Legal Alert - Lenders Beware: the Nevada Supreme Court Holds That Foreclosures of Homeowners' Association Liens May Extinguish First Priority Deeds of Trust
September 26, 2014
By Bob L. Olson
Nevada has adopted the Uniform Common Interest Ownership Act of 1982 (the “Act”) which governs homeowners’ associations (“HOA”). One particular provision of that Act, enacted by Nevada in 1991 and later amended, and codified as NRS 116.3116 (the “Statute”), states that HOA liens are “prior to all other liens and encumbrances on a unit” except for, among other liens:
(b) A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent . . . :
NRS 116.3116(2)(b) (emphasis added).
©2024 Snell & Wilmer L.L.P. All rights reserved. The purpose of this publication is to provide readers with information on current topics of general interest and nothing herein shall be construed to create, offer, or memorialize the existence of an attorney-client relationship. The content should not be considered legal advice or opinion, because it may not apply to the specific facts of a particular matter. As guidance in areas is constantly changing and evolving, you should consider checking for updated guidance, or consult with legal counsel, before making any decisions.
Hughes Center
| 3883 Howard Hughes Parkway
| Suite 1100
| Las Vegas, NV 89169-5958
The material in this newsletter may not be reproduced, distributed, transmitted, cached or otherwise used, except with the written permission of Snell & Wilmer.
The material in this newsletter may not be reproduced, distributed, transmitted, cached or otherwise used, except with the written permission of Snell & Wilmer.