Verbatim from the public record. The law itself is a government work — always confirm the current version on the official source before you rely on it.
����� 1. The association has a lien on a unit
for any construction penalty that is imposed against the unit�s owner pursuant
to NRS 116.310305 , any assessment
levied against that unit or any fines imposed against the unit�s owner from the
time the construction penalty, assessment or fine becomes due. Unless the
declaration otherwise provides, any penalties, fees, charges, late charges,
fines and interest charged pursuant to paragraphs (j) to (o), inclusive, of
subsection 1 of NRS 116.3102 and any
costs of collecting a past due obligation charged pursuant to NRS 116.310313 are enforceable as
assessments under this section. If an assessment is payable in installments,
the full amount of the assessment is a lien from the time the first installment
thereof becomes due.
����� 2. A lien under this section is prior to
all other liens and encumbrances on a unit except:
����� (a) Liens and encumbrances recorded before the
recordation of the declaration and, in a cooperative, liens and encumbrances
which the association creates, assumes or takes subject to;
����� (b) A first security interest on the unit
recorded before the date on which the assessment sought to be enforced became
delinquent or, in a cooperative, the first security interest encumbering only
the unit�s owner�s interest and perfected before the date on which the
assessment sought to be enforced became delinquent, except that a lien under
this section is prior to a security interest described in this paragraph to the
extent set forth in subsection 3;
����� (c) Liens for real estate taxes and other
governmental assessments or charges against the unit or cooperative; and
����� (d) Liens for any fee or charge levied pursuant
to subsection 1 of NRS 444.520 .
����� 3. A lien under this section is prior to
all security interests described in paragraph (b) of subsection 2 to the extent
of:
����� (a) Any charges incurred by the association on a
unit pursuant to NRS 116.310312 ;
����� (b) The unpaid amount of assessments, not to
exceed an amount equal to assessments for common expenses based on the periodic
budget adopted by the association pursuant to NRS 116.3115 which would have become due
in the absence of acceleration during the 9 months immediately preceding the
date on which the notice of default and election to sell is recorded pursuant
to paragraph (b) of subsection 1 of NRS
116.31162 ; and
����� (c) The costs incurred by the association to
enforce the lien in an amount not to exceed the amounts set forth in subsection
5,
� unless
federal regulations adopted by the Federal Home Loan Mortgage Corporation or
the Federal National Mortgage Association require a shorter period of priority
for the lien. If federal regulations adopted by the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association require a shorter
period of priority for the lien, the period during which the lien is prior to
all security interests described in paragraph (b) of subsection 2 must be
determined in accordance with those federal regulations, except that
notwithstanding the provisions of the federal regulations, the period of
priority for the lien must not be less than the 6 months immediately preceding
the recording of a notice of default and election to sell pursuant to paragraph
(b) of subsection 1 of NRS 116.31162
or the institution of a judicial action to enforce the lien.
����� 4. This section does not affect the
priority of mechanics� or materialmen�s liens, or the priority of liens for
other assessments made by the association.
����� 5. The amount of the costs of enforcing
the association�s lien that are prior to the security interest described in
paragraph (b) of subsection 2 must not exceed the actual costs incurred by the
association, must not include more than one trustee�s sale guaranty and must not
exceed:
����� (a) For a demand or intent to lien letter, $165.
����� (b) For a notice of delinquent assessment, $325.
����� (c) For an intent to record a notice of default
letter, $90.
����� (d) For a notice of default, $400.
����� (e) For a trustee�s sale guaranty, $400.
� No costs of
enforcing the association�s lien, other than the costs described in this
subsection, and no amount of attorney�s fees may be included in the amount of
the association�s lien that is prior to the security interest described in
paragraph (b) of subsection 2.
����� 6. Notwithstanding any other provision of
law, an association, or member of the executive board, officer, employee or
unit�s owner of the association, acting under the authority of this chapter or
the governing documents of the association, or the community manager of the
association, or any employee, agent or affiliate of the community manager,
while engaged in the management of the common-interest community governed by
the association, is not required to be licensed as a collection agency pursuant
to chapter 649 of NRS or hire or contract with
a collection agency licensed pursuant to chapter
649 of NRS to collect amounts due to the association in accordance with
subsection 1 before the recording of a notice of default and election to sell
pursuant to paragraph (b) of subsection 1 of NRS 116.31162 .
����� 7. The holder of the security interest
described in paragraph (b) of subsection 2 or the holder�s authorized agent may
establish an escrow account, loan trust account or other impound account for
advance contributions for the payment of assessments for common expenses based
on the periodic budget adopted by the association pursuant to NRS 116.3115 if the unit�s owner and the
holder of that security interest consent to the establishment of such an account.
If such an account is established, payments from the account for assessments
for common expenses must be made in accordance with the same due dates as apply
to payments of such assessments by a unit�s owner.
����� 8. Unless the declaration otherwise provides,
if two or more associations have liens for assessments created at any time on
the same property, those liens have equal priority.
����� 9. Recording of the declaration
constitutes record notice and perfection of the lien. No further recordation of
any claim of lien for assessment under this section is required.
����� 10. A lien for unpaid assessments is
extinguished unless a notice of default and election to sell is recorded as
required by paragraph (b) of subsection 1 of NRS 116.31162 , or judicial proceedings to
enforce the lien are instituted, within 3 years after the full amount of the
assessments becomes due.
����� 11. This section does not prohibit actions
to recover sums for which subsection 1 creates a lien or prohibit an
association from taking a deed in lieu of foreclosure.
����� 12. A judgment or decree in any action
brought under this section must include costs and reasonable attorney�s fees
for the prevailing party.
����� 13. The association, upon written request,
shall furnish to a unit�s owner a statement setting forth the amount of unpaid
assessments against the unit. If the interest of the unit�s owner is real
estate or if a lien for the unpaid assessments may be foreclosed under NRS 116.31162 to 116.31168 , inclusive, the statement must
be in recordable form. The statement must be furnished within 10 business days
after receipt of the request and is binding on the association, the executive
board and every unit�s owner.
����� 14. In a cooperative, upon nonpayment of
an assessment on a unit, the unit�s owner may be evicted in the same manner as
provided by law in the case of an unlawful holdover by a commercial tenant,
and:
����� (a) In a cooperative where the owner�s interest
in a unit is real estate under NRS 116.1105 ,
the association�s lien may be foreclosed under NRS 116.31162 to 116.31168 , inclusive.
����� (b) In a cooperative where the owner�s interest
in a unit is personal property under NRS
116.1105 , the association�s lien:
������������ (1) May be foreclosed as a security
interest under NRS 104.9101 to 104.9709 , inclusive; or
������������ (2) If the declaration so provides, may be
foreclosed under NRS 116.31162 to 116.31168 , inclusive.
����� 15. In an action by an association to
collect assessments or to foreclose a lien created under this section, the
court may appoint a receiver to collect all rents or other income from the unit
alleged to be due and owing to a unit�s owner before commencement or during
pendency of the action. The receivership is governed by chapter 32 of NRS. The court may order the
receiver to pay any sums held by the receiver to the association during
pendency of the action to the extent of the association�s common expense
assessments based on a periodic budget adopted by the association pursuant to NRS 116.3115 .
����� 16. Notwithstanding any other provision of
law, any payment of an amount due to an association in accordance with
subsection 1 by the holder of any lien or encumbrance on a unit that is
subordinate to the association�s lien under this section becomes a debt due
from the unit�s owner to the holder of the lien or encumbrance.