Homeowners associations (HOAs) can be quite difficult to manage effectively. Because of their fiduciary responsibility to each of the homeowners involved in the association, legal matters can get quite complex even for the most intelligent folks out there. That's why at Maddox, Isaacson & Cisneros, LLP, our Las Vegas attorneys are proud to offer general counsel services to HOAs so that they can meet all the rules and regulations required of them. We believe that the key to a successful homeowner association is having board members who are knowledgeable and informed.
A homeowners’ association will get a superiority lien for 9 months of unpaid assessments. With few exceptions, this lien overrides all other liens on the homeowner’s property, even a first deed of trust recorded before the dues became delinquent. More simply, the superiority lien gets paid even before the first mortgage deed. If an association chooses to foreclose on unpaid assessments, it will usually get paid those first 9 months of unpaid assessments before anyone else gets funds. Likewise, if the homeowner has insufficient funds, the first mortgage and any second mortgage trust deeds that may exist are extinguished. In most instances, a new owner will take title to the property without needing to worry about the bank’s mortgage.
Associations must take certain measures to protect its lien rights, including recording a notice of default and election to sell. It can no longer count on CC&Rs to enforce its rights. If an Association delays enforcement, it may waive its ability to collect assessments. Find out more about association superiority liens by visiting our liens information page.
HOA board of directors have particular fiduciary responsibilities, including placing the interests of the association ahead of their own, avoiding conflicts of interest, acting upon expert advice when appropriate, and acting reasonably and in good faith. As a board member, you are handling the money and making decisions for the community.
In order to avoid liability, you should read and understand your governing documents, stay informed by keeping in touch with the community and conducting periodic reviews of financial statements, investigate problems that arise, handle issues in a timely manner, consult with experts before making decisions, avoid conflicts of interest, keep accurate records, and ensure your community is well protected. For more information about HOA board of director duties, click on our information page.
We've made our name combating construction defect cases all throughout Las Vegas, and we specialize in helping common interest communities get construction defects handled in a manner that will protect property values. Our years of experience as construction defect attorneys has given us the tools necessary to handle these types of cases in the proper way. Through scheduling investigations with qualified construction experts we are able to show the defective conditions exist. After these investigations we will then serve a notice to the builder that gives them one last chance to come and make the necessary repairs to leave your community in the shape it is supposed to be. While this can be a gigantic hassle for an HOA to take on by themselves, our Las Vegas lawyers are happy to do the heavy lifting for you.
If your HOA is in need of general counsel, call the Maddox, Isaacson & Cisneros, LLP team today at (702) 903-2032 to schedule a free consultation.