Nevada Supreme Court ruling on HOA collections efforts a win for Nevada homeowners
Nevada homeowners earned a victory this week with a Nevada Supreme Court ruling stating George Burns acting on behalf of the Financial Institutions Division overstepped its bounds in limiting amounts HOAs can seek in collecting past due assessments.
“This decision protects homeowners from speculators who are interested only in making as much money as they can from buying and flipping bank-owned houses,” said Joel Just, president of Red Rock Financial Services. “These speculators have been using the legal system to try to pad their profit margins, at the expense of the dues-paying homeowners who live in associations.”
At issue was the cost of collecting the debt owned to community associations when they are forced to fine owners of homes who lose their home to foreclosure after not paying their mortgage and HOA fees.
“The previous decision by the director of the Financial Institutions Division only protected this small group of speculators,”
According to Just, Nevada Revised Statute 116 clearly establishes that such HOA collection costs are common expenses of community associations and allows homeowner associations to assess delinquent homeowners for these costs. Additionally, NRS 116 allows these costs to be included within the association’
About Red Rock Financial Services
Red Rock Financial Services, a subsidiary of FirstService Residential Management (FSR), is a nationwide, fully licensed collection agency providing services exclusively to community associations to assist them with their unique needs. Services include obtaining past due assessments, fines and other fees for homeowner associations while maintaining a strong focus on customer service and client relations.
Red Rock Financial Services also provides clients access to secure, web-based reporting tools. Visit www.rrfs.com for more information.
FSR is the largest manager of residential communities in North America, overseeing more than 5,600 properties and over 1.3 million residential units. FSR is a subsidiary of FirstService Corporation (NASDAQ- FSRV, TSX: FSV), a global leader in the rapidly growing real estate services sector, providing a variety of services in commercial real estate, residential property management and property services. More information about FirstService is available at www.firstservice.com.