Foreclosure in Las Vegas>Question Details

Mday83, Home Buyer in California

Do HOA liens survive a tax deed sale in Clark County, Nevada?

Asked by Mday83, California Wed May 2, 2012

It seems that all mechanic's liens, etc. are wiped out when purchasing a property from the tax deed sale. Only IRS and other government liens are supposed to remain. How about liens from homeowner's associations? Is anyone knowledgeable about this?

Help the community by answering this question:


Hello again,

Actually the statement that homes are not foreclosed on for 4 years or more due to excessively high HOA liens is inaccurate. Also part of Nevada law and part of the "Super priority" statute is a limit on the amount that a Bank or future owner would be obligated to in a foreclosure situation. That super-priority amount is 9 months, plus various attorney fees. Once foreclosed on the obligation for ongoing fees begins to accrue again, but the arrears portion is, as I said, limited to the 9 month rule. The legal fees are also limited.

Hope that clears up this misconception.

Best wishes, and thanks again fro reading.
1 vote Thank Flag Link Wed May 2, 2012
Hello Steve, you may think my statement is a misconception but I have experienced these situations myself with certain properties. There may be new laws on this matter but there are indeed homes that have fallen through the cracks and have not been foreclosed on now for about 4 or 5 years. HOA debt may not be the only reason but it sure is one of the reasons on these particular properties. I will never claim and all or nothing situation with anything in this market or in life. Thank you. :)

2 votes Thank Flag Link Wed May 2, 2012
Hello yet again,

A very nice post by David Cooper...But David, not just as a matter of courtesy, but because of copy-write laws, if you are going to lift someone else's material, you ought to at least site them and give them credit.

Actual thanks and credit for good research goes to Steve Green

Not cool to claim those comments as your own. Not cool. I'm just sayin'
2 votes Thank Flag Link Wed May 2, 2012
Your "Lift" was from a reporter. My point was that if you are going to plagiarize someone, give them credit instead of taking credit for it as if it were your own. that is all.
1 vote Thank Flag Link Wed May 2, 2012
The information about the Supreme Court hearing challanges to the HOA lein laws is public information obtained from the legal journals. The information is in answer to the question at hand, and my objective is to disburse information useful to the general public.

David Cooper Investor with Buyers Agent License at Since 1917 Realty 702-499-7037
Follow us on FACEBOOK
1 vote Thank Flag Link Wed May 2, 2012
Hello, Mday83,

In the State of Nevada HOA liens are referred to as "Super-priority" liens, which means they supersede everything. For good reason. Consider this, if an HOA lien could be wiped off a property the Homeowners association would have to pay the bill putting the burden back on every homeowner. obviously, this is not fair.

Best of luck, and thanks for reading.

Steve Matthews
Prudential Americana
1 vote Thank Flag Link Wed May 2, 2012
I must say that the entirety of the answers here are FALSE! HOA Liens Priority has Nothing to do with a foreclosure based upon unpaid Property Taxes. “TAX DEED SALE”

Nrs 116.3116 Which defines the priority of an HOA’s Lien states Explicitly:

2.??A lien under this section is prior to all other liens and encumbrances on a unit except:
(a)?Liens and encumbrances recorded before the recordation of the declaration and, in a cooperative, liens and encumbrances which the association creates, assumes or takes subject to;
(b)?A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent or, in a cooperative, the first security interest encumbering only the unit’s owner’s interest and perfected before the date on which the assessment sought to be enforced became delinquent; and
(c)?Liens for real estate taxes and other governmental assessments or charges against the unit or cooperative.

Taxes Fall Under Exception ( C) Above. Therefore NO PART Of The HOA Lien Survives A TAX DEED Sale In Nevada.

All the This & that And Back & Forth about the Super Priority Lien Applies ONLY To Section (B) Above.
Those arguments apply ONLY To The Foreclosure Of A First Deed Of Trust. Regardless of What the Supreme Court Rules On That Issue.

