Sections 2 and 5 require the director of the division of real estate (director) to adopt less stringent credentialing, educational, and continuing educational requirements and lower license fees for small HOA managers.
Section 3 requires all managers to provide detailed disclosures of fees and charges, including any transfer fees that are payable upon sale of a unit in an HOA. A detailed listing of, and justification for, transfer fees must be provided to the parties to a purchase and sale at least 3 days before closing. The manager must also provide to any HOA with which the manager has or wishes to have a management contract, at least annually, a certified copy of his or her current and valid manager's license.
Section 4 requires the director to publish on the division of real estate's website a searchable list of CAMs and the HOAs they serve, including addresses, license status, and any pending complaints or disciplinary actions.
Section 6 adds the following acts or omissions to the grounds for discipline of a licensed manager:
- Knowingly violating or directing others to violate the covenants or rules of an HOA;
- Failing to notify and recommend corrective action to an HOA board member if the manager believes the board member is violating the law or rules governing the HOA;
- Failing to report to the director any board member who continues to violate the law or rules after being notified; and
- Violating the disclosure requirements imposed by section 3 of the bill.
(Note: This summary applies to this bill as introduced.)