Justia Real Estate & Property Law Opinion Summaries

In this construction defect action brought by Homeowners, the Supreme Court reversed the order of the district court denying Defendant’s motion to compel arbitration, holding that the Federal Arbitration Act (FAA) did not govern the arbitration agreement contained in the common-interest community’s covenants, conditions, and restrictions (CC&Rs) because, contrary to the conclusion of the district court, the underlying transaction involved interstate commerce. Further, to the extent that Nevada case law concerning procedural unconscionability disfavors arbitration of disputes over transactions involving interstate commerce, that case law is preempted by the FAA. The Court remanded this case for entry of an order directing the parties to arbitration. View "U.S. Home Corp. v. Michael Ballesteros Trust" on Justia Law

The Supreme Court affirmed the decision of the district court overruling the State Engineer’s decision denying Rodney St. Clair’s application for a permit to temporarily change the point of diversion of the underground water source on property he purchased in 2013 from an abandoned well to another location on his property. The State Engineer found the prior owner of the property had established a right to appropriate the underground water but that a subsequent owner abandoned that right through years of nonuse. In overruling the State Engineer’s decision, the district court found insufficient evidence that any owner of the property intended to abandon the property’s water right. The Supreme Court affirmed, holding (1) an extended period of nonuse of water does not alone establish clear and convincing evidence that a property owner intended to abandon a water right connected to the property; and (2) in this case, there was no additional evidence indicating an intent to abandon, and therefore, the State Engineer’s finding of abandonment was unsupported by substantial evidence. View "King v. St. Clair" on Justia Law

The Supreme Court affirmed the decision of the district court overruling the State Engineer’s decision denying Rodney St. Clair’s application for a permit to temporarily change the point of diversion of the underground water source on property he purchased in 2013 from an abandoned well to another location on his property. The State Engineer found the prior owner of the property had established a right to appropriate the underground water but that a subsequent owner abandoned that right through years of nonuse. In overruling the State Engineer’s decision, the district court found insufficient evidence that any owner of the property intended to abandon the property’s water right. The Supreme Court affirmed, holding (1) an extended period of nonuse of water does not alone establish clear and convincing evidence that a property owner intended to abandon a water right connected to the property; and (2) in this case, there was no additional evidence indicating an intent to abandon, and therefore, the State Engineer’s finding of abandonment was unsupported by substantial evidence. View "King v. St. Clair" on Justia Law

The Dezzanis own a condominium and are members of the Homeowners' Association (HOA). Kern, an attorney, represents the HOA and advises its governing board. In a dispute regarding an extended deck on the Dezzani unit, the board issued a notice of violation with drafting assistance from Kern. Kern notified the Dezzanis that she represented the HOA. Kern and the Dezzanis exchanged several letters. The board held a hearing and upheld the notice. Throughout this time, Kern advised the HOA regarding the Dezzanis' and other members' deck extensions. The Dezzanis filed suit against Kern under NRS 116.31183, which allows a unit owner to bring a separate action for damages, attorney fees, and costs when an “executive board, a member of an executive board, a community manager or an officer, employee or agent of an association" takes retaliatory action against a unit's owner. The Nevada Supreme Court affirmed the dismissal of their action, noting that the Dezzanis did not specify how Kern retaliated against them. An attorney is not an "agent" under NRS 116.31183 for claims of retaliatory action where the attorney is providing legal services for a common-interest community homeowners' association. In a consolidated case, the court held that attorneys litigating pro se and/or on behalf of their law firms cannot recover fees because those fees were not actually incurred by the attorney or the law firm, but they can recover taxable costs in the action. View "Dezzani v. Kern & Associates, Ltd." on Justia Law

Deng defaulted on special assessments on Las Vegas residential real property, which entered delinquency and underwent a duly noticed and authorized sale (NRS Chapter 271). On January 27, 2014, Pawlik purchased the property at the sale and was issued a sales certificate. Under NRS 271.595(1), Deng had a two-year redemption period from that date. On January 7, 2016, Pawlik began attempting to serve Deng with notice of the upcoming expiration of the redemption period and Pawlik's intent to apply for a deed pursuant to NRS 271.595(3). NRS 271.595 creates a clear redemption period of two years and also creates an ambiguous 60-day redemption window after notice that the certificate holder will demand a deed. On March 14, 2016, 47 days after the Dengs' two-year redemption period expired and 67 days after Pawlik began attempting service, Pawlik applied for a deed. The treasurer denied the request. Deng redeemed on April 6, 2016, with full payment to the city. Pawlik sought to quiet title and applied for a writ of mandamus to compel issuance of the deed. The Nevada Supreme Court affirmed dismissal, finding that the 60-day period does not overlap with the two-year period. NRS 271.595 requires that the 60-day notice and additional redemption period begin after the end of the two-year redemption period. Pawlik attempted service on Deng before the end of the two-year redemption period, which provided Deng with less than two years and 60 days of redemption. View "Pawlik v. Deng" on Justia Law

