Revised: 10/10/16 Page 3 of 3 514b
NAC 116A.435 Grounds for disciplinary action; criteria for determining unprofessional conduct and professional
incompetence. (NRS 116A.200, 116A.420, 116A.430
)
1. A reserve study specialist is subject to disciplinary action if the reserve study specialist:
(a) Commits any of the following:
(1) Unprofessional conduct;
(2) Professional incompetence;
(3) Gross negligence; or
(4) A felony or any offense involving moral turpitude; or
(b) Has ever had a permit, license or designation from a nationally recognized professional organization that authorizes him or
her to act as a reserve study specialist in another jurisdiction revoked or suspended.
2. A reserve study specialist commits an act of unprofessional conduct if the reserve study specialist:
(a) Violates the provisions of:
(1) An order of the Commission;
(2) An agreement with the Division; or
(3) Chapter 116, 116A or 116B
of NRS or any regulation adopted pursuant thereto;
(b) Engages in deceitful, fraudulent or dishonest conduct, including, without limitation, knowingly communicating false,
misleading or fraudulent information to a client;
(c) Submits a registration which contains a false statement of material fact;
(d) Fails to cooperate with the Division in the investigation of a complaint, including, without limitation, failure to produce any
document, book or record in the possession or control of the reserve study specialist after the Division requests the production of
such document, book or record in the course of investigating a complaint;
(e) Fails to perform impartially and consistently an activity that is lawful and properly authorized on behalf of a client or fails
to perform a duty or obligation owed to a client because of the age, race, color, religion, national origin, disability, marital status,
familial status, sex, sexual orientation or ethnicity of any person, including, without limitation, a member of the executive board,
an officer of the association or a unit’s owner; or
(f) Exceeds the authority granted to him or her by the client.
3. A reserve study specialist commits an act of professional incompetence if, without limitation, the reserve study specialist:
(a) Demonstrates a significant lack of ability, knowledge or fitness to perform a duty or obligation owed to a client; or
(b) Fails to exercise reasonable skill and care with respect to a duty or obligation owed to a client.
4. In determining whether a reserve study specialist has committed unprofessional conduct or professional incompetence, the
Commission and the Administrator may consider, without limitation, whether the reserve study specialist has:
(a) Done his or her utmost to protect the public against misrepresentation or unethical practices relating to the reserve study;
(b) Made reasonable efforts to acquire knowledge of all pertinent facts concerning a client, including, without limitation, all
material facts regarding the reserve study that are reasonably ascertainable and are of customary or express concern to the client,
and conveyed that knowledge to the client;
(c) Provided or attempted to provide to a client services for which the reserve study specialist does not have the appropriate
knowledge or experience;
(d) Complied with the disclosure requirements of NAC 116A.430
;
(e) Complied with the client’s applicable governing documents, policies and procedures as they relate to a reserve study;
(f) Kept informed of current statutes and regulations relating to common-interest communities;
(g) Acted in the best interest of the client;
(h) Ensured that each agreement for services of the reserve study specialist was in writing; and
(i) Obtained all changes of contractual terms in writing and ensured that such changes are signed or initialed by the parties
concerned.
(Added to NAC by Comm’n for Common-Interest Communities & Condo. Hotels by R145-06, eff. 4-17-2008; A by R164-09,
5-5-2011; R050-13, 8-10-2015)
