Nevada Property Rights and Transactions

Sec. § 116.21175
Procedure for seeking confirmation from district court of certain amendments to declaration.

1.

Except as otherwise limited by subsection 4 of NRS 116.2117, if:

(a)

To approve an amendment to the declaration pursuant to NRS 116.2117, the declaration requires:

(1)

In a single-class voting structure, more than a majority of the total number of votes allocated to the single class to be cast in favor of the amendment; or

(2)

In a multiclass voting structure, more than a majority of the total number of votes allocated to one or more of the multiple classes to be cast in favor of the amendment; and

(b)

An amendment fails to receive the number of votes required by the declaration to be approved but:

(1)

In a single-class voting structure, receives a majority of the total number of votes allocated to the single class; or

(2)

In a multiclass voting structure, receives in each of the multiple classes a majority of the total number of votes allocated to that class,
Ê the association or any unit’s owner may file a petition with the district court in any county in which any portion of the common-interest community is located asking for an order waiving the supermajority requirements of the declaration and confirming the amendment as validly approved.

2.

If the association or any unit’s owner files a petition pursuant to subsection 1, the petition:

(a)

Must contain sufficient information specifying:

(1)

The actions that have been taken to obtain the number of votes required to approve the amendment under the declaration and whether those actions have conformed with the procedures set forth in the declaration;

(2)

The amount of time that has been allowed for the units’ owners to vote upon the amendment;

(3)

The number and percentage of affirmative votes required in each voting class to approve the amendment under the declaration;

(4)

The number and percentage of affirmative and negative votes actually received in each voting class with regard to the amendment; and

(5)

Any other matters the petitioner considers relevant to the court’s determination; and

(b)

Must include, as exhibits to the petition, copies of:

(1)

The governing documents;

(2)

The complete text of the amendment and a statement explaining the need for the amendment and its purposes and objectives;

(3)

All notices and materials used in the effort to persuade the units’ owners to approve the amendment; and

(4)

Any other documents the petitioner considers relevant to the court’s determination.

3.

Upon receiving the petition, the court shall:

(a)

Set the matter for hearing; and

(b)

Issue an ex parte order setting forth the manner in which the petitioner must give written notice of the hearing to all the units’ owners in the association.

4.

The court may grant the petition if it finds that the petitioner has presented evidence establishing that:

(a)

The petitioner has given at least 15 days’ written notice of the hearing to:

(1)

All the units’ owners in the association;

(2)

Each city, if any, and each county in which any portion of the common-interest community is located; and

(3)

All other persons or entities that are entitled to notice under the declaration;

(b)

The voting process regarding the amendment was conducted in accordance with all applicable provisions of the governing documents and state law;

(c)

A reasonably diligent effort was made to allow all eligible units’ owners and, if required by the governing documents, all lenders to vote on the amendment;

(d)

The amendment:

(1)

In a single-class voting structure, received a majority of the total number of votes allocated to the single class; or

(2)

In a multiclass voting structure, received in each of the multiple classes a majority of the total number of votes allocated to that class; and

(e)

The amendment is reasonable.

5.

If the court grants the petition, the court shall enter an order waiving the supermajority requirements of the declaration and confirming the amendment as validly approved.

6.

An amendment confirmed by a final court order pursuant to this section is not effective until a certified copy of the amendment and the final court order have been recorded in each county in which any portion of the common-interest community is located. The amendment must be prepared, executed, recorded and certified on behalf of the association by any officer of the association designated for that purpose or, in the absence of designation, by the president of the association, and the final court order must be recorded along with the amendment.

7.

After the amendment and the final court order have been recorded pursuant to this section, the declaration, as amended, has the same force and effect as if the amendment had been approved in compliance with every requirement imposed by the governing documents.

8.

Not later than 30 days after the date on which the amendment and the final court order are recorded pursuant to this section, the association shall mail to all the units’ owners in the association:

(a)

A copy of the amendment and the final court order; and

(b)

A statement explaining that the amendment and the final court order have been recorded and that the declaration has been amended pursuant to this section.
Source

Last accessed
Feb. 5, 2021

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