Shadow Wood Homeowners Ass’n, Inc. v. N.Y. Cmty. Bancorp, Inc.

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Appellants in this case were a homeowners’ association (HOA) and a foreclosure sale buyer. On summary judgment, the district court set aside a trustee’s deed following the HOA’s assessment lien foreclosure sale, holding (1) Nev. Rev. Stat. 116.3116(2) limited the HOA lien to nine months of common expense assessments, and the HOA acted unfairly and oppressively in insisting on more than that amount to cancel the sale; (2) the bid price was grossly inadequate as a matter of law; and (3) the buyer did not qualify as a bona fide purchaser. The Supreme Court vacated the district court’s judgment, holding (1) Nev. Rev. Stat. 116.31166’s enactment, in an appropriate case, did not eliminate a court’s authority to grant equitable relief from a defective HOA lien foreclosure sale; but (2) the district court in this case erred in limiting the HOA lien amount to nine months of common expense assessments and in resolving on summary judgment the issues of fact regarding the parties’ conduct, the foreclosure sale buyer’s status, the HOA lien amount, and the competing equities. Remanded. View "Shadow Wood Homeowners Ass’n, Inc. v. N.Y. Cmty. Bancorp, Inc." on Justia Law