Glossary of Terms
Someone authorized by the principal to act for or in place of the principal. An agent is someone authorized to handle another’s legal documents.
Mediation or arbitration, as opposed to litigation.
Document filed with the provisions which set forth general information about a corporation. Filing this document creates the corporation. The bylaws contain the rules of the corporation.
Dues payable by members of a homeowner's association (HOA), usually due monthly. Assessments are determined annually in advance by the board of directors of the HOA during the budgeting process.
A nonprofit corporation created to manage a common interest development.
Governing body of the corporation/association. Directors are elected by the members of the association. The directors and officers have a duty to comply with the governing documents of the homeowner's association (HOA) as well as all applicable laws.
Any congregation of a majority of the board members at the same time and place to hear, discuss, and/or deliberate upon any item of business scheduled to be heard by the board of directors. Excluding matters to be discussed in an executive session.
The rules adopted for governing a corporation/association. The bylaws address elections of directors as well as officers, holding of board meetings, and the powers of directors and officers.
See Declaration
The common interest development that are free for use except for the separate interests. Nevada law requires an association to maintain the common areas other than exclusive use areas unless otherwise provided for in the Covenants, Conditions & Restrictions (CC&Rs).
Common areas typically include, but are not limited to, landscaped areas, driveways, pools, elevators, and courtyards.
Includes any of the following:
- A condominium development
- Planned development
- Stock cooperative
An undivided interest in real property, the common area, with a separate interest in space called a unit, the boundaries being defined in the condominium plan.
Under Nevada law, condominium associations are responsible for the repair and maintenance of common areas where wood destroying organisms are found unless the Covenants, Conditions & Restrictions (CC&Rs) state otherwise.
The person or people who signed are established by the Covenants, Conditions & Restrictions (CC&Rs). This is normally the development builder.
Also known as the Covenants, Conditions & Restrictions (CC&Rs). This is a document that sets forth restrictions on the use of any portion of the common interest development intended to be enforceable equitable servitudes.
Unless stated otherwise, these servitudes may be enforced by any owner of a separate interest as well as the homeowner's association (HOA).
Insurance coverage that protects the board members in lawsuits due to actions taken on behalf of the homeowner's association (HOA). It also covers errors and any omissions made by board members.
The right that someone has on the land of another. Ex: walking from land parcel A to land parcel B.
A portion of a common area established by the Covenants, Conditions & Restrictions (CC&Rs) for the exclusive use of one or more, but fewer than all of the owners of a separate interest. Unless the CC&Rs state otherwise, the following areas are exclusive use common areas:
- Awnings
- Balconies
- Doorsteps
- Exterior Doors
- Exterior Door Frames and Hardware
- External telephone wiring used to serve a single separate interest
- Patios
- Porches
- Screens
- Shutters
- Windows
- Window Boxes
- Under Nevada law, owners of the adjacent separate interests must maintain the exclusive use of common areas.
A confidential portion of a board meeting. Refer to ‘Open Meeting Act’.
The legal, moral, and ethical obligations of a person to fulfill their responsibilities to another. In a homeowner's association (HOA), directors of the HOA have a fiduciary duty to act in the best interest of the HOA.
The Covenants, Conditions & Restrictions (CC&Rs), Bylaws, Rules and Regulations, and Articles of Incorporation (or Articles of Association).
1. Guaranteed Replacement Cost Coverage with Full Building Code Upgrade: insurance that pays the replacement cost, without regard to policy limits and includes costs resulting from code changes. The amount of recovery will be reduced by any deductible.
2. Guaranteed Replacement Cost Coverage with Limited or No Building Code Upgrade: insurance that pays the replacement costs without regard to policy limits, but limits or excludes costs resulting from code changes. The recovery amount will be reduced by any deductible.
3. Replacement Cost Coverage: insurance that pays replacement costs up to policy limits based upon like or equivalent construction. The amount of recovery will be reduced by any deductible.
A recorded claim against a property, including Assessment Liens, Deeds of Trust, and any unpaid taxes.
A contract between a homeowner's association (HOA) and a management company which sets forth the rights and obligations of both parties. These agreements may be “full service” or “financial service” contracts. Some management companies provide more services than others.
A right provided by law to individuals and businesses that make improvements to real property but are not paid. Mechanics include any worker or business that supplies building materials or labor for the construction or improvement of any real property.
Refers to the Civil Code Section that permits any member of a homeowner's association (HOA) to attend board meetings. Except when the board adjourns to executive session to consider litigation, matters relating to the formation of contracts with third parties, member discipline, personnel matters, or to meet with a member, upon the member’s request, regarding the member’s payment of assessments.
A regulation adopted by a board of directors that applies to the management and operation of any common interest development. Or the conduct of the business of the homeowner's association (HOA).
