Hierarchy of Laws & Governing Documents
NRS 116 Key Provisions
Legal Interpretation and Unauthorized Practice
Roles of CAMs, Ombudsman, & Best Practices
100

Which of the following correctly identifies the order of legal authority from highest to lowest?
A. State Laws, Federal Laws, Local Ordinances
B. Bylaws, Federal Laws, CCRs
C. Federal Laws, State Laws, Local Ordinances
D. CCRs, County Ordinances, Federal Laws

What is C, Federal Laws, State Laws, Local Ordinances?

100

Why was NRS 116 adopted in 1991?
A. To reduce HOA power
B. To replace NRS 645 and NRS 119
C. To provide legal structure for HOAs
D. To create commercial zoning guidelines

What is C. To provide legal structure for HOAs?

100

What does “notwithstanding” mean in legal language?
A. Pending review
B. Regardless of
C. In addition to
D. Subject to approval

What is B. Regardless of?

100

Which NRS section defines the Ombudsman’s role?
A. NRS 116.600
B. NRS 116.625
C. NRS 116.330
D. NRS 116.31034

What is B. NRS 116.625?

200

Which document is at the top of the legal hierarchy in the United States?
A. State Constitution
B. Federal Statutes
C. City Ordinances
D. U.S. Constitution

What is D. U.S. Constitution?

200

What does NRS 116.3101 require of a unit-owners' association?
A. Operate as a for-profit business
B. Be organized before the first unit is conveyed
C. Be managed by the county
D. Avoid using the term HOA

What is B. Be organized before the first unit is conveyed?

200

Which of the following is considered unauthorized practice of law?
A. Sharing a copy of CC&Rs
B. Explaining the payment schedule of a contract
C. Advising a board on legal consequences of a breach
D. Scheduling a board meeting

What is C. Advising a board on legal consequences of a breach?

200

Which of the following is NOT a best practice for a Community Association Manager?
A. Maintain knowledge of governing docs
B. Interpret contracts for legal impact
C. Encourage directors to be reasonable
D. Understand NRS and NAC hierarchy

What is B. Interpret contracts for legal impact?

300

In Nevada, if an HOA rule conflicts with NRS 116, what happens?
A. The rule must be modified by a vote
B. The rule is enforceable until removed
C. The rule is overridden by the law
D. The board decides the outcome

What is C. The rule is overridden by the law?

300

Which section of NRS 116 addresses landscaping and drought-tolerant provisions?
A. NRS 116.335
B. NRS 116.330
C. NRS 116.2111
D. NRS 116.325

What is B. NRS 116.330?

300

What boundary should a community manager not cross?
A. Discussing board term limits
B. Reviewing landscaping bids
C. Interpreting contracts and advising legal risks
D. Organizing a committee

What is C. Interpreting contracts and advising legal risks?

300

Which of the following is true about Nevada’s HOA laws?
A. They restrict HOAs from foreclosures
B. Governing documents are public record
C. They mandate financial transparency
D. They prohibit flag displays

What is C. They mandate financial transparency?

400

What typically ranks lowest in the governing document hierarchy?
A. Federal Laws
B. CIC Rules & Regulations
C. Bylaws
D. Local Ordinances

What is B. CIC Rules & Regulations?

400

Which body is empowered by NRS 116.600?
A. HOA Enforcement Unit
B. Real Estate Appraisal Board
C. Commission for Common-Interest Communities
D. Board of Legal Advisors

What is C. Commission for Common-Interest Communities?

400

Which action would be acceptable for a community manager?
A. Telling the board what a legal clause means
B. Recommending the board consult an attorney
C. Explaining legal consequences of early termination
D. Rewriting the HOA's bylaws

What is A. Telling the board what a legal clause means?

400

How can a CAM help reduce legislation burden?
A. Educate and guide boards toward reasonable actions
B. Avoid owner complaints
C. Enforce harsher fines
D. File fewer reports with the Division

What is A. Educate and guide boards toward reasonable actions?

500

Which of the following is NOT a governing document of a common-interest community?
A. Bylaws
B. CC&Rs
C. Federal Constitution
D. Rules and Regulations

What is C. Federal Constitution?

500

What does NRS 116.320 allow unit owners to do?
A. Prohibit political signs
B. Display U.S. and Nevada flags
C. Ban solar panels
D. Sell common areas

What is B. Display U.S. and Nevada flags?

500

Which regulation advises managers to rely on experts when interpreting legal matters?
A. NRS 116.31034
B. NRS 116A.400
C. NAC 116.405
D. NRS 116.600

What is C. NAC 116.405?

500

Which document type should CAMs always keep accessible and updated?
A. Internal board memos
B. Personal notes from meetings
C.Emails between homeowners
D. CC&Rs and Bylaws

What is D. CC&Rs and Bylaws?

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