Document Type

Case Summary

Publication Date

4-2021

Case Synopsis

Nevada’s “superpriority lien” statute gives a homeowner’s association (HOA) lien priority over a first deed of trust with respect to the HOA’s common expenses that would be due in the absence of acceleration within the nine months before an action was commenced to enforce the lien. U.S. Bank National Association and Nationstar Mortgage’s (collectively, U.S. Bank) predecessor paid the HOA in this case nine months’ worth of its annual fee in an attempt to satisfy the superpriority lien. However, the HOA’s yearly assessment made the entire yearly fee due during the 9 months before the HOA sued to enforce its lien. The district court granted U.S. Bank’s motion for summary judgment because the HOA’s yearly fee accelerated the payments’ due date and U.S. Bank was therefore not required to pay more than nine months of the yearly fee to satisfy the superpriority portion of the lien. The Nevada Supreme Court affirmed the district court’s judgment, reasoning that even in the case of an annual assessment, the supermajority portion of an HOA lien is satisfied through payment of nine months’ worth of fees.

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