Nevada § 116B.340 - Allocation of allocated interests

§ 116B.340. Allocation of allocated interests

1. The declaration must allocate to each unit, including any unit owned by the declarant

or hotel unit owner, as applicable, a fraction or percentage of undivided interests

in the common elements and in the common expenses of the association and a portion

of the votes in the association. 2. The declaration may allocate to each residential unit, including any residential

unit owned by the declarant or the hotel unit owner, as applicable, a fraction or

percentage of the liability for shared expenses and other charges of the hotel unit

owner. Unless the declaration provides otherwise, residential units are not allocated an

undivided interest in the ownership of the hotel unit or the shared components. 3. The declaration must state the formulas used to establish allocations of interests

and to establish each residential unit's allocated liability for shared expenses. Unless the declaration provides otherwise, the formula used to allocate interests

and to allocate liability for shared expenses must be based on the square footage

of the residential units. Those allocations of interest and allocations of liability for shared expenses must

not discriminate in favor of any unit within the condominium hotel. 4. The declaration may provide: (a) That different allocations of votes are made to the units on particular matters

specified in the declaration; (b) For cumulative voting only for the purpose of electing members of the executive

board; (c) For class voting on specified issues affecting the class if necessary to protect

valid interests of the class; (d) For the hotel unit owner's ability to prohibit use of the shared components by

residential unit owners or the tenants or guests of the residential unit owners for

violation of reasonable rules and regulations as may be established by the hotel unit

owner. If the hotel unit owner prohibits use of the shared components, such prohibition

may not restrict use of the shared components as is necessary for vehicular or pedestrian

ingress or egress to or from the residential unit; and (e) For the hotel unit owner's ability to convey or subject the shared components

and the portions of the hotel unit not designated as shared components to a security

interest without the approval of other units' owners. 5. Except for minor variations because of rounding, the sum of the liabilities for

common expenses allocated at any time to all the units must each equal one if stated

as a fraction or 100 percent if stated as a percentage. In the event of discrepancy between an allocated interest and the result derived

from application of the pertinent formula, the allocated interest prevails. 6. Except for minor variations because of rounding, the sum of the liabilities for

shared expenses allocated at any time to all the residential units must each equal

one if stated as a fraction or 100 percent if stated as a percentage. In the event of any discrepancy between a specific residential unit's allocated

share of liability for shared expenses and the result derived from the application

of the pertinent formula, the specific residential unit's allocation of liability

for shared expenses prevails. 7. In a condominium hotel, the common elements are not subject to partition, and any

purported conveyance, encumbrance, judicial sale or other voluntary or involuntary

transfer of an undivided interest in the common elements made without the unit to

which that interest is allocated is void. 8. If units may be added to or withdrawn from the condominium hotel, the declaration

must state the formulas to be used to reallocate the allocated interests and the allocations

of liability for shared expenses among all units included in the condominium hotel

after the addition or withdrawal.