Nrs: Chapter 117 - Condominiums

Link to law: https://www.leg.state.nv.us/NRS/NRS-117.html
Published: 2015

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[Rev. 11/21/2013 9:37:37

AM--2013]



CHAPTER 117 - CONDOMINIUMS

NRS 117.010           Definitions.

NRS 117.020           Applicability;

recordation, amendment and revocation of plan of project.

NRS 117.030           Conveyance

of unit: Presumption of conveyance of entire condominium.

NRS 117.040           Incidents

of grant.

NRS 117.050           Partition

of project.

NRS 117.060           Declaration

of restrictions.

NRS 117.065           Maintenance

fees: Custodial accounts; records.

NRS 117.070           Assessment

liens: Recording of notice of assessment; priority and expiration of lien;

enforcement by sale.

NRS 117.075           Assessment

liens: Exercise of power of sale.

NRS 117.080           Other

liens.

NRS 117.090           Common

personalty.

NRS 117.100           Liberal

construction of deed, declaration or plan for project.

NRS 117.103           Rules

against perpetuities and unreasonable restraints on alienation.

NRS 117.105           Interest

of unit owner conveyed by tax deed.

NRS 117.110           Construction

of local zoning ordinances.

_________

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      NRS 117.010  Definitions.  As

used in this chapter:

      1.  “Common areas” means the entire project

excepting all units therein granted or reserved.

      2.  “Condominium” means an estate in real

property consisting of an undivided interest in common in portions of a parcel

of real property together with:

      (a) A separate interest in space in a

residential, industrial or commercial building or industrial and commercial

building on such real property, such as, but not restricted to, an apartment,

office or store; or

      (b) A separate interest in air space only,

without any building or structure, to be used for a mobile home.

Ê A

condominium may include in addition a separate interest in other portions of

such real property. Such estate may, with respect to the duration of its

enjoyment, be either an estate of inheritance or perpetual estate, an estate

for life, or an estate for years.

      3.  “Project” means the entire parcel of

real property divided or to be divided into condominiums, including all

structures thereon.

      4.  “To divide” real property means to

divide the ownership thereof by conveying one or more condominiums therein but

less than the whole thereof.

      5.  “Unit” means the elements of a

condominium which are not owned in common with the owners of other condominiums

in the project.

      (Added to NRS by 1963, 126; A 1967, 200; 1981, 990)

      NRS 117.020  Applicability; recordation, amendment and revocation of plan of

project.

      1.  The provisions of this chapter apply to

property divided into condominiums only if there was recorded before January 1,

1992, in the county in which the property lies a plan consisting of:

      (a) A description or survey map of the surface of

the land included within the project;

      (b) Diagrammatic floor plans of the building or

buildings built or to be built thereon in sufficient detail to identify each

unit, its relative location and approximate dimensions; and

      (c) A certificate consenting to the recordation

of the plan pursuant to this chapter signed and acknowledged by the record

owner of the property and by all record holders of security interests therein.

      2.  The plan may be amended or revoked by a

subsequently acknowledged recorded instrument executed by the record owner of

the property and by all record holders of security interests therein. Until

recordation of a revocation, the provisions of this chapter continue to apply

to the property.

      3.  The term “record owner” as used in this

section includes all of the record owners of the property at the time of

recordation, but does not include holders of security interests, mineral

interests, easements or rights-of-way.

      (Added to NRS by 1963, 126; A 1991, 580)

      NRS 117.030  Conveyance of unit: Presumption of conveyance of entire

condominium.  Unless otherwise

expressly stated therein, any transfer or conveyance of a unit, or an

apartment, office or store which is a part of a unit shall be presumed to

convey the entire condominium.

