If the HOA statement of demand or title report on a Las Vegas home shows unpaid dues, fines, or an open violation, you can usually still buy it, as long as the contract requires the seller to pay off the balance at closing and to cure the violation (or credit you the real cost to cure it) before you take title. The money is the easy part, because escrow pays it from the seller’s proceeds. The open violation is the part buyers get stuck with, because in most associations it follows the property, not the person.
Both versions of this story happen in our market: the buyer who catches an unapproved patio cover and an open violation letter during escrow and gets it resolved, and the buyer who learns about it from a letter addressed to them a few weeks after closing. Here is how to be the first buyer.
What does an HOA lien on a Las Vegas home actually mean?
Under NRS 116.3116, a Nevada HOA automatically has a lien on a home for unpaid assessments, fines, and construction penalties from the moment they come due. The recorded CC&Rs serve as the notice, so nothing extra has to be recorded for the lien to exist. Part of that lien, up to roughly nine months of regular assessments plus capped collection costs, takes priority even over the first mortgage, which is why lenders and title companies take it seriously. For you as a buyer, the practical point is simple: the balance has to be paid off at or before closing, and you want the official number in writing.
Who pays unpaid HOA dues and fines when you buy?
In a standard Las Vegas resale, the seller does. The association’s statement of demand shows what is owed, and escrow pays it from the seller’s proceeds at closing. The same statute requires the association to furnish a statement of unpaid assessments within 10 business days of a written request, and that statement is binding on the association. The real risk is not who pays; it is a demand that is stale, incomplete, or only covers the master association and misses the sub-association.
What happens to an open HOA violation after I close?
This is the one that costs buyers money. An unpaid balance is a debt. A violation is a condition of the property: an unapproved patio cover, a paint color the architectural committee never signed off on, dead front landscaping, a solar install or satellite dish without approval. In most CC&Rs I have read across Summerlin and the rest of the valley, the obligation to fix a property condition runs with the lot, so once you own it, the letter comes to you. Fines generally require notice and an opportunity for a hearing under NRS 116.31031 before they are imposed, which is why an open violation often shows up in correspondence or board minutes before it ever shows up as a dollar amount on the ledger.
Balance vs. violation: how each is usually handled
| Issue found | Where it shows up | Who usually resolves it | What to write into the deal |
|---|---|---|---|
| Delinquent dues or assessments | HOA statement of demand, title report | Seller, paid from proceeds at closing | Standard; confirm demands for both master and sub-association |
| Fines already imposed | Statement of demand, account ledger | Seller, paid at closing | Seller pays all fines and related collection costs |
| Open architectural or maintenance violation | Resale package, violation letters, board minutes | Negotiated | Seller cures with written HOA sign-off before closing, or credits buyer the cost to cure |
| Unapproved improvement (patio cover, casita, solar) | Violation letters, county permit history | Negotiated | Retroactive HOA approval before closing, or a price or credit that reflects removal cost |
| HOA notice of default recorded | Title report | Seller, before closing | Full payoff and recorded release; involve title early |
How do I protect myself before closing?
- Get a demand statement from every association. Many Summerlin homes sit under a master association plus a village or gated sub-association. One demand does not cover both.
- Ask whether there are open violations or pending hearings on the unit. Your agent or escrow officer can request this from management. Do not rely on the seller’s memory.
- Read the violation letters, not just the ledger. A zero balance can sit on top of an open architectural violation.
- Match visible improvements to written approvals. If there is a patio cover, pergola, pool, or solar array, ask for the HOA’s written approval. Clark County permit records are a useful second check.
- Put the cure in writing. Either the seller delivers written HOA confirmation that the violation is closed before closing, or you negotiate a credit sized to an actual contractor bid, not a guess.
- Use your review windows. Nevada gives you five calendar days after receiving the resale package to cancel under NRS 116.4109, and your due diligence period is the other lever.
I walk through the full resale package review in what to check on an HOA before you write an offer, and the deadlines that protect you are covered in what missing your due diligence deadline actually costs you. If you are shopping guard-gated product, where the sub-association rules tend to be stricter, my guide to The Ridges in Summerlin gives you a feel for how much that second layer governs.
Should I walk away from a house with an HOA problem?
Usually not over a balance. A seller who owes dues is a seller who pays them at closing. An open violation is different: if the seller will not cure it, will not get retroactive approval, and will not credit you the real cost to fix it, you are being asked to buy their dispute with the board. In many cases that is a negotiation you can win, but whether it is worth it depends on the cost to cure, your timeline, and how that association has handled similar issues. Get the facts in writing before you decide.
If you are under contract and something odd just showed up in the resale package or the title report, send it to me. I will tell you what I would ask for and what I would let go.
Geoff Zahler | Broker/Owner, Zahler Properties
Sources: Nevada Revised Statutes NRS 116.3116 (liens against units for assessments), NRS 116.31031 (fines and hearings), NRS 116.4109 (resale package and buyer cancellation rights); Clark County building permit records.