Tort and contract liability.

NRS

116.3111

Tort and contract liability.

1. A unit’s owner is not liable, solely by reason of being a unit’s owner, for an injury or damage arising out of the condition or use of the common elements. Neither the association nor any unit’s owner except the declarant is liable for that declarant’s torts in connection with any part of the common-interest community which that declarant has the responsibility to maintain.

2. An action alleging a wrong done by the association, including, without limitation, an action arising out of the condition or use of the common elements, may be maintained only against the association and not against any unit’s owner. If the wrong occurred during any period of declarant’s control and the association gives the declarant reasonable notice of and an opportunity to defend against the action, the declarant who then controlled the association is liable to the association or to any unit’s owner for all tort losses not covered by insurance suffered by the association or that unit’s owner, and all costs that the association would not have incurred but for a breach of contract or other wrongful act or omission. Whenever the declarant is liable to the association under this section, the declarant is also liable for all expenses of litigation, including reasonable attorney’s fees, incurred by the association.

3. Except as otherwise provided in subsection 4 of NRS 116.4116 with respect to warranty claims, any statute of limitation affecting the association’s right of action against a declarant under this section is tolled until the period of declarant’s control terminates. A unit’s owner is not precluded from maintaining an action contemplated by this section because he or she is a unit’s owner or a member or officer of the association. Liens resulting from judgments against the association are governed by NRS 116.3117 .

(Added to NRS by 1991, 563 ; A 2011, 2444 )