orin connection with the use, ownership, or maintenance of the common elementsand, in cooperatives, also of all units.

2. In the case of a building that is part of acooperative or that contains units having horizontal boundaries described inthe declaration, the insurance maintained under paragraph (a) of subsection 1,to the extent reasonably available, must include the units, but need notinclude improvements and betterments installed by units owners.

3. If the insurance described in subsections 1 and 2is not reasonably available, the association promptly shall cause notice ofthat fact to be hand-delivered or sent prepaid by United States mail to allunits owners. The declaration may require the association to carry any otherinsurance, and the association in any event may carry any other insurance itconsiders appropriate to protect the association or the units owners.

4. An insurance policy issued to the association doesnot prevent a units owner from obtaining insurance for his own benefit.

(Added to NRS by 1991, 565)

NRS 116.31133 Insurance:Policies; use of proceeds; certificates or memoranda of insurance.

1. Insurance policies carried pursuant to NRS 116.3113 must provide to the extentreasonably available that:

(a) Each units owner is an insured person under thepolicy with respect to liability arising out of his interest in the commonelements or membership in the association;

(b) The insurer waives its right to subrogation underthe policy against any units owner or member of his household;

(c) No act or omission by any units owner, unlessacting within the scope of his authority on behalf of the association, willvoid the policy or be a condition to recovery under the policy; and

(d) If, at the time of a loss under the policy, thereis other insurance in the name of a units owner covering the same risk coveredby the policy, the associations policy provides primary insurance.

2. Any loss covered by the property policy undersubsections 1 and 2 of NRS 116.3113must be adjusted with the association, but the proceeds for that loss arepayable to any trustee designated for that purpose, or otherwise to theassociation, and not to any holder of a security interest. The trustee or theassociation shall hold any proceeds in trust for the association, units ownersand lienholders as their interests may appear. Subject to the provisions of NRS 116.31135, the proceeds must bedisbursed first for the repair or restoration of the damaged property, and theassociation, units owners, and lienholders are not entitled to receive paymentof any portion of the proceeds unless there is a surplus of proceeds after theproperty has been completely repaired or restored, or the common-interestcommunity is terminated.

3. An insurer that has issued an insurance policyunder this section shall issue certificates or memoranda of insurance to theassociation and, upon written request, to any units owner or holder of asecurity interest. The insurer issuing the policy may not cancel or refuse torenew it until 30 days after notice of the proposed cancellation or nonrenewalhas been mailed to the association and to any person to whom a certificate ormemorandum of insurance has been issued at their respective last knownaddresses.

(Added to NRS by 1991, 565; A 2003, 1210)

NRS 116.31135 Insurance:Repair or replacement of damaged or destroyed portion of community.

1. Any portion of the common-interest community forwhich insurance is required under NRS 116.3113which is damaged or destroyed must be repaired or replaced promptly by theassociation unless:

(a) The common-interest community is terminated, inwhich case NRS 116.2118, 116.21183 and 116.21185 apply;

(b) Repair or replacement would be illegal under anystate or local statute or ordinance governing health or safety; or

(c) Eighty percent of the units owners, includingevery owner of a unit or assigned limited common element that will not berebuilt, vote not to rebuild.

The cost ofrepair or replacement in excess of insurance proceeds and reserves is a commonexpense.

2. If the entire common-interest community is notrepaired or replaced, the proceeds attributable to the damaged common elements,must be used to restore the damaged area to a condition compatible with theremainder of the common-interest community, and except to the extent that otherpersons will be distributees (subparagraph 2 of paragraph (l) of subsection 1of NRS 116.2105):

(a) The proceeds attributable to units and limitedcommon elements that are not rebuilt must be distributed to the owners of thoseunits and the owners of the units to which those limited common elements wereallocated, or to lienholders, as their interests may appear; and

(b) The remainder of the proceeds must be distributedto all the units owners or lienholders, as their interests may appear, asfollows:

(1) In a condominium, in proportion to theinterests of all the units in the common elements; and

(2) In a cooperative or planned community, inproportion to the liabilities of all the units for common expenses.

3. If the units owners vote not to rebuild any unit,that units allocated interests are automatically reallocated upon the vote asif the unit had been condemned under subsection 1 of NRS 116.1107, and the association promptlyshall prepare, execute and record an amendment to the declaration reflectingthe reallocations.

(Added to NRS by 1991, 566; A 1993, 2370)

NRS 116.31138 Insurance:Variance or waiver of provisions in community restricted to nonresidential use. The provisions of NRS116.3113, 116.31133 and 116.31135 may be varied or waived in thecase of a common-interest community all of whose units are restricted tononresidential use.

(Added to NRS by 1991, 567)

NRS 116.3114 Surplusfunds. Unless otherwise provided in thedeclaration, any surplus funds of the association remaining after payment of orprovision for common expenses and any prepayment of reserves must be paid tothe units owners in proportion to their liabilities for common expenses orcredited to them to reduce their future assessments for common expenses.

(Added to NRS by 1991, 567)

NRS 116.31142 Preparationand presentation of financial statements.

1. The Commission shall adopt regulations prescribingthe requirements for the preparation and presentation of financial statementsof an association pursuant to this chapter.

2. The regulations adopted by the Commission mustinclude, without limitation:

(a) The qualifications necessary for a person toprepare and present financial statements of an association; and

(b) The standards and format to be followed inpreparing and presenting financial statements of an association.

(Added to NRS by 2005, 2584)

NRS 116.31144 Auditand review of financial statements.

1. Except as otherwise provided in subsection 2, theexecutive board shall:

(a) If the annual budget of the association is lessthan $75,000, cause the financial statement of the association to be audited byan independent certified public accountant at least once every 4 fiscal years.

(b) If the annual budget of the association is $75,000or more but less than $150,000, cause the financial statement of theassociation to be:

(1) Audited by an independent certified publicaccountant at least once every 4 fiscal years; and

(2) Reviewed by an independent certified publicaccountant every fiscal year for which an audit is not conducted.

(c) If the annual budget of the association is $150,000or more, cause the financial statement of the association to be audited by anindependent certified public accountant every fiscal year.

2. For any fiscal year for which an audit of thefinancial statement of the association will not be conducted pursuant tosubsection 1, the executive board shall cause the financial statement for thatfiscal year to be audited by an independent certified public accountant if,within 180 days before the end of the fiscal year, 15 percent of the totalnumber of voting members of the association submit a written request for suchan audit.

3. The Commission shall adopt regulations prescribingthe requirements for the auditing or reviewing of financial statements of an associationpursuant to this section. Such regulations must include, without limitation:

(a) The qualifications necessary for a person to auditor review financial statements of an association; and

(b) The standards and format to be followed in auditingor reviewing financial statements of an association.

(Added to NRS by 2005, 2584)

NRS 116.31145 Prohibitionagainst application of assessment, fee or other charge paid by units ownertoward fine imposed against units owner. [Replaced in revision by NRS 116.310315.]

1. Until the association makes an assessment forcommon expenses, the declarant shall pay all common expenses. After anassessment has been made by the association, assessments must be made at leastannually, based on a budget adopted at least annually by the association inaccordance with the requirements set forth in NRS 116.31151. Unless the declarationimposes more stringent standards, the budget must include a budget for thedaily operation of the association and a budget for the reserves required byparagraph (b) of subsection 2.

2. Except for assessments under subsections 4 to 7,inclusive:

(a) All common expenses, including the reserves, mustbe assessed against all the units in accordance with the allocations set forthin the declaration pursuant to subsections 1 and 2 of NRS 116.2107.

(b) The association shall establish adequate reserves,funded on a reasonable basis, for the repair, replacement and restoration ofthe major components of the common elements. The reserves may be used only forthose purposes, including, without limitation, repairing, replacing andrestoring roofs, roads and sidewalks, and must not be used for dailymaintenance. The association may comply with the provisions of this paragraphthrough a funding plan that is designed to allocate the costs for the repair,replacement and restoration of the major components of the common elements overa period of years if the funding plan is designed in an actuarially soundmanner which will ensure that sufficient money is available when the repair,replacement and restoration of the major components of the common elements arenecessary.

3. Any past due assessment for common expenses orinstallment thereof bears interest at the rate established by the associationnot exceeding 18 percent per year.

4. To the extent required by the declaration:

(a) Any common expense associated with the maintenance,repair, restoration or replacement of a limited common element must be assessedagainst the units to which that limited common element is assigned, equally, orin any other proportion the declaration provides;

(b) Any common expense or portion thereof benefitingfewer than all of the units must be assessed exclusively against the units benefited;and

(c) The costs of insurance must be assessed inproportion to risk and the costs of utilities must be assessed in proportion tousage.

5. Assessments to pay a judgment against theassociation may be made only against the units in the common-interest communityat the time the judgment was entered, in proportion to their liabilities forcommon expenses.

6. If any common expense is caused by the misconductof any units owner, the association may assess that expense exclusivelyagainst his unit.

7. The association of a common-interest communitycreated before January 1, 1992, is not required to make an assessment against avacant lot located within the community that is owned by the declarant.

8. If liabilities for common expenses are reallocated,assessments for common expenses and any installment thereof not yet due must berecalculated in accordance with the reallocated liabilities.

9. The association shall provide written notice toeach units owner of a meeting at which an assessment for a capital improvementis to be considered or action is to be taken on such an assessment at least 21calendar days before the date of the meeting.

(Added to NRS by 1991, 567; A 1993, 2371; 1995, 2230;1997, 3119, 3120; 1999,3008; 2001, 2491;2005, 2603)

NRS 116.31151 Annualdistribution to units owners of operating and reserve budgets or summaries ofsuch budgets; ratification of budget.

1. Except as otherwise provided in subsection 2 andunless the declaration of a common-interest community imposes more stringentstandards, the executive board shall, not less than 30 days or more than 60days before the beginning of the fiscal year of the association, prepare anddistribute to each units owner a copy of:

(a) The budget for the daily operation of the association.The budget must include, without limitation, the estimated annual revenue andexpenditures of the association and any contributions to be made to the reserveaccount of the association.

(b) The budget to provide adequate funding for thereserves required by paragraph (b) of subsection 2 of NRS 116.3115. The budget must include,without limitation:

(1) The current estimated replacement cost,estimated remaining life and estimated useful life of each major component ofthe common elements;

(2) As of the end of the fiscal year for whichthe budget is prepared, the current estimate of the amount of cash reservesthat are necessary, and the current amount of accumulated cash reserves thatare set aside, to repair, replace or restore the major components of the commonelements;

(3) A statement as to whether the executiveboard has determined or anticipates that the levy of one or more specialassessments will be necessary to repair, replace or restore any major componentof the common elements or to provide adequate funding for the reservesdesignated for that purpose; and

(4) A general statement describing theprocedures used for the estimation and accumulation of cash reserves pursuantto subparagraph (2), including, without limitation, the qualifications of theperson responsible for the preparation of the study of the reserves required byNRS 116.31152.

2. In lieu of distributing copies of the budgets ofthe association required by subsection 1, the executive board may distribute toeach units owner a summary of those budgets, accompanied by a written noticethat:

(a) The budgets are available for review at the businessoffice of the association or some other suitable location within the countywhere the common-interest community is situated or, if it is situated in morethan one county, within one of those counties; and

(b) Copies of the budgets will be provided uponrequest.

3. Within 60 days after adoption of any proposedbudget for the common-interest community, the executive board shall provide asummary of the proposed budget to each units owner and shall set a date for ameeting of the units owners to consider ratification of the proposed budgetnot less than 14 days or more than 30 days after the mailing of the summaries.Unless at that meeting a majority of all units owners, or any larger votespecified in the declaration, reject the proposed budget, the proposed budgetis ratified, whether or not a quorum is present. If the proposed budget isrejected, the periodic budget last ratified by the units owners must becontinued until such time as the units owners ratify a subsequent budgetproposed by the executive board.

(Added to NRS by 1999, 2993; A 2003, 2241; 2005, 2605)

1. The executive board shall:

(a) At least once every 5 years, cause to be conducteda study of the reserves required to repair, replace and restore the majorcomponents of the common elements;

(b) At least annually, review the results of that studyto determine whether those reserves are sufficient; and

(c) At least annually, make any adjustments to theassociations funding plan which the executive board deems necessary to provideadequate funding for the required reserves.

2. The study of the reserves required by subsection 1must be conducted by a person who holds a permit issued pursuant to chapter 116A of NRS.

3. The study of the reserves must include, withoutlimitation:

(a) A summary of an inspection of the major componentsof the common elements that the association is obligated to repair, replace orrestore;

(b) An identification of the major components of thecommon elements that the association is obligated to repair, replace or restorewhich have a remaining useful life of less than 30 years;

(c) An estimate of the remaining useful life of eachmajor component of the common elements identified pursuant to paragraph (b);

(d) An estimate of the cost of repair, replacement orrestoration of each major component of the common elements identified pursuantto paragraph (b) during and at the end of its useful life; and

(e) An estimate of the total annual assessment that maybe necessary to cover the cost of repairing, replacement or restoration of themajor components of the common elements identified pursuant to paragraph (b),after subtracting the reserves of the association as of the date of the study,and an estimate of the funding plan that may be necessary to provide adequatefunding for the required reserves.

4. A summary of the study of the reserves required bysubsection 1 must be submitted to the Division not later than 45 days after thedate that the executive board adopts the results of the study.

5. If a common-interest community was developed aspart of a planned unit development pursuant to chapter278A of NRS and is subject to an agreement with a city or county to receivecredit against the amount of the residential construction tax that is imposedpursuant to NRS 278.4983 and 278.4985, the association that is organizedfor the common-interest community may use the money from that credit for therepair, replacement or restoration of park facilities and related improvementsif:

(a) The park facilities and related improvements areidentified as major components of the common elements of the association; and

(b) The association is obligated to repair, replace orrestore the park facilities and related improvements in accordance with thestudy of the reserves required by subsection 1.

