Nevada Condo Act vs HOA Act: Which Law Governs Your Community

Nevada Condo Act vs HOA Act: Which Law Governs Your Community

Nevada maintains two separate bodies of law for common interest communities. Chapter 116 of the Nevada Revised Statutes governs all common interest communities including condominiums, planned unit developments, and cooperatives. Within that chapter, NRS 116.1201 through NRS 116.31168 apply broadly to condominiums, homeowner associations, and other planned communities. Nevada does not use the term "HOA act" as a distinct statutory title the way some states do. Instead, Chapter 116 is the unified statute that covers both condominiums and planned communities, with specific subsections tailored to each type.

Your first question is whether your community qualifies as a common interest community under NRS 116.1201. A common interest community in Nevada means real estate with respect to which a person, by virtue of ownership of a unit, is obligated to pay for real estate taxes, insurance premiums, maintenance, or improvement of other units, common elements, or any other real estate described in the declaration. If your community meets that definition, Chapter 116 applies. If your property consists of detached single family homes with a homeowner association that levies assessments, you fall under the planned community provisions of Chapter 116. If your property consists of units in a building with shared walls and common areas, you fall under the condominium provisions of the same chapter.

How Nevada Defines a Condominium

NRS 116.1103 defines a condominium as a common interest community in which portions of the real estate are designated for separate ownership and the remainder is designated for common ownership solely by the owners of those portions. The distinguishing feature is vertical or horizontal division of a building into separately owned units, each of which has an undivided interest in the common elements. A condominium unit owner holds title to the airspace within the unit boundaries and a fractional ownership interest in hallways, roofs, elevators, and other common areas.

A real example: the One Las Vegas condominium tower on Las Vegas Boulevard contains 344 units. Each unit owner holds a deed to a specific unit and a percentage interest in the common elements. The One Las Vegas Owners Association operates under Chapter 116 condominium provisions. The association's declaration, recorded in Clark County in 2008, specifies that the property is a condominium under NRS 116.1103. When the association needed to amend the declaration in 2019 to adjust reserve funding, it followed the amendment procedures in NRS 116.2116, which requires a vote of unit owners holding at least 67 percent of the votes in the association unless the declaration specifies a different threshold.

How Nevada Defines a Planned Community

NRS 116.1104 defines a planned community as a common interest community that is not a condominium or a cooperative. Most traditional homeowner associations in Nevada qualify as planned communities. In a planned community, each unit owner holds title to a separately described parcel of land, typically a lot with a detached home, and shares ownership of common areas such as parks, pools, and entry gates. The key distinction from a condominium is that the owner holds a fee simple interest in a specific lot rather than an undivided interest in a building.

Consider Summerlin, the master planned community in Las Vegas. Summerlin contains dozens of separate homeowner associations, each of which governs a neighborhood of single family homes. Each association operates under the planned community provisions of Chapter 116. When a Summerlin association assesses a special assessment for road resurfacing, it must follow the notice and voting rules in NRS 116.31151, which require the board to mail or deliver notice to each unit owner at least 15 days before the meeting at which the assessment will be considered.

Key Differences in Governance Rules

Chapter 116 applies the same core principles to both condominiums and planned communities, but certain provisions vary by community type. For example, NRS 116.3102 addresses allocation of common expenses. In a condominium, expenses are typically allocated based on the percentage interest assigned to each unit in the declaration. In a planned community, expenses are often allocated equally per lot or based on lot size. Your declaration controls the specific allocation method, but the statute provides default rules if the declaration is silent.

Another difference appears in the rules for amending governing documents. NRS 116.2116 sets the baseline requirement that an amendment to the declaration must be approved by unit owners holding at least 67 percent of the votes in the association and 67 percent of the votes allocated to units not owned by the declarant. However, the declaration can specify a higher or lower threshold. In practice, condominium associations often require a higher percentage because unit owners share more infrastructure and changes to common elements can affect every unit directly. Planned communities may adopt lower thresholds because changes to common areas typically have less impact on individual lots.

What Happens When the Property Type Is Ambiguous

Some communities blend characteristics of condominiums and planned communities. Townhome developments are a common example. If the townhomes share walls and the owners hold title to airspace within the unit plus an undivided interest in the land beneath the building, the development likely qualifies as a condominium. If the townhome owners hold fee simple title to the lot beneath their unit, the development likely qualifies as a planned community.

