Associations must maintain records, minutes of meetings

Q: Could you please tell me the requirements for an association in keeping records, such as the ballots? This particular issue pertains to one that needed 67 percent approval to amend the covenants; and they (the ballots) happen to have exactly 67 percent approval.

When I requested copies of ballots from a 2004 amendment to the covenants (preventing rentals of units purchased after 2004), I was informed that they were destroyed.

I questioned the right of those ballots to be destroyed and the association has no reasonable answer other than they just thought the ballots could be destroyed.

Am I wrong in my understanding that they must keep their records longer than two years?

A: NRS 116.31083 subsection 10 states that associations shall maintain the minutes of each meeting of the executive board until the common-interest community is terminated. NRS 116.31175 subsection 4 states that books, records and other papers of an association must be maintained for at least 10 years.

These sections of the law were passed in 2003 and were part of SB 100.

If the association does not have these records any more, you will just have to rely upon the minutes of the meeting.

Was there any kind of summary sheet that indicated who voted? Also, since the prevention of rentals is a material change to the covenants; did the lending institutions also approve the amendment?

Please check your governing documents under the section of amendments or material changes; you should see where the approval of this type of amendment is required by the lenders. If the lenders have not approved the amendment, then it the amendment would not have been legally passed.

Q: We have a unique situation. One of our board members is a real estate licensee. Recently another real estate licensee placed ads underneath our doors.

We sanction that person and told them not to do this again since we are a gated community. Apparently, the board member, who is a real estate licensee, then placed ads underneath the homeowner doors.

She has filed a suite against me, as board president, for interference with her business. Any advice would be appreciated.

A: First, there is a conflict of interest only if the board member is providing a service that he or she is being paid by the association for that service. This is not the case.

Second, does the association have a written standing policy that it does not allow solicitors to enter into the community and place notices on or under the resident doors? Many associations have that policy which applies across the board. It doesn’t matter who is placing the advertisements, which often result in additional debris throughout the community.

If the association has such a policy that you cannot solicit in this manner (preferably in writing, as opposed to just in practice) and has a policy that written warning letters are sent to all vendors and individuals to stop placing their advertisements inside the community, then the board member who is a real estate licensee, has an obligation to follow the policy.

As to the claim that the association is interfering with her business, the association would present the case that the board member has the option, as all vendors and individuals, to mail her advertisements to the residents, as is the practice of many real estate licensees.

If she has Internet capability, she can place this information on the mailers as another form of advertisement, in addition to sending promotional information by mail to the membership.

The fact that she ties in board business with her real estate business is not against the law.

If you are being sued as a member of the association, you should have contacted your insurance company as this type of suit should be covered under your directors and officers’ policy.

Barbara Holland, certified property manager, is president and owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors. Questions may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

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