Track 18

Question 1

NRS 11 6.31038 define exactly what the developer is required to give the common interest community at transition, which includes all of the following except:
A. Plans and maps.
B. Insurance policies.
C. Developer Company Financial Statements.
D. Property of the Association.

Answer 1

C. Developer company financial statements.

Question 2

Can the Developer transition early if they wish before the required percentage? NRS 116.31032, section 1.
A. Yes.
B. No.

Answer 2

A. Yes.

Question 3

At what percent of the units sold sand closed escrow must the Developer give up control of the Board if the units are under 1,000 after 10/1/15?
A. 50%
B. 75%
C. 25%
D. 100%

Answer 3

B. 75%

Question 4

At what percent of the units sold and closed escrow must the Developer give up control of the Board if the units are over 1,000 after 10/1/15?
A. 25%
B. 50%
C. 75%
D. 90%

Answer 4

D. 90%

Question 5

What does transition to the owners from Developer mean?
A. Control over who the developer can appoint to the board.
B. Control of the board and decisions made by the board for the association.
C. Control of who will set the assessments only.
D. Control of only who will fill replacements on the board.

Answer 5

B. Control of the board and decisions made by the board for the association.

Question 6

When is the declarant required to step down off the board to give up the majority vote? NRS 116.31032, section 1.
A. The law defers you to what the declarant has placed into the documents and that must be followed as the declarant has a considerable financial investment in the property and should be able to sell his or her Roberts without interference from the owners.
B. 60 days after 75% of the units that may be created are conveyed to unit’s owners other than a declarant,regardless of any period shown in the CC&R’s or 5 years after units have ceased to sell or five years after any right to add new units has lapsed.
C. 120 days after 80% of the units that may be created and sold to unit’s owners other than the declarant, regardless of any period shown in the CC&R’s or 4 years after. Units have ceased to sell.
D. There is no correct answer.

Answer 6

B. 60 days after 75% of the units that may be created are conveyed to unit’s owners other than a declarant,regardless of any period shown in the CC&R’s or 5 years after units have ceased to sell or five years after any right to add new units has lapsed.

Question 7

If the declarant h as not paid. His or her share of the reserves, how long does he have to pay the association?  NRS 116.31038, sec 3.
A. 5 years
B. 10 years
C. 3 years
D. 2 years

Answer 7

C. 3 years.

Question 8

How long does the declarant of a converted building have to pay the reserve deficit that may exist on a unit he is selling? Which is the best answer? NRS 116.310395
A. At the time of close of escrow of a unit in a converted building, the declarant shall deliver to the association th amount of the converted building reserve deficit allocated to all units that may sell within 1 year.
B. There is no requirement for the developer to pay for any reserve deficit that may exist as he can opt out of it in the Public Offering statement.
C. At the time of close of escrow of a 60% of all units in a converted building reserve deficit due for those un its included at the time.
D. At the time of escrow of a unit in a converted building, the declarant shall deliver to the association the amount of the converted building reserve deficit allocated to that unit.

Answer 8

D. At the time of escrow of a unit in a converted building, the declarant shall deliver to the association the amount of the converted building reserve deficit allocated to that unit.