Nevada courts resolve disputes about community type by examining the recorded declaration and the actual ownership structure. In a 2014 case, a townhome association in Henderson disputed whether it was a condominium or a planned community. The declaration described the property as a condominium, but the deeds conveyed fee simple interests in individual lots. The district court ruled that the property was a planned community because the ownership structure controlled over the label in the declaration. The court applied the planned community provisions of Chapter 116 to the dispute.

Your board should review the declaration and compare the ownership language to the definitions in NRS 116.1103 and NRS 116.1104. If the declaration uses the word "condominium" but the deeds convey fee simple lot interests, the property is a planned community. If the declaration uses the term "homeowner association" but the deeds convey undivided interests in a building, the property is a condominium. The ownership structure prevails over the label.

The Role of the Nevada Real Estate Division

The Nevada Real Estate Division within the Department of Business and Industry administers Chapter 116. The division oversees association registration, complaint investigations, and enforcement actions. Every association in Nevada must register with the Real Estate Division and renew its registration annually. The division maintains a public database of registered associations and tracks complaints from unit owners.

If your board is uncertain whether Chapter 116 applies to your community, you can contact the Real Estate Division at 775-684-1900 or visit their office at 3300 W. Sahara Avenue in Las Vegas. The division does not issue formal legal opinions, but staff can provide guidance on registration requirements and direct you to the relevant statutory sections. The division also publishes a handbook for association boards that explains the distinction between condominiums and planned communities.

What the Nevada Ombudsman for Owners Does

Nevada created the Office of the Ombudsman for Owners in Common Interest Communities in 2003. The ombudsman investigates complaints from unit owners, mediates disputes, and refers cases to the Real Estate Division for enforcement. The ombudsman does not have authority to issue binding decisions, but the office provides a low cost alternative to litigation for many disputes.

In 2021, the ombudsman's office handled 1,847 complaints. The most common issues were disputes over assessment collection, election procedures, and architectural approval. Many of those disputes turned on whether the association correctly applied the condominium or planned community provisions of Chapter 116. The ombudsman's annual report noted that associations often failed to follow the notice and voting requirements in their governing documents, which varied depending on whether the community was a condominium or a planned community.

What You Should Do Now

Pull your association's recorded declaration and read the first three pages. Look for a statement that defines the property as a condominium, planned community, or other type of common interest community. Compare that statement to the definitions in NRS 116.1103 and NRS 116.1104. Check whether the deeds to individual units convey airspace or fee simple interests. If the declaration and the deeds conflict, the deeds control.

Next, verify that your association is registered with the Nevada Real Estate Division. Log in to the division's online portal at red.nv.gov and search for your association by name. Confirm that your registration is current and that the division has your correct mailing address and contact information. If your registration has lapsed, renew it immediately to avoid penalties.

Review your board's recent decisions to ensure that you followed the correct procedures for your community type. If you are a condominium, check that you allocated common expenses according to unit percentages. If you are a planned community, check that you allocated expenses per lot or according to the formula in your declaration. If you held a vote to amend the declaration, confirm that you met the threshold in NRS 116.2116 and that you recorded the amendment in the county where the property is located.

Consult your attorney for your specific situation if your declaration is ambiguous, if the ownership structure does not match the label in the declaration, or if you are considering a change to your governance structure. An attorney licensed in Nevada can review your documents, advise you on compliance with Chapter 116, and represent your association in disputes with unit owners or third parties.

How Manorway Supports Compliance

Manorway's AI assisted platform helps Nevada boards manage governing documents, track statutory deadlines, and maintain records of votes and decisions. When your association uses Manorway, you can store your declaration, bylaws, and amendments in a centralized repository. The platform flags key dates such as annual registration renewal with the Real Estate Division and reminds you to follow the notice and voting procedures in Chapter 116.

Manorway does not replace your attorney or your management company, but it gives your board a single place to organize documents, record decisions, and generate compliance reports. When a unit owner asks whether your community is a condominium or a planned community, you can pull the declaration from Manorway and share the relevant section within minutes. When the ombudsman investigates a complaint, you can export a timeline of board meetings, votes, and notices that demonstrates your compliance with Chapter 116.

Your board makes the final decisions, and your attorney provides the legal advice. Manorway assists by keeping your records organized and your deadlines visible.