Rules increase regulation of real estate professionals

Brian Seals

Monday, May 11, 1998 | 10:09 a.m.

Property and homeowner association managers will have a few more chances to offer input on regulations that will require them to get additional education and permits to practice their vocation.

Public hearings are set today and May 18 on the regulations that will become effective July 1.

Today's hearings will focus on Senate Bill 314, passed in 1997, which requires homeowner association managers to be certified by the state. That requirement does not apply to board members of such associations, said Shirley Denzel of the Nevada Real Estate Division.

"I think, unfortunately, there were a lot of folks that were unhappy with the way managers were riding rough herd over the members," Denzel said. "SB 314 is designed to help people understands how boards work."

The legislation arose out of complaints about excessive and arbitrary fines or selective enforcement of association rules.

The law reduces the powers to fine members, eliminates any ability of an association to exercise eminent domain and establishes an Ombudsman's office to assist members of associations in understanding their guidelines. A state Ombudsman should be in place by July 1, Denzel said.

A second set of new regulations applies to property managers. It requires property managers to take 24 hours of continuing education and obtain a property manager certificate on top of a real estate license.

Pam Ribley of the state real estate agency said the law stems, in part, from problems with mismanagement of the myriad of bank accounts for security deposits and rent for which property managers are responsible. She said there had been reports of mismanaged money and mortgage payments not being made on time on behalf of the owner.

"Everybody started to believe this was an area that needed a little more expertise," Ribley said.

Maintaining a property manager permit will require taking 24 hours of continuing education courses. Perhaps surprisingly, that's something many welcome. Kathy Yorgenson of Terra West Property Management said classes to renew real estate licenses generally focus on sales.

"We don't do sales," Yorgenson said. "We need classes more specific to our field."

She said the new requirements will help the whole profession. "It will stop these moonlighting property managers who do it on the side," Yorgenson said.

Mike O'Sullivan of Accord Property Management agreed.

"There are some people who have had a bad experience with people who aren't qualified," O'Sullivan said. "I think overall the good will outweigh the negative."