Nevada Administrative Code › Chapter 116A - Common-Interest Communities: Regulation of Community Managers and Other Personnel › PRACTICE BY COMMUNITY MANAGERS › Section 116A.325 - Management agreement; evidence of insurance

Current through June 11, 2024
1. A management agreement must:
(a) Be in writing and signed by all parties;
(b) Be entered into between the client and the community manager or the employer of the community manager if the community manager is acting on behalf of a corporation, partnership, limited partnership, limited-liability company or other entity;
(c) State the term of the management agreement;
(d) State the basic consideration for the services to be provided and the payment schedule;
(e) Include a complete schedule of all fees, costs, expenses and charges to be imposed by the community manager, whether direct or indirect, including, without limitation:
(1) The costs for any new association or start-up costs;
(2) The fees for special or nonroutine services such as the mailing of collection letters, the recording of liens and foreclosing of property;
(3) Reimbursable expenses;
(4) The fees for the sale or resale of a unit or for setting up the account of a new member; and
(5) The portion of fees that are to be retained by the client and the portion to be retained by the community manager;
(f) Not provide for the payment of any form of compensation, fee or other remuneration to the community manager or the employer of the community manager that is based, in whole or in part, on:
(1) The number or amount of fines imposed against or collected from units' owners or tenants or guests of units' owners pursuant to NRS NRS NRS 116.31031 for violations of the governing documents of the association;
(2) Any percentage or proportion of those fines; or
(3) Any percentage or proportion of the late charges which have been imposed for the late payment of those fines but which have not been collected;
(g) State the identity and the legal status of the contracting parties;
(h) State any limitations on the liability of each contracting party, including any provisions for indemnification of the community manager;
(i) Include a statement of the scope of work of the community manager;
(j) State the spending limits of the community manager;
(k) Include provisions relating to the grounds and procedure for termination of the community manager;
(l) Identify the types and amounts of insurance coverage to be carried by each contracting party, including:
(1) A requirement that the community manager or his or her employer maintain insurance covering liability for errors or omissions, professional liability or a surety bond to compensate for losses actionable pursuant to this chapter and chapter 116A of NRS in an amount of $1,000,000 or more;
(2) Which contracting party will maintain fidelity bond coverage;
(3) A requirement that the client maintain crime insurance in accordance with NRS NRS NRS 116.3113;
(4) Whether the association will maintain directors and officers liability coverage for the executive board; and
(5) Whether either contracting party must be named as an additional insured under any required insurance;
(m) Include provisions for dispute resolution;
(n) Acknowledge that all records and books of the client are the property of the client, with the exception of any proprietary information and software belonging to the community manager;
(o) State the physical location, including the street address, of the records of the client, which must be within 60 miles from the physical location of the common-interest community;
(p) State the frequency and extent of regular inspections of the common-interest community; and
(q) State the extent, if any, of the authority of the community manager to sign checks on behalf of the client in an operating account.