COLUMN: Association insists on net removal

Q. We have residents who have placed a net about 15-feet high along their golf course property. This violates our covenants. The board has been liberal with these people and has even moved the tee boxes and changed the golf course design for them. Yet, they refuse to take it down.

After about three years, the board finally sent them a letter saying that unless the netting is removed within a reasonable time, they will be fined $100 per week. After a reasonable amount of time, can our association file a lien on this property?

A. Your association can fine this owner $100 per week until a maximum of $500 is reached, at which time, if the violation has not been corrected, the board can send a 14-day continuing violation notice. This notice would allow the homeowner another 14 days to correct the violation.

If it is not corrected, the association could fine the owner $100 a week until compliance is met. In addition, the owners would forfeit their right to an appeal hearing, according to state law.

Once a fine has been assessed against a homeowner's account and the fine is not paid within the prescribed period, or the homeowner turns down an appeal hearing, the association can place a lien on the property for nonpayment. However, because this is not a health/safety issue, the association would not be able to foreclose on an unpaid fine.

In this case, it is not the association's intent to make money, but rather to obtain compliance. The board may seek a legal recourse, but should first discuss the strengths and weaknesses of its position, as well as the time and cost of litigation, with an attorney. Boards need to pick and choose their "fights" carefully.

Finally, the board can take another action by filing an encumbrance on the property (a cloud on the title). This is for public notice and would notify any future buyers that there is a specific violation which must be corrected.

Q. Our management company has charged me $55 for a returned check, which is more than what my bank has charged me for it. Is there a restriction on the amount the management company or association can charge?

A. You need to remember that your check was returned for insufficient funds, unless there was a bank error. If it was a bank error, have your bank contact the management company who will either waive the fee or ask the bank to pay it.

If it was not an error, the management company's charge includes the payment that the association must pay its bank, as the bank considers this a transaction fee.

The fee also includes the administrative cost to process the insufficient check and may also include a penalty set by the association because of the bounced check. Depending upon the management agreement, the fee may be deposited into the management company's account, the association's account or split between the two. The bottom line is that if you want to avoid a charge, you must make sure that your checks will not be returned.

In some cases, for example, if you were a tenant, the landlord could file criminal charges against you for paying your rent with insufficient funds.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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