      (Added to NRS by 1963, 127)

      NRS 117.040  Incidents of grant.  Unless

otherwise expressly provided in the deeds, declaration of restrictions or plan,

the incidents of a condominium grant are as follows:

      1.  The boundaries of the unit granted are

the interior surfaces of the perimeter walls, floors, ceilings, windows and

doors thereof, and the unit includes both the portions of the buildings so

described and the airspace so encompassed. The following are not part of the

unit: Bearing walls, columns, floors, roofs, foundations, elevator equipment

and shafts, central heating, central refrigeration and central air-conditioning

equipment, reservoirs, tanks, pumps and other central services, pipes, ducts,

flues, chutes, conduits, wires and other utility installations, wherever

located, except the outlets thereof when located within the unit. In

interpreting deeds and plans the existing physical boundaries of the unit or of

a unit reconstructed in substantial accordance with the original plans thereof

shall be conclusively presumed to be its boundaries rather than the metes and

bounds expressed in the deed or plan, regardless of settling or lateral

movement of the building and regardless of minor variances between boundaries

shown on the plan or in the deed and those of the building.

      2.  The common areas are owned by the

owners of the unit as tenants in common in equal shares, one for each unit.

      3.  A nonexclusive easement for ingress,

egress and support through the common areas is appurtenant to each unit and the

common areas are subject to such easements.

      4.  Each condominium owner shall have the

exclusive right to paint, repaint, tile, wax, paper or otherwise refinish and

decorate the inner surfaces of the walls, ceilings, floors, windows and doors

bounding his or her own unit.

      (Added to NRS by 1963, 127)

      NRS 117.050  Partition of project.

      1.  Where several persons own condominiums

in a condominium project, an action may be brought pursuant to NRS 39.010 to 39.490, inclusive, by one or more of such

persons for partition thereof by sale of the entire project, as if the owners

of all the condominiums in such project were tenants in common in the entire

project in the same proportion as their interests in the common areas, but a

partition shall be made only upon the showing that:

      (a) Three years after damage or destruction to

the project which renders a material part thereof unfit for its use prior

thereto, the project has not been rebuilt or repaired substantially to its

state prior to its damage or destruction; or

      (b) Three-fourths or more of the project has been

destroyed or substantially damaged, and that condominium owners holding in

aggregate more than 50 percent interest in the common areas are opposed to

repair or restoration of the project; or

      (c) The project has been in existence in excess

of 50 years, that it is obsolete and uneconomic, and that condominium owners

holding in aggregate more than 50 percent interest in the common areas are

opposed to repair or restoration of the project; or

      (d) Conditions for such a partition by sale set

forth in restrictions entered into with respect to such project have been met.

      2.  Except as provided in subsection 1, the

common areas shall remain undivided, and there shall be no judicial partition

thereof. Nothing herein shall be deemed to prevent partition of a cotenancy in

a condominium.

      (Added to NRS by 1963, 127)

      NRS 117.060  Declaration of restrictions.  The

owner of a project may, prior to the conveyance of any condominium therein,

record a declaration of restrictions relating to such project, which

restrictions shall be enforceable equitable servitudes where reasonable. Such

servitudes, unless otherwise provided, may be enforced, by any owner of a

condominium in the project, and may provide, among other things:

      1.  For the management of the project by

one or more of the following management bodies:

      (a) The condominium owners;

      (b) A board of governors elected by the owners;

or

      (c) A management agent elected by the owners or

the board or named in the declaration.

      2.  For voting majorities, quorums,

notices, meeting dates and other rules governing such body or bodies.

      3.  As to any such management body:

      (a) For the powers thereof, including power to

enforce the provisions of the declaration of restrictions;

      (b) For maintenance by it of fire, casualty,

liability, workers’ compensation and other insurance insuring condominium

owners, and for bonding of the members of any management body;

      (c) For provision by it of and payment by it for

maintenance, utility, gardening and other services benefiting the common areas,

for employment of personnel necessary for operation of the building, and legal

and accounting services;

      (d) For purchase by it of materials, supplies and

the like and for maintenance and repair of the common areas;

      (e) For payment by it of taxes which would be a

lien upon the entire project or common areas, and for discharge by it of any

lien or encumbrance levied against the entire project or common areas;

      (f) For payment by it for reconstruction of any

portion or portions of the project damaged or destroyed;

      (g) For delegation by it of its powers;

      (h) For entry by it or its agents into any unit

when necessary in connection with maintenance or construction for which such

body is responsible; and

      (i) For the power of the management body to sell

the entire project for the benefit of all of the owners thereof when partition

of the project may be had under NRS 117.050, which

power shall be binding upon all of the owners, whether they assume the

obligations of the restrictions or not.

