Nevada § 116A.620 - Management agreement: Contents; requirements; community manager to provide executive board with evidence of insurance; community manager to provide executive board with copy; changes; termination or assignment

§ 116A.620. Management agreement: Contents; requirements; community manager to provide executive board with evidence of insurance; community manager to provide executive board with copy; changes; termination or assignment

1. Any 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 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 client 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) State the identity and the legal status of the contracting parties; (g) State any limitations on the liability of each contracting party; (h) Include a statement of the scope of work of the community manager; (i) State the spending limits of the community manager; (j) Include provisions relating to the grounds and procedures for termination of the

community manager; (k) Identify the types and amounts of insurance coverage to be carried by each contracting

party, including, without limitation: (1) A requirement that the community manager or his or her employer shall maintain

insurance covering liability for errors or omissions, professional liability or a

surety bond to compensate for losses actionable pursuant to this chapter in an amount

of $1,000,000 or more; (2) An indication of which contracting party will maintain fidelity bond coverage;

and (3) A statement as to whether the client will maintain directors and officers liability

coverage for the executive board; (l) Include provisions for dispute resolution; (m) Acknowledge that all records and books of the client are the property of the client,

except any proprietary information and software belonging to the community manager; (n) 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; (o) State the frequency and extent of regular inspections of the common-interest community;

and (p) State the extent, if any, of the authority of the community manager to sign checks

on behalf of the client in an operating account. 2. In addition to any other requirements under this section, a management agreement

may: (a) Provide for mandatory binding arbitration; or (b) Allow the provisions of the management agreement to apply month to month following

the end of the term of the management agreement, but the management agreement may

not contain an automatic renewal provision. 3. Not later than 10 days after the effective date of a management agreement, the

community manager shall provide each member of the executive board evidence of the

existence of the required insurance, including, without limitation: (a) The names and addresses of all insurance companies; (b) The total amount of coverage; and (c) The amount of any deductible. 4. After signing a management agreement, the community manager shall provide a copy

of the management agreement to each member of the executive board. Within 30 days after an election or appointment of a new member to the executive

board, the community manager shall provide the new member with a copy of the management

agreement. 5. Any changes to a management agreement must be initialed by the contracting parties. If there are any changes after the execution of a management agreement, those changes

must be in writing and signed by the contracting parties. 6. Until the regulations adopted by the Commission pursuant to subsection 8 become

effective, and except as otherwise provided in the management agreement, upon the

termination or assignment of a management agreement, the community manager shall,

within 30 days after the termination or assignment, transfer possession of all books,

records and other papers of the client to the succeeding community manager, or to

the client if there is no succeeding community manager, regardless of any unpaid fees

or charges to the community manager or management company. 7. Notwithstanding any provision in a management agreement to the contrary, a management

agreement may be terminated by the client without penalty upon 30 days' notice following

a violation by the community manager of any provision of this chapter or chapter 116 of NRS . 8. The Commission shall adopt regulations establishing the requirements relating to

the transfer of all books, records and other papers of the client upon the termination

or assignment of a management agreement.