Justia Real Estate & Property Law Opinion Summaries

The Supreme Court affirmed the decision of the district court granting summary judgment in favor of U.S. Bank seeking to foreclose on a defaulted loan, holding that because U.S. Bank presented evidence to meet its burden to show that the original note was lost, it was entitled to enforce the note because the facts established that the action may proceed.U.S. Bank acquired the deed of trust secured by Appellant's residence and sought to foreclose on the defaulted loan. The original lender did not execute an assignment of the note to U.S. Bank when assigning the deed of trust to U.S. Bank. The loan servicer, however, swore an affidavit certifying that the note was lost. The district court granted summary judgment in favor of U.S. Bank. The Supreme Court affirmed, holding that because U.S. Bank showed by a preponderance of the evidence that it acquired ownership of the note from a party that had the right to enforce it, that the note was not lost as a result of a transfer or lawful seizure, and that the note could not be reasonably obtained, U.S. Bank satisfied the requirements of Nev. Rev. Stat. 104.3309 and was entitled to seek a judicial foreclosure on Appellant's default. View "Jones v. U.S. Bank National Ass'n" on Justia Law

The Supreme Court reversed the judgment of the district court dismissing Appellant's quiet title action under Nev. R. Civ. P. 12(b)(5), holding that the limitations period in Nev. Rev. Stat. 11.080 does not run against an owner who is in undisputed possession of the land, and because the facts alleged did not establish whether or when possession was disturbed here, the complaint was improperly dismissed.Six and one-half years after purchasing property at a homeowners' association foreclosure sale Appellant filed this action seeking a judicial declaration that the foreclosure extinguished the deed of trust that secured the prior homeowner's mortgage. At issue was whether the action was barred by section 11.080 because Appellant had been in possession of the property for more than five years before commencing the quiet title action. The district court concluded that the limitations period in section 11.080 began to run against Appellant when he acquired the property at the foreclosure sale. The Supreme Court reversed, holding that because the district court did not consider the fact that the statute of limitations ran from the time Appellant's ownership or possession of the property was disputed the court erred in granting Respondent's motion to dismiss. View "Berberich v. Bank of America, N.A." on Justia Law

In this homeowners' association (HOA) lien foreclosure dispute between the holder of the first deed of trust on the property and the assignee of the buyer at the lien foreclosure sale the Supreme Court held that while a homeowner can cure a superpriority default the district court did not decide whether the homeowner's partial payments in fact cured the superpriority lien default.After receiving a notice of delinquency, the homeowner made partial payments to the HOA but did not specify whether she wanted the HOA to apply to the superpriority or subpriority portion of the lien. The district court concluded that because the homeowner's payments exceeded the defaulted superpriority lien amount the default was cured such that the foreclosure sale did not extinguish the first deed of trust. The Supreme Court affirmed the district court's decision denying summary judgment to the buyer's assignee but vacated its grant of summary judgment to the holder of the first deed of trust, holding that the homeowner has the ability to cure a default as to the superpriority portion of an HOA lien, and allocating partial payments by a homeowner to her HOA depends on the intent and actions of the homeowner and the HOA. View "9352 Cranesbill Trust v. Wells Fargo Bank, N.A." on Justia Law

The Supreme Court affirmed the judgment of the district court finding that a deed of trust beneficiary's agent was excused from making a formal tender, such that under Bank of America, N.A. v. SFR Investments Pool 1, LLC, 427 P.3d 113 (Nev. 2018), the ensuing foreclosure sale did not extinguish the first deed of trust, holding that substantial evidence supported this finding.In Bank of America, the Supreme Court held that a deed of trust beneficiary can preserve its deed of trust by tendering the superpriority portion of a homeowners' association's (HOA) lien before the foreclosure sale is held. At issue was whether an offer to pay the superpriority amount when that amount is determined constitutes a tender sufficient to preserve the first deed of trust. The Supreme Court answered the question in the negative but held that a formal tender is excused when evidence shows that the party entitled to payment had a known policy of rejecting such payments. Specifically, the Court held (1) the beneficiary was excused from making a formal tender because, pursuant to a known policy, its tender would have been rejected; and (2) therefore, the beneficiary preserved its interest in the property such that the property was purchased subject to the beneficiary's first deed of trust. View "7510 Perla Del Mar Ave Trust v. Bank of America" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing Appellants' putative class action alleging that Respondents, current or former Nev. Rev. Stat. Chapter 107 trustees, engaged in unlicensed debt collection agency activities by pursuing nonjudicial foreclosures on their homes, holding that Appellants did not plead a cognizable cause of action.In dismissing the complaint the district court found that the plain language of Chapter 107 authorized the actions allegedly performed by Respondents. The Supreme Court affirmed, holding (1) the legislature did not intend that deed of trust trustees be subjected to Nev. Rev. Stat. Chapter 649 licensing requirements when they are engaged in nonjudicial foreclosures; and (2) because Appellants' allegations fell within the bounds of Chapter 107, Appellants did not plead a cognizable cause of action. View "Benko v. Quality Loan Service Corp." on Justia Law