      4.  For amendments of such restrictions,

which amendments, if reasonable and made upon vote or consent of a majority in

interest of the owners in the project given after reasonable notice, shall be

binding upon every owner and every condominium subject thereto, whether the

burdens thereon are increased or decreased thereby, and whether the owner of

each and every condominium consents thereto or not.

      5.  For independent audit of the accounts

of any management body.

      6.  For reasonable assessments to meet authorized

expenditures of any management body, and for a reasonable method for notice and

levy thereof, each condominium to be assessed separately for its share of such

expense in proportion (unless otherwise provided) to its owner’s fractional

interest in any common areas, and for the subordination of the liens securing

such assessments to other liens either generally or specifically described.

      7.  For the conditions upon which partition

may be had of the project pursuant to NRS 117.050.

Such right to partition may be conditioned upon failure of the condominium

owners to elect to rebuild within a certain period, specified inadequacy of

insurance proceeds, specified damage to the building, a decision of an

arbitrator, or upon any other reasonable condition.

      8.  For restrictions upon the severability

of the component interests in real property which comprise a condominium. No

such restrictions shall extend beyond the period in which the right to

partition a project is suspended under NRS 117.050.

      (Added to NRS by 1963, 128)

      NRS 117.065  Maintenance fees: Custodial accounts; records.  Any person who receives fees from a purchaser

of a condominium for the maintenance of the project shall:

      1.  Immediately deposit the money in a

separate custodial account maintained by the person with some bank, credit

union or recognized depositary in this State.

      2.  Keep records of all such money

deposited therein.

      (Added to NRS by 1965, 1219; A 1999, 1457)

      NRS 117.070  Assessment liens: Recording of notice of assessment; priority

and expiration of lien; enforcement by sale.

      1.  A reasonable assessment upon any

condominium made in accordance with a recorded declaration of restrictions

permitted by NRS 117.060 shall be a debt of the

owner thereof at the time the assessment is made. The amount of any such

assessment plus any other charges thereon, such as interest, costs (including

attorneys’ fees), and penalties, as such may be provided for in the declaration

of restrictions, shall be and become a lien upon the condominium assessed when

the management body causes to be recorded with the county recorder of the

county in which such condominium is located a notice of assessment, which shall

state:

      (a) The amount of such assessment and such other

charges thereon as may be authorized by the declaration of restrictions;

      (b) A description of the condominium against

which the same has been assessed; and

      (c) The name of the record owner thereof.

Ê Such notice

shall be signed by an authorized representative of the management body or as

otherwise provided in the declaration of restrictions. Upon payment of the

assessment and charges in connection with which such notice has been so

recorded, or other satisfaction thereof, the management body shall cause to be

recorded a further notice stating the satisfaction and the release of the lien

thereof.

      2.  Such lien shall be prior to all other

liens recorded subsequent to the recordation of the notice of assessment except

that the declaration of restrictions may provide for the subordination thereof

to any other liens and encumbrances. Unless sooner satisfied and released or

the enforcement thereof initiated as provided in subsection 3, such lien shall

expire and be of no further force or effect 1 year from the date of recordation

of the notice of assessment, but the 1-year period may be extended by the

management body for not to exceed 1 additional year by recording a written

extension thereof.

      3.  Such lien may be enforced by sale by

the management body, its agent or attorney, after failure of the owner to pay

such an assessment in accordance with the terms of the declaration of

restrictions. The sale shall be conducted in accordance with the provisions of

Covenants Nos. 6, 7 and 8 of NRS 107.030,

and NRS 107.090 insofar as they are

consistent with the provisions of NRS 117.075, or

in any other manner permitted by law. Unless otherwise provided in the

declaration of restrictions, the management body, if it is a corporation,

cooperative association, partnership or natural person, shall have power to bid

in the condominium at foreclosure sale and to hold, lease, mortgage and convey

the same.

      (Added to NRS by 1963, 129; A 1975, 978)

      NRS 117.075  Assessment liens: Exercise of power of sale.

      1.  The power of sale conferred in NRS 117.070 shall not be exercised until:

      (a) The management body, its agent or attorney

has first executed and caused to be recorded with the recorder of the county

wherein the condominium is located a notice of default and election to sell the

condominium or cause its sale to satisfy the assessment lien; and

      (b) The condominium owner or his or her successor

in interest has failed to pay the amount of the lien, including costs, fees and

expenses incident to its enforcement for a period of 60 days computed as

prescribed in subsection 2.

      2.  The 60-day period provided in

subsection 1 shall commence on the first day following the day upon which the

notice of default and election to sell is recorded as herein provided and a

copy of the notice is mailed by certified or registered mail with postage

prepaid to the condominium owner or to his or her successor in interest at his

or her address if such address is known, otherwise to the address of the

condominium unit. The notice shall describe the deficiency in payment.

      3.  The management body, its agent or

attorney shall, after expiration of the 60-day period and prior to selling the

condominium, give notice of the time and place of the sale in the manner and

for a time not less than that required by law for the sale of real property

upon execution, except that a copy of the notice of sale shall be mailed on or

before the first publication or posting required by NRS 21.130 by certified or registered mail

with postage prepaid to the condominium owner or to his or her successor in interest

at his or her address if such address is known, otherwise to the address of the

condominium unit. The sale itself may be made at the office of the management

body if the notice so provided, whether the condominium is located within the

same county as the office of the management body or not.

      4.  Every sale made under the provisions of

NRS 117.070 vests in the purchaser the title of the

condominium owner without equity or right of redemption.

      (Added to NRS by 1975, 977)

      NRS 117.080  Other liens.  No

labor performed or services or materials furnished with the consent of or at

the request of a condominium owner or his or her agent or his or her contractor

or subcontractor shall be the basis for the filing of a lien against the

condominium of any other condominium owner, or against any part thereof, or

against any other property of any other condominium owner, unless such other

owner has expressly consented to or requested the performance of such labor or

furnishing of such materials or services. Such express consent shall be deemed

to have been given by the owner of any condominium in the case of emergency

repairs thereto. Labor performed or services or materials furnished for the common

areas, if duly authorized by a management body provided for in a declaration of

restrictions governing the property, shall be deemed to be performed or

furnished with the express consent of each condominium owner. The owner of any

condominium may remove his or her condominium from a lien against two or more

condominiums or any part thereof by payment to the holder of the lien of the

fraction of the total sum secured by such lien which is attributable to his or

her condominium.

      (Added to NRS by 1963, 130)

      NRS 117.090  Common personalty.  Unless

otherwise provided by a declaration of restrictions under NRS 117.060, the management body, if any, provided for

therein, may acquire and hold, for the benefit of the condominium owners,

tangible and intangible personal property and may dispose of the same by sale

or otherwise; and the beneficial interest in such personal property shall be

owned by the condominium owners in the same proportion as their respective

interests in the common areas, and shall not be transferable except with a

transfer of a condominium. A transfer of a condominium shall transfer to the

transferee ownership of the transferor’s beneficial interest in such personal

property.

      (Added to NRS by 1963, 130)

      NRS 117.100  Liberal construction of deed, declaration or plan for project.  Any deed, declaration or plan for a

condominium project shall be liberally construed to facilitate the operation of

the project, and its provisions shall be presumed to be independent and

severable.

      (Added to NRS by 1963, 131)

      NRS 117.103  Rules against perpetuities and unreasonable restraints on

alienation.  NRS 111.1031 and the common-law rules of

property known as the rule against perpetuities and the rule restricting

unreasonable restraints on alienation must not be applied to defeat any of the

provisions of this chapter.

      (Added to NRS by 1967, 200; A 1987, 65)

      NRS 117.105  Interest of unit owner conveyed by tax deed.  If any person acquires or is entitled to the

issuance of a tax deed conveying the interest of any condominium owner, such

interest so acquired shall be subject to all the provisions of this chapter and

to all terms, provisions, covenants, conditions and limitations contained in

the declaration of restrictions, any plat, any bylaws or any deed affecting

such interest then in force.

      (Added to NRS by 1967, 200)

      NRS 117.110  Construction of local zoning ordinances.  Unless a contrary intent is clearly expressed,

local zoning ordinances shall be construed to treat like structures, lots or

parcels in like manner regardless of whether the ownership thereof is divided

by sale of condominiums or into community apartments rather than by lease of

apartments, offices or stores.

      (Added to NRS by 1963, 131)