Resignation not final until board accepts it

Q: During a meeting, a director on the board of our association became upset at another board member. Later, she handed her letter of resignation to the president, who did not share the letter with the other board members sitting there. A few days later, it was learned that the president, on her own, refused to accept the resignation letter and the director is now back on the board. I believe that this director should not be serving on the board.

The letter should have been shared with the other board members. It should have been a decision made by the full board and not just by the president without the board’s approval.

If the board member acted in haste, she is eligible to run during the next election. There is a responsibility that comes with being on the board and it shouldn’t be taken so lightly.

No formal mention had been made to any board members about her being placed back on the board in the same position.

The other board members had already found a replacement before it was learned through word of mouth that this board member was back on the board.

Can you please give me some guidance as to what procedure to follow on this issue.

A: Technically, a resignation is not final until it is accepted by the board of directors at a board meeting. It is not unusual in association management for community managers to witness an unhappy board member, who too quickly submits his or her resignation, only to retract that resignation, especially after a conversation with the manager or with the president of the association. Sometimes, for personal or private reasons, the letter of resignation is not shared with the other board members when the individual director retracts their letter of resignation. Since the resignation letter was retracted prior to the board meeting, the director would still be on the board.

Even when the letter of resignation was not specifically shared with the other directors, in your case, the other board members had knowledge of the resignation since they have found a possible replacement.

If a director resigns, there is nothing in the state law that would prevent them from running again to serve on the board. There are many reasons for resignation including health, family issues or employment issues.

Sometimes, the issue for resignation pertains to the director’s interaction with the other board members or with the membership.

Board members need to remember that your opinions and your motions may always not be supported by the entire board. Sometimes you win and sometimes you lose.

Management is about compromise and is about finding the optimum solutions to problems. Add a little common sense, fair play and understanding your governing documents and NRS 116 and you have the ingredients to having a great board of directors.

Q: I am renting out my condo. The board sent me a notice that said:

“The association is not trying to approve the rental of your home nor are we trying to limit the number of rental units. The decision to rent a unit by the owner is strictly his own to make. The board passed a resolution that requires an owner to register his tenant and to provide our office with a copy of the lease agreement. This allows the association to know who is residing in the rental unit and how long they are expected to be there. The information obtained is solely for the purpose of welcoming the tenant, adding them to our mailing list, having the Neighborhood Watch block captain contact them and having the welcome committee greet them.

In order to have accurate records of tenants, we are requesting that you submit a renter’s registration form and a copy of the lease agreement for each property managed by your office.”

Is this legal?

A: It is standard procedures in most associations that the owner register his tenants and send a copy of the lease agreement. Many of the reasons why the practice were listed by the association management. You can not even begin to know just how useful the registration form has been in the past and even more so now. We have seen tenants destroy homes and the registration forms have helped us to contact an appropriate party, be it the owner or the managing agent. Many associations have special newsletters for their tenants and place them on numerous mailing lists, such as receiving the latest rules and regulations.

Most governing documents require at least a 30-day rental agreement. By the landlord sending a copy of the agreement, the association can review to make sure that the landlord is not renting the home as a hotel. Tenants do fall under the jurisdiction of the association and can actually be fined by the association. (NRS 116.31031). The lease agreement should include information that the tenant lives within an association and must abide by the associations’ governing documents.

The information being requested by the association is not being used for approval purposes of the perspective tenant and therefore is not violating NRS 116.335.

Barbara Holland, CPM, and Supervisory CAM, is president of H&L Realty and Management Co. To ask her a question, e-mail support@hlrealty.com.

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