NRS 116.2121
Merger or consolidation of common-interest communities.
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Statutory text
����� 1. Any two or more common-interest
communities of the same form of ownership, by agreement of the units� owners as
provided in subsection 2, may be merged or consolidated into a single
common-interest community. In the event of a merger or consolidation, unless
the agreement otherwise provides, the resultant common-interest community is
the legal successor, for all purposes, of all of the preexisting
common-interest communities, and the operations and activities of all
associations of the preexisting common-interest communities are merged or
consolidated into a single association that holds all powers, rights,
obligations, assets and liabilities of all preexisting associations.
����� 2. An agreement of two or more
common-interest communities to merge or consolidate pursuant to subsection 1
must be evidenced by an agreement prepared, executed, recorded and certified by
the president of the association of each of the preexisting common-interest
communities following approval by owners of units to which are allocated the
percentage of votes in each common-interest community required to terminate
that common-interest community. The agreement must be recorded in every county
in which a portion of the common-interest community is located and is not
effective until recorded.
����� 3. Every agreement for merger or
consolidation must provide for the reallocation of the allocated interests in
the new association among the units of the resultant common-interest community
either by stating the reallocations or the formulas upon which they are based
or by stating the percentage of overall allocated interests of the new
common-interest community which are allocated to all of the units comprising
each of the preexisting common-interest communities, and providing that the
portion of the percentages allocated to each unit formerly constituting a part
of the preexisting common-interest community must be equal to the percentages
of allocated interests allocated to that unit by the declaration of the
preexisting common-interest community.
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