Senate Bill No. 403

Senate Bill No. 403-Senator Rawson

CHAPTER

685

AN ACT relating to taxation; requiring the state treasurer to establish a program for the issuance of allodial titles for certain property; creating the allodial title trust fund; providing that property for which allodial title has been established is entitled to an exemption from execution for certain debts and judgments; authorizing a waiver of the exemption under certain circumstances; and providing other matters properly relating thereto.

[Approved July 17, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1. Chapter 361 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.
Sec. 2. 1. A person who owns and occupies a single-family dwelling, its appurtenances and the land on which it is located, free and clear of all encumbrances, except any unpaid assessment for a public improvement, may apply to the county assessor to establish allodial title to the dwelling, its appurtenances and the land on which it is located. One or more persons who own such a home in any form of joint ownership may apply for the allodial title jointly if the dwelling is occupied by each person included in the application. The application must be made on a form prescribed by the state treasurer. The county assessor may require that the application be accompanied by a nonrefundable processing fee of not more than $25. If collected, the fee must be deposited in the county general fund and used to pay any expenses incurred by the county in carrying out the provisions of sections 2 to 6, inclusive, of this act.
2. Upon receipt of an application made pursuant to subsection 1, the county assessor shall transmit the application to the state treasurer. The county assessor shall transmit with the application any additional information required by the state treasurer.
3. Upon receipt of an application from a county assessor, the state treasurer shall determine the amount of money that would be required to be paid by the owner of the property to establish allodial title to the property using a tax rate of $5 for each $100 of assessed valuation on the date of the application. The amount must be separately calculated to produce an alternative for payment in a lump sum and an alternative for the payment of installments over a payment period of not more than 10 years. The amounts must be calculated to the best ability of the state treasurer so that the money paid plus the interest or other income earned on that money will be adequate to pay all future tax liability of the property for a period equal to the life expectancy of the youngest titleholder of the property. The state treasurer shall make a written record of the calculations upon which the amount was determined. The record must include an annual projection of the estimated interest and income that will be earned on the money.
4. Upon completion of the calculations required by subsection 3, the state treasurer shall notify the requester of the two amounts.
5. If the homeowner pays the lump sum indicated by the state treasurer pursuant to subsection 4 and submits proof satisfactory to the state treasurer that the home is a single-family dwelling occupied by the homeowner and that the home, its appurtenances and the land on which it is located are owned free and clear of all encumbrances, except any unpaid assessment for a public improvement, the state treasurer shall issue a certificate of allodial title to the homeowner for the home, its appurtenances and the land on which it is located that is described in the deed for that property.
6. If the homeowner notifies the state treasurer that the homeowner wishes to enter into an agreement with the State of Nevada to establish allodial title to his residence by installments, the state treasurer shall execute such an agreement on behalf of the State of Nevada. The agreement must include a provision for rescission of the agreement by the homeowner at any time before the last payment is made and a guarantee, upon such a rescission, of a refund of the unused portion of the installment payments. The unused portion of the installment payments must be calculated by:
(a) Determining the total amount of all installment payments made before the date of the rescission plus the income and interest actually accrued on that money; and
(b) Subtracting from the amount determined pursuant to paragraph (a) a pro rata share of any expenses incurred by the state treasurer that are directly and indirectly related to the investment of the money in the allodial title trust fund and any costs directly and indirectly related to the administration of the allodial title program during the period for which the installment payments were made.
7. The homeowner shall pay the installments directly to the state treasurer and shall continue to pay the current property taxes directly to the county during the period for which the installment payments are made.
8. Upon receipt of the last installment payment, which must reflect any increase or decrease in the assessed valuation of the property since the date of the application, and submission of proof satisfactory to the state treasurer that the home is a single-family dwelling occupied by the homeowner and that the home, its appurtenances and the land on which it is located are owned free and clear of all encumbrances, except any unpaid assessment for a public improvement, the state treasurer shall issue a certificate of allodial title to the homeowner for the home, its appurtenances and the land on which it is located that is described in the deed for that property.
Sec. 3. 1. Immediately upon the issuance of a certificate of allodial title, the state treasurer shall transmit a copy of the certificate to the county assessor of the county in which the property is located.
2. Upon receipt of such a certificate, the county assessor shall make a notation on the tax roll and collect no further taxes from the allodial titleholder for the property, unless the allodial title is relinquished by the homeowner or his heirs.
3. The county assessor shall, in lieu of all requirements concerning notification of a taxpayer for the amount due pursuant to this chapter, notify the state treasurer of the annual taxes due based on the date of the certificate of allodial title. The state treasurer shall pay the amounts due for taxes pursuant to this chapter, as those amounts become due, from the trust fund for allodial title.
