NRS116.31162. Foreclosure of liens: Mailing of notice of delinquent assessment; recording of notice of default and election to sell; period during which unit’s owner may pay lien to avoid foreclosure; limitations on type of lien that may be foreclosed.

      1.  Except as otherwise provided in subsection 5 or 6, in a condominium, in a planned community, in a cooperative where the owner’s interest in a unit is real estate under NRS 116.1105, or in a cooperative where the owner’s interest in a unit is personal property under NRS 116.1105 and the declaration provides that a lien may be foreclosed under NRS 116.31162 to 116.31168, inclusive, the association may foreclose its lien by sale after all of the following occur:

      (a) The association has mailed by certified or registered mail, return receipt requested, to the unit’s owner or his or her successor in interest, at his or her address, if known, and at the address of the unit, a notice of delinquent assessment which states the amount of the assessments and other sums which are due in accordance with subsection 1 of NRS 116.3116, a description of the unit against which the lien is imposed and the name of the record owner of the unit.

      (b) Not less than 30 days after mailing the notice of delinquent assessment pursuant to paragraph (a), the association or other person conducting the sale has executed and caused to be recorded, with the county recorder of the county in which the common-interest community or any part of it is situated, a notice of default and election to sell the unit to satisfy the lien which must contain the same information as the notice of delinquent assessment and which must also comply with the following:

             (1) Describe the deficiency in payment.

             (2) State the name and address of the person authorized by the association to enforce the lien by sale.

             (3) Contain, in 14-point bold type, the following warning:

 

WARNING! IF YOU FAIL TO PAY THE AMOUNT SPECIFIED IN THIS NOTICE, YOU COULD LOSE YOUR HOME, EVEN IF THE AMOUNT IS IN DISPUTE!

 

      (c) The unit’s 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 90 days following the recording of the notice of default and election to sell.

      2.  The notice of default and election to sell must be signed by the person designated in the declaration or by the association for that purpose or, if no one is designated, by the president of the association.

      3.  The period of 90 days begins on the first day following:

      (a) The date on which the notice of default is recorded; or

      (b) The date on which a copy of the notice of default is mailed by certified or registered mail, return receipt requested, to the unit’s owner or his or her successor in interest at his or her address, if known, and at the address of the unit,

Ê whichever date occurs later.

      4.  An association may not mail to a unit’s owner or his or her successor in interest a letter of its intent to mail a notice of delinquent assessment pursuant to paragraph (a) of subsection 1, mail the notice of delinquent assessment or take any other action to collect a past due obligation from a unit’s owner or his or her successor in interest unless, not earlier than 60 days after the obligation becomes past due, the association mails to the address on file for the unit’s owner:

      (a) A schedule of the fees that may be charged if the unit’s owner fails to pay the past due obligation;

      (b) A proposed repayment plan; and

      (c) A notice of the right to contest the past due obligation at a hearing before the executive board and the procedures for requesting such a hearing.

      5.  The association may not foreclose a lien by sale based on a fine or penalty for a violation of the governing documents of the association unless:

      (a) The violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community; or

      (b) The penalty is imposed for failure to adhere to a schedule required pursuant to NRS 116.310305.

      6.  The association may not foreclose a lien by sale if:

      (a) The unit is owner-occupied housing encumbered by a deed of trust;

      (b) The beneficiary under the deed of trust, the successor in interest of the beneficiary or the trustee has recorded a notice of default and election to sell with respect to the unit pursuant to subsection 2 of NRS 107.080; and

      (c) The trustee of record has not recorded the certificate provided to the trustee pursuant to subparagraph (1) or (2) of paragraph (d) of subsection 2 of NRS 107.086.

Ê As used in this subsection, “owner-occupied housing” has the meaning ascribed to it in NRS 107.086.

      (Added to NRS by 1991, 569; A 1993, 2371; 1997, 3121; 1999, 3011; 2003, 2244, 2273; 2005, 2608; 2013, 3483, 3789)