Nevada Revised Statutes 116.31164 – Foreclosure of liens: Procedure for conducting sale; satisfaction of lien before sale; persons prohibited from purchasing unit; execution and delivery of deed; use of proceeds of sale
1. The sale must be conducted in accordance with the provisions of this section.
Terms Used In Nevada Revised Statutes 116.31164
- county: includes Carson City. See Nevada Revised Statutes 0.033
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- population: means the number of people in a specified area as determined by the last preceding national decennial census conducted by the Bureau of the Census of the United States Department of Commerce pursuant to Section 2 of Nevada Revised Statutes 0.050
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
2. If the holder of the security interest described in paragraph (b) of subsection 2 of NRS 116.3116 satisfies the amount of the association’s lien that is prior to its security interest not later than 5 days before the date of sale, the sale may not occur unless a record of such satisfaction is recorded in the office of the county recorder of the county in which the unit is located not later than 2 days before the date of sale.
3. The sale must be made between the hours of 9 a.m. and 5 p.m. and:
(a) If the unit is located in a county whose population is less than 100,000, at the courthouse in the county in which the unit is located.
(b) If the unit is located in a county whose population is 100,000 or more, at the public location in the county designated by the governing body of the county to conduct a sale of real property pursuant to NRS 107.080.
4. The sale may be conducted by the association, its agent or attorney, or a title insurance company or escrow agent licensed to do business in this State.
5. The association or other person conducting the sale may from time to time postpone the sale by such advertisement and notice as it considers reasonable or, without further advertisement or notice, by proclamation made to the persons assembled at the time and place previously set and advertised for the sale, except that:
(a) If the sale is postponed by oral proclamation, the sale must be postponed to a later date at the same time and location; and
(b) If such a date has been postponed by oral proclamation three times, any new sale information must be provided by notice as provided in NRS 116.311635.
6. On the day of sale, at the time and place specified in the notice, the person conducting the sale:
(a) Shall state to the persons assembled for the sale whether or not the holder of the security interest described in paragraph (b) of subsection 2 of NRS 116.3116 has satisfied the amount of the association’s lien that is prior to that first security interest pursuant to subsection 3 of NRS 116.3116.
(b) Except as otherwise provided in subsection 7, may sell the unit at public auction to the highest cash bidder.
7. The following persons may not purchase the unit:
(a) Any person who was involved in the process of foreclosing the association’s lien pursuant to NRS 116.3116 to 116.31168, inclusive, including, without limitation:
(1) Any person who exercised discretion in any decision relating to the foreclosure of the lien and any person employed by such a person;
(2) A collection agency used by the association to collect an obligation relating to the unit;
(3) A community manager of the association and any of his or her assistants;
(4) A member of the executive board of the association; or
(5) An attorney who provided representation to any of the parties with regard to the foreclosure of the lien;
(b) Any person who is related by blood, adoption, marriage or domestic partnership within the third degree of consanguinity or affinity to a person set forth in paragraph (a); or
(c) The person conducting the sale or any entity in which that person holds an interest.
8. After the sale, the person conducting the sale shall:
(a) Comply with the provisions of subsection 2 of NRS 116.31166; and
(b) Apply the proceeds of the sale for the following purposes in the following order:
(1) The reasonable expenses of sale;
(2) The reasonable expenses of securing possession before sale, holding, maintaining, and preparing the unit for sale, including payment of taxes and other governmental charges, premiums on hazard and liability insurance, and, to the extent provided for by the declaration, reasonable attorney’s fees and other legal expenses incurred by the association;
(3) Satisfaction of the association’s lien;
(4) Satisfaction in the order of priority of any subordinate claim of record; and
(5) Remittance of any excess to the unit’s owner.