(Added to NRS by 1999, 2994; A 2003, 2241; 2005, 2606)

NRS 116.31153 Signaturesrequired for withdrawals from reserve account of association. Money in the reserve account of an association required byparagraph (b) of subsection 2 of NRS116.3115 may not be withdrawn without the signatures of at least twomembers of the executive board or the signatures of at least one member of theexecutive board and one officer of the association who is not a member of theexecutive board.

(Added to NRS by 1999, 2995)

1. Except as otherwise provided in subsection 2, anassociation shall:

(a) If the association is required to pay the feeimposed by NRS 78.150, 82.193, 86.263,87.531 or 88.591, pay to the Administrator a feeestablished by regulation of the Administrator for every unit in theassociation used for residential use.

(b) If the association is organized as a trust orpartnership, or as any other authorized business entity, pay to theAdministrator a fee established by regulation of the Administrator for eachunit in the association.

2. If an association is subject to the governingdocuments of a master association, the master association shall pay the feesrequired pursuant to this section for each unit in the association that issubject to the governing documents of the master association, unless thegoverning documents of the master association provide otherwise. The provisionsof this subsection do not relieve any association that is subject to the governingdocuments of a master association from its ultimate responsibility to pay thefees required pursuant to this section to the Administrator if they are notpaid by the master association.

3. The fees required to be paid pursuant to thissection must be:

(a) Paid at such times as are established by theDivision.

(b) Deposited with the State Treasurer for credit tothe Account for Common-Interest Communities created by NRS 116.630.

(c) Established on the basis of the actual costs ofadministering the Office of the Ombudsman and the Commission and not on a basiswhich includes any subsidy beyond those actual costs. In no event may the feesrequired to be paid pursuant to this section exceed $3 per unit.

4. The Division shall impose an administrative penaltyagainst an association or master association that violates the provisions ofthis section by failing to pay the fees owed by the association or masterassociation within the times established by the Division. The administrativepenalty that is imposed for each violation must equal 10 percent of the amountof the fees owed by the association or master association or $500, whicheveramount is less. The amount of the unpaid fees owed by the association or masterassociation bears interest at the rate set forth in NRS 99.040 from the date the fees are dueuntil the date the fees are paid in full.

5. A units owner may not be required to pay anyportion of the fees or any administrative penalties or interest required to bepaid pursuant to this section to both an association and a master association.

6. An association that is subject to the governingdocuments of a master association may not be required to pay any portion of thefees or any administrative penalties or interest required to be paid pursuantto this section to the extent they have already been paid by the masterassociation.

7. A master association may not be required to pay anyportion of the fees or any administrative penalties or interest required to bepaid pursuant to this section to the extent they have already been paid by anassociation that is subject to the governing documents of the master association.

8. Upon the payment of the fees and any administrativepenalties and interest required by this section, the Administrator shallprovide to the association or master association evidence that it paid the feesand the administrative penalties and interest in compliance with this section.

(Added to NRS by 1997, 3112; A 1999, 8, 639, 3010, 3011; 2003, 2242; 2005, 2607)

NRS 116.31158 Registrationof associations with Ombudsman; contents of form for registration.

1. Each association shall, at the time it pays the feerequired by NRS 116.31155, registerwith the Ombudsman on a form prescribed by the Ombudsman.

2. The form for registration must include, withoutlimitation, the information required to be maintained pursuant to paragraph (e)of subsection 4 of NRS 116.625.

(Added to NRS by 1999, 2996; A 2003, 2243)

Liens

NRS 116.3116 Liensagainst units for assessments.

1. The association has a lien on a unit for anyconstruction penalty that is imposed against the units owner pursuant to NRS 116.310305, any assessment leviedagainst that unit or any fines imposed against the units owner from the timethe construction penalty, assessment or fine becomes due. Unless thedeclaration otherwise provides, any penalties, fees, charges, late charges,fines and interest charged pursuant to paragraphs (j) to (n), inclusive, ofsubsection 1 of NRS 116.3102 are enforceableas assessments under this section. If an assessment is payable in installments,the full amount of the assessment is a lien from the time the first installmentthereof becomes due.

2. A lien under this section is prior to all otherliens and encumbrances on a unit except:

(a) Liens and encumbrances recorded before therecordation of the declaration and, in a cooperative, liens and encumbranceswhich the association creates, assumes or takes subject to;

(b) A first security interest on the unit recordedbefore the date on which the assessment sought to be enforced became delinquentor, in a cooperative, the first security interest encumbering only the unitsowners interest and perfected before the date on which the assessment soughtto be enforced became delinquent; and

The lien isalso prior to all security interests described in paragraph (b) to the extentof the assessments for common expenses based on the periodic budget adopted bythe association pursuant to NRS 116.3115which would have become due in the absence of acceleration during the 6 monthsimmediately preceding institution of an action to enforce the lien. Thissubsection does not affect the priority of mechanics or materialmens liens,or the priority of liens for other assessments made by the association.

3. Unless the declaration otherwise provides, if twoor more associations have liens for assessments created at any time on the sameproperty, those liens have equal priority.

4. Recording of the declaration constitutes recordnotice and perfection of the lien. No further recordation of any claim of lienfor assessment under this section is required.

5. A lien for unpaid assessments is extinguishedunless proceedings to enforce the lien are instituted within 3 years after thefull amount of the assessments becomes due.

6. This section does not prohibit actions to recoversums for which subsection 1 creates a lien or prohibit an association fromtaking a deed in lieu of foreclosure.

7. A judgment or decree in any action brought underthis section must include costs and reasonable attorneys fees for theprevailing party.

8. The association, upon written request, shallfurnish to a units owner a statement setting forth the amount of unpaidassessments against the unit. If the interest of the units owner is realestate or if a lien for the unpaid assessments may be foreclosed under NRS 116.31162 to 116.31168, inclusive, the statement mustbe in recordable form. The statement must be furnished within 10 business daysafter receipt of the request and is binding on the association, the executiveboard and every units owner.

9. In a cooperative, upon nonpayment of an assessmenton a unit, the units owner may be evicted in the same manner as provided bylaw in the case of an unlawful holdover by a commercial tenant, and:

(a) In a cooperative where the owners interest in aunit is real estate under NRS 116.1105,the associations lien may be foreclosed under NRS 116.31162 to 116.31168, inclusive.

(b) In a cooperative where the owners interest in aunit is personal property under NRS116.1105, the associations lien:

(1) May be foreclosed as a security interestunder NRS 104.9101 to 104.9709, inclusive; or

(2) If the declaration so provides, may beforeclosed under NRS 116.31162 to 116.31168, inclusive.

(Added to NRS by 1991, 567; A 1999, 390; 2003, 2243, 2272)

1. Except as otherwise provided in subsection 4, in acondominium, in a planned community, in a cooperative where the ownersinterest in a unit is real estate under NRS116.1105, or in a cooperative where the owners interest in a unit ispersonal property under NRS 116.1105and the declaration provides that a lien may be foreclosed under NRS 116.31162 to 116.31168, inclusive, the association mayforeclose its lien by sale after all of the following occur:

(a) The association has mailed by certified orregistered mail, return receipt requested, to the units owner or his successorin interest, at his address if known and at the address of the unit, a noticeof delinquent assessment which states the amount of the assessments and othersums which are due in accordance with subsection 1 of NRS 116.3116, a description of the unitagainst which the lien is imposed and the name of the record owner of the unit.

(b) Not less than 30 days after mailing the notice ofdelinquent assessment pursuant to paragraph (a), the association or otherperson conducting the sale has executed and caused to be recorded, with thecounty recorder of the county in which the common-interest community or anypart of it is situated, a notice of default and election to sell the unit tosatisfy the lien which must contain the same information as the notice ofdelinquent assessment and which must also comply with the following:

(1) Describe the deficiency in payment.

(2) State the name and address of the personauthorized by the association to enforce the lien by sale.

(3) Contain, in 14-point bold type, thefollowing warning:

WARNING! IF YOU FAIL TO PAYTHE AMOUNT SPECIFIED IN THIS NOTICE, YOU COULD LOSE YOUR HOME, EVEN IF THEAMOUNT IS IN DISPUTE!

(c) The units owner or his successor in interest hasfailed to pay the amount of the lien, including costs, fees and expensesincident to its enforcement, for 90 days following the recording of the noticeof default and election to sell.

2. The notice of default and election to sell must besigned by the person designated in the declaration or by the association forthat purpose or, if no one is designated, by the president of the association.

3. The period of 90 days begins on the first dayfollowing:

(a) The date on which the notice of default isrecorded; or

(b) The date on which a copy of the notice of defaultis mailed by certified or registered mail, return receipt requested, to theunits owner or his successor in interest at his address, if known, and at theaddress of the unit,

whicheverdate occurs later.

4. The association may not foreclose a lien by salebased on a fine or penalty for a violation of the governing documents of theassociation unless:

(a) The violation poses an imminent threat of causing asubstantial adverse effect on the health, safety or welfare of the unitsowners or residents of the common-interest community; or

(b) The penalty is imposed for failure to adhere to aschedule required pursuant to NRS116.310305.

(Added to NRS by 1991, 569; A 1993, 2371; 1997, 3121;1999, 3011; 2003, 2244, 2273; 2005, 2608)

NRS 116.31163 Foreclosureof liens: Mailing of notice of default and election to sell to certaininterested persons. The association or otherperson conducting the sale shall also mail, within 10 days after the notice ofdefault and election to sell is recorded, a copy of the notice by first-classmail to:

1. Each person who has requested notice pursuant to NRS 107.090 or 116.31168;

2. Any holder of a recorded security interestencumbering the units owners interest who has notified the association, 30days before the recordation of the notice of default, of the existence of thesecurity interest; and

3. A purchaser of the unit, if the units owner hasnotified the association, 30 days before the recordation of the notice, thatthe unit is the subject of a contract of sale and the association has beenrequested to furnish the certificate required by NRS 116.4109.

(Added to NRS by 1993, 2355; A 2005, 2609)

NRS 116.311635 Foreclosureof liens: Providing notice of time and place of sale; service of notice ofsale; contents of notice of sale; proof of service.

1. The association or other person conducting the saleshall also, after the expiration of the 90 days and before selling the unit:

(a) Give notice of the time and place of the sale inthe manner and for a time not less than that required by law for the sale ofreal property upon execution, except that in lieu of following the procedurefor service on a judgment debtor pursuant to NRS21.130, service must be made on the units owner as follows:

(1) A copy of the notice of sale must be mailed,on or before the date of first publication or posting, by certified orregistered mail, return receipt requested, to the units owner or his successorin interest at his address, if known, and to the address of the unit; and

(2) A copy of the notice of sale must be served,on or before the date of first publication or posting, in the manner set forthin subsection 2; and

(b) Mail, on or before the date of first publication orposting, a copy of the notice by first-class mail to:

(1) Each person entitled to receive a copy ofthe notice of default and election to sell notice under NRS 116.31163;

(2) The holder of a recorded security interest orthe purchaser of the unit, if either of them has notified the association,before the mailing of the notice of sale, of the existence of the securityinterest, lease or contract of sale, as applicable; and

(3) The Ombudsman.

2. In addition to the requirements set forth insubsection 1, a copy of the notice of sale must be served:

(a) By a person who is 18 years of age or older and whois not a party to or interested in the sale by personally delivering a copy ofthe notice of sale to an occupant of the unit who is of suitable age; or

(b) By posting a copy of the notice of sale in aconspicuous place on the unit.

3. Any copy of the notice of sale required to beserved pursuant to this section must include:

(a) The amount necessary to satisfy the lien as of thedate of the proposed sale; and

(b) The following warning in 14-point bold type:

WARNING! A SALE OF YOUR PROPERTY ISIMMINENT! UNLESS YOU PAY THE AMOUNT SPECIFIED IN THIS NOTICE BEFORE THE SALEDATE, YOU COULD LOSE YOUR HOME, EVEN IF THE AMOUNT IS IN DISPUTE. YOU MUST ACTBEFORE THE SALE DATE. IF YOU HAVE ANY QUESTIONS, PLEASE CALL (name andtelephone number of the contact person for the association). IF YOU NEEDASSISTANCE, PLEASE CALL THE FORECLOSURE SECTION OF THE OMBUDSMANS OFFICE,NEVADA REAL ESTATE DIVISION, AT (toll-free telephone number designated by theDivision) IMMEDIATELY.

4. Proof of service of any copy of the notice of salerequired to be served pursuant to this section must consist of:

(a) A certificate of mailing which evidences that thenotice was mailed through the United State Postal Service; or

(b) An affidavit of service signed by the person whoserved the notice stating:

(1) The time of service, manner of service and locationof service; and

(2) The name of the person served or, if thenotice was not served on a person, a description of the location where thenotice was posted on the unit.

(Added to NRS by 1993, 2355; A 2003, 2245; 2005, 2609)

NRS 116.31164 Foreclosureof liens: Procedure for conducting sale; purchase of unit by association;execution and delivery of deed; use of proceeds of sale.

1. The sale must be conducted in the county in whichthe common-interest community or part of it is situated, and may be conductedby the association, its agent or attorney, or a title insurance company or escrowagent licensed to do business in this State, except that the sale may be madeat the office of the association if the notice of the sale so provided, whetherthe unit is located within the same county as the office of the association ornot. The association or other person conducting the sale may from time to timepostpone the sale by such advertisement and notice as it considers reasonableor, without further advertisement or notice, by proclamation made to thepersons assembled at the time and place previously set and advertised for thesale.

2. On the day of sale originally advertised or towhich the sale is postponed, at the time and place specified in the notice orpostponement, the person conducting the sale may sell the unit at publicauction to the highest cash bidder. Unless otherwise provided in thedeclaration or by agreement, the association may purchase the unit and hold,lease, mortgage or convey it. The association may purchase by a credit bid upto the amount of the unpaid assessments and any permitted costs, fees and expensesincident to the enforcement of its lien.

3. After the sale, the person conducting the saleshall:

(a) Make, execute and, after payment is made, deliverto the purchaser, or his successor or assign, a deed without warranty whichconveys to the grantee all title of the units owner to the unit;

(b) Deliver a copy of the deed to the Ombudsman within30 days after the deed is delivered to the purchaser, or his successor orassign; and

(1) The reasonable expenses of sale;

(2) The reasonable expenses of securingpossession before sale, holding, maintaining, and preparing the unit for sale,including payment of taxes and other governmental charges, premiums on hazardand liability insurance, and, to the extent provided for by the declaration,reasonable attorneys fees and other legal expenses incurred by theassociation;

(3) Satisfaction of the associations lien;

(4) Satisfaction in the order of priority of anysubordinate claim of record; and

(5) Remittance of any excess to the unitsowner.

(Added to NRS by 1991, 569; A 1993, 2372; 2005, 2610)

NRS 116.31166 Foreclosureof liens: Effect of recitals in deed; purchaser not responsible for properapplication of purchase money; title vested in purchaser without equity orright of redemption.

1. The recitals in a deed made pursuant to NRS 116.31164 of:

(a) Default, the mailing of the notice of delinquentassessment, and the recording of the notice of default and election to sell;

(b) The elapsing of the 90 days; and

areconclusive proof of the matters recited.

2. Such a deed containing those recitals is conclusiveagainst the units former owner, his heirs and assigns, and all other persons.The receipt for the purchase money contained in such a deed is sufficient todischarge the purchaser from obligation to see to the proper application of thepurchase money.

3. The sale of a unit pursuant to NRS 116.31162, 116.31163 and 116.31164 vests in the purchaser thetitle of the units owner without equity or right of redemption.

(Added to NRS by 1991, 570; A 1993, 2373)

NRS 116.31168 Foreclosureof liens: Requests by interested persons for notice of default and election tosell; right of association to waive default and withdraw notice or proceedingto foreclose.

1. The provisions of NRS107.090 apply to the foreclosure of an associations lien as if a deed oftrust were being foreclosed. The request must identify the lien by stating thenames of the units owner and the common-interest community.

2. An association may, after recording a notice ofdefault and election to sell, waive the default and withdraw the notice or anyproceeding to foreclose. The association is thereupon restored to its formerposition and has the same rights as though the notice had not been recorded.

(Added to NRS by 1991, 570; A 1993, 2373)

NRS 116.3117 Liensagainst association.

1. In a condominium or planned community:

(a) Except as otherwise provided in paragraph (b), ajudgment for money against the association, if a copy of the docket or anabstract or copy of the judgment is recorded, is not a lien on the commonelements, but is a lien in favor of the judgment lienholder against all of theunits in the common-interest community at the time the judgment was entered. Noother property of a units owner is subject to the claims of creditors of theassociation.

(b) If the association has granted a security interestin the common elements to a creditor of the association pursuant to NRS 116.3112, the holder of that securityinterest shall exercise its right against the common elements before itsjudgment lien on any unit may be enforced.

(c) Whether perfected before or after the creation ofthe common-interest community, if a lien, other than a deed of trust ormortgage, including a judgment lien or lien attributable to work performed ormaterials supplied before creation of the common-interest community, becomeseffective against two or more units, the owner of an affected unit may pay tothe lienholder the amount of the lien attributable to his unit, and thelienholder, upon receipt of payment, promptly shall deliver a release of thelien covering that unit. The amount of the payment must be proportionate to theratio which that owners liability for common expenses bears to the liabilitiesfor common expenses of all owners whose units are subject to the lien. Afterpayment, the association may not assess or have a lien against that ownersunit for any portion of the common expenses incurred in connection with thatlien.

(d) A judgment against the association must be indexedin the name of the common-interest community and the association and, when soindexed, is notice of the lien against the units.

2. In a cooperative:

(a) If the association receives notice of an impendingforeclosure on all or any portion of the associations real estate, theassociation shall promptly transmit a copy of that notice to each owner of aunit located within the real estate to be foreclosed. Failure of theassociation to transmit the notice does not affect the validity of theforeclosure.

(b) Whether or not an owners unit is subject to theclaims of the associations creditors, no other property of an owner is subjectto those claims.

(Added to NRS by 1993, 2355)

Books, Records and Other Documents

1. Except as otherwise provided in this subsection,the executive board of an association shall, upon the written request of aunits owner, make available the books, records and other papers of theassociation for review during the regular working hours of the association,including, without limitation, all contracts to which the association is aparty and all records filed with a court relating to a civil or criminal actionto which the association is a party. The provisions of this subsection do notapply to:

(a) The personnel records of the employees of theassociation, except for those records relating to the number of hours workedand the salaries and benefits of those employees;

(b) The records of the association relating to anotherunits owner, except for those records described in subsection 2; and

2. The executive board of an association shallmaintain a general record concerning each violation of the governing documents,other than a violation involving a failure to pay an assessment, for which theexecutive board has imposed a fine, a construction penalty or any other sanction.The general record:

(a) Must contain a general description of the nature ofthe violation and the type of the sanction imposed. If the sanction imposed wasa fine or construction penalty, the general record must specify the amount ofthe fine or construction penalty.

(b) Must not contain the name or address of the personagainst whom the sanction was imposed or any other personal information whichmay be used to identify the person or the location of the unit, if any, that isassociated with the violation.

(c) Must be maintained in an organized and convenientfiling system or data system that allows a units owner to search and reviewthe general records concerning violations of the governing documents.

3. If the executive board refuses to allow a unitsowner to review the books, records or other papers of the association, theOmbudsman may:

(a) On behalf of the units owner and upon writtenrequest, review the books, records or other papers of the association duringthe regular working hours of the association; and

(b) If he is denied access to the books, records orother papers, request the Commission, or any member thereof acting on behalf ofthe Commission, to issue a subpoena for their production.

4. The books, records and other papers of anassociation must be maintained for at least 10 years. The provisions of thissubsection do not apply to:

(a) The minutes of a meeting of the units owners whichmust be maintained in accordance with NRS116.3108; or

(b) The minutes of a meeting of the executive boardwhich must be maintained in accordance with NRS116.31083.

5. The executive board shall not require a unitsowner to pay an amount in excess of $10 per hour to review any books, records,contracts or other papers of the association pursuant to the provisions of thissection.

(Added to NRS by 1999, 2996; A 2003, 2245)

NRS 116.31177 Maintenanceand availability of certain financial records of association; provision ofcopies to units owners and Ombudsman.

1. The executive board of an association shallmaintain and make available for review at the business office of theassociation or some other suitable location within the county where thecommon-interest community is situated or, if it is situated in more than onecounty, within one of those counties:

(a) The financial statement of the association;

(b) The budgets of the association required to beprepared pursuant to NRS 116.31151;and

2. The executive board shall provide a copy of any ofthe records required to be maintained pursuant to subsection 1 to a unitsowner or the Ombudsman within 14 days after receiving a written requesttherefor. The executive board may charge a fee to cover the actual costs ofpreparing a copy, but not to exceed 25 cents per page.

(Added to NRS by 1999, 2997; A 2003, 2246)

1. The association shall keep financial recordssufficiently detailed to enable the association to comply with NRS 116.4109.

2. All financial and other records of the associationmust be:

(a) Maintained and made available for review at thebusiness office of the association or some other suitable location within thecounty where the common-interest community is situated or, if it is situated inmore than one county, within one of those counties; and

(b) Made reasonably available for any units owner andhis authorized agents to inspect, examine, photocopy and audit.

(Added to NRS by 1991, 571; A 1995, 2231; 2003, 2247)

Miscellaneous Rights, Duties and Restrictions

NRS 116.31183 Retaliatoryaction prohibited. An executive board, amember of an executive board or an officer, employee or agent of an associationshall not take, or direct or encourage another person to take, any retaliatoryaction against a units owner because the units owner has:

1. Complained in good faith about any allegedviolation of any provision of this chapter or the governing documents of theassociation; or

2. Requested in good faith to review the books,records or other papers of the association.

(Added to NRS by 2003, 2218)

NRS 116.31185 Prohibitionagainst certain personnel soliciting or accepting compensation, gratuity orremuneration under certain circumstances.

1. Except as otherwise provided in subsection 2, amember of an executive board, an officer of an association or a communitymanager shall not solicit or accept any form of compensation, gratuity or otherremuneration that:

(a) Would improperly influence or would appear to areasonable person to improperly influence the decisions made by those persons;or

(b) Would result or would appear to a reasonable personto result in a conflict of interest for those persons.

2. Notwithstanding the provisions of subsection 1, amember of an executive board, an officer of an association, a community manageror any person working for a community manager shall not accept, directly orindirectly, any gifts, incentives, gratuities, rewards or other items of valuefrom:

(a) An attorney, law firm or vendor, or any personworking directly or indirectly for the attorney, law firm or vendor, whichtotal more than the amount established by the Commission by regulation, not toexceed $100 per year per such attorney, law firm or vendor; or

(b) A declarant, an affiliate of a declarant or anyperson responsible for the construction of the applicable community orassociation which total more than the amount established by the Commission byregulation, not to exceed $100 per year per such declarant, affiliate orperson.

3. An attorney, law firm or vendor, or any personworking directly or indirectly for the attorney, law firm or vendor, shall notprovide, directly or indirectly, any gifts, incentives, gratuities, rewards orother items of value to a member of the executive board, an officer of theassociation, the community manager or any person working for the communitymanager which total more than the amount established by the Commission byregulation, not to exceed $100 per year per such member, officer, communitymanager or person.

4. A declarant, an affiliate of a declarant or anyperson responsible for the construction of a community or association, shallnot provide, directly or indirectly, any gifts, incentives, gratuities, rewardsor other items of value to a member of the executive board, an officer of theassociation, the community manager or any person working for the communitymanager which total more than the amount established by the Commission byregulation, not to exceed $100 per year per such member, officer, communitymanager or person.

5. In addition to the limitations set forth insubsection 1, a community manager shall not solicit or accept any form ofcompensation, fee or other remuneration that is based, in whole or in part, on:

(a) The number or amount of fines imposed against orcollected from units owners or tenants or guests of units owners pursuant to NRS 116.31031 for violations of thegoverning documents of the association; or

(b) Any percentage or proportion of those fines.

6. The provisions of this section do not prohibit acommunity manager from being paid compensation, a fee or other remunerationunder the terms of a contract between the community manager and an associationif:

(a) The scope of the respective rights, duties andobligations of the parties under the contract comply with the standards ofpractice for community managers adopted by the Commission pursuant to NRS 116A.400;

(b) The compensation, fee or other remuneration isbeing paid to the community manager for providing management of thecommon-interest community; and

(c) The compensation, fee or other remuneration is notstructured in a way that would violate the provisions of subsection 1 or 5.

(Added to NRS by 2003, 2218; A 2005, 1716, 2611)

NRS 116.31187 Prohibitionagainst certain personnel contracting with association or accepting commission,personal profit or compensation from association; exceptions.

1. Except as otherwise provided in this section, amember of an executive board or an officer of an association shall not:

(a) On or after October 1, 2003, enter into a contractor renew a contract with the association to provide goods or services to theassociation; or

(b) Otherwise accept any commission, personal profit orcompensation of any kind from the association for providing goods or servicesto the association.

2. The provisions of this section do not prohibit adeclarant, an affiliate of a declarant or an officer, employee or agent of adeclarant or an affiliate of a declarant from:

(a) Receiving any commission, personal profit orcompensation from the association, the declarant or an affiliate of thedeclarant for any goods or services furnished to the association;

(b) Entering into contracts with the association, thedeclarant or affiliate of the declarant; or

(Added to NRS by 2003, 2218)

NRS 116.3119 Associationas trustee. With respect to a third person dealingwith the association in the associations capacity as a trustee, the existenceof trust powers and their proper exercise by the association may be assumedwithout inquiry. A third person is not bound to inquire whether the associationhas power to act as trustee or is properly exercising trust powers. A thirdperson, without actual knowledge that the association is exceeding orimproperly exercising its powers, is fully protected in dealing with theassociation as if it possessed and properly exercised the powers it purports toexercise. A third person is not bound to assure the proper application of trustassets paid or delivered to the association in its capacity as trustee.

(Added to NRS by 1991, 571)

NRS 116.320 Rightof units owners to display flag of the United States in certain areas;conditions and limitations on exercise of right.

1. Except as otherwise provided in subsection 2, theexecutive board of an association shall not and the governing documents of thatassociation must not prohibit a units owner from engaging in the display ofthe flag of the United States within such physical portion of thecommon-interest community as that owner has a right to occupy and useexclusively.

2. The provisions of this section do not:

(a) Apply to the display of the flag of the UnitedStates for commercial advertising purposes.

(b) Preclude an association from adopting, and do notpreclude the governing documents of an association from setting forth, rulesthat reasonably restrict the placement and manner of the display of the flag ofthe United States by a units owner.

3. In any action commenced to enforce the provisionsof this section, the prevailing party is entitled to recover reasonableattorneys fees and costs.

4. As used in this section, display of the flag ofthe United States means a flag of the United States that is:

(a) Made of cloth, fabric or paper;

(b) Displayed from a pole or staff or in a window; and

The termdoes not include a depiction or emblem of the flag of the United States that ismade of balloons, flora, lights, paint, paving materials, roofing, siding orany other similar building, decorative or landscaping component.

(Added to NRS by 2003, 2966)(Substitutedin revision for NRS 116.31067)

NRS 116.325 Rightof units owners to exhibit political signs in certain areas; conditions andlimitations on exercise of right.

1. The executive board shall not and the governingdocuments must not prohibit a units owner or an occupant of a unit fromexhibiting a political sign within such physical portion of the common-interestcommunity as that owner or occupant has a right to occupy and use exclusivelyif the political sign is not larger than 24 inches by 36 inches.

2. The provisions of this section establish theminimum rights of a units owner or an occupant of a unit to exhibit apolitical sign. The provisions of this section do not preempt any provisions ofthe governing documents that provide greater rights and do not require thegoverning documents or the executive board to impose any restrictions on theexhibition of political signs other than those established by other provisionsof law.

3. As used in this section, political sign means asign that expresses support for or opposition to a candidate, political partyor ballot question.

(Added to NRS by 2005, 2585)

NRS 116.330 Rightof units owners to install or maintain drought tolerant landscaping;conditions and limitations on exercise of right; installation of droughttolerant landscaping within common elements.