4. If, at the time a payment becomes due, the account for the property upon which the taxes are due does not contain an amount sufficient to make the payment, the state treasurer shall make up the deficiency with money from the allodial title account for stabilization. If the money in the allodial title account for stabilization is not sufficient to make up the deficiency, the state treasurer shall use all money available in the account for the property and the allodial title account for stabilization, if any, to make a partial payment of the amount due. If no money is available in either account, the state treasurer shall notify the county treasurer. Any deficiency in tax proceeds resulting from the partial or nonpayment of taxes pursuant to this section must be borne by each of the entities that would have received the proceeds, including the state, in the same proportion as the tax rate of the entity bears to the total tax rate for the property.
Sec. 4. 1. Allodial title established pursuant to section 2 of this act is valid for as long as the homeowner continues to own the residence unless he chooses to relinquish the allodial title pursuant to section 5 of this act. The allodial title may be transferred to the heir of the allodial titleholder upon the death of the last surviving allodial titleholder if:
(a) Within 60 days after taking possession of the home, the heir applies to the county assessor to reestablish allodial title in the name of the heir or the heir and one or more persons who own the home in any form of joint ownership with the heir and who also occupy the dwelling;
(b) The heir occupies the home within 3 months after the death of the last surviving allodial titleholder;
(c) The heir pays any additional amount due for reestablishment of allodial title as calculated by the state treasurer pursuant to subsection 4; and
(d) The home, its appurtenances and the land on which it is located remains unencumbered, except any unpaid assessment for a public improvement.
2. The application to reestablish allodial title must be made on a form prescribed by the state treasurer. The county assessor may require that the application be accompanied by a nonrefundable processing fee of not more than $25. If collected, the fee must be deposited in the county general fund and used to pay any expenses incurred by the county in carrying out the provisions of sections 2 to 6, inclusive, of this act.
3. Upon receipt of an application made pursuant to subsection 2, the county assessor shall transmit the application to the state treasurer. The county assessor shall transmit with the application any additional information required by the state treasurer.
4. Upon receipt of an application for reestablishment of allodial title from a county assessor, the state treasurer shall determine the amount of money, if any, that would be required to be paid by the heir to reestablish allodial title to the property using a tax rate of $5 for each $100 of assessed valuation applied to the most recent assessment of the property. The amount must be separately calculated to produce an alternative for payment in a lump sum and an alternative for the payment of installments over a payment period of not more than 10 years. The amounts must be calculated to the best ability of the state treasurer so that the money paid by the heir, if necessary, plus the money paid by all previous allodial titleholders who did not relinquish the allodial title and the interest or other income earned on that money will be adequate to pay all future tax liability of the property for a period equal to the life expectancy of the youngest titleholder of the property. The state treasurer shall make a written record of the calculations upon which the amount was determined. The record must include an annual projection of the estimated interest and income that will be earned on the money.
5. Upon completion of the calculations required by subsection 4, the state treasurer shall notify the heir of the two amounts.
6. If the heir pays the lump sum indicated by the state treasurer pursuant to subsection 5 and submits proof satisfactory to the state treasurer that the home is still a single-family dwelling occupied by the heir who is the homeowner and that the home, its appurtenances and the land on which it is located are owned free and clear of all encumbrances, except any unpaid assessment for a public improvement, the state treasurer shall issue a certificate of allodial title to the heir for the home, its appurtenances and the land on which it is located that is described in the deed for that property.
7. If the heir notifies the state treasurer that he wishes to enter into an agreement with the State of Nevada to reestablish allodial title to his residence by installments, the state treasurer shall execute such an agreement on behalf of the State of Nevada. The agreement must include a provision for rescission of the agreement by the heir at any time before the last payment is made and a guarantee, upon such a rescission, of a refund of the unused portion of the installment payments. The unused portion of the installment payments must be calculated by:
(a) Determining the total amount of all installment payments made before the date of the rescission and the amount paid by all previous allodial titleholders of the property who did not relinquish the title, plus the income and interest actually accrued on that money; and
(b) Subtracting from the amount determined pursuant to paragraph (a) a pro rata share of any expenses incurred by the state treasurer that are directly and indirectly related to the investment of the money in the allodial title trust fund and any costs directly and indirectly related to the administration of the allodial title program during the period for which the installment payments were made.
8. The heir shall pay the installments directly to the state treasurer and shall pay the current property taxes directly to the county during the period for which the installment payments are made.
9. Upon receipt of the last installment payment, which must reflect any increase or decrease in the assessed valuation of the property since the date of the application, and submission of proof satisfactory to the state treasurer that the home is still a single-family dwelling occupied by the heir who is the homeowner and that the home, its appurtenances and the land on which it is located are owned free and clear of all encumbrances, except any unpaid assessment for a public improvement, the state treasurer shall issue a certificate of allodial title to the heir for the home, its appurtenances and the land on which it is located that is described in the deed for that property.
