Authors

Alice Samberg

Document Type

Case Summary

Publication Date

11-26-2023

Case Synopsis

Under NRS 116.3116, Nevada law designates a portion of an HOA’s lien for assessment obligations as senior to a first deed of trust. When this portion - a “superpriority lien” - is foreclosed upon, it extinguishes the first deed of trust. The Court held that this loss of interest in the property by the first deed of trust holder is not recoverable by making a claim on its title- insurance policy because the superpriority lien came into existence only upon such obligation’s delinquency and, therefore, arose post-policy. Because the enforceability of the lien here fell outside of the coverage of the title insurance policy, the insured could not recover their loss.

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