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HOA construction defect claims in Nevada.

Defects in common areas affect every owner in a community, and the cost to repair them comes out of reserves or special assessments unless the responsible builder pays. Nevada law lets associations pursue these claims, within specific limits.

What an association can pursue

Under NRS 116.3102(1)(d), an association may bring a constructional defect claim only if it pertains to:

  • the common elements;
  • any portion of the community that the association owns; or
  • any portion the association does not own but is required to maintain, repair, insure, or replace because the governing documents expressly say so.

Defects inside individual units generally remain the unit owners' claims, unless the governing documents place that component under the association's responsibility. Sorting out which defects belong to whom is one of the first tasks in an association matter.

Common association defects

  • Roofs, building envelopes, and stucco on attached buildings
  • Perimeter and retaining walls
  • Private streets, drainage, and grading
  • Pools, clubhouses, and recreational facilities
  • Common plumbing, fire protection, and electrical systems
  • Landscaping and irrigation that damages structures

The Chapter 40 process for associations

An association is a "claimant" under NRS 40.610 and must follow the same pre-litigation steps as an individual owner: written notice by certified mail, inspection, the builder's 90 day response period, an opportunity to repair, and mediation. For an association, the statement verifying the defects must be signed under penalty of perjury by a member of the executive board or an officer (NRS 40.645). Repair timelines are longer when an association or five or more owners are involved.

Boards should also review the governing documents and NRS Chapter 116 for any owner notice, meeting, or vote requirements that apply before the association commences a claim.

Deadlines

The ten year statute of repose in NRS 11.202 runs from substantial completion of each improvement. In a phased community, different buildings can have different deadlines. Shorter limitation periods run from discovery. A board that learns of a defect from a reserve study or an engineer's report should treat that date as important.

What a board should gather

  • The declaration, plats, and any amendments, to establish what the association owns and maintains
  • Reserve studies and maintenance records
  • Any engineer, roofer, or inspector reports
  • Completion dates or certificates of occupancy by phase
  • Repair invoices and owner complaints about the affected components
  • Communications with the declarant or builder

How we handle association matters

We begin with the same fact-first review used for individual owners, scaled to a community: what the association is responsible for, what an independent expert has found, and what the repair will cost. Board members and community managers can start with the case review form and select "HOA or association common areas."

This page is general information about Nevada law, not legal advice. Every dispute turns on its own facts and documents.

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