Section 116.430 - Reserve study: Required disclosuresA person conducting a reserve study and any consultant assisting in the preparation of a reserve study shall include in the reserve study the following disclosures:
1. The background, training, qualifications and references that would qualify the person conducting or assisting in the preparation of the reserve study as competent to conduct or assist in the preparation of the reserve study.2. Any relationship which could result in actual or perceived conflicts of interest.3. Whether the person conducting or assisting in the preparation of the reserve study is bonded or has professional liability insurance with a minimum coverage of $1,000,000.4. The method or methods for determining the common area components based on: (a) An actual on-site inspection of the common elements with representative sampling;(b) An inventory and material information provided by the client;(c) A previous reserve study and the date of that study; or(d) Plats, governing documents or any other additional industry resources used by the person conducting or assisting in the preparation of the reserve study.5. Industry sources used for determining: (a) The life of a major component of the common elements; and (b) The cost of maintaining, repairing, replacing or restoring a major component of the common elements.6. If known, any guarantees, express or implied, that are provided by any component manufacturer or service provider, with the predictions that would affect the cost or life expectancy of any of the major components.7. The source of the initial reserve fund balance presented in the reserve study.8. Whether a reserve assessment is anticipated during the current 30-year life of the reserve study.9. The source of the interest rate and inflation rate assumptions used in the 30-year projection contained in the reserve study.10. A statement, prominently displayed, which reads substantially as follows: Information provided to the preparer of a reserve study by an official representative of the association regarding financial, historical, physical, quantitative or reserve project issues will be deemed reliable by the preparer. A reserve study will be a reflection of information provided to the preparer of the reserve study. The total of actual or projected reserves required as presented in the reserve study is based upon information provided that was not audited.
A reserve study is not intended to be used to perform an audit, an analysis of quality, a forensic study or a background check of historical records. An on-site inspection conducted in conjunction with a reserve study should not be deemed to be a project audit or quality inspection.
11. A listing of any significant components of the common-interest community that the association may be obligated to maintain, repair, replace or restore which are not included in the funding projection in the reserve study and the reason for excluding those components from that funding projection.12. For updated reserve studies, a statement, prominently displayed, which reads substantially as follows: Quantities of major components of the common elements as reported in previous reserve studies are deemed to be accurate and reliable. This reserve study relies upon the validity of previous reserve studies.
Nev. Admin. Code § 116.430
Added to NAC by Comm'n for Common-Interest Communities by R129-04, eff. 4-14-2005; A by Comm'n for Common-Interest Communities & Condo. Hotels by R145-06, 4-17-2008; Added to NAC by Comm'n for Common-Interest Communities by R129-04, eff. 4-14-2005; A by Comm'n for Common-Interest Communities & Condo. Hotels by R145-06, 4-17-2008; A by R050-13, eff. 8/10/2015; A by R050-13, eff. 8/10/2015