Nevada RED Advisory Opinion 12-01-116 (Attorney Fees at Fine Hearings)
NV · Nevada Real Estate Division (advisory opinion)
HOA loss · hearings
What happened
The Nevada Real Estate Division issued Advisory Opinion No. 12-01-116 on May 18, 2012, answering whether an association may charge a unit owner attorney's fees for association counsel attending an NRS 116.31031 fine hearing.
What the court (or agency) held
Division advisory interpretation: an association may not charge a unit owner attorney's fees for association counsel attending an NRS 116.31031 fine hearing. Exercising the hearing right is not willful misconduct or gross negligence under NRS 116.3115(6), and fee-shifting for hearings would chill due-process rights and circumvent NRS 116.4117's civil-action fee framework. Flag: advisory opinion—not a final adjudication; specific facts can change the result.
Why this matters for members
Fine-hearing participation is a protected process right; billing the owner for the association's hearing lawyer under a catch-all misconduct fee statute is disfavored in Division guidance. Civil-action fee statutes remain the proper fee path after litigation.
Questions for the board
- Are owners billed for association counsel's presence at pre-fine hearings under NRS 116.31031?
- What governing-document or statute cite is used for any such charge?
- How are hearing rights explained so owners are not chilled by threatened fee bills?
Questions for a lawyer
- How much weight do Nevada courts give RED advisory opinions?
- When, if ever, could hearing-related fees be recovered under a different statute or contract theory?
- How should a hearing notice address fee risks without misstating the law?
Citation
Nevada RED Advisory Opinion 12-01-116 (Attorney Fees at Fine Hearings), Advisory Opinion No. 12-01-116 (May 18, 2012); refs NRS 116.31031 and 116.3115(6) (2012-05-18). Nevada Real Estate Division (advisory opinion). Outcome chip: hoa_loss — no counsel fees for attending fine hearing. Flags: advisory, not-final-adjudication. Source: https://red.nv.gov/uploadedfiles/rednvgov/Content/Publications/Opinions/12-01-116.pdf
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.