1. The executive board shall not and the governingdocuments must not prohibit a units owner from installing or maintainingdrought tolerant landscaping within such physical portion of thecommon-interest community as that owner has a right to occupy and useexclusively, except that:

(a) Before installing drought tolerant landscaping, theunits owner must submit a detailed description or plans for the droughttolerant landscaping for architectural review and approval in accordance withthe procedures, if any, set forth in the governing documents of theassociation; and

(b) The drought tolerant landscaping must be selectedor designed to the maximum extent practicable to be compatible with the styleof the common-interest community.

2. Installation of drought tolerant landscaping withinany common element or conversion of traditional landscaping or cultivatedvegetation, such as turf grass, to drought tolerant landscaping within anycommon element shall not be deemed to be a change of use of the common elementunless:

(a) The common element has been designated as a park,open play space or golf course on a recorded plat map; or

(b) The traditional landscaping or cultivatedvegetation is required by a governing body under the terms of any applicablezoning ordinance, permit or approval or as a condition of approval of any finalsubdivision map.

3. As used in this section, drought tolerantlandscaping means landscaping which conserves water, protects the environmentand is adaptable to local conditions.

(Added to NRS by 2005, 2583)

NRS 116.335 Associationprohibited from requiring units owner to obtain approval to rent or leaseunit; exceptions.

1. Except as otherwise provided in the declaration, anassociation may not require a units owner to secure or obtain any approvalfrom the association in order to rent or lease his unit.

2. The provisions of this section do not prohibit anassociation from enforcing any provisions which govern the renting or leasingof units and which are contained in this chapter or in any other applicablefederal, state or local laws or regulations.

(Added to NRS by 2005, 2584)

NRS 116.340 Transientcommercial use of units within certain planned communities.

1. Except as otherwise provided in subsection 2, in acounty whose population is 400,000 or more, a person who owns, or directly orindirectly has an interest in, one or more units within a planned communitythat are restricted to residential use by the declaration, may use that unit orone of those units for a transient commercial use only if:

(a) The governing documents of the association and anymaster association do not prohibit such use;

(b) The executive board of the association and anymaster association approve the transient commercial use of the unit, exceptthat such approval is not required if the planned community and one or morehotels are subject to the governing documents of a master association and thosegoverning documents do not prohibit such use; and

(c) The unit is properly zoned for the transientcommercial use and any license required by the local government for thetransient commercial use is obtained.

2. In a county whose population is 400,000 or more, adeclarant who owns, or directly or indirectly has an interest in, one or moreunits within a planned community under the governing documents of theassociation that are restricted to residential use by the declaration, may usethat unit or those units for a transient commercial use during the period thatthe declarant is offering units for sale within the planned community if suchuse complies with the requirements set forth in paragraphs (a) and (c) ofsubsection 1.

3. The association and any master association mayestablish requirements for the transient commercial use of a unit pursuant tothe provisions of this section, including, without limitation, the payment ofadditional fees that are related to any increase in services or other costsassociated with the transient commercial use of the unit.

4. As used in this section:

(a) Remuneration means any compensation, money, rentor other valuable consideration given in return for the occupancy, possessionor use of a unit.

(b) Transient commercial use means the use of a unit,for remuneration, as a hostel, hotel, inn, motel, resort, vacation rental orother form of transient lodging if the term of the occupancy, possession or useof the unit is for less than 30 consecutive calendar days.

(Added to NRS by 2003, 2219)(Substitutedin revision for NRS 116.31123)

NRS 116.345 Associationof planned community prohibited from taking certain actions regarding property,buildings and structures within planned community; validity of existingrestrictions.

1. An association of a planned community may notrestrict, prohibit or otherwise impede the lawful residential use of anyproperty that is within or encompassed by the boundaries of the plannedcommunity and that is not designated as part of the planned community.

2. Except as otherwise provided in this subsection, anassociation may not restrict the access of a person to any of his property. Anassociation may restrict access to and from a unit within a planned communityif the right to restrict such access was included in the declaration or in aseparate recorded instrument at the time that the owner of the unit acquiredtitle to the unit. The provisions of this subsection do not prohibit anassociation from charging the owner of the property a reasonable andnondiscriminatory fee to operate or maintain a gate or other similar devicedesigned to control access to the planned community that would otherwise impedeingress or egress to the property.

3. An association may not expand, construct or situatea building or structure that is not part of any plat or plan of the plannedcommunity if the expansion, construction or situation of the building orstructure was not previously disclosed to the units owners of the plannedcommunity unless the association obtains the written consent of a majority ofthe units owners and residents of the planned community who own property orreside within 500 feet of the proposed location of the building or structure.

4. The provisions of this section do not abrogate anyeasement, restrictive covenant, decision of a court, agreement of a party orany contract, governing document or declaration of covenants, conditions andrestrictions, or any other decision, rule or regulation that a local governingbody or other entity that makes decisions concerning land use or planning isauthorized to make or enact that exists before October 1, 1999, including,without limitation, a zoning ordinance, permit or approval process or any otherrequirement of a local government or other entity that makes decisionsconcerning land use or planning.

(Added to NRS by 1999, 3354)(Substitutedin revision for NRS 116.31125)

NRS 116.350 Limitationsregarding regulation of certain roads, streets, alleys or other thoroughfares;permissible regulation of parking or storage of certain vehicles.

1. In a common-interest community which is not gatedor enclosed and the access to which is not restricted or controlled by a personor device, the executive board shall not and the governing documents must notprovide for the regulation of any road, street, alley or other thoroughfare theright-of-way of which is accepted by the State or a local government fordedication as a road, street, alley or other thoroughfare for public use.

2. The provisions of subsection 1 do not preclude anassociation from adopting, and do not preclude the governing documents of anassociation from setting forth, rules that reasonably restrict the parking orstorage of recreational vehicles, watercraft, trailers or commercial vehiclesin the common-interest community to the extent authorized by law.

(Added to NRS by 2005, 2585)

ARTICLE 4

PROTECTION OF PURCHASERS

NRS 116.4101 Applicability;exceptions.

1. NRS 116.4101to 116.412, inclusive, apply to allunits subject to this chapter, except as otherwise provided in this section oras modified or waived by agreement of purchasers of units in a common-interestcommunity in which all units are restricted to nonresidential use.

2. Neither a public offering statement nor acertificate of resale need be prepared or delivered in the case of a:

(a) Gratuitous disposition of a unit;

(b) Disposition pursuant to court order;

(d) Disposition by foreclosure or deed in lieu offoreclosure;

(e) Disposition to a dealer;

(f) Disposition that may be cancelled at any time andfor any reason by the purchaser without penalty; or

(g) Disposition of a unit in a planned community whichcontains no more than 12 units if:

(1) The declarant reasonably believes in goodfaith that the maximum assessment stated in the declaration will be sufficientto pay the expenses of the planned community; and

(2) The declaration cannot be amended toincrease the assessment during the period of the declarants control withoutthe consent of all units owners.

3. Except as otherwise provided in subsection 2, theprovisions of NRS 116.4101 to 116.412, inclusive, do not apply to aplanned community described in NRS 116.1203.

(Added to NRS by 1991, 571; A 1993, 2373; 1997, 3122;1999, 3012)

NRS 116.4102 Liabilityfor preparation and delivery of public offering statement.

1. Except as otherwise provided in subsection 2, adeclarant, before offering any interest in a unit to the public, shall preparea public offering statement conforming to the requirements of NRS 116.4103 to 116.4106, inclusive.

2. A declarant may transfer responsibility for thepreparation of all or a part of the public offering statement to a successordeclarant pursuant to NRS 116.3104 and 116.31043, or to a dealer who intends tooffer units in the common-interest community. In the event of any suchtransfer, the transferor shall provide the transferee with any informationnecessary to enable the transferee to fulfill the requirements of subsection 1.

3. Any declarant or dealer who offers a unit to apurchaser shall deliver a public offering statement in the manner prescribed insubsection 1 of NRS 116.4108. Thedeclarant or his transferee under subsection 2 is liable under NRS 116.4108 and 116.4117 for any false or misleadingstatement set forth therein or for any omission of a material fact therefromwith respect to that portion of the public offering statement which heprepared. If a declarant or dealer did not prepare any part of a publicoffering statement that he delivers, he is not liable for any false ormisleading statement set forth therein or for any omission of a material facttherefrom unless he had actual knowledge of the statement or omission or, inthe exercise of reasonable care, should have known of the statement oromission.

4. If a unit is part of a common-interest communityand is part of any other real estate in connection with the sale of which thedelivery of a public offering statement is required under the laws of thisState, a single public offering statement conforming to the requirements of NRS 116.4103 to 116.4106, inclusive, as those requirementsrelate to the real estate in which the unit is located, and to any otherrequirements imposed under the laws of this State, may be prepared anddelivered in lieu of providing two or more public offering statements. If therequirements of this chapter conflict with those of another law of this State,the requirements of this chapter prevail.

(Added to NRS by 1991, 571; A 1993, 2374; 2001, 2493)

NRS 116.4103 Publicoffering statement: General provisions.

1. Except as otherwise provided in NRS 116.41035, a public offeringstatement must set forth or fully and accurately disclose each of thefollowing:

(a) The name and principal address of the declarant andof the common-interest community, and a statement that the common-interestcommunity is either a condominium, cooperative or planned community.

(b) A general description of the common-interestcommunity, including to the extent possible, the types, number and declarantsschedule of commencement and completion of construction of buildings, andamenities that the declarant anticipates including in the common-interestcommunity.

(d) Copies of the declaration, bylaws, and any rules orregulations of the association, but a plat or plan is not required.

(e) A current year-to-date financial statement,including the most recent audited or reviewed financial statement, and theprojected budget for the association, either within or as an exhibit to the publicoffering statement, for 1 year after the date of the first conveyance to apurchaser, and thereafter the current budget of the association. The budgetmust include, without limitation:

(1) A statement of the amount included in thebudget as reserves for repairs, replacement and restoration pursuant to NRS 116.3115; and

(2) The projected monthly assessment for commonexpenses for each type of unit, including the amount established as reservespursuant to NRS 116.3115.

(f) A description of any services or subsidies beingprovided by the declarant or an affiliate of the declarant, not reflected inthe budget.

(g) Any initial or special fee due from the purchaserat closing, together with a description of the purpose and method ofcalculating the fee.

(h) The terms and significant limitations of anywarranties provided by the declarant, including statutory warranties andlimitations on the enforcement thereof or on damages.

(i) A statement that unless the purchaser or his agenthas personally inspected the unit, the purchaser may cancel, by written notice,his contract for purchase until midnight of the fifth calendar day followingthe date of execution of the contract, and the contract must contain aprovision to that effect.

(j) A statement of any unsatisfied judgments or pendingsuits against the association, and the status of any pending suits material tothe common-interest community of which a declarant has actual knowledge.

(k) Any current or expected fees or charges to be paidby units owners for the use of the common elements and other facilitiesrelated to the common-interest community.

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

2. A declarant is not required to revise a publicoffering statement more than once each calendar quarter, if the followingwarning is given prominence in the statement: THIS PUBLIC OFFERING STATEMENTIS CURRENT AS OF (insert a specified date). RECENT DEVELOPMENTS REGARDING (hererefer to particular provisions of NRS116.4103 and 116.4105) MAY NOT BEREFLECTED IN THIS STATEMENT.

(Added to NRS by 1991, 572; A 1993, 2375; 1997, 3122;1999, 3012; 2005, 2612)

NRS 116.41035 Publicoffering statement: Limitations for certain small offerings. If a common-interest community composed of not more than12 units is not subject to any developmental rights and no power is reserved toa declarant to make the common-interest community part of a largercommon-interest community, group of common-interest communities or other realestate, a public offering statement may but need not include the informationotherwise required by paragraphs (h) and (k) of subsection 1 of NRS 116.4103.

(Added to NRS by 1991, 573; A 1993, 553, 2376)

NRS 116.4104 Publicoffering statement: Common-interest communities subject to developmentalrights. If the declaration provides that acommon-interest community is subject to any developmental rights, the publicoffering statement must disclose, in addition to the information required by NRS 116.4103:

1. The maximum number of units that may be created;

2. A statement of how many or what percentage of theunits that may be created will be restricted exclusively to residential use, ora statement that no representations are made regarding restrictions of use;

3. A statement of the extent to which any buildings orother improvements that may be erected pursuant to any developmental right inany part of the common-interest community will be compatible with existingbuildings and improvements in the common-interest community in terms ofarchitectural style, quality of construction, and size, or a statement that noassurances are made in those regards;

4. General descriptions of all other improvements thatmay be made and limited common elements that may be created within any part ofthe common-interest community pursuant to any developmental right reserved bythe declarant, or a statement that no assurances are made in that regard;

5. A statement of any limitations as to the locationsof any building or other improvement that may be constructed or made within anypart of the common-interest community pursuant to any developmental rightreserved by the declarant, or a statement that no assurances are made in thatregard;

6. A statement that any limited common elementscreated pursuant to any developmental right reserved by the declarant will beof the same general types and sizes as the limited common elements within otherparts of the common-interest community, or a statement of the types and sizesplanned, or a statement that no assurances are made in that regard;

7. A statement that the proportion of limited commonelements to units created pursuant to any developmental right reserved by thedeclarant will be approximately equal to the proportion existing within otherparts of the common-interest community, or a statement of any other assurancesin that regard, or a statement that no assurances are made in that regard;

8. A statement that all restrictions in thedeclaration affecting use, occupancy and alienation of units will apply to anyunits created pursuant to any developmental right reserved by the declarant, ora statement of any differentiations that may be made as to those units, or astatement that no assurances are made in that regard; and

9. A statement of the extent to which any assurancesmade pursuant to this section apply or do not apply if any developmental rightis not exercised by the declarant.

(Added to NRS by 1991, 573)

NRS 116.4105 Publicoffering statement: Time shares. If thedeclaration provides that ownership or occupancy of any units, is or may be intime shares, the public offering statement shall disclose, in addition to the informationrequired by NRS 116.4103 and 116.41035:

1. The number and identity of units in which timeshares may be created;

2. The total number of time shares that may becreated;

3. The minimum duration of any time shares that may becreated; and

4. The extent to which the creation of time shareswill or may affect the enforceability of the associations lien for assessmentsprovided in NRS 116.3116 and 116.31162.