Two days after Silver Springs Homeowner's Association recorded a notice of foreclosure sale, First Horizon Home Loans recorded its own notice of foreclosure sale. First Horizon was the first to hold its foreclosure sale and bought the property on a credit bid. Before First Horizon recorded its trustee's deed, Silver Springs held its foreclosure sale, at which SFR purchased the same property. SFR sued to quiet title. The district court granted First Horizon summary judgment, finding that Silver Springs had not provided the statutorily required notices pursuant to NRS 116.31162 and NRS 116.311635. The Supreme Court of Nevada reversed and remanded, finding that the district court erred in finding Silver Springs' foreclosure sale invalid. Because NRS 116.31162 requires a homeowner's association (HOA) foreclosing on its interest to record its notice of foreclosure sale, any subsequent buyer purchases the property subject to that notice that a foreclosure may be imminent. Therefore, an HOA need not restart the entire foreclosure process each time the property changes ownership so long as the HOA has provided the required notices to all parties who are entitled. View "SFR Investments Pool 1, LLC v. First Horizon Home Loans" on Justia Law

Due process required junior water rights holders in Diamond Valley be given notice and an opportunity to be heard in proceedings by the district court considering the curtailment of water rights. In this case, a vested, senior water rights holder has asked the district court to order the State Engineer to curtail junior water rights in the Diamond Valley Hydrographic Basin. The Nevada Supreme Court held that the district court's consideration of the matter at the upcoming show cause hearing could potentially result in the initiation of curtailment proceedings. Therefore, junior water rights holders could possibly be deprived of their property rights and were entitled to due process. View "Eureka County v. The Seventh Judicial District Court" on Justia Law

In the wake of Shadow Wood Homeowners Ass’n v. New York Community Bankcorp, Inc., 355 P.3d 1105 (Nev. 2016), the Supreme Court took the opportunity in this case to provide further clarification as to whether a homeowners’ association (HOA) foreclosure sale can be set aside based on commercial unreasonableness or solely on low sales price.Saticoy Bay instituted a quiet title action after buying property located in a neighborhood governed by an HOA at a foreclosure sale held by the HOA. Saticoy Bay named Nationstar Mortgage as a defendant and sought a declaration that the sale extinguished Nationstar’s deed of trust. The district court granted summary judgment in favor of Saticoy Bay. The Supreme Court affirmed, holding (1) the commercial reasonableness standard, derived from Article 9 of the Uniform Commercial Code, has no applicability in the context of an HOA foreclosure involving the sale of real property; (2) Shadow Wood did not overturn the court’s longstanding rule that inadequacy of price is not a sufficient ground for setting aside a trustee’s sale absent fraud, unfairness or oppression that brings about the price inadequacy; and (3) because Nationstar’s identified irregularities did not establish that fraud, unfairness or oppression affected the sale, summary judgment was properly granted for Saticoy Bay. View "Nationstar Mortgage, LLC v. Saticoy Bay LLC Series 2227 Shadow Canyon" on Justia Law

The Supreme Court granted the Nevada Department of Transportation’s (NDOT) petition for a writ of mandamus, holding that the district court erred in denying NDOT’s motions for summary judgment on Landowner’s contract claims concerning a settlement agreement in a condemnation action. The court held that the district court erred in declining to grant summary judgment by interpreting the parties’ agreement to include a duty imposed outside the express terms of the agreement and allowing a claim for unilateral mistake to proceed even though Landowner’s claim was barred by the applicable statute of limitations. View "State Department of Transportation v. Eighth Judicial District Court" on Justia Law

Homeowners’ associations (HOAs) have representational standing to represent unit owners who purchase their units after litigation commences on claims alleging construction defects, but HOAs do not have standing under Nev. Rev. Stat. 116.3102(1)(d) to bring, or continue to pursue, claims for unit owners who sell their units after the litigation commences.In this case, an HOA filed a complaint against the real party in interest on its own behalf and on behalf of all of the HOA unit owners, alleging, inter alia, breach of implied warranties of workmanlike quality and habitability and breach of contract. The district court granted partial summary judgment for the real party in interest, concluding that the HOA could only maintain an action for those owners who had owned their units continuously since the HOA first filed its complaint. The Supreme Court granted a writ of mandamus requested by the HOA, holding (1) the HOA had standing in the construction defect action to represent unit owners who purchased units after the initiation of the underlying litigation; but (2) the HOA did not have standing to represent unit owners who sold their units after the litigation commenced. View "High Noon at Arlington Ranch Homeowners Ass’n v. Eighth Judicial District Court" on Justia Law