Period of declarant’s control of association; representation of units’ owners on executive board.
1. Except as otherwise provided in this section, the declaration may provide for a period of declarant’s control of the association, during which a declarant, or persons designated by him, may appoint and remove the officers of the association and members of the executive board. Regardless of the period provided in the declaration, a period of declarant’s control terminates no later than:
(a) Sixty days after conveyance of 75 percent of the units that may be created to units’ owners other than a declarant or, if the association exercises powers over a common-interest community pursuant to this chapter and a time-share plan pursuant to chapter 119A of NRS, 120 days after conveyance of 80 percent of the units that may be created to units’ owners other than a declarant;
(b) Five years after all declarants have ceased to offer units for sale in the ordinary course of business; or
(c) Five years after any right to add new units was last exercised,
Ê whichever occurs earlier.
2. A declarant may voluntarily surrender the right to appoint and remove officers and members of the executive board before termination of that period, but in that event the declarant may require, for the duration of the period of declarant’s control, that specified actions of the association or executive board, as described in a recorded instrument executed by the declarant, be approved by the declarant before they become effective.
3. Not later than 60 days after conveyance of 25 percent of the units that may be created to units’ owners other than a declarant, at least one member and not less than 25 percent of the members of the executive board must be elected by units’ owners other than the declarant. Not later than 60 days after conveyance of 50 percent of the units that may be created to units’ owners other than a declarant, not less than 33 1/3 percent of the members of the executive board must be elected by units’ owners other than the declarant.
Last modified: February 27, 2006