(Added to NRS by 1991, 574)

NRS 116.4106 Publicoffering statement: Common-interest community containing converted building.

1. The public offering statement of a common-interestcommunity containing any converted building must contain, in addition to theinformation required by NRS 116.4103and 116.41035:

(a) A statement by the declarant, based on a reportprepared by an independent registered architect or licensed professionalengineer, describing the present condition of all structural components andmechanical and electrical installations material to the use and enjoyment ofthe building;

(b) A list of any outstanding notices of uncuredviolations of building codes or other municipal regulations, together with theestimated cost of curing those violations; and

(c) The budget to maintain the reserves requiredpursuant to paragraph (b) of subsection 2 of NRS116.3115 which must include, without limitation:

(1) The current estimated replacement cost,estimated remaining life and estimated useful life of each major component ofthe common elements;

(2) As of the end of the fiscal year for whichthe budget was prepared, the current estimate of the amount of cash reservesthat are necessary to repair, replace and restore the major components of thecommon elements and the current amount of accumulated cash reserves that areset aside for such repairs, replacements and restorations;

(3) A statement as to whether the declarant hasdetermined or anticipates that the levy of one or more special assessments willbe required within the next 10 years to repair, replace and restore any majorcomponent of the common elements or to provide adequate reserves for thatpurpose;

(4) A general statement describing theprocedures used for the estimation and accumulation of cash reserves describedin subparagraph (2), including, without limitation, the qualifications of theperson responsible for the preparation of the study of reserves requiredpursuant to NRS 116.31152; and

(5) The funding plan that is designed toallocate the costs for the repair, replacement and restoration of the majorcomponents of the common elements over a period of years.

2. This section applies only to a common-interestcommunity comprised of a converted building or buildings containing more than12 units that may be occupied for residential use.

(Added to NRS by 1991, 574; A 1997, 1060; 2005, 2613)

NRS 116.4107 Publicoffering statement: Common-interest community registered with Securities andExchange Commission or State of Nevada. If aninterest in a common-interest community is currently registered with theSecurities and Exchange Commission of the United States or with the State ofNevada pursuant to chapter 119, 119A or 119Bof NRS, a declarant satisfies all requirements of this chapter relating to thepreparation of a public offering statement if he delivers to the purchaser acopy of the public offering statement filed with the Securities and ExchangeCommission or the appropriate Nevada regulatory authority. An interest in acommon-interest community is not a security under the provisions of chapter 90 of NRS.

(Added to NRS by 1991, 574)

NRS 116.4108 Purchasersright to cancel.

1. A person required to deliver a public offeringstatement pursuant to subsection 3 of NRS116.4102 shall provide a purchaser with a copy of the current publicoffering statement not later than the date on which an offer to purchasebecomes binding on the purchaser. Unless the purchaser has personally inspectedthe unit, the purchaser may cancel, by written notice, the contract of purchaseuntil midnight of the fifth calendar day following the date of execution of thecontract, and the contract for purchase must contain a provision to thateffect.

2. If a purchaser elects to cancel a contract pursuantto subsection 1, he may do so by hand delivering notice thereof to the offeroror by mailing notice thereof by prepaid United States mail to the offeror or tohis agent for service of process. Cancellation is without penalty, and allpayments made by the purchaser before cancellation must be refunded promptly.

3. If a person required to deliver a public offeringstatement pursuant to subsection 3 of NRS116.4102 fails to provide a purchaser to whom a unit is conveyed with acurrent public offering statement, the purchaser is entitled to actual damages,rescission or other relief, but if the purchaser has accepted a conveyance ofthe unit, he is not entitled to rescission.

(Added to NRS by 1991, 574; A 1993, 2376; 2003, 2247)

NRS 116.4109 Resalesof units.

1. Except in the case of a sale in which delivery of apublic offering statement is required, or unless exempt under subsection 2 of NRS 116.4101, a units owner or hisauthorized agent shall furnish to a purchaser a resale package containing allof the following:

(a) A copy of the declaration, other than any plats andplans, the bylaws, the rules or regulations of the association and theinformation statement required by NRS116.41095;

(b) A statement setting forth the amount of the monthlyassessment for common expenses and any unpaid assessment of any kind currentlydue from the selling units owner;

(c) A copy of the current operating budget of theassociation and current year-to-date financial statement for the association,which must include a summary of the reserves of the association required by NRS 116.31152 and which must include,without limitation, a summary of the information described in paragraphs (a) to(e), inclusive, of subsection 3 of NRS116.31152; and

(d) A statement of any unsatisfied judgments or pendinglegal actions against the association and the status of any pending legalactions relating to the common-interest community of which the units owner hasactual knowledge.

2. The purchaser may, by written notice, cancel thecontract of purchase until midnight of the fifth calendar day following thedate of receipt of the resale package described in subsection 1, and thecontract for purchase must contain a provision to that effect. If the purchaserelects to cancel a contract pursuant to this subsection, he must hand deliverthe notice of cancellation to the units owner or his authorized agent or mailthe notice of cancellation by prepaid United States mail to the units owner orhis authorized agent. Cancellation is without penalty, and all payments made bythe purchaser before cancellation must be refunded promptly. If the purchaserhas accepted a conveyance of the unit, the purchaser is not entitled to:

(a) Cancel the contract pursuant to this subsection; or

(b) Damages, rescission or other relief based solely onthe ground that the units owner or his authorized agent failed to furnish theresale package, or any portion thereof, as required by this section.

3. Within 10 days after receipt of a written requestby a units owner or his authorized agent, the association shall furnish all ofthe following to the units owner or his authorized agent for inclusion in theresale package:

(a) Copies of the documents required pursuant toparagraphs (a) and (c) of subsection 1; and

(b) A certificate containing the information necessaryto enable the units owner to comply with paragraphs (b) and (d) of subsection1.

4. If the association furnishes the documents andcertificate pursuant to subsection 3:

(a) The units owner or his authorized agent shallinclude the documents and certificate in the resale package provided to thepurchaser, and neither the units owner nor his authorized agent is liable tothe purchaser for any erroneous information provided by the association andincluded in the documents and certificate.

(b) The association may charge the units owner areasonable fee to cover the cost of preparing the certificate furnishedpursuant to subsection 3. Such a fee must be based on the actual cost theassociation incurs to fulfill the requirements of this section in preparing thecertificate. The Commission shall adopt regulations establishing the maximumamount of the fee that an association may charge for preparing the certificate.

(c) The association may charge the units owner areasonable fee, not to exceed 25 cents per page, to cover the cost of copyingthe other documents furnished pursuant to subsection 3.

(d) Except for the fees allowed pursuant to paragraphs(b) and (c), the association may not charge the units owner any other fees forpreparing or furnishing the documents and certificate pursuant to subsection 3.

5. Neither a purchaser nor the purchasers interest ina unit is liable for any unpaid assessment or fee greater than the amount setforth in the documents and certificate prepared by the association. If theassociation fails to furnish the documents and certificate within the 10 daysallowed by this section, the seller is not liable for the delinquentassessment.

6. Upon the request of a units owner or hisauthorized agent, or upon the request of a purchaser to whom the units ownerhas provided a resale package pursuant to this section or his authorized agent,the association shall make the entire study of the reserves of the associationwhich is required by NRS 116.31152reasonably available for the units owner, purchaser or authorized agent toinspect, examine, photocopy and audit. The study must be made available at thebusiness office of the association or some other suitable location within thecounty where the common-interest community is situated or, if it is situated inmore than one county, within one of those counties.

(Added to NRS by 1991, 575; A 1993, 2376; 1997, 3124;2001, 2494; 2003, 2247; 2005, 2614)

NRS 116.41095 Requiredform of information statement. The informationstatement required by NRS 116.4103 and 116.4109 must be in substantially the followingform:

BEFORE YOU PURCHASEPROPERTY IN A

COMMON-INTERESTCOMMUNITY

DID YOU KNOW . . .

1. YOU GENERALLY HAVE 5 DAYS TO CANCEL THE PURCHASEAGREEMENT?

When you enter into a purchase agreement to buy a home orunit in a common-interest community, in most cases you should receive either apublic offering statement, if you are the original purchaser of the home orunit, or a resale package, if you are not the original purchaser. The lawgenerally provides for a 5-day period in which you have the right to cancel thepurchase agreement. The 5-day period begins on different starting dates,depending on whether you receive a public offering statement or a resalepackage. Upon receiving a public offering statement or a resale package, youshould make sure you are informed of the deadline for exercising your right tocancel. In order to exercise your right to cancel, the law generally requiresthat you hand deliver the notice of cancellation to the seller within the 5-dayperiod, or mail the notice of cancellation to the seller by prepaid UnitedStates mail within the 5-day period. For more information regarding your rightto cancel, see Nevada Revised Statutes 116.4108, if you received a publicoffering statement, or Nevada Revised Statutes 116.4109, if you received aresale package.

2. YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU CAN USEYOUR PROPERTY?

These restrictions are contained in a document known as theDeclaration of Covenants, Conditions and Restrictions. The CC&Rs become apart of the title to your property. They bind you and every future owner of theproperty whether or not you have read them or had them explained to you. TheCC&Rs, together with other governing documents (such as associationbylaws and rules and regulations), are intended to preserve the character andvalue of properties in the community, but may also restrict what you can do toimprove or change your property and limit how you use and enjoy your property.By purchasing a property encumbered by CC&Rs, you are agreeing tolimitations that could affect your lifestyle and freedom of choice. You shouldreview the CC&Rs, and other governing documents before purchasing to makesure that these limitations and controls are acceptable to you.

3. YOU WILL HAVE TO PAY OWNERS ASSESSMENTS FOR ASLONG AS YOU OWN YOUR PROPERTY?

As an owner in a common-interest community, you areresponsible for paying your share of expenses relating to the common elements,such as landscaping, shared amenities and the operation of any homeownersassociation. The obligation to pay these assessments binds you and every futureowner of the property. Owners fees are usually assessed by the homeownersassociation and due monthly. You have to pay dues whether or not you agree withthe way the association is managing the property or spending the assessments.The executive board of the association may have the power to change andincrease the amount of the assessment and to levy special assessments againstyour property to meet extraordinary expenses. In some communities, majorcomponents of the common elements of the community such as roofs and privateroads must be maintained and replaced by the association. If the association isnot well managed or fails to provide adequate funding for reserves to repair,replace and restore common elements, you may be required to pay large, specialassessments to accomplish these tasks.

4. IF YOU FAIL TO PAY OWNERS ASSESSMENTS, YOU COULDLOSE YOUR HOME?

If you do not pay these assessments when due, the associationusually has the power to collect them by selling your property in a nonjudicialforeclosure sale. If fees become delinquent, you may also be required to paypenalties and the associations costs and attorneys fees to become current. Ifyou dispute the obligation or its amount, your only remedy to avoid the loss ofyour home may be to file a lawsuit and ask a court to intervene in the dispute.

5. YOU MAY BECOME A MEMBER OF A HOMEOWNERS ASSOCIATIONTHAT HAS THE POWER TO AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?

Many common-interest communities have a homeownersassociation. In a new development, the association will usually be controlledby the developer until a certain number of units have been sold. After the periodof developer control, the association may be controlled by property owners likeyourself who are elected by homeowners to sit on an executive board and otherboards and committees formed by the association. The association, and itsexecutive board, are responsible for assessing homeowners for the cost ofoperating the association and the common or shared elements of the communityand for the day to day operation and management of the community. Becausehomeowners sitting on the executive board and other boards and committees ofthe association may not have the experience or professional background requiredto understand and carry out the responsibilities of the association properly,the association may hire professional community managers to carry out theseresponsibilities.

Homeowners associations operate on democratic principles.Some decisions require all homeowners to vote, some decisions are made by theexecutive board or other boards or committees established by the association orgoverning documents. Although the actions of the association and its executiveboard are governed by state laws, the CC&Rs and other documents that governthe common-interest community, decisions made by these persons will affect youruse and enjoyment of your property, your lifestyle and freedom of choice, andyour cost of living in the community. You may not agree with decisions made bythe association or its governing bodies even though the decisions are oneswhich the association is authorized to make. Decisions may be made by a fewpersons on the executive board or governing bodies that do not necessarilyreflect the view of the majority of homeowners in the community. If you do notagree with decisions made by the association, its executive board or othergoverning bodies, your remedy is typically to attempt to use the democraticprocesses of the association to seek the election of members of the executiveboard or other governing bodies that are more responsive to your needs. If youhave a dispute with the association, its executive board or other governingbodies, you may be able to resolve the dispute through the complaint,investigation and intervention process administered by the Office of theOmbudsman for Owners in Common-Interest Communities, the Nevada Real EstateDivision and the Commission for Common-Interest Communities. However, toresolve some disputes, you may have to mediate or arbitrate the dispute and, ifmediation or arbitration is unsuccessful, you may have to file a lawsuit andask a court to resolve the dispute. In addition to your personal cost inmediation or arbitration, or to prosecute a lawsuit, you may be responsible forpaying your share of the associations cost in defending against your claim.

6. YOU ARE REQUIRED TO PROVIDE PROSPECTIVE PURCHASERSOF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN YOUR COMMON-INTERESTCOMMUNITY?

The law requires you to provide a prospective purchaser ofyour property with a copy of the communitys governing documents, including theCC&Rs, association bylaws, and rules and regulations, as well as a copy ofthis document. You are also required to provide a copy of the associationscurrent year-to-date financial statement, including, without limitation, themost recent audited or reviewed financial statement, a copy of theassociations operating budget and information regarding the amount of themonthly assessment for common expenses, including the amount set aside asreserves for the repair, replacement and restoration of common elements. Youare also required to inform prospective purchasers of any outstanding judgmentsor lawsuits pending against the association of which you are aware. For moreinformation regarding these requirements, see Nevada Revised Statutes 116.4109.

7. YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN ACOMMON-INTEREST COMMUNITY THAT ARE GUARANTEED YOU BY THE STATE?

Pursuant to provisions of chapter116 of Nevada Revised Statutes, you have the right:

(a) To be notified of all meetings of the associationand its executive board, except in cases of emergency.

(b) To attend and speak at all meetings of theassociation and its executive board, except in some cases where the executiveboard is authorized to meet in closed, executive session.

(d) To inspect, examine, photocopy and audit financialand other records of the association.

(e) To be notified of all changes in the communitysrules and regulations and other actions by the association or board that affectyou.

8. QUESTIONS?

Although they may be voluminous, you should take the time toread and understand the documents that will control your ownership of aproperty in a common-interest community. You may wish to ask your real estateprofessional, lawyer or other person with experience to explain anything you donot understand. You may also request assistance from the Office of theOmbudsman for Owners in Common-Interest Communities, Nevada Real EstateDivision, at (telephone number).

Buyer or prospective buyers initials:_____

Date:_____

(Added to NRS by 1997, 3114; A 1999, 3013; 2003, 2248; 2005, 2616)

NRS 116.411 Escrowof deposits; furnishing of bond in lieu of deposit.

1. Except as otherwise provided in subsections 2 and3, a deposit made in connection with the purchase or reservation of a unit froma person required to deliver a public offering statement pursuant to subsection3 of NRS 116.4102 must be placed inescrow and held either in this State or in the state where the unit is locatedin an account designated solely for that purpose by a licensed title insurancecompany, an independent bonded escrow company, or an institution whose accountsare insured by a governmental agency or instrumentality until:

(a) Delivered to the declarant at closing;

(b) Delivered to the declarant because of thepurchasers default under a contract to purchase the unit;

(c) Released to the declarant for an additional item,improvement, optional item or alteration, but the amount so released:

(1) Must not exceed the lesser of the amount duethe declarant from the purchaser at the time of the release or the amount expendedby the declarant for the purpose; and

(2) Must be credited upon the purchase price; or

(d) Refunded to the purchaser.

2. A deposit or advance payment made for an additionalitem, improvement, optional item or alteration may be deposited in escrow ordelivered directly to the declarant, as the parties may contract.

3. In lieu of placing a deposit in escrow pursuant tosubsection 1, the declarant may furnish a bond executed by him as principal andby a corporation qualified under the laws of this State as surety, payable tothe State of Nevada, and conditioned upon the performance of the declarantsduties concerning the purchase or reservation of a unit. Each bond must be in aprincipal sum equal to the amount of the deposit. The bond must be held until:

(a) Delivered to the declarant at closing;

(b) Delivered to the declarant because of thepurchasers default under a contract to purchase the unit; or

(c) Released to the declarant for an additional item,improvement, optional item or alteration, but the amount so released must notexceed the amount due the declarant from the purchaser at the time of therelease or the amount expended by the declarant for that purpose, whichever isless.

(Added to NRS by 1991, 575; A 1993, 2377; 1995, 1420)

NRS 116.4111 Releaseof liens.

1. In the case of a sale of a unit where delivery of apublic offering statement is required pursuant to subsection 3 of NRS 116.4102, a seller:

(a) Before conveying a unit, shall record or furnish tothe purchaser releases of all liens, except liens on real estate that adeclarant has the right to withdraw from the common-interest community, thatthe purchaser does not expressly agree to take subject to or assume and thatencumber:

(1) In a condominium, that unit and its interestin the common elements; and

(2) In a cooperative or planned community, thatunit and any limited common elements assigned thereto; or

(b) Shall provide a surety bond against the lien asprovided for liens on real estate in NRS108.2413 to 108.2425, inclusive.

2. Before conveying real estate to the association,the declarant shall have that real estate released from:

(a) All liens the foreclosure of which would depriveunits owners of any right of access to or easement of support of their units;and

(b) All other liens on that real estate unless thepublic offering statement describes certain real estate that may be conveyedsubject to liens in specified amounts.

(Added to NRS by 1991, 575; A 2003, 2618)

NRS 116.4112 Convertedbuildings.

1. A declarant of a common-interest communitycontaining converted buildings, and any dealer who intends to offer units insuch a common-interest community, shall give each of the residential tenantsand any residential subtenant in possession of a portion of a convertedbuilding notice of the conversion and provide those persons with the publicoffering statement no later than 120 days before the tenants and any subtenantin possession are required to vacate. The notice must set forth generally therights of tenants and subtenants under this section and must be hand-deliveredto the unit or mailed by prepaid United States mail to the tenant and subtenantat the address of the unit or any other mailing address provided by a tenant. Notenant or subtenant may be required to vacate upon less than 120 days notice,except by reason of nonpayment of rent, waste or conduct that disturbs othertenants peaceful enjoyment of the premises, and the terms of the tenancy maynot be altered during that period. Failure to give notice as required by thissection is a defense to an action for possession.

2. For 60 days after delivery or mailing of the noticedescribed in subsection 1, the person required to give the notice shall offerto convey each unit or proposed unit occupied for residential use to the tenantwho leases that unit. If a tenant fails to purchase the unit during that 60-dayperiod, the offeror may not offer to dispose of an interest in that unit duringthe following 180 days at a price or on terms more favorable to the offereethan the price or terms offered to the tenant. This subsection does not applyto any unit in a converted building if that unit will be restricted exclusivelyto nonresidential use or the boundaries of the converted unit do notsubstantially conform to the dimensions of the residential unit beforeconversion.

3. If a seller, in violation of subsection 2, conveysa unit to a purchaser for value who has no knowledge of the violation, therecordation of the deed conveying the unit or, in a cooperative, the conveyanceof the unit, extinguishes any right a tenant may have under subsection 2 topurchase that unit if the deed states that the seller has complied withsubsection 2, but the conveyance does not affect the right of a tenant torecover damages from the seller for a violation of subsection 2.

4. If a notice of conversion specifies a date by whicha unit or proposed unit must be vacated and otherwise complies with theprovisions of NRS 40.251 and 40.280, the notice also constitutes anotice to vacate specified by those sections.

5. This section does not permit termination of a leaseby a declarant in violation of its terms.

(Added to NRS by 1991, 576)

NRS 116.4113 Expresswarranties of quality.

1. Express warranties made by any seller to apurchaser of a unit, if relied upon by the purchaser, are created as follows:

(a) Any affirmation of fact or promise that relates tothe unit, its use or rights appurtenant thereto, improvements to thecommon-interest community that would directly benefit the unit or the right touse or have the benefit of facilities not located in the common-interestcommunity creates an express warranty that the unit and related rights and useswill conform to the affirmation or promise;

(b) Any model or description of the physicalcharacteristics of the common-interest community, including plans and specificationsof or for improvements, creates an express warranty that the common-interestcommunity will reasonably conform to the model or description;

(c) Any description of the quantity or extent of thereal estate comprising the common-interest community, including plats orsurveys, creates an express warranty that the common-interest community willconform to the description, subject to customary tolerances; and

(d) A provision that a purchaser may put a unit only toa specified use is an express warranty that the specified use is lawful.

2. Neither formal words, such as warranty orguarantee, nor a specific intention to make a warranty is necessary to createan express warranty of quality, but a statement purporting to be merely anopinion or commendation of the real estate or its value does not create awarranty.

3. Any conveyance of a unit transfers to the purchaserall express warranties of quality made by previous sellers.

4. A warranty created by this section may be excludedor modified by agreement of the parties.

(Added to NRS by 1991, 577; A 1993, 2770)

NRS 116.4114 Impliedwarranties of quality.

1. A declarant and any dealer warrant that a unit willbe in at least as good condition at the earlier of the time of the conveyance ordelivery of possession as it was at the time of contracting, reasonable wearand tear excepted.

2. A declarant and any dealer impliedly warrant that aunit and the common elements in the common-interest community are suitable forthe ordinary uses of real estate of its type and that any improvements made orcontracted for by him, or made by any person before the creation of thecommon-interest community, will be:

(a) Free from defective materials; and

(b) Constructed in accordance with applicable law,according to sound standards of engineering and construction, and in aworkmanlike manner.

3. In addition, a declarant and any dealer warrant toa purchaser of a unit that may be used for residential use that an existinguse, continuation of which is contemplated by the parties, does not violateapplicable law at the earlier of the time of conveyance or delivery ofpossession.

4. Warranties imposed by this section may be excludedor modified as specified in NRS 116.4115.

5. For purposes of this section, improvements made orcontracted for by an affiliate of a declarant are made or contracted for by thedeclarant.

6. Any conveyance of a unit transfers to the purchaserall of the declarants implied warranties of quality.

(Added to NRS by 1991, 577)

NRS 116.4115 Exclusionor modification of warranties of quality.

1. Except as limited by subsection 2 with respect to apurchaser of a unit that may be used for residential use, implied warranties ofquality:

(a) May be excluded or modified by agreement of theparties; and

(b) Are excluded by expression of disclaimer, such asas is, with all faults, or other language that in common understandingcalls the purchasers attention to the exclusion of warranties.

2. With respect to a purchaser of a unit that may beoccupied for residential use, no general disclaimer of implied warranties ofquality is effective, but a declarant and any dealer may disclaim liability inan instrument signed by the purchaser for a specified defect or specifiedfailure to comply with applicable law, if the defect or failure entered intoand became a part of the basis of the bargain.

(Added to NRS by 1991, 578)

NRS 116.4116 Statuteof limitations for warranties.

1. A judicial proceeding for breach of any obligationarising under NRS 116.4113 or 116.4114 must be commenced within 6 yearsafter the cause of action accrues, but the parties may agree to reduce theperiod of limitation to not less than 2 years. With respect to a unit that maybe occupied for residential use, an agreement to reduce the period oflimitation must be evidenced by a separate instrument executed by thepurchaser.

2. Subject to subsection 3, a cause of action forbreach of warranty of quality, regardless of the purchasers lack of knowledgeof the breach, accrues:

(a) As to a unit, at the time the purchaser to whom thewarranty is first made enters into possession if a possessory interest wasconveyed or at the time of acceptance of the instrument of conveyance if anonpossessory interest was conveyed; and

(b) As to each common element, at the time the commonelement is completed or, if later, as to:

(1) A common element that may be added to thecommon-interest community or portion thereof, at the time the first unittherein is conveyed to a bona fide purchaser; or

(2) A common element within any other portion ofthe common-interest community, at the time the first unit is conveyed to apurchaser in good faith.

3. If a warranty of quality explicitly extends tofuture performance or duration of any improvement or component of thecommon-interest community, the cause of action accrues at the time the breachis discovered or at the end of the period for which the warranty explicitlyextends, whichever is earlier.

(Added to NRS by 1991, 578)

NRS 116.4117 Effectof violations on rights of action; civil action for damages for failure orrefusal to comply with provisions of chapter or governing documents; attorneysfees.

1. If a declarant or any other person subject to thischapter fails to comply with any of its provisions or any provision of the declarationor bylaws, any person or class of persons suffering actual damages from thefailure to comply has a claim for appropriate relief.

2. Subject to the requirements set forth in NRS 38.310 and except as otherwise providedin NRS 116.3111, a civil action fordamages caused by a failure or refusal to comply with any provision of thischapter or the governing documents of an association may be brought:

(a) By the association against:

(1) A declarant; or

(2) A units owner.

(b) By a units owner against:

(1) The association;

(2) A declarant; or

(3) Another units owner of the association.

3. Punitive damages may be awarded for a willful andmaterial failure to comply with this chapter if the failure is established byclear and convincing evidence.

4. The court may award reasonable attorneys fees tothe prevailing party.

5. The civil remedy provided by this section is inaddition to, and not exclusive of, any other available remedy or penalty.

(Added to NRS by 1991, 578; A 1993, 2377; 1997, 3125)

NRS 116.4118 Labelingof promotional material. No promotionalmaterial may be displayed or delivered to prospective purchasers whichdescribes or portrays an improvement that is not in existence unless thedescription or portrayal of the improvement in the promotional material isconspicuously labeled or identified either as MUST BE BUILT or as NEED NOTBE BUILT.

(Added to NRS by 1991, 579)

NRS 116.4119 Declarantsobligation to complete and restore.

1. Except for improvements labeled NEED NOT BEBUILT, the declarant shall complete all improvements depicted on any site planor other graphic representation, including any plats or plans prepared pursuantto NRS 116.2109, whether or not thatsite plan or other graphic representation is contained in the public offeringstatement or in any promotional material distributed by or for the declarant.

2. The declarant is subject to liability for theprompt repair and restoration, to a condition compatible with the remainder ofthe common-interest community, of any portion of the common-interest communityaffected by the exercise of rights reserved pursuant to or created by NRS 116.211 to 116.2113, inclusive, 116.2115 or 116.2116.

(Added to NRS by 1991, 579)

NRS 116.412 Substantialcompletion of units. In the case of a sale ofa unit in which delivery of a public offering statement is required, a contractof sale may be executed, but no interest in that unit may be conveyed, untilthe declaration is recorded and the unit is substantially completed, inaccordance with local ordinances.

(Added to NRS by 1991, 579; A 1993, 2377)

ADMINISTRATION AND ENFORCEMENT OF CHAPTER

General Provisions

NRS 116.600 Commissionfor Common-Interest Communities: Creation; appointment and qualifications ofmembers; terms of office; compensation.

1. The Commission for Common-Interest Communities ishereby created.

2. The Commission consists of five members appointedby the Governor. The Governor shall appoint to the Commission:

(a) One member who is a units owner residing in thisState and who has served as a member of an executive board in this State;

(b) One member who is in the business of developingcommon-interest communities in this State;

(d) One member who is a certified public accountantlicensed to practice in this State pursuant to the provisions of chapter 628 of NRS; and

(e) One member who is an attorney licensed to practicein this State.

3. Each member of the Commission must be a resident ofthis State. At least three members of the Commission must be residents of acounty whose population is 400,000 or more.

4. Each member of the Commission must have resided ina common-interest community or have been actively engaged in a business orprofession related to common-interest communities for not less than 3 yearsimmediately preceding the date of his appointment.

