Condo owner might be able to avoid sale restriction

Q: In 2005, I purchased three condominiums. Several years later, the homeowners association passed a rule that a unit could be sold only to an owner/occupant. I wish to sell one this year but that rule seriously limits my chances. I did ask the HOA if I am grandfathered into the rule. I was told "no." What can I do?

A: Nevada Revised Statutes 116.335 subsection 1 says that the association may not prohibit the unit owner from renting or leasing his or her unit if at the time it was purchased such a regulation did not exist. This law does not include the selling of a home to a nonresident owner, but there has been case law on this subject, whereby the courts have concluded that if the regulation did not exist at the time of purchase, the homeowner would be exempt from the selling restriction.

You have two choices: One is to have the association present a written opinion from its legal counsel as to the validity of this regulation that does not "grandfather" any homeowners. The second is to hire your own legal counsel to review this regulation and advise you. If you have legal grounds, the next step would be to file for arbitration/mediation with the Nevada Real Estate Division.

Q: We live in a 120-house gated community in North Las Vegas. Our house abuts an elementary school within about 100 yards. In this abutment, the HOA developed a park-like atmosphere complete with a walking trail. Its primary purpose, however, is flood control.

The houses were built in 2004. There are about 10 to 15 houses along this trail. The backyards are fenced with metal grill. Now, the HOA is planning to tell the homeowners to repaint the grill at their own expense. The metal grill paint shows a little fading; other than that, it looks fine. There's no pitting or rust.

About half of the houses in this community are rented to military families by out-of-state owners. Can the HOA force us to repaint the metal grill when no one feels it's necessary?

A: If the covenants say the painting of the metal grill fences is the responsibility of the homeowners, the association can send notices to the homeowners that the fences need to be painted, even though you may believe that the painting is not needed. The association may have a time schedule that indicates when deferred maintenance must be addressed. You may want to contact the board or the management company to find out more about this recent requirement of the homeowners from the association.

Q: Can please explain how the Homestead Act works?

A: Associations are exempt to the Homestead Act. So if you owed the HOA money, even if you have filed a homestead document with the state, the HOA would still be able to file a foreclosure act against your home.

The reasoning is that when you closed on your home, you signed off on the association's governing documents, which in essence said that you agreed to their authority to foreclose upon you in cases of nonpayment.

Note: The state Ombudsman's Office has scheduled several free HOA classes in October. Some are: reserve studies, 3-5 p.m. Oct. 24, RMI 630 Trade Center Drive, No. 110; unit owner responsibilities, 10 a.m.-noon Oct. 25, Bradley Building, 2501 E. Sahara Ave.; overview of HOA living, 10 a.m.-noon Oct. 30, Bradley Building, 2501 E. Sahara Ave.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 385-3759, email is support@hlrealty.com.