Referred to Committee on Legislative Affairs and Operations
SUMMARY--Requires Department of Business and Industry to conduct study of requirements of disclosure that are associated with sale of residential property. (BDR S-102)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to sales of residential property; requiring the Department of Business and Industry to conduct a study of the requirements for disclosure that are associated with the sale of such property; requiring that a report of the recommendations and findings of the study be presented to the 70th session of the Nevada Legislature; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 1. The Department of Business and Industry shall conduct a study of the requirements for disclosure that are associated with the sale of residential property in this state. The department shall, in conducting the study, identify and consult with industry and trade groups that are affected by such requirements.
2. The purpose of the study is to simplify the process of disclosure by:
(a) Recommending legislation by which all of the disclosures associated with the sale of residential property that are required by statute in this state will be codified within one chapter of the Nevada Revised Statutes;
(b) Creating a single form that consolidates all of the disclosures required by statute, including, without limitation, financial, escrow and insurance disclosures; and
(c) Ensuring that the form and statutes are written in terms that are easily understood by the ordinary layperson.
3. On or before February 15, 1999, the Department of Business and Industry shall prepare a report of its findings and recommendations and submit the report to the Director of the Legislative Counsel Bureau for transmittal to the 70th session of the Nevada Legislature for its review.
4. The report must include:
(a) A list of all of the requirements for disclosure in this state and where each requirement is found in the Nevada Revised Statutes.
(b) Recommended legislation to simplify the statutes and codify them within one chapter of the Nevada Revised Statutes.
(c) A proposed form, the completion of which satisfies all of the disclosures required by statute.
(d) An evaluation of a proposed statute that would require the seller of residential property to disclose the date that the residential property will be reassessed for taxation purposes.
5. As used in this section, "residential property" means:
(a) Real property with a home located on it.
(b) A mobile home.
Sec. 2 This act becomes effective on July 1, 1997.