5. After the initial terms, each member of theCommission serves a term of 3 years. Each member may serve not more than two consecutivefull terms. If a vacancy occurs during a members term, the Governor shallappoint a person qualified under this section to replace the member for theremainder of the unexpired term.

6. While engaged in the business of the Commission,each member is entitled to receive:

(a) A salary of not more than $80 per day, asestablished by the Commission; and

(b) The per diem allowance and travel expenses providedfor state officers and employees generally.

(Added to NRS by 2003, 2209; A 2005, 2619)

NRS 116.605 Commissionfor Common-Interest Communities: Courses of instruction for members.

1. The Division shall provide or arrange to haveprovided to each member of the Commission courses of instruction concerningrules of procedure and substantive law appropriate for members of theCommission.

2. Each member of the Commission must attend thecourses of instruction not later than 6 months after the date that the memberis first appointed to the Commission.

(Added to NRS by 2003, 2209)

NRS 116.610 Commissionfor Common-Interest Communities: Election of officers; meetings; quorum.

1. At the first meeting of each fiscal year, theCommission shall elect from its members a Chairman, a Vice Chairman and aSecretary.

2. The Commission shall meet at least once eachcalendar quarter and at other times on the call of the Chairman or a majorityof its members.

3. A majority of the members of the Commissionconstitutes a quorum for the transaction of all business.

(Added to NRS 2003, 2210)

NRS 116.615 Administrationof chapter; regulations of Commission and Real Estate Administrator; delegationof authority; publications.

1. The provisions of this chapter must be administeredby the Division, subject to the administrative supervision of the Director ofthe Department of Business and Industry.

2. The Commission and the Division may do all thingsnecessary and convenient to carry out the provisions of this chapter,including, without limitation, prescribing such forms and adopting suchprocedures as are necessary to carry out the provisions of this chapter.

3. The Commission, or the Administrator with theapproval of the Commission, may adopt such regulations as are necessary tocarry out the provisions of this chapter.

4. The Commission may by regulation delegate anyauthority conferred upon it by the provisions of this chapter to theAdministrator to be exercised pursuant to the regulations adopted by theCommission.

5. When regulations are proposed by the Administrator,in addition to other notices required by law, the Administrator shall providecopies of the proposed regulations to the Commission not later than 30 daysbefore the next meeting of the Commission. The Commission shall approve, amendor disapprove any proposed regulations at that meeting.

6. All regulations adopted by the Commission, oradopted by the Administrator with the approval of the Commission, must bepublished by the Division, posted on its website and offered for sale at areasonable fee.

(Added to NRS by 2003, 2210; A 2005, 2619)

NRS 116.620 Employmentof personnel by Real Estate Division; duties of Attorney General; legalopinions by Attorney General.

1. Except as otherwise provided in this section andwithin the limits of legislative appropriations, the Division may employexperts, attorneys, investigators, consultants and other personnel as arenecessary to carry out the provisions of this chapter.

2. The Attorney General shall act as the attorney forthe Division in all actions and proceedings brought against or by the Division pursuantto the provisions of this chapter.

3. The Attorney General shall render to the Commissionand the Division opinions upon all questions of law relating to theconstruction or interpretation of this chapter, or arising in theadministration thereof, that may be submitted to him by the Commission or theDivision.

(Added to NRS by 2003, 2210)

NRS 116.625 Ombudsmanfor Owners in Common-Interest Communities: Creation of office; appointment;qualifications; powers and duties.

1. The Office of the Ombudsman for Owners inCommon-Interest Communities is hereby created within the Division.

2. The Administrator shall appoint the Ombudsman. TheOmbudsman is in the unclassified service of the State.

3. The Ombudsman must be qualified by training andexperience to perform the duties and functions of his office.

4. In addition to any other duties set forth in thischapter, the Ombudsman shall:

(a) Assist in processing claims submitted to mediationor arbitration pursuant to NRS 38.300 to38.360, inclusive;

(b) Assist owners in common-interest communities tounderstand their rights and responsibilities as set forth in this chapter andthe governing documents of their associations, including, without limitation,publishing materials related to those rights and responsibilities;

(d) When appropriate, investigate disputes involvingthe provisions of this chapter or the governing documents of an association andassist in resolving such disputes; and

(e) Compile and maintain a registration of eachassociation organized within the State which includes, without limitation, thefollowing information:

(1) The name, address and telephone number ofthe association;

(2) The name of each community manager for thecommon-interest community and the name of any other person who is authorized tomanage the property at the site of the common-interest community;

(3) The names, mailing addresses and telephonenumbers of the members of the executive board of the association;

(4) The name of the declarant;

(5) The number of units in the common-interestcommunity;

(6) The total annual assessment made by theassociation;

(7) The number of foreclosures which werecompleted on units within the common-interest community and which were based onliens for the failure of the units owner to pay any assessments levied againstthe unit or any fines imposed against the units owner; and

(8) Whether the study of the reserves of theassociation has been conducted pursuant to NRS116.31152 and, if so, the date on which it was completed.

(Added to NRS by 1997, 3112; A 1999, 2997; 2003, 1302, 2222)(Substitutedin revision for NRS 116.1116)

NRS 116.630 Accountfor Common-Interest Communities: Creation; administration; sources; uses.

1. There is hereby created the Account forCommon-Interest Communities in the State General Fund. The Account must beadministered by the Administrator.

2. Except as otherwise provided in subsection 3, allmoney received by the Commission, a hearing panel or the Division pursuant tothis chapter, including, without limitation, the fees collected pursuant to NRS 116.31155, must be deposited into theAccount.

3. If the Commission imposes a fine or penalty, theCommission shall deposit the money collected from the imposition of the fine orpenalty with the State Treasurer for credit to the State General Fund. If themoney is so deposited, the Commission may present a claim to the State Board ofExaminers for recommendation to the Interim Finance Committee if money isrequired to pay attorneys fees or the costs of an investigation, or both.

4. The interest and income earned on the money in theAccount, after deducting any applicable charges, must be credited to theAccount.

5. The money in the Account must be used solely todefray:

(a) The costs and expenses of the Commission and theOffice of the Ombudsman; and

(b) If authorized by the Commission or any regulationsadopted by the Commission, the costs and expenses of subsidizing proceedingsfor mediation and arbitration conducted pursuant to NRS 38.300 to 38.360, inclusive.

(Added to NRS by 1997, 3113; A 1999, 8, 2998; 2003, 2223)(Substitutedin revision for NRS 116.1117)

NRS 116.635 Immunity. The Commission and its members, each hearing panel and itsmembers, the Administrator, the Ombudsman, the Division, and the experts,attorneys, investigators, consultants and other personnel of the Commission andthe Division are immune from any civil liability for any decision or actiontaken in good faith and without malicious intent in carrying out the provisionsof this chapter.

(Added to NRS by 2003, 2211)

NRS 116.640 Serviceof notice and other information upon Commission. Anynotice or other information that is required to be served upon the Commissionpursuant to the provisions of this chapter may be delivered to the principaloffice of the Division.

(Added to NRS by 2003, 2210)

NRS 116.645 Authorityfor Real Estate Division to conduct business electronically; regulations; fees;use of unsworn declaration; exclusions.

1. The Administrator may adopt regulations whichestablish procedures for the Division to conduct business electronicallypursuant to title 59 of NRS with persons who are regulated pursuant to thischapter and with any other persons with whom the Division conducts business.The regulations may include, without limitation, the establishment of fees topay the costs of conducting business electronically with the Division.

2. In addition to the process authorized by NRS 719.280, if the Division is conductingbusiness electronically with a person and a law requires a signature or recordto be notarized, acknowledged, verified or made under oath, the Division mayallow the person to substitute a declaration that complies with the provisionsof NRS 53.045 to satisfy the legalrequirement.

3. The Division may refuse to conduct businesselectronically with a person who has failed to pay money which the person owesto the Division or the Commission.

(Added to NRS by 2003, 1301)

General Powers and Duties of Commission forCommon-Interest Communities

NRS 116.660 Issuanceand enforcement of subpoenas.

1. To carry out the purposes of this chapter, theCommission, or any member thereof acting on behalf of the Commission or actingon behalf of a hearing panel, may issue subpoenas to compel the attendance ofwitnesses and the production of books, records and other papers.

2. If any person fails to comply with a subpoenaissued by the Commission or any member thereof pursuant to this section within20 days after the date of service of the subpoena, the Commission may petitionthe district court for an order of the court compelling compliance with thesubpoena.

3. Upon such a petition, the court shall enter anorder directing the person subpoenaed to appear before the court at a time andplace to be fixed by the court in its order, the time to be not more than 20days after the date of service of the order, and show cause why he has notcomplied with the subpoena. A certified copy must be served upon the personsubpoenaed.

4. If it appears to the court that the subpoena wasregularly issued by the Commission or any member thereof pursuant to thissection, the court shall enter an order compelling compliance with thesubpoena, and upon failure to obey the order the person shall be dealt with asfor contempt of court.

(Added to NRS by 1999, 2996; A 2003, 2222)(Substitutedin revision for NRS 116.11145)

NRS 116.662 Witnesses:Payment of fees and mileage.

1. Each witness who is subpoenaed and appears at ahearing is entitled to receive for his attendance the same fees and mileageallowed by law to a witness in a civil case.

2. The fees and mileage for the witness:

(a) Must be paid by the party at whose request thewitness is subpoenaed; or

(b) If the appearance of the witness is not requestedby any party but the witness is subpoenaed at the request of the Commission ora hearing panel, must be paid by the Division.

(Added to NRS by 2005, 2586)

NRS 116.665 Conductinghearings and other proceedings; collection of information; development andpromotion of educational guidelines; accreditation of programs of education andresearch.

1. The Commission shall conduct such hearings andother proceedings as are required by the provisions of this chapter.

2. The Commission shall collect and maintain or causeto be collected and maintained accurate information relating to:

(a) The number and kind of common-interest communitiesin this State;

(b) The effect of the provisions of this chapter andany regulations adopted pursuant thereto on the development and construction ofcommon-interest communities, the residential lending market for units withincommon-interest communities and the operation and management of common-interestcommunities;

(d) The accessibility and use of, and the costs relatedto, the arbitration and mediation procedures set forth in NRS 38.300 to 38.360, inclusive, and the decisionsrendered and awards made pursuant to those arbitration and mediationprocedures;

(e) The number of foreclosures which were completed onunits within common-interest communities and which were based on liens for thefailure of the units owner to pay any assessments levied against the unit orany fines imposed against the units owner;

(f) The study of the reserves required by NRS 116.31152; and

(g) Other issues that the Commission determines are ofconcern to units owners, associations, community managers, developers andother persons affected by common-interest communities.

3. The Commission shall develop and promote:

(a) Educational guidelines for conducting the electionsof the members of an executive board, the meetings of an executive board andthe meetings of the units owners of an association; and

(b) Educational guidelines for the enforcement of thegoverning documents of an association through liens, penalties and fines.

4. The Commission shall recommend and approve foraccreditation programs of education and research relating to common-interestcommunities, including, without limitation:

(a) The management of common-interest communities;

(b) The sale and resale of units within common-interestcommunities;

(d) The enforcement, including by foreclosure, of lienson units within common-interest communities for the failure of the units ownerto pay any assessments levied against the unit or any fines imposed against theunits owner.

(Added to NRS by 2003, 2211)

NRS 116.670 Establishmentof standards for subsidizing arbitration, mediation and educational programs;acceptance of gifts, grants and donations; agreements and cooperation withother entities. The Commission may:

1. By regulation, establish standards for subsidizingproceedings for mediation and arbitration conducted pursuant to NRS 38.300 to 38.360, inclusive, to ensure that suchproceedings are not lengthy and are affordable and readily accessible to all parties;

2. By regulation, establish standards for subsidizingeducational programs for the benefit of units owners, members of executiveboards and officers of associations;

3. Accept any gifts, grants or donations; and

4. Enter into agreements with other entities that arerequired or authorized to carry out similar duties in this State or in otherjurisdictions and cooperate with such entities to develop uniform proceduresfor carrying out the provisions of this chapter and for accumulatinginformation needed to carry out those provisions.

(Added to NRS by 2003, 2212)

NRS 116.675 Appointmentof hearing panels; delegation of powers and duties; appeals to Commission.

1. The Commission may appoint one or more hearingpanels. Each hearing panel must consist of one or more independent hearingofficers.

2. The Commission may by regulation delegate to one ormore hearing panels the power of the Commission to conduct hearings and otherproceedings, determine violations, impose fines and penalties and take otherdisciplinary action authorized by the provisions of this chapter.

3. While acting under the authority of the Commission,a hearing panel and its members are entitled to all privileges and immunitiesand are subject to all duties and requirements of the Commission and itsmembers.

4. A final order of a hearing panel:

(a) May be appealed to the Commission if, not laterthan 20 days after the date that the final order is issued by the hearingpanel, any party aggrieved by the final order files a written notice of appealwith the Commission.

(b) Must be reviewed and approved by the Commission if,not later than 40 days after the date that the final order is issued by thehearing panel, the Division, upon the direction of the Chairman of theCommission, provides written notice to all parties of the intention of theCommission to review the final order.

(Added to NRS by 2003, 2210)

NRS 116.680 Useof audio or video teleconference for hearings. TheCommission or a hearing panel may conduct a hearing by means of an audio orvideo teleconference to one or more locations if the audio or video technologyused at the hearing provides the persons present at each location with theability to hear and communicate with the persons present at each otherlocation.

(Added to NRS by 2003, 2211)

Regulation of Community Managers

NRS 116.700 Personprohibited from acting as community manager without permit or certificate;regulations governing standards of practice; investigations; disciplinaryaction; exceptions. Repealed. (See chapter 494, Statutes of Nevada 2005,at page 2634.)

NRS 116.705 Regulationsgoverning certificates issued to community managers; fees. Repealed.(See chapter 494, Statutesof Nevada 2005, at page 2634.)

NRS 116.710 Paymentof child support: Statement by applicant for certificate; grounds for denial ofcertificate; duty of Division. Repealed. (See chapter 494, Statutes of Nevada 2005,at page 2634.)

