Nevada § 116B.475 - Transfer of special declarant’s right

§ 116B.475. Transfer of special declarant’s right

1. A special declarant's right created or reserved under this chapter may be transferred

only by an instrument evidencing the transfer recorded in every county in which any

portion of the condominium hotel is located. The instrument is not effective unless executed by the transferee. 2. Upon transfer of any special declarant's right, the liability of a transferor declarant

is as follows: (a) A transferor is not relieved of any obligation or liability arising before the

transfer and remains liable for warranties imposed upon the transferor by this chapter. Lack of privity does not deprive any unit's owner of standing to maintain an action

to enforce any obligation of the transferor. (b) If a successor to any special declarant's right is an affiliate of a declarant,

the transferor is jointly and severally liable with the successor for any obligations

or liabilities of the successor relating to the condominium hotel. (c) If a transferor retains any special declarant's rights, but transfers other special

declarant's rights to a successor who is not an affiliate of the declarant, the transferor

is liable for any obligations or liabilities imposed on a declarant by this chapter

or by the declaration relating to the retained special declarant's rights and arising

after the transfer. (d) A transferor has no liability for any act or omission or any breach of a contractual

obligation or warranty arising from the exercise of a special declarant's right by

a successor declarant who is not an affiliate of the transferor. 3. Unless otherwise provided in a mortgage, deed of trust or other agreement creating

a security interest, in case of foreclosure of a security interest, sale by a trustee

under an agreement creating a security interest, tax sale, judicial sale or sale under

the Bankruptcy Code or a receivership, of any units owned by a declarant or real estate

in a condominium hotel subject to developmental rights, a person acquiring title to

all the property being foreclosed or sold, but only upon the person’s request, succeeds

to all special declarant's rights related to that property held by that declarant,

or only to any rights reserved in the declaration pursuant to this chapter and held

by that declarant to maintain models, offices for sales and signs. The judgment or instrument conveying title must provide for transfer of only the

special declarant's rights requested. 4. Upon foreclosure of a security interest, sale by a trustee under an agreement creating

a security interest, tax sale, judicial sale or sale under the Bankruptcy Code or

a receivership of all interests in a condominium hotel owned by a declarant: (a) The declarant ceases to have any special declarant's rights; and (b) The period of declarant's control terminates unless the judgment or instrument

conveying title provides for transfer of all special declarant's rights held by that

declarant to a successor declarant.