NAC116A.355. Grounds for disciplinary action; criteria for determining unprofessional conduct and professional incompetence.

     1. A community manager is subject to disciplinary action if the community manager:

     (a) Commits any of the following:

          (1) Unprofessional conduct;

          (2) Professional incompetence;

          (3) Negligence or gross negligence; or

          (4) A felony or any offense involving moral turpitude; or

     (b) Has had a certificate, permit or license that authorizes him or her to act as a community manager in another jurisdiction revoked or suspended.

     2. A community manager commits an act of unprofessional conduct if the community manager:

     (a) Violates the provisions of:

          (1) An order of the Commission;

          (2) An agreement with the Division; or

          (3) This chapter, chapter 116 of NAC or chapter 116 or 116A of NRS;

     (b) Fails to disclose to a client any material fact or other information that he or she knows or, in the exercise of reasonable care or diligence, should have known, which concerns or relates to the common-interest community and which is of customary or express interest to the client;

     (c) Engages in deceitful, fraudulent or dishonest conduct, including, without limitation, knowingly communicating false, misleading or fraudulent information to a client;

     (d) Before obtaining a certificate, temporary certificate or permit, committed an act which was in fact unknown to the Division at the time it issued the certificate, temporary certificate or permit and which would have been grounds for denial of a certificate, temporary certificate or permit had the Division been aware of the conduct;

     (e) Obtains a certificate, temporary certificate or permit by fraud or deceit or by concealing a material fact from the Division, including, without limitation, making a false statement of material fact on the application for the certificate, temporary certificate or permit;

     (f) 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 community manager after the Division requests the production of such document, book or record in the course of an investigation of a complaint;

     (g) 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 or ethnicity of any person, including, without limitation, a member of the executive board, an officer of the association, a unit’s owner, a tenant of the common-interest community or a visitor of the common-interest community;

     (h) Fails to account for or remit money in his or her possession that belongs to another within a reasonable time of a request for an accounting or remittance of such money by the owner; or

     (i) Exceeds the authority granted to him or her by the client.

     3. A community manager commits an act of professional incompetence if, without limitation, the community manager:

     (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 community manager has committed unprofessional conduct or professional incompetence, the Commission and the Administrator may consider, without limitation, whether the community manager has:

     (a) Done his or her utmost to protect the public against fraud, misrepresentation or unethical practices related to the business affairs of the client;

     (b) Acquired the knowledge of all pertinent facts concerning a client;

     (c) Provided or attempted to provide to a client services concerning a type of property or service:

          (1) That is outside his or her field of experience or competence without the assistance of a qualified authority unless the fact of his or her inexperience or incompetence is disclosed fully to the client and is not otherwise prohibited by law; or

          (2) For which he or she is not properly licensed;

     (d) Complied with the disclosure requirement of NAC 116A.330;

     (e) Complied with the applicable governing documents, policies and procedures of the client;

     (f) Kept informed of current statutes and regulations relating to common-interest communities and relating to other areas in which he or she attempts to provide guidance;

     (g) Acted in the best interest of the client;

     (h) Ensured that each management agreement is in writing and that each member of the executive board has received a copy of the management agreement;

     (i) Obtained all changes of contractual terms in writing and has ensured that such changes are signed or initialed by the parties concerned;

     (j) Acquired knowledge of all material facts that are reasonably ascertainable and are of customary or express concern to a client and has conveyed that knowledge to the client; or

     (k) Failed to supervise a provisional community manager or employee.

     5. As used in this section:

     (a) “Disability” means:

          (1) A physical or mental impairment that substantially limits one or more of the major life activities of the person;

          (2) A record of such an impairment; or

          (3) Being regarded as having such an impairment.

     (b) “Familial status” means the fact that a person:

          (1) Lives with a child under the age of 19 years and has:

               (I) Lawful custody of the child; or

               (II) Written permission to live with the child from the person who has lawful custody of the child;

          (2) Is pregnant; or

          (3) Has begun a proceeding to adopt or otherwise obtain lawful custody of a child.

     (Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; A by Comm’n for Common-Interest Communities & Condo. Hotels by R165-09, 12-16-2010)—(Substituted in revision for NAC 116.360)