Nevada HOA problems

HOA Board Breach of Fiduciary Duty in Nevada.

Board members are volunteers, but the law holds them to a real standard. A claim that the board breached its duty is harder to prove than a defective fine notice, because it requires documents showing what the board knew and did.

What it looks like

  • Decisions made without meetings, notice, or minutes
  • Contracts awarded to a board member's business or relatives
  • No bids on large projects
  • Required reserve studies, budgets, or audits are skipped
  • Owner complaints are never placed on an agenda

What Nevada law says

Under NRS 116.3103, officers and members of the executive board are fiduciaries. They must act on an informed basis, in good faith, and in the honest belief that their actions are in the best interest of the association. They are also protected by the business judgment rule, which means a decision that turned out badly is not a breach if it was made honestly and with reasonable information.

Several specific duties make the standard concrete. The board must meet at least quarterly with notice and owner comment periods (NRS 116.31083), review the association's financial statements at least quarterly, obtain a reserve study at least every five years (NRS 116.31152), and follow the bidding rules for larger projects (NRS 116.31086). Board members generally may not contract with the association or accept gifts that create a conflict of interest (NRS 116.31185, 116.31187). An owner who submits a written complaint that the board violated the law or governing documents is entitled to have it acknowledged and, on request, placed on the next regular meeting agenda (NRS 116.31087).

The facts that matter

These are the questions that decide whether there is a practical path forward.

  • The specific decision or failure, and when it happened
  • What the statute or governing documents required
  • What the board actually did, according to its own records
  • Who benefited
  • The cost to the association or to you

Documents to gather

  • Meeting agendas, minutes, and recordings
  • Contracts, bids, and invoices
  • Budgets, financial statements, and the reserve study
  • Your written complaints and the responses
  • Records showing a board member's interest in a vendor

See our guide to getting your governing documents.

Options that usually fit

Common questions

Can I sue individual board members?

Sometimes, but it is difficult. Board members are protected by the business judgment rule, and punitive damages are not available against board members acting in their official capacity. Most claims are brought against the association, or are raised with the Real Estate Division.

Can owners remove a board member?

Yes. Nevada law provides a recall process that begins with a petition signed by at least 10 percent of the voting members. Removal requires votes in favor from at least 35 percent of all voting members and a majority of the votes cast.

This page is general information about Nevada law, not legal advice. Every dispute turns on its own facts and documents.

Free case review

Send us the notice and the documents. We will tell you where you stand.

Tell us the facts once, in writing, and attach your governing documents. We review them before anyone gets on the phone, so the conversation is about your options.