Document Type

Case Summary

Publication Date

Winter 1-2020

Case Synopsis

Nevada Revised Statutes (NRS) Chapter 116 codifies the Uniform Common-Interest Ownership Act and outlines statutory regulations governing common-interest communities in Nevada. NRS Chapter 116 applies generally to all residential property owners’ associations (POAs) but does not automatically apply to nonresidential POAs. Nonresidential POAs may voluntarily elect to incorporate NRS Chapter 116 either in whole or in part. NRS Chapter 116 applies only to nonresidential POAs only to the extent expressly provided for by the incorporated statutory provisions.

Vegas United Investment Series 105, Inc. purchased a nonresidential property at a foreclosure sale pursuant to NRS § 116.3116. The conditions, covenants, and restrictions (CC&Rs) of the nonresidential property upon which this appeal was based expressly incorporated only NRS 116.3116-31168 and not the entirety of NRS Chapter 116. The CC&Rs did not incorporate the provisions of Chapter 116 which might invalidate a mortgage savings clause or which might provide for assessments supporting a lien that would have superpriority status. Because Vegas United’s lien did not have a superpriority portion and the mortgage savings clause was still valid, Celtic Bank’s existing mortgage on the property was not extinguished and the district court properly determined that Vegas United took the property subject to Celtic Bank’s prior interest.