NRS 116.715 Suspensionof certificate for failure to pay child support or comply with certainsubpoenas or warrants; reinstatement of certificate. Repealed. (Seechapter 494, Statutesof Nevada 2005, at page 2634.)

NRS 116.720 Expiration,revocation or surrender of permit or certificate does not prohibit disciplinaryaction against holder of permit or certificate. Repealed.(See chapter 494, Statutesof Nevada 2005, at page 2634.)

NRS 116.725 Administrativefine for engaging in certain conduct without permit, certificate orauthorization; procedure for imposition of fine; judicial review; exceptions.Repealed. (See chapter 494, Statutes of Nevada 2005,at page 2634.)

Investigation of Violations; Remedial and DisciplinaryAction

NRS 116.745 Violationdefined. As used in NRS 116.745 to 116.795, inclusive, unless the contextotherwise requires, violation means a violation of any provision of thischapter, any regulation adopted pursuant thereto or any order of the Commissionor a hearing panel.

(Added to NRS by 2003, 2213; A 2005, 2620)

NRS 116.750 Jurisdictionof Real Estate Division, Ombudsman, Commission and hearing panels.

1. In carrying out the provisions of NRS 116.745 to 116.795, inclusive, the Division and theOmbudsman have jurisdiction to investigate and the Commission and each hearingpanel has jurisdiction to take appropriate action against any person whocommits a violation, including, without limitation:

(a) Any association and any officer, employee or agentof an association.

(b) Any member of an executive board.

(d) Any person who holds a permit to conduct a study ofthe reserves of an association issued pursuant to chapter116A of NRS.

(e) Any declarant or affiliate of a declarant.

(f) Any units owner.

(g) Any tenant of a units owner if the tenant hasentered into an agreement with the units owner to abide by the governingdocuments of the association and the provisions of this chapter and anyregulations adopted pursuant thereto.

2. The jurisdiction set forth in subsection 1 appliesto any officer, employee or agent of an association or any member of anexecutive board who commits a violation and who:

(a) Currently holds his office, employment, agency orposition or who held his office, employment, agency or position at thecommencement of proceedings against him.

(b) Resigns his office, employment, agency or position:

(1) After the commencement of proceedingsagainst him; or

(2) Within 1 year after the violation isdiscovered or reasonably should have been discovered.

(Added to NRS by 2003, 2213; A 2005, 2620)

NRS 116.755 Rights,remedies and penalties are cumulative and not exclusive; limitations on powerof Commission and hearing panels regarding internal activities of association.

1. The rights, remedies and penalties provided by NRS 116.745 to 116.795, inclusive, are cumulative and donot abrogate and are in addition to any other rights, remedies and penaltiesthat may exist at law or in equity.

2. If the Commission, a hearing panel or anotheragency or officer elects to take a particular action or pursue a particularremedy or penalty authorized by NRS 116.745to 116.795, inclusive, or anotherspecific statute, that election is not exclusive and does not preclude theCommission, the hearing panel or another agency or officer from taking anyother actions or pursuing any other remedies or penalties authorized by NRS 116.745 to 116.795, inclusive, or another specificstatute.

3. In carrying out the provisions of NRS 116.745 to 116.795, inclusive, the Commission or ahearing panel shall not intervene in any internal activities of an associationexcept to the extent necessary to prevent or remedy a violation.

(Added to NRS by 2003, 2214)

NRS 116.757 Confidentialityof records: Certain records relating to complaint or investigation deemedconfidential; certain records relating to disciplinary action deemed publicrecords.

1. Except as otherwise provided in this section, awritten affidavit filed with the Division pursuant to NRS 116.760, all documents and otherinformation filed with the written affidavit and all documents and otherinformation compiled as a result of an investigation conducted to determinewhether to file a formal complaint with the Commission are confidential.

2. A formal complaint filed with the Commission andall documents and other information considered by the Commission or a hearingpanel when determining whether to impose discipline or take other administrativeaction pursuant to NRS 116.745 to 116.795, inclusive, are public records.

(Added to NRS by 2005, 2586)

NRS 116.760 Rightof person aggrieved by alleged violation to file affidavit with Real EstateDivision; procedure for filing affidavit; administrative fine for filing falseor fraudulent affidavit.

1. Except as otherwise provided in this section, aperson who is aggrieved by an alleged violation may, not later than 1 yearafter the person discovers or reasonably should have discovered the allegedviolation, file with the Division a written affidavit that sets forth the factsconstituting the alleged violation. The affidavit may allege any actual damagessuffered by the aggrieved person as a result of the alleged violation.

2. An aggrieved person may not file such an affidavitunless the aggrieved person has provided the respondent by certified mail,return receipt requested, with written notice of the alleged violation setforth in the affidavit. The notice must:

(a) Be mailed to the respondents last known address.

(b) Specify, in reasonable detail, the allegedviolation, any actual damages suffered by the aggrieved person as a result ofthe alleged violation, and any corrective action proposed by the aggrievedperson.

3. A written affidavit filed with the Divisionpursuant to this section must be:

(a) On a form prescribed by the Division.

(b) Be accompanied by evidence that:

(1) The respondent has been given a reasonableopportunity after receiving the written notice to correct the allegedviolation; and

(2) Reasonable efforts to resolve the allegedviolation have failed.

4. The Commission or a hearing panel may impose anadministrative fine of not more than $1,000 against any person who knowinglyfiles a false or fraudulent affidavit with the Division.

(Added to NRS by 2003, 2214; A 2005, 2620)

1. Upon receipt of an affidavit that complies with theprovisions of NRS 116.760, the Divisionshall refer the affidavit to the Ombudsman.

2. The Ombudsman shall give such guidance to theparties as the Ombudsman deems necessary to assist the parties to resolve thealleged violation.

3. If the parties are unable to resolve the allegedviolation with the assistance of the Ombudsman, the Ombudsman shall provide tothe Division a report concerning the alleged violation and any informationcollected by the Ombudsman during his efforts to assist the parties to resolvethe alleged violation.

4. Upon receipt of the report from the Ombudsman, theDivision shall conduct an investigation to determine whether good cause existsto proceed with a hearing on the alleged violation.

5. If, after investigating the alleged violation, theDivision determines that the allegations in the affidavit are not frivolous,false or fraudulent and that good cause exists to proceed with a hearing on thealleged violation, the Administrator shall file a formal complaint with theCommission and schedule a hearing on the complaint before the Commission or ahearing panel.

(Added to NRS by 2003, 2215)

NRS 116.770 Procedurefor hearing complaints: Time for holding hearing; continuances; notices;evidence; answers; defaults.

1. Except as otherwise provided in subsection 2, ifthe Administrator files a formal complaint with the Commission, the Commissionor a hearing panel shall hold a hearing on the complaint not later than 90 daysafter the date that the complaint is filed.

2. The Commission or the hearing panel may continuethe hearing upon its own motion or upon the written request of a party to thecomplaint, for good cause shown, including, without limitation, the existenceof proceedings for mediation or arbitration or a civil action involving thefacts that constitute the basis of the complaint.

3. The Division shall give the respondent writtennotice of the date, time and place of the hearing on the complaint at least 30days before the date of the hearing. The notice must be:

(a) Delivered personally to the respondent or mailed tothe respondent by certified mail, return receipt requested, to his last knownaddress.

(b) Accompanied by:

(1) A copy of the complaint; and

(2) Copies of all communications, reports,affidavits and depositions in the possession of the Division that are relevantto the complaint.

4. At any hearing on the complaint, the Division maynot present evidence that was obtained after the notice was given to therespondent pursuant to this section, unless the Division proves to thesatisfaction of the Commission or the hearing panel that:

(a) The evidence was not available, after diligentinvestigation by the Division, before such notice was given to the respondent;and

(b) The evidence was given or communicated to therespondent immediately after it was obtained by the Division.

5. The respondent must file an answer not later than30 days after the date that notice of the complaint is delivered or mailed bythe Division. The answer must:

(a) Contain an admission or a denial of the allegationscontained in the complaint and any defenses upon which the respondent willrely; and

(b) Be delivered personally to the Division or mailedto the Division by certified mail, return receipt requested.

6. If the respondent does not file an answer withinthe time required by subsection 5, the Division may, after giving therespondent written notice of the default, request the Commission or the hearingpanel to enter a finding of default against the respondent. The notice of thedefault must be delivered personally to the respondent or mailed to therespondent by certified mail, return receipt requested, to his last knownaddress.

(Added to NRS by 2003, 2215)

NRS 116.775 Representationby attorney. Any party to the complaint may berepresented by an attorney at any hearing on the complaint.

(Added to NRS by 2003, 2216)

NRS 116.780 Decisionson complaints.

1. After conducting its hearings on the complaint, theCommission or the hearing panel shall render a final decision on the merits ofthe complaint not later than 20 days after the date of the final hearing.

2. The Commission or the hearing panel shall notifyall parties to the complaint of its decision in writing by certified mail,return receipt requested, not later than 60 days after the date of the finalhearing. The written decision must include findings of fact and conclusions oflaw.

(Added to NRS by 2003, 2216)

NRS 116.785 Remedialand disciplinary action: Orders to cease and desist and to correct violations;administrative fines; removal from office or position; payment of costs;exemptions from liability.

1. If the Commission or the hearing panel, after noticeand hearing, finds that the respondent has committed a violation, theCommission or the hearing panel may take any or all of the following actions:

(a) Issue an order directing the respondent to ceaseand desist from continuing to engage in the unlawful conduct that resulted inthe violation.

(b) Issue an order directing the respondent to takeaffirmative action to correct any conditions resulting from the violation.

2. If the respondent is a member of an executive boardor an officer of an association, the Commission or the hearing panel may orderthe respondent removed from his office or position if the Commission or thehearing panel, after notice and hearing, finds that:

(a) The respondent has knowingly and willfullycommitted a violation; and

(b) The removal is in the best interest of theassociation.

3. If the respondent violates any order issued by theCommission or the hearing panel pursuant to this section, the Commission or thehearing panel, after notice and hearing, may impose an administrative fine ofnot more than $1,000 for each violation.

4. If the Commission or the hearing panel takes anydisciplinary action pursuant to this section, the Commission or the hearingpanel may order the respondent to pay the costs of the proceedings incurred bythe Division, including, without limitation, the cost of the investigation andreasonable attorneys fees.

5. Notwithstanding any other provision of this section,unless the respondent has knowingly and willfully committed a violation, if therespondent is a member of an executive board or an officer of an association:

(a) The association is liable for all fines and costsimposed against the respondent pursuant to this section; and

(b) The respondent may not be held personally liablefor those fines and costs.

(Added to NRS by 2003, 2216)

NRS 116.790 Remedialand disciplinary action: Audit of association; requiring association to hirecommunity manager who holds certificate; appointment of receiver.

1. If the Commission or ahearing panel, after notice and hearing, finds that the executive board or anyperson acting on behalf of the association has committed a violation, theCommission or the hearing panel may take any or all of the following actions:

(a) Order an audit of the association.

(b) Require the executive board to hire a communitymanager who holds a certificate.

2. The Commission, or the Division with the approvalof the Commission, may apply to a court of competent jurisdiction for theappointment of a receiver for an association if, after notice and a hearing,the Commission or a hearing officer finds that any of the following violationsoccurred:

(a) The executive board, or any member thereof, hasbeen guilty of fraud or collusion or gross mismanagement in the conduct orcontrol of its affairs;

(b) The executive board, or any member thereof, hasbeen guilty of misfeasance, malfeasance or nonfeasance; or

(c) The assets of the association are in danger ofwaste or loss through attachment, foreclosure, litigation or otherwise.

3. In any application for the appointment of areceiver pursuant to this section, notice of a temporary appointment of areceiver may be given to the association alone, by process as in the case of anapplication for a temporary restraining order or injunction. The hearingthereon may be had after 5 days notice unless the court directs a longer ordifferent notice and different parties.

4. The court may, if good cause exists, appoint one ormore receivers pursuant to this section to carry out the business of theassociation. The members of the executive board who have not been guilty of negligenceor active breach of duty must be preferred in making the appointment.

5. The powers of any receiver appointed pursuant tothis section may be continued as long as the court deems necessary and proper.At any time, for sufficient cause, the court may order the receivershipterminated.

6. Any receiver appointed pursuant to this sectionhas, among the usual powers, all the functions, powers, tenure and duties to beexercised under the direction of the court as are conferred on receivers and asprovided in NRS 78.635, 78.640 and 78.645, whether or not the association isinsolvent. Such powers include, without limitation, the powers to:

(a) Take charge of the estate and effects of theassociation;

(b) Appoint an agent or agents;

(c) Collect any debts and property due and belonging tothe association and prosecute and defend, in the name of the association, orotherwise, any civil action as may be necessary or proper for the purposes ofcollecting debts and property;

(d) Perform any other act in accordance with thegoverning documents of the association and this chapter that may be necessaryfor the association to carry out its obligations; and

(e) By injunction, restrain the association fromexercising any of its powers or doing business in any way except by and througha receiver appointed by the court.

(Added to NRS by 2003, 2217; A 2005, 2621)

NRS 116.795 Injunctions.

1. If the Commission or the Division has reasonablecause to believe, based on evidence satisfactory to it, that any personviolated or is about to violate any provision of this chapter, any regulationadopted pursuant thereto or any order, decision, demand or requirement of theCommission or Division or a hearing panel, the Commission or the Division maybring an action in the district court for the county in which the person residesor, if the person does not reside in this State, in any court of competentjurisdiction within or outside this State, to restrain or enjoin that personfrom engaging in or continuing to commit the violations or from doing any actin furtherance of the violations.

2. The action must be brought in the name of the Stateof Nevada. If the action is brought in a court of this State, an order orjudgment may be entered, when proper, issuing a temporary restraining order,preliminary injunction or final injunction. A temporary restraining order orpreliminary injunction must not be issued without at least 5 days notice tothe opposite party.

3. The court may issue the temporary restrainingorder, preliminary injunction or final injunction without:

(a) Proof of actual damages sustained by any person.

(b) The filing of any bond.

(Added to NRS by 2003, 2217; A 2005, 2622)

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