The Supreme Court reversed nine district court orders directing payment from the Nevada Real Estate Education, Research and Recovery Fund (the Fund), one to Melani Schulte individually and eight to various LLCs in her control, stemming from William Schulte's fraudulent management of properties, holding that the spousal exception to Fund recovery in Nev. Rev. Stat. 645.844(4)(a) applied at the time of the misconduct and that transactions involving one's own properties do not qualify for Chapter 645's protections.The Fund compensates victims of real estate fraud whose judgment against a fraudulent real estate licensee is uncollectible. The district court issued the nine orders stemming from the fraudulent management of properties by William, Melani's then husband. All but one of the properties were jointly owned by the Schultes. The Supreme Court reversed the orders, holding (1) because Melani and William were married at the time of the fraud, the spousal exception prohibits Melani's individual recovery; and (2) because transactions involving one's own properties do not require a real estate license, the district court erred in granting awards to the eight LLCs. View "Chandra v. Schulte" on Justia Law

The Supreme Court affirmed the order of the district court denying a prisoner's petition for judicial review challenging the amount of compensation he received, upon his release, in connection with the industrial injury he suffered while incarcerated, holding that the administrative appeals officer properly affirmed the calculation of the prisoner's average monthly wage.Appellant was injured while working for Nevada Division of Forestry while he was incarcerated. Respondent accepted Appellant's workers' compensation claim. After Appellant was released he sought to have the benefits calculated at the minimum wage guaranteed under the Nevada Constitution. Under the modified workers' compensation program for prisoners, however, the amount of compensation a prisoner may receive upon release is based on the average monthly wage the prisoner actually received as of the date of the injury. The Supreme Court affirmed the district court's order denying Appellant's petition for judicial review, holding that an administrative appeals officer is not permitted to recalculate the average monthly wage at an amount the prisoner did not actually receive while incarcerated. View "White v. State, Division of Forestry" on Justia Law

The Supreme Court affirmed the judgment of the district court determining that Appellant took certain nonresidential property subject to Respondent's existing mortgage on the subject property, holding that Appellant took its interest subject to Respondent's deed of trust.The conditions, covenants, and restrictions (CC&Rs) of the subject property stated that the property owners' association (POA) may enforce delinquent assessment liens pursuant to Nev. Rev. Stat. 116.3116-.31168 but not the entirety of Nev. Rev. Stat. chapter 116. Specifically, the CC&Rs did not incorporate the provisions of chapter 116 that might invalidate a mortgage savings clause or provide for assessments supporting a lien that would have superpriority status. Appellant purchased the property at a foreclosure sale conducted pursuant to the procedures set forth in section 116.3116. Thereafter, Respondent recorded a notice of default for nonpayment of mortgage payments and filed a complaint for judicial foreclosure of the property. Appellant counterclaimed to quiet title, alleging that the nonjudicial foreclosure extinguished Respondent's deed of trust. The district court entered judgment for Respondent, concluding that the foreclosure sale did not extinguish Respondent's deed of trust. The Supreme Court affirmed, holding that no portion of the delinquent POA assessment lien had superpriority status as against Respondent's first security interest. View "Vegas United Investment Series 105, Inc. v. Celtic Bank Corp." on Justia Law

The Supreme Court affirmed the district court's determination that Ruby Lake Estates Homeowner's Association's (RLEHOA) authority to impose assessments on Appellants, property owners in Ruby Lake Estates (RLE), holding that RLE is a common-interest community within the meaning of Nev. Rev. Stat. 116.021 and that RLEHOA did not need to be organized before the first lot in RLE was conveyed.RLE was create in 1989. Appellants filed a declaratory relief action challenging RLEHOA's authority to impose assessments on them. Specifically, Appellants argued (1) RLE was not a validly created "common-interest community" as defined by section 116.021; and (2) alternatively, RLEHOA was not a validly created "unit-owners' association." The district court granted summary judgment for RLEHOA. The Supreme Court affirmed, holding (1) RLE is a common-interest community because RLE's declaration contained an implied payment obligation for the common elements and other real estate of which Appellants had notice; and (2) Nev. Rev. Stat. 116.3101(1) does not apply to common-interest communities formed before 1992, and therefore, RLEHOA did not need to be organized before the first lot in RLE was conveyed. View "Artemis Exploration Co. v. Ruby Lake Estates Homeowner's Ass'n" on Justia Law

In this homeowners' association (HOA) foreclosure case, the Supreme Court reversed the district court's grant of summary judgment to U.S. Bank, N.A. and remanded for entry of summary judgment for SFR Investments Pool 1, LLC, holding that the mere fact that a foreclosure sale was held in violation of a bankruptcy stay is not by itself evidence of unfairness.The homeowner filed for bankruptcy under Chapter 11, which imposed an automatic stay on actions against her real property. In violation of the stay, the HOA sold the property at a foreclosure sale. SFR, the purchaser, sought to quiet title. The bankruptcy court issued a limited order retroactively annulling the bankruptcy stay of the stay, which has the legal effect of validating the sale. The district court, however, set aside the sale and granted summary judgment for U.S. Bank finding that the HOA's foreclosure sale being conducted in violation of the bankruptcy stay was evidence of unfairness and that the sale price was inadequate. The Supreme Court reversed, holding that U.S. Bank failed to produce any evidence showing how the sale's violation of the automatic stay constituted unfairness and that SFR met its burden of showing that the HOA foreclosure sale complied with the procedures in Nev. Rev. Stat. Chapter 116. View "SFR Investments Pool 1 v. U.S. Bank, N.A." on Justia Law