Nevada • Reserve study / underfunding
Is your Nevada condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Nevada building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Nevada requires.
The short answer
Nevada requires a reserve study and requires the association to fund it. NRS 116.3115 requires reasonable reserve funding, and the board can assess for it without owner approval; owners cannot waive it. A thin reserve is the most common reason a special assessment lands later, so the study-versus-actual-balance gap is the number that matters. CondoSignal reads your reserve study and budget against Nevada's rules. Free.Nevada at a glance
Reserve study
Required
Every 5 years (associations over 20 units in larger counties)
Reserve funding
Required
Funded to the study
Super-lien
Yes
Up to 9 months of unpaid common assessments take super-priority over the first mortgage (NRS 116.3116)
Resale disclosure
Cancellation right
5-day rescission after delivery of the resale package (NRS 116.4109)
What Nevada requires
NRS 116.3115 requires reasonable reserve funding, and the board can assess for it without owner approval; owners cannot waive it. Whether a thin reserve is merely risky or actually out of compliance depends on that rule — which is the first thing to establish.
Why underfunding becomes an assessment
The board has broad authority to assess for capital and reserve needs (NRS 116.3115) with 21 days' notice of the meeting; the reserve-study mandate is the main driver. Owners have no statutory veto. The 'percent funded' figure in the study, compared to the actual reserve balance, tells you how exposed you are.
What it means for collection and resale
Nevada's 9-month super-priority lien is one of the strongest in the country and can wipe out a lender's interest if unpaid. The resale package discloses the budget, reserve summary, litigation status, and assessment statement; the reserve study is available on request.
Your rights in Nevada
As a Nevada owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (5-day rescission after delivery of the resale package (nrs 116.4109)). None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Find the reserve study's 'percent funded' figure.
- Compare the recommended contribution to what's budgeted.
- Confirm whether Nevada mandates reserve funding — it does, so underfunding may be a compliance issue.
- Check the remaining life of the roof, elevators, and façade.
- Remember delinquent-owner debt carries a super-lien in Nevada (Up to 9 months of unpaid common assessments take super-priority over the first mortgage (NRS 116.3116)), which raises everyone's risk.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- NRS 116.3115 — reserve funding & board assessment authority(High)
- NRS 116.3116 — association lien; 9-month super-priority(High)
- NRS 116.4109 — resale package, 5-day cancellation, fee cap(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Nevada-licensed professional.
Related guide
Nevada reserve studies — the full guide →This page answers what to do right now. For how reserve studies works in Nevada — the law, the process, and what to check before you buy or sell — read the full state guide.
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“The board approved a $15,000-per-unit special assessment for façade repairs, payable over 12 months.”
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