Senate Bill No. 260

Senate Bill No. 260-Senator Rawson (By Request)

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AN ACT relating to sales of residential property; requiring the Department of Business and Industry to conduct a study relating to the sale of residential 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.

[Approved June 30, 1997]

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:
(a) The requirements for disclosure that are associated with the sale of residential property in this state; and
(b) The feasibility of creating a form that will aid a purchaser of residential property in understanding the full nature of the transaction.
2. The department shall, in conducting the study, identify and consult with industry and trade groups that are affected by the requirements for disclosure and shall consult with the various local, state and federal governmental agencies which govern the various aspects of the sale of residential property in this state.
3. The purpose of the study is to assist a purchaser of residential property in understanding the full nature of the transaction and 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) Reducing the number of documents relating to disclosures by consolidating identical or substantively identical disclosures required by local, state and federal laws;
(c) Ensuring that the statutes governing disclosures associated with the sale of residential property are written in terms that are easily understood by the ordinary layperson; and
(d) Creating a form that will aid a purchaser of residential property in understanding the full nature of the transaction.
4. 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.
5. 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) 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.
(d) A proposed form that will aid a purchaser of residential property in understanding the full nature of the transaction.
6. As used in this section, "residential property" means:
(a) Real property with a home located on it.
(b) A factory-built house or mobile home which has been converted to real property pursuant to NRS 361.244.
Sec. 2. This act becomes effective on July 1, 1997.
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