Nv Real Prop. Llc Vs. Bac Home Loans Serv., Lp

• Court: Nevada Supreme Court
• Decided: May 14, 2021
• Docket: 79234
• Status: Published

Opinion

IN THE SUPREME COURT OF THE STATE OF NEVADA

NV REAL PROPERTY LLC, No. 79234 Appellant, vs. BAC HOME LOANS SERVICING, LP, FILL D N/K/A BANK OF AMERICA, N.A.; AND MAY 1 4 2021 CARRINGTON MORTGAGE EIJZABETH A. BROWN SERVICES, LLC, CLIZRIC QF SUPREME COURT Res • ondents. DEPUTY.-.= /4-1< C 1(

ORDER OF AFFIRMANCE This is an appeal from a district court order granting summary judgment in an action to quiet title. Eighth Judicial District Court, Clark County; Gloria Sturman, Judge. Reviewing the summary judgment de novo, Wood v. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d 1026, 1029 (2005), we affirm.' We recently concluded in Anthony S. Noonan IRA, LLC v. U.S. Bank National Assn (Noonan), 137 Nev., Adv. Op. 15 (2021), that when an HOA imposes an annual assessment, such assessment constitutes an c`acceleration" as that term is used in NRS 116.3116(2) (2009).2 Consequently, we held that when an HOA imposes an annual assessment, the superpriority portion of the HONs lien cannot exceed 9 months worth of unpaid assessments. Id. Here, the HONs 2011 annual assessment was $120, meaning the maximum amount entitled to superpriority status was $90. Miles Bauer

1Pursuant to NRAP 34(f)(1), we have determined that oral argument is not warranted in this appeal.

2This was also the version of the statute in effect when the Notice of Delinquent Assessments was issued in this case. SUPREME COURT Of NEVADA

(01 I947A AS*. cli-1341S0 .1 7 mistakenly tendered a check for only $78.75, which represented 9 months' worth of assessments for a different year. However, at the time the HOA issued its Notice of Delinquent Assessments, the former homeowner had been delinquent for only 6 months. Thus, under Noonan, the amount of the HONs lien entitled to superpriority status was only 6 months worth of assessments (i.e., $60) because that was the amount that would have become due in the absence of acceleration when the HOA instituted proceedings to enforce its lien.3 See NRS 116.3116(2) (2009) (recognizing that the superpriority portion of an HONs lien consists of "assessments for common expenses . . . which would have become due in the absence of acceleration during the 9 months immediately preceding institution of an action to enforce the Uwe (emphasis added)); Saticoy Bay LLC Series 2021 Gray Eagle Way v. JPMorgan Chase Bank, N.A., 133 Nev. 21, 26, 388 P.3d 226, 231 (2017) CO] party has instituted proceedings to enforce the lien . . . when it provides the notice of delinquent assessment." (internal quotation marks omitted)); SFR Invs. Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. 742, 743, 334 P.3d 408, 409 (2014) MRS 116.3116 gives a homeowners' association (HOA) a superpriority lien on an individual

3Appellant contends that the superpriority amount should still be for 9 months' worth of assessments even though the former homeowner was in default for only 6 months. We conclude that this contention is contrary to Noonan's rationale, which was based on breaking annual assessments into monthly assessments for purposes of calculating the defaulted superpriority portion of an HONs lien. 137 Nev., Adv. Op 15, at 6. In other words, if the HOA had imposed monthly assessments in this case, Miles Bauer would not have been required to tender 9 months' worth of assessments to cure the superpriority default.

SUPREPAE COURT OF NEVADA 2 (01 1947A

s•-• homeowner's property for up to nine months of unpaid HOA dues." (emphasis added)). Accordingly, the district court correctly determined that Miles Bauer's $78.75 tender was more than sufficient to satisfy the superpriority default and that the HONs foreclosure sale did not extinguish the first deed of trust.4 Although appellant contends that it is a bona fide purchaser, we have repeatedly held that a party's status as a putative bona fide purchaser is irrelevant when the superpriority default is cured before the HONs foreclosure sale. See e.g., 9352 Cranesbill Tr. v. Wells Fargo Bank, N.A. 136 Nev. 76, 82, 459 P.3d 227, 232 (2020) (citing Bank of Am., N.A. v. SFR Invs. Pool 1, LLC, 134 Nev. 604, 612, 427 P.3d 113, 121 (2018)). In light of the foregoing, we ORDER the judgment of the district court AFFIRMED.

—94jt Parraguirre

J. Stiglich Silver

cc: Hon. Gloria Sturman, District Judge Stephen E. Haberfeld, Settlement Judge Shumway Van Akerman LLP/Las Vegas Eighth District Court Clerk

4Appellant observes that Miles Bauer's letter accompanying its check incorrectly stated that $78.75 represented 9 months worth of assessments. While this is true, we are not persuaded that this issue warrants reversal in light of Miles Bauer having tendered more than the defaulted superpriority amount. SUPREME COURT OF NEVADA 3 (0) 1947A OAK*.