Buy Them Up! The HOA Will Try To Collect But They Have No Right According To The LAW! Fair Or Not! It’s The LAW.
0 votes Thank Flag Link Tue May 13, 2014
Yes, but can't the HOA foreclose and take over the property subject to the tax lien (then once they satisfy it, the own the property)?
Flag Tue Nov 4, 2014
Lawsuits filed over excess HOA fees for buyers to obtain clear title.

David Cooper Investor 702-499-7037 Licensed Byters Agent Since 1917 Realty
0 votes Thank Flag Link Sun Jul 8, 2012
HOA SUPER PRIORITY LIENS is governed by NRS 116.3116. Paragraph 2 of said law says that HOA assessment lien is prior to all other liens. There are exceptions, or course, most important of which is par 2(b) which pertains to tthe "First Secuirty" of the lender commonly known as the "first mortgage." But there seems to be an exception to said exception. Par 2(c) states that the HOA Liens are more prior that security interests described in par 2(b). For more info-- read NRS 116.3116.
0 votes Thank Flag Link Sun Jul 8, 2012
The original question was a great one! We all know people who’ve had questions about HOAs (especially since so much has been in the news lately) Let's try to stay focused on the common objective. Our goal as professionals is to provide helpful and accurate information to the public; as well as share personal experiences.

Doesn’t seem like anyone was attempting to neither mislead nor plagiarize.
0 votes Thank Flag Link Wed May 2, 2012
The Nevada Supreme Court waded Wednesday into the first of what may be multiple cases pitting homeowner associations and their collection agencies against buyers of foreclosed homes.
--->Last year the commission allowed liens for collection costs of up to $1,950.

At issue is how much money buyers can be required to pay to clear HOA liens for dues, fees, fines and collection costs that accumulate against the homes while they sit vacant during the foreclosure process.

During oral arguments before a Supreme Court panel in Las Vegas, an attorney for the state asked the court to find HOA collection agencies and their fees are subject to regulation by the Nevada Financial Institutions Division (FID).

That would represent a victory for buyers of foreclosed homes — typically investors.

That’s because the FID has already ruled that under state law, HOAs can file liens against foreclosed homes for just the equivalent of nine months of HOA dues.

That would amount to just $450 if HOA dues are $50 per month — a sum HOAs and the collection agencies say is woefully inadequate.

The HOAs, dealing with a glut of foreclosed homes during the recession, often spend thousands of dollars on maintenance and repairs for vacant homes and sometimes end up foreclosing on them to recover their costs.

“The publication costs alone are about $500 to conduct a foreclosure,” Patrick Reilly, a Las Vegas attorney with the firm Holland & Hart LLP and representing three collection agencies, told the court Wednesday.

The collection agencies say HOA fees can only be regulated by another state agency, the Nevada Real Estate Division.

The state Commission for Common-Interest Communities and Condominium Hotels, which is part of the Real Estate Division, has been friendlier than the FID to HOAs.

DAVID COOPER Investor with Buyers Agent License at Since 1917 Realty 702-499-7037
Follow us on FACEBOOK
0 votes Thank Flag Link Wed May 2, 2012

IRS and HOA liens are definitely attached to the property and must be paid off first. Many homes going through the foreclosure process has HOA liens that could have been accumulated over the years and as a result are at very high amounts. This is one of the reasons that some homes may seem to have fallen off the radar and are not foreclosed on for upwards of 4 years or more. They are not able to be sold at a trustees sale simply because the debt is too large and investors would not be able to make any significant return on their investment. But there are people or companies out there that actually buy HOA debts. Another business in itself.

I hope I was helpful and able to answer your question. :)

Gentille Chhun
Realty One Group
cell 702-467-3131
fax 888-765-0493
0 votes Thank Flag Link Wed May 2, 2012
IRS liens stays on the property for only 120 days.. HOA liens are super priority and they foreclose on the homeowner. We are seeing lots of investors buying those HOA liens for rental income. I almost brought one myself that did not have the first position deed. I was told by the title company that I would get a deed and the property would be on my name with the exception that I would not be able to sell it for 2 years and would not get title insurance on it.
Flag Fri Mar 15, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer