Nevada § 116.2118 - Termination of common-interest community

§ 116.2118. Termination of common-interest community

1. Except in the case of a taking of all the units by eminent domain, in the case

of foreclosure against an entire cooperative of a security interest that has priority

over the declaration, or in the circumstances described in NRS 116.2124 , a common-interest community may be terminated only by agreement of units' owners

to whom at least 80 percent of the votes in the association are allocated, or any

larger percentage the declaration specifies, and with any other approvals required

by the declaration. The declaration may specify a smaller percentage only if all of the units are restricted

exclusively to nonresidential uses. 2. An agreement to terminate must be evidenced by the execution of an agreement to

terminate, or ratifications thereof, in the same manner as a deed, by the requisite

number of units' owners. The agreement must specify a date after which the agreement will be void unless

it is recorded before that date. An agreement to terminate and all ratifications thereof must be recorded in every

county in which a portion of the common-interest community is situated and is effective

only upon recordation. 3. In the case of a condominium or planned community containing only units having

horizontal boundaries described in the declaration, an agreement to terminate may

provide that all of the common elements and units of the common-interest community

must be sold following termination. If, pursuant to the agreement, any real estate in the common-interest community

is to be sold following termination, the agreement must set forth the minimum terms

of the sale. 4. In the case of a condominium or planned community containing any units not having

horizontal boundaries described in the declaration, an agreement to terminate may

provide for sale of the common elements, but it may not require that the units be

sold following termination, unless the declaration as originally recorded provided

otherwise or all the units' owners consent to the sale. 5. The association, on behalf of the units' owners, may contract for the sale of real

estate in a common-interest community, but the contract is not binding on the units'

owners until approved pursuant to subsections 1 and 2. If any real estate is to be sold following termination, title to that real estate,

upon termination, vests in the association as trustee for the holders of all interests

in the units. Thereafter, the association has all powers necessary and appropriate to effect the

sale. Until the sale has been concluded and the proceeds thereof distributed, the association

continues in existence with all powers it had before termination. Proceeds of the sale must be distributed to units' owners and lienholders as their

interests may appear, in accordance with NRS 116.21183 and 116.21185 . Unless otherwise specified in the agreement to terminate, as long as the association

holds title to the real estate, each unit's owner and his or her successors in interest

have an exclusive right to occupancy of the portion of the real estate that formerly

constituted the unit. During the period of that occupancy, each unit's owner and his or her successors

in interest remain liable for all assessments and other obligations imposed on units'

owners by this chapter or the declaration. 6. In a condominium or planned community, if the real estate constituting the common-interest

community is not to be sold following termination, title to the common elements and,

in a common-interest community containing only units having horizontal boundaries

described in the declaration, title to all the real estate in the common-interest

community, vests in the units' owners upon termination as tenants in common in proportion

to their respective interests as provided in NRS 116.21185 , and liens on the units shift accordingly. While the tenancy in common exists, each unit's owner and his or her successors

in interest have an exclusive right to occupancy of the portion of the real estate

that formerly constituted the unit. 7. Following termination of the common-interest community, the proceeds of a sale

of real estate, together with the assets of the association, are held by the association

as trustee for units' owners and holders of liens on the units as their interests

may appear.