Nevada Revised Statutes 116.31043 – Liabilities and obligations of person who succeeds to special declarant’s rights
The liabilities and obligations of a person who succeeds to special declarant’s rights are as follows:
Terms Used In Nevada Revised Statutes 116.31043
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Fiduciary: A trustee, executor, or administrator.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
1. A successor to any special declarant’s right who is an affiliate of a declarant is subject to all obligations and liabilities imposed on the transferor by this chapter or by the declaration.
2. A successor to any special declarant’s right, other than a successor described in subsection 3 or 4 or a successor who is an affiliate of a declarant, is subject to the obligations and liabilities imposed by this chapter or the declaration:
(a) On a declarant which relate to the successor’s exercise or nonexercise of special declarant’s rights; or
(b) On his or her transferor, other than:
(1) Misrepresentations by any previous declarant;
(2) Warranties on improvements made by any previous declarant, or made before the common-interest community was created;
(3) Breach of any fiduciary obligation by any previous declarant or previous declarant’s appointees to the executive board; or
(4) Any liability or obligation imposed on the transferor as a result of the transferor’s acts or omissions after the transfer.
3. A successor to only a right reserved in the declaration to maintain models, offices for sales and signs (NRS 116.2115), may not exercise any other special declarant’s right, and is not subject to any liability or obligation as a declarant, except the obligation to provide a public offering statement and any liability arising as a result thereof.
4. A successor to all special declarant’s rights held by a transferor who succeeded to those rights pursuant to a deed or other instrument of conveyance in lieu of foreclosure or a judgment or instrument conveying title under subsection 3 of NRS 116.3104, may declare in a recorded instrument the intention to hold those rights solely for transfer to another person. Thereafter, until transferring all special declarant’s rights to any person acquiring title to any unit or real estate subject to developmental rights owned by the successor, or until recording an instrument permitting exercise of all those rights, that successor may not exercise any of those rights other than any right held by his or her transferor to control the executive board in accordance with NRS 116.31032 for the duration of any period of declarant’s control, and any attempted exercise of those rights is void. So long as a successor declarant may not exercise special declarant’s rights under this subsection, the successor declarant is not subject to any liability or obligation as a declarant other than liability for his or her acts and omissions under NRS 116.31032.