Fuller Jenkins will guide your association through transition from developer/declarant control to make sure that your association’s legal rights are preserved when the developer/declarant turns control of the association over to the homeowners. Unfortunately, a developer/declarant’s mistakes or intentional failures to comply with the laws governing community associations can cause a community association to be substantially under-funded, create tremendous future issues, and may lead to substantial association liabilities. Pro-active associations that obtain proper guidance during the transition process can preserve association funds and amicably resolve problems with their developer before major problems arise without the need for costly litigation.
In the event that your association is under-funded at transition, Fuller Jenkins attorneys can assist in the recovery of those funds. Fuller Jenkins understands that under-funded associations often do not have sufficient funds necessary to fund the recovery of amounts owed to the association by its developer/declarant. Therefore, Fuller Jenkins will work with your association in making arrangements whereby the association can afford to obtain the quality legal services it needs.
Guiding an Association through Transition from Developer/Declarant Control involves the following:
Meeting with appropriate accounting and reserve study professionals to determine whether an association’s operating and reserve accounts were adequately funded by the association’s developer/declarant within thirty days of transition.
Review of the membership meeting and voting documents to determine that proper procedural protocols were followed to validly convey control of the association to a properly elected owner controlled board. (The latest time at which a developer/declarant may deliver control of an association is set by NRS 116.31032).
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Reviewing the documents and other property turned over to the association by the developer/declarant at transition to ensure the developer/declarant has delivered all association property to the association as required by NRS 116.31038.
A determination of whether contracts entered into by the association during developer/declarant control were made in good faith or are unconscionable and a termination of such improper contracts pursuant to NRS 116.3105.
A review of the association’s CC&Rs and related recorded documents to determine whether Common Area property was properly conveyed to the association.
Properly documenting all relevant events related to transition so that future board members and management companies will have access to relevant transition related information.
Educating board members and community managers on the relevant procedural complexities specific to the association’s governing documents and those governing all associations pursuant to Nevada law.
Review and contrast of association insurance policies with the association’s governing documents and Nevada law to determine whether the association is carrying its required insurance coverage.
Initiating and maintaining a line of communication with the association’s developer/declarant so that any issues facing the association may be resolved expeditiously and without unnecessary legal action.
