Nevada § 116.3112 - Conveyance or encumbrance of common elements

§ 116.3112. Conveyance or encumbrance of common elements

1. In a condominium or planned community, portions of the common elements may be conveyed

or subjected to a security interest by the association if persons entitled to cast

at least a majority of the votes in the association, including a majority of the votes

allocated to units not owned by a declarant, or any larger percentage the declaration

specifies, agree to that action; but all owners of units to which any limited common

element is allocated must agree in order to convey that limited common element or

subject it to a security interest. The declaration may specify a smaller percentage only if all of the units are restricted

exclusively to nonresidential uses. Proceeds of the sale are an asset of the association. 2. Part of a cooperative may be conveyed and all or part of a cooperative may be subjected

to a security interest by the association if persons entitled to cast at least a majority

of the votes in the association, including a majority of the votes allocated to units

not owned by a declarant, or any larger percentage the declaration specifies, agree

to that action; but, if fewer than all of the units or limited common elements are

to be conveyed or subjected to a security interest, then all units' owners of those

units, or the units to which those limited common elements are allocated, must agree

in order to convey those units or limited common elements or subject them to a security

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

exclusively to nonresidential uses. Proceeds of the sale are an asset of the association. Any purported conveyance or other voluntary transfer of an entire cooperative, unless

made pursuant to NRS 116.2118 , is void. 3. An agreement to convey common elements in a condominium or planned community, or

to subject them to a security interest, or in a cooperative, an agreement to convey

any part of a cooperative or subject it to a security interest, must be evidenced

by the execution of an agreement, 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 recorded

before that date. The agreement 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. 4. The association, on behalf of the units' owners, may contract to convey an interest

in a common-interest community pursuant to subsection 1, but the contract is not enforceable

against the association until approved pursuant to subsections 1, 2 and 3. Thereafter,

the association has all powers necessary and appropriate to effect the conveyance

or encumbrance, including the power to execute deeds or other instruments. 5. Unless made pursuant to this section, any purported conveyance, encumbrance, judicial

sale or other voluntary transfer of common elements or of any other part of a cooperative

is void. 6. A conveyance or encumbrance of common elements or of a cooperative pursuant to

this section does not deprive any unit of its rights of access and support. 7. Unless the declaration otherwise provides, a conveyance or encumbrance of common

elements pursuant to this section does not affect the priority or validity of preexisting

encumbrances. 8. In a cooperative, the association may acquire, hold, encumber or convey a proprietary

lease without complying with this section.