A common interest development other than a condominium or stock cooperative. The common area is often owned by the homeowner's association (HOA). However, it may also be owned in common by the owners of the separate interests. The separate interest is a lot, parcel, or space, not a unit.
Under Nevada law, in a planned development, each owner of a separate interest is responsible for the repair and maintenance of that separate interest. The repairs may be caused by the presence of wood-destroying organisms (termites and dry rot) unless the Conditions & Restrictions (CC&Rs) indicate otherwise.
Annual budget for a homeowner's association (HOA), which estimates revenue and expenses. Also includes a summary of the HOA’s reserves based on the most recent reserve study. A copy must be distributed to all HOA members not less than 30 days nor more than 90 days prior to the beginning of an HOA’s fiscal year.
The power granted by one person to another to represent them for voting purposes. A proxy form is used by a homeowner unable to attend a homeowner's meeting so that a quorum can be achieved at the meeting.
A written report which identifies all of the major components which the homeowner's association (HOA) is obligated to repair, replace, restore, or maintain having a remaining useful life of more than two years and less than 30 years as of the date of the study.
The report estimates the remaining useful life of each component as well as the amount of funds the HOA must set aside each month in their reserves to have the cash available to make all necessary repairs and replacements. Under Nevada law, most HOAs are required to obtain a reserve study at least every three years.
Funds set aside for repairs and replacements to be made by a homeowner's association (HOA) as determined by a reserve study
1. In a condominium project, an individual unit or separate interest in space.
2. In a planned development, a separately owned lot, parcel, area, or space.
3. In a stock cooperative, the exclusive right to occupy a portion of the real property.
With both condominiums and planned developments, the transfer by sale or foreclosure of a separate interest includes the automatic transfer of the owner’s undivided interest in the common area or membership interest in the homeowner's association (HOA). Under Nevada law, the owner of each separate interest is responsible for its maintenance.
An assessment made, usually for a special project or in response to a large unbudgeted expense.
A project in which a corporation is formed for the purpose of holding title to the property. The shareholders of the corporation receive a right of exclusive occupancy in a portion of the property, either an apartment, space, or home site. The shareholder’s interest in the corporation is evidenced by a share of stock or a membership certificate.
Refers to the load-bearing components of a building, as opposed to the screening or ornamental elements. Structural lumber is generally at least a 2x4.
This is not a legal form of ownership but rather an architectural style. A townhouse may be a condominium or planned development. They are multilevel homes that are usually built in rows with individual garages. The homes are not stacked one on top of another so that no owner lives above or below another.
Refers to the type of ownership interest that the owner of a separate interest has in a common area. In a condominium or other planned development, this undivided interest consists of a tenancy in common. This means that each owner having an undivided interest may use all or any portion of the common area, subject to any restrictions established by the Declaration Conditions & Restrictions (CC&Rs).
Nevada HOA Laws
Non-Judicial Foreclosure Timeline
Non-Judicial Foreclosure
Some facts:
Foreclosure is never the goal, however, it is sometimes a necessity if the homeowner is not willing or unable to pay their assessments. Our goal is to collect any delinquent assessments, late fees, accrued interest, and collection fees in a timely fashion while working with all parties in a respectful courteous way to resolve the matter. Board-approved payment plans are closely monitored to help cure delinquent assessments as quickly as possible.
Letter/Notice of Intent to Lien
Immediately after a homeowner is referred to our office for collections, we issue a Notice of Intent to Lien via certified mail with a tracking number, so we can confirm that the notice was delivered. This informs the delinquent homeowner that they have 30 days to settle the delinquency.
Settling the payment will prevent a lien from being recorded against their property. We also provide a copy of the association’s collection policy and a ledger detailing all of the owner’s charges and payments. That is the first step in the non-judicial foreclosure process.
Lien Recordation
At the end of 30 days, the board of directors is provided with a lien authorization letter. Nevada law requires the board to meet in an open session, identifying the owner by assessor’s parcel number, to approve the recordation of the lien.
Notice of Default
If the homeowner is delinquent either over one year or the assessments exceed $1,800, 30 days from the recording of the lien should the delinquent assessments and fees not be paid, Viking HOA Collections, LLC (HCS) will record a Notice of Default.
This notice informs the homeowner they have 90 days to satisfy the lien. A “Trustee Sale Guarantee” is issued to see that all affected parties with an interest in the property are informed of the notice.
Notice of Sale (Foreclosure)
90 days after the Notice of Default with the board’s approval, a foreclosure sale is reported and held after a 25-day notice. Delinquencies are paid to the association from the sale of the property.
However, if the property is not sold, the property ownership goes to the association. We will work with all parties involved to avoid this step. The owner(s) have 90 days to redeem the property after the sale by making full payment.