Q: An effort to collect delinquent association assessments in the state of Nevada seems predicated upon the premise of a process that is not mandated by NRS, but is nonetheless followed because this is how such efforts have always been conducted. The ultimate end goal of this process seems to entail the sale of the home of the delinquent party to remedy the unsatisfied debt. Intermediate steps in this process entail notices to the delinquent party with associated timeframes for compliance, followed by a collections process, and then the filing of intent to impose a lien on the delinquent’s property. These intermediate steps are time intensive and easily subject to abuse and manipulation. As a result, compliant homeowners of an association are forced to carry the financial burden of the delinquent party’s obligations until some measure of resolution is achieved. Aggravating the situation is that financial remedies for the association are capped. At a certain point, money owed beyond a certain amount is deemed lost and unrecoverable.
The NRS does not address or preclude any other pathways for obtaining a remedy to collect delinquent assessments and absent any language in a community’s governing documents restricting recovery to one pathway, there does appear to be at least one alternative option available to an association to restore an assessment delinquency in full. The objective of this alternative option is not foreclosure, but simply to collect a debt in full. This alternative option is through small claims court.
Legal, or other professional representation, in this alternative process is not required, thus precluding additional significant financial burden on either party. All that is necessary at the core of this process is that both parties represent their respective position with a preponderance of evidence supporting or disputing the validity of the debt.
This alternative option is a process as well, but much more straightforward and does not place an undue burden on either party such as the process outlined in the NRS.
Your opinion of this alternative option based on your experience and expertise, not legal expertise, would be appreciated.
A: This isn’t new information. Associations always had the option of initiating a small claims action for delinquent assessments. Let’s assume you took this route. You would need to pay for an asset check. You would need to attach some account and draw the funds to help clear the delinquency or sell some asset. Selling assets may require more legal work and costs in order to sell an assest. In civil justice court, a judge may decide the payment schedule which could last multiple years, so what happens with the current assessments? Unfortunately, small claims actions do not resolve the delinquent assessment nor does it address future assessments.
Q: My husband and I are interested in purchasing a home in the Las Vegas area, and we were hoping you would be able to help us understand some HOA-related rules and/or general restrictions that may apply to prospective homeowners.
Specifically, we are seeking information regarding any legal limitations that would affect individuals who are required to register as sex offenders when purchasing a property or residing in a home within an HOA community.
We want to ensure that we fully understand and are knowledgeable on any potential guidelines and legal restrictions before moving forward with our home search. We would greatly appreciate any insight or resources you may be able to share.
A: In Las Vegas, registered sex offenders can generally buy homes within associations as they are protected class under the Fair Housing Act. Associations can enforce restrictions if their governing documents, CCRs, specifically prohibit it as state law does restrict sex offenders from residing within 1,000 feet of schools, parks or playgrounds or facilities that provide services to children. The readers should review the specific CCRs of any association that you are considering purchasing a home.
Barbara Holland, CPM, CMCA, AMS, is an author, educator and expert witness on real estate issues pertaining to management and brokerage. Questions may be sent to holland744o@gmail.com.
