THE WRIGHT LAW GROUP WINS A SUPREME COURT VICTORY FOR HOA CASES IN NEVADA
Court Hands Down Powerful Decision Concerning Retroactivity
In an important Nevada Supreme Court decision issued on July 27, 2017, the Court handed down a powerful decision concerning the retroactivity of their previous decision in SFR Investments Pool 1, LLC v. U.S. Bank N.A. (2014). The new case is captioned K&P Homes v. Christiana Trust and veteran trial attorney John Henry Wright, Esq. of The Wright Law Group P.C. secured a another win for HOA foreclosure investors in the state of Nevada. This victory materialized when the Supreme Court held that SFR Investments applies retroactively to all foreclosures since NRS 116’s inception . You can read the whole opinion at the Supreme Court of Nevada site HERE.
In K&P Homes , the Nevada Supreme Court answered the certified question from United States District Court for the District of Nevada that asked “Does the rule of [ SFR Investments] that foreclosures under NRS 116.3116 extinguish first security interests retroactively to foreclosures occurring prior to the date of that decision?” As mentioned above, the Court answered the question in the affirmative thus effectively clarifying that the Court’s jurisprudence in SFR applies to all HOA foreclosures in Nevada past, present, and future starting from the date NRS 116 became effective.
SFR Was A Huge Win For HOA Investors
“SFR determined whether the Nevada Legislature, through NRS 116.3116, established ‘a true priority lien such that it’s foreclosure extinguishes a first deed of trust on the property’… In concluding that NRS 116.3116 established the true superpriority lien, this [Nevada Supreme] court did no more than interpret the will of the enacting legislature.” K&P Homes v. Christiana Trust 113 Nev., Advanced Opinion 51. p.5 (July 27, 2017) (internal citations omitted). When it came down, SFR was a huge win for HOA investors suing the banks for quiet title of the recently acquired properties. One argument the banks were using (and sometimes winning) was the theory that SFR ’s decision did not apply to foreclosures that occurred before date of that decision. K&P Homes clarified the fact that ALL foreclosures successfully effected under NRS 116 will extinguish the bank’s first position lien and the investor will take title free and clear of the banks interest.
This is an important decision because it removes yet another argument the banks like to raise when attacking HOA investors or defending against HOA investor’s quiet title actions. Morever, this decision vindicates the rights of HOA investors – past, present, and future – under NRS 116 and makes purchasing foreclosure property at an NRS 116 auction that much safer for the buyer. Finally, this decision was made by the entire Nevada Supreme Court en banc so there is almost no chance of this decision being challenged again in Nevada.
The Wright Law Group, P.C. was responsible for winning this huge victory in the Nevada Supreme Court and many others in Clark County District Court and the United States District Court for the district of Nevada. John Henry Wright, Esq. as the founder of The Wright Law Group, P.C. is an well versed in HOA foreclosure litigation in Nevada. If you need to quiet title against a bank or are served with a complaint to quiet title filed by a bank, call The Wright Law Group, P.C. today at 702.405.0001.