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Case Summary

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Case Synopsis

NRS 116.3105(2) permits homeowners associations to terminate contracts at any time if the declarant did not enter into the contract in good faith or if the contract was unconscionable to the units’ owners at the time of contract formation.[1] The statute requires that an association provide at least 90 days notice of termination under this provision. The 90-day notice period in NRS 116.3105(2) does not operate as a statute of limitations nor does it shift the burden to a notice recipient to file an action. Instead, NRS 11.190 is applicable, resulting in either a four-year or six-year statute of limitations.[2]

[1] Nev. Rev. Stat. § 116.3105 (2).

[2] Nev. Rev. Stat. § 11.190.

Publication Citation

131 Nev. Adv. Op. 57