State law dictates rules for filling unexpired board terms

Q: (The reader has three questions.) If all of the board directors resign except for one, can that person appoint members to fill the vacated positions? Can the remaining director allow a position to be left open when it was to be re-elected by the membership? Should a homeowner who is running for a board position disclose the fact that his or her house is for sale or that it has been sold, but will not closed until after the annual meeting?

A: First, unless your governing documents state otherwise, the remaining director could appoint members to fill the vacated positions and not call for a general election by the membership. State law NRS 116.3103 allows boards to fill vacancies for the unexpired terms of directors. The answer to the second question is no. The remaining director would be overstepping his or her authority. A general election should have been called to allow the membership the opportunity of electing a director to fill this position. To address the third question: NRS 116.31034 subsection 5 states that each person whose name is placed on the ballot as a candidate for the board must make a good faith effort to disclose any financial, business, professional or personal relationship or interest that would result or would appear to a reasonable person to result in a potential conflict of interest if that person were to be elected to the board. In addition, that person is to disclose whether he or she is a member in good standing, i.e., that he or she does not owe the association any assessments or construction penalties. The association shall than distribute this information with the ballot to the membership.

Technically, a house is not sold until it closes, so the homeowner technically would still be a member of the association. Just because a house is up for sale does not mean it will be sold or that the homeowner could not take the house off the market. Having made these statements, this homeowner had an ethical obligation to disclose this information. Trust, honesty and integrity must be the foundation of any organization and of any board directors. Without these qualities, homeowners are at risk with a board that places personal interests over the interest of the common good.

Q: I bought a townhouse in 1998 with a 10-year homeowner warranty. Several months ago, I contacted the head of the association and after getting the runaround, I was turned over to the president of the association. I didn't do any better with him.

My first problem is that the paint is chipping and peeling around the front door and garage door -- badly -- and there are dark lines on the living room ceiling, probably caused by roof leaks. The type of warranty is one that the developer provides to a homeowner which covers more building issues, such as roofs, stucco and painting and interior construction. What should I do?

A: The reader, who is a senior citizen with limited income, should contact the Henderson Senior Center at 565-6990 for direction. They may have a division that could review the warranty contract, or could direct him to a senior citizen legal service. These organizations may be able to intervene by making the telephone calls or by sending letters on his behalf.

In addition, the reader should call and set an appointment to talk to the Nevada Contractors Board at 486-1110, which is their investigation telephone number. Finally, if it comes to the conclusion that the association is really responsible for the exterior painting and for the roof repair, the reader could contact the ombudsman's office of the state Real Estate Division for assistance in having the association address his maintenance issues. The ombudsman's office can be reached at 486-4033.

Barbara Holland, certified property 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. Her fax number is 385-3759. Questions may be shortened and are subject to editing.