Nevada Administrative Code Chapter 38 - Mediation and Arbitration
Here’s a detailed summary of Nevada Administrative Code (NAC), Chapter 38 – Mediation and Arbitration, which governs the mediation and arbitration process for claims related to residential properties in common-interest communities:
🏠 Scope & Applicability
These rules apply to civil actions involving residential property within homeowners associations (HOAs), condos, or planned communities. Such claims must first undergo mediation—or arbitration, if agreed—before proceeding to court, per NRS 38.300‑38.360 (red.nv.gov).
📄 Filing & Notification Requirements
Written Claim & Statement
File a written claim with the Real Estate Division (Department of Business and Industry).
Serve the opposing party within 45 days of filing, including a statement explaining applicable mediation/arbitration procedures (law.cornell.edu).
Proof of Service
Submit proof of service to the Division within 10 days, using their prescribed form (nationalaglawcenter.org, law.cornell.edu).
🤝 Mediation Requirements
Agreement & Timelines
Mediation must be completed within 60 days of claim filing (per NRS) unless the parties agree to an extension (red.nv.gov).
Any agreement reached must be documented and filed with the Division within 30 days of completion (law.cornell.edu).
Fees
Mediator fees capped at $500 for 3 hours, with an optional extension at $200/hour (red.nv.gov).
🏛 Arbitration Process
If mediation fails and the parties consent:
Filing Awards
Binding or nonbinding arbitration awards must be filed with the Division within 90 days post-arbitration (law.cornell.edu).
Defaults & Appointment
If the respondent fails to file a written answer within 30 days of service, they forfeit the right to choose the arbitrator. The Division appoints one, and the arbitration is automatically nonbinding (law.cornell.edu).
Nonbinding vs. Binding
Unless parties explicitly agree in writing to binding arbitration, it is considered nonbinding by law .
🕵️ Administrative Follow-up
After filing mediation agreements or arbitration awards, the Division sends a certificate confirming compliance with NRS 38.310 within 30 days (law.cornell.edu).
💰 Fees & Cost Responsibility
Parties share the cost of mediation/arbitration.
The HOA fund may subsidize these fees if approved and if funds are available .
Binding arbitration carries an added risk: if no more favorable outcome is achieved, the party challenging the award must reimburse the other’s attorney fees and costs post-challenge .
✅ Key Takeaways
Stage
Deadline/Requirement
Service
Within 45 days of claim filing
Proof of Service
Filed within 10 days to Division
Mediation
Complete within 60 days; file agreement within 30 days
Arbitration
File awards within 90 days; non-respondent defaults to nonbinding arbitration
Certification
Division issues certificate within 30 days
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