Condo has an HOA lien

Q: One of my neighbors has placed his condominium up for sale. During the last eight years he’s battled the association about a special assessment and has told everyone he’ll never pay it and it’s in collections. He’s proud that there’s a lien on the property. He’s gone to the Nevada Real Estate Division, gotten his own attorney and even contacted the city. But now he’s tired and “doesn’t want to fight it” anymore. No one on the board will talk about it, so we’ve only heard his side and don’t know if he’s telling the truth. I’m worried that no one will want to buy his condo because of the lien. How will they know that everyone else paid the assessment and all the work was done years ago? If there really is a lien, a new owner may think there’s a current problem.

A: This is a privacy issue. The association would not be disclosing any information to the membership about the delinquency and the lien on the neighbor’s property.

One of the legal obligations of a seller is to disclose information to a buyer, at which time, the seller should disclose that there is a lien on the property pertaining to the special assessment. Even if the seller did not disclose this information on the seller’s real property disclosure form, the lien would be discovered during the escrow period. The buyer and his real estate licensee would be able to obtain information concerning the special assessment for the work that was done years ago.

As to your concern about the marketability of the neighbor’s home because of the lien, this would be an issue discussed between the neighbor and his real estate licensee when establishing the listing price of the home. Homes are sold even when there are liens.

Q: I recently received a cease and desist order from our homeowners association management company. At the direction of the board. In it, they tell me I am not allowed to speak to any vendors in any format regarding the property and community in which I live. They are under the impression by hearsay conversation that I would or have ordered work to be done in common areas. This is something I would never do because I am clear that is not allowed, according to common sense and our covenants, conditions and restrictions. I have, in fact, had conversations with workers on the property solely when I was walking my dog and they volunteered to tell me how their work was going (pleasant chit-chat), e.g., changing light bulbs and installing solar lighting. I also completely understand that anything and everything for common areas requires a written submission to the board’s management company. That being said:

I truly don’t know how to respond with regard to that letter of cease and desist.

I do understand this is a form of harassment by this management company through the board. Truly egregious and Draconian behavior bordering on dictatorship.

So I don’t know if I should:

Demand this board show me documentation of this false accusation (which they have none).

Go to the next board meeting with our covenants, conditions and restrictions and ask them if they can politely show me which rule states that they have the absolute power of telling me who I can speak to and when?

Informing the management company that when they write a letter like this it must be accompanied by an attachment: email, written letter or documentation of phone call duration and date of said conversation, etc.

Or, finally, if I choose to take the toughest, equally demonstrative stance (which I really don’t want to do) pay a real estate attorney to send them a bona fide cease and desist letter based on the stated facts above.

A: According to Nevada Revised Statute 116.31031, subsection 4, an association may not impose a fine for violating the governing documents unless certain requirements are met:

The written notice shall include the applicable provisions of the governing documents that form the basis of the alleged violation.

The notice shall specify in detail the alleged violation.

In the letter of cease and desist order you received, the community manager, writing the letter on behalf of the board, does not state what provisions of the governing documents have been violated nor does it state in any detail what contact you have made to numerous vendors where you have requested work to be done on behalf of the association.

The cease and desist letter is completely silent as to the specifics of the alleged allegation. It simply states that it has been brought to the attention of the management company.

You have a number of choices in responding to the cease and desist letter. The first choice is to send a written letter, certified mail, requesting a hearing with the board of directors. The letter should indicate that you have the right of due process, in this case, to review any documentation that supports the alleged violation or to question any witnesses. If the association cannot substantiate the alleged violation, a letter should then be sent to you to rescind the “cease and desist” letter.

This letter, per se, is not a letter of harassment, even though it is deficient. It is important to note that many residents absolutely interfere with the employees of the various contractors and vendors that provide services to associations. Often contractual work is not completed as workers are pulled from their assigned tasks by residents who directed the workers to perform other tasks. Residents should be contacting the management company to file formal work requests so that the requests can be properly documented. In some cases, the work requests may require obtaining bids, obtaining approval from the board or may even not be one of the requirements of the contractor’s agreement with the association or may not even be the association’s responsibility.