About The Nevada HOA Super Lien Law

Lien Priority Is Important

HOA Foreclosure billboard warning image.Nevada is one of about 20 states that have a Super Lien law. A homeowners association, or HOA, has the right to record a lien against a property associated with unpaid HOA fees. Usually, an HOA lien would not take priority to a first mortgage lien — traditionally, the first lien holder (likely the bank) receives payment first in the event of foreclosure. HOA Super Priority Lien law – NRS 116.3116 – was a true priority lien and an HOA foreclosure sale could extinguish a first deed of trust. However, the super lien legislation revision – S.B. 306 – provides, among other fixes, a 60-day redemption period for the owner of the property and first lien holder following an HOA sale. Previously this did not exist. The revision took effect on Oct. 1st 2015.

Other important revisions:

  •  A first lien holder now has up to five days prior to the HOA sale to satisfy the super-priority amount, and must then record—at least two days prior to the sale—that such super-priority amount was paid.
  • The HOA or its agent must now record an affidavit indicating that proper notices were sent to the first lien holder. No such requirement previously existed.
  • The revised law caps the amount of costs and fees that an HOA can levy as part of the super-priority amount (essentially around $1,350), and it specifically prohibits attorneys’ fees from being included as part of the super-priority amount.
  • The revised law mandates that the auctioneer at the HOA sale state whether or not the first lien holder satisfied the super-priority lien.
  • The revised law provides the owner of the property and the first lien holder a 60-day right of redemption.