Southern Highlands Cmty. Ass’n v. San Florentine Ave. Trust
Annotate this CaseUnder Nev. Rev. Stat. 116.3116(4), if two or more homeowners’ associations (HOAs) have liens for assessments created at any time on the same property, those liens have “equal priority.” The property at issue in this dispute was part of two HOAs - Appellant and a nonparty. The nonparty foreclosed on the property, and Respondent purchased it. Appellant subsequently recorded a lien against the property for unpaid association dues pre-dating the foreclosure sale. When the lien went unpaid, Appellant set a foreclosure sale date. Respondent sought to preliminarily enjoin the foreclosure sale, arguing that section 116.3116(4) gives equal priority to multiple HOA liens, and therefore, the nonparty’s foreclosure sale extinguished Appellant’s lien. The district court granted the preliminary injunction. The Supreme Court affirmed, holding that, under section 116.3116(4), the nonparty’s foreclosure sale extinguished Appellant’s lien, but Appellant remained entitled to its proper share of the sale proceeds.
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