Sec. 5. 1. A homeowner or heir who has inherited the property may relinquish the allodial title to the home at any time and shall relinquish such title:
(a) Upon the sale, lease or other transfer of the property during the lifetime of the last surviving allodial titleholder of the property;
(b) Within 150 days after the date on which the last surviving allodial titleholder no longer occupies the dwelling if an heir has not submitted an application for reestablishment of allodial title pursuant to section 4 of this act; or
(c) At the time the home is converted to anything other than a single-family dwelling occupied by the owner.
2. If the last surviving allodial titleholder, all allodial titleholders of the residence or all heirs are required by subsection 1 or choose to relinquish the allodial title, the state treasurer must be notified in a written document that is signed by each allodial titleholder or heir and notarized.
3. Upon receipt of a notice to relinquish allodial title, the state treasurer shall prepare a refund of the unused portion of the money in the allodial title trust fund that is attributable to the title being relinquished, if any, as required by subsection 4. The unused portion must be calculated by:
(a) Determining the total amount paid by the allodial titleholder into the allodial title trust fund plus the income and interest actually accrued on that money; and
(b) Subtracting from the amount determined pursuant to paragraph (a):
(1) The amount which was paid out for taxes from the allodial title trust fund on behalf of the property during the period for which the allodial title was held;
(2) A pro rata share of any expenses incurred by the state treasurer that are directly and indirectly related to the investment of the money in the allodial title trust fund and any costs directly and indirectly related to the administration of the allodial title program during the period for which the allodial title was held; and
(3) Any money removed from the account for the property pursuant to subsection 3 of section 6 of this act.
4. If the result of the calculations made pursuant to subsection 3:
(a) Is less than $25, the amount must be credited to the allodial title account for stabilization.
(b) Is at least $25, but less than $50, $25 must be refunded to the allodial titleholders or heirs and the remaining amount must be credited to the allodial title account for stabilization.
(c) Is at least $50, $25 must be credited to the allodial title account for stabilization and the remaining amount must be refunded to the allodial titleholders or heirs.
The state treasurer is required to prepare only one refund pursuant to this subsection.
5. Immediately upon the acceptance of a notice to relinquish allodial title, the state treasurer shall transmit a copy of the notice to the county assessor of the county in which the property is located. Upon receipt of such a notice, the county assessor shall make a notation on the tax roll and proceed to collect all future taxes directly from the homeowner.
6. Allodial title may not be relinquished by less than all of the allodial titleholders or heirs of the residence. Application may be made to the county treasurer to delete or add a person as an additional allodial titleholder. The application must be made on a form prescribed by the state treasurer. The county assessor may require that the application be accompanied by a nonrefundable processing fee of not more than $10. If collected, the fee must be deposited in the county general fund and used to pay any expenses incurred by the county in carrying out the provisions of sections 2 to 6, inclusive, of this act. The county treasurer shall grant the application if the application is signed by all allodial titleholders of the residence, including the person to be deleted or added.
Sec. 6. 1. The allodial title trust fund is hereby created. The state treasurer shall administer the fund. The interest and income earned on the money in the trust fund must be credited to the fund. The state treasurer shall expend the money in the trust fund to make the payments of property tax on behalf of the residential properties for which allodial title has been established and not relinquished and for no other purposes except that not more than 2 percent of the money in the fund may be used as necessary to pay expenses of the state treasurer that are directly related to the cost to invest the money in the fund and to administer the program. The state treasurer shall not make any payment from the money in the trust fund more than 5 business days before the day on which the payment becomes due.
2. The state treasurer shall invest the money in the trust fund in obligations which would be legal investments for the state pursuant to NRS 355.140.
3. The state treasurer shall maintain a separate account in the trust fund for each allodial title and an allodial title account for stabilization. Any interest or other income earned on the money in an account that exceeds the projection of estimated interest and income made pursuant to subsection 3 of section 2 of this act for the fiscal year must be transferred to the allodial title account for stabilization as soon as practicable after June 30 of that year.
4. The state treasurer shall adopt such regulations as are necessary to carry out the provisions of this section and sections 2 to 5, inclusive, of this act to ensure that the allodial title trust fund is efficiently and securely maintained.
Sec. 7. NRS 21.075 is hereby amended to read as follows:
21.0751. Execution on the writ of execution by levying on the property of the judgment debtor may occur only if the sheriff serves the judgment debtor with a notice of the writ of execution pursuant to NRS 21.076 and a copy of the writ. The notice must describe the types of property exempt from execution and explain the procedure for claiming those exemptions in the manner required in subsection 2. The clerk of the court shall attach the notice to the writ of execution at the time the writ is issued.
2. The notice required pursuant to subsection 1 must be substantially in the following form:

NOTICE OF EXECUTION

YOUR PROPERTY IS BEING ATTACHED OR

YOUR WAGES ARE BEING GARNISHED

A court has determined that you owe money to ....................(name of person), the judgment creditor. He has begun the procedure to collect that money by garnishing your wages, bank account and other personal property held by third persons or by taking money or other property in your possession.

Certain benefits and property owned by you may be exempt from execution and may not be taken from you. The following is a partial list of exemptions:

1. Payments received under the Social Security Act.

2. Payments for benefits or the return of contributions under the public employees' retirement system.

3. Payments for public assistance granted through the welfare division of the department of human resources.

4. Proceeds from a policy of life insurance.

5. Payments of benefits under a program of industrial insurance.

6. Payments received as unemployment compensation.

7. Veteran's benefits.

8. A homestead in a dwelling or a mobile home, not to exceed $125,000, unless [the] :

(a) The judgment is for a medical bill, in which case all of the primary dwelling, including a mobile or manufactured home, may be exempt.

(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located, unless a valid waiver executed pursuant to NRS 115.010 is applicable to the judgment.

9. A vehicle, if your equity in the vehicle is less than $4,500.

10. Seventy-five percent of the take-home pay for any pay period, unless the weekly take-home pay is less than 30 times the federal minimum wage, in which case the entire amount may be exempt.

11. Money, not to exceed $500,000 in present value, held for retirement pursuant to certain arrangements or plans meeting the requirements for qualified arrangements or plans of sections 401 et seq. of the Internal Revenue Code (26 U.S.C. §§ 401 et seq.).

12. All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support, education and maintenance of a child, whether collected by the judgment debtor or the state.

13. All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the payment of such support and maintenance to which the former spouse may be entitled.

14. A vehicle for use by you or your dependent which is specially equipped or modified to provide mobility for a person with a permanent disability.

15. A prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

These exemptions may not apply in certain cases such as a proceeding to enforce a judgment for support of a person or a judgment of foreclosure on a mechanic's lien. You should consult an attorney immediately to assist you in determining whether your property or money is exempt from execution. If you cannot afford an attorney, you may be eligible for assistance through ....................(name of organization in county providing legal services to indigent or elderly persons).

PROCEDURE FOR CLAIMING EXEMPT PROPERTY

If you believe that the money or property taken from you is exempt, you must complete and file with the clerk of the court a notarized affidavit claiming the exemption. A copy of the affidavit must be served upon the sheriff and the judgment creditor within 8 days after the notice of execution is mailed. The property must be returned to you within 5 days after you file the affidavit unless you or the judgment creditor files a motion for a hearing to determine the issue of exemption. If this happens, a hearing will be held to determine whether the property or money is exempt. The motion for the hearing to determine the issue of exemption must be filed within 10 days after the affidavit claiming exemption is filed. The hearing to determine whether the property or money is exempt must be held within 10 days after the motion for the hearing is filed.

IF YOU DO NOT FILE THE AFFIDAVIT WITHIN THE TIME SPECIFIED, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

Sec. 8. NRS 21.090 is hereby amended to read as follows:
21.0901. The following property is exempt from execution, except as otherwise specifically provided in this section:
(a) Private libraries not to exceed $1,500 in value, and all family pictures and keepsakes.
(b) Necessary household goods, as defined in 16 C.F.R. § 444.1(i) as that section existed on January 1, 1987, and yard equipment, not to exceed $3,000 in value, belonging to the judgment debtor to be selected by him.
(c) Farm trucks, farm stock, farm tools, farm equipment, supplies and seed not to exceed $4,500 in value, belonging to the judgment debtor to be selected by him.
(d) Professional libraries, office equipment, office supplies and the tools, instruments and materials used to carry on the trade of the judgment debtor for the support of himself and his family not to exceed $4,500 in value.
(e) The cabin or dwelling of a miner or prospector, his cars, implements and appliances necessary for carrying on any mining operations and his mining claim actually worked by him, not exceeding $4,500 in total value.
(f) Except as otherwise provided in paragraph (o), one vehicle if the judgment debtor's equity does not exceed $4,500 or the creditor is paid an amount equal to any excess above that equity.
(g) For any pay period, 75 percent of the disposable earnings of a judgment debtor during that period, or for each week of the period 30 times the minimum hourly wage prescribed by section 6(a)(1) of the federal Fair Labor Standards Act of 1938 and in effect at the time the earnings are payable, whichever is greater. Except as otherwise provided in paragraphs (n), (r) and (s), the exemption provided in this paragraph does not apply in the case of any order of a court of competent jurisdiction for the support of any person, any order of a court of bankruptcy or of any debt due for any state or federal tax. As used in this paragraph, "disposable earnings" means that part of the earnings of a judgment debtor remaining after the deduction from those earnings of any amounts required by law, to be withheld.
(h) All fire engines, hooks and ladders, with the carts, trucks and carriages, hose, buckets, implements and apparatus thereunto appertaining, and all furniture and uniforms of any fire company or department organized under the laws of this state.
(i) All arms, uniforms and accouterments required by law to be kept by any person, and also one gun, to be selected by the debtor.
(j) All courthouses, jails, public offices and buildings, lots, grounds and personal property, the fixtures, furniture, books, papers and appurtenances belonging and pertaining to the courthouse, jail and public offices belonging to any county of this state, all cemeteries, public squares, parks and places, public buildings, town halls, markets, buildings for the use of fire departments and military organizations, and the lots and grounds thereto belonging and appertaining, owned or held by any town or incorporated city, or dedicated by the town or city to health, ornament or public use, or for the use of any fire or military company organized under the laws of this state and all lots, buildings and other school property owned by a school district and devoted to public school purposes.
(k) All money, benefits, privileges or immunities accruing or in any manner growing out of any life insurance, if the annual premium paid does not exceed $1,000. If the premium exceeds that amount, a similar exemption exists which bears the same proportion to the money, benefits, privileges and immunities so accruing or growing out of the insurance that the $1,000 bears to the whole annual premium paid.
(l) The homestead as provided for by law [.] , including a homestead for which allodial title has been established and not relinquished and for which a waiver executed pursuant to NRS 115.010 is not applicable.
(m) The dwelling of the judgment debtor occupied as a home for himself and family, where the amount of equity held by the judgment debtor in the home does not exceed $125,000 in value and the dwelling is situate upon lands not owned by him.
(n) All property in this state of the judgment debtor where the judgment is in favor of any state for failure to pay that state's income tax on benefits received from a pension or other retirement plan.
(o) Any vehicle owned by the judgment debtor for use by him or his dependent that is equipped or modified to provide mobility for a person with a permanent disability.
(p) Any prosthesis or equipment prescribed by a physician or dentist for the judgment debtor or a dependent of the debtor.
(q) Money, not to exceed $500,000 in present value, held in:
(1) An individual retirement arrangement which conforms with the applicable limitations and requirements of 26 U.S.C. § 408;
(2) A written simplified employee pension plan which conforms with the applicable limitations and requirements of 26 U.S.C. § 408;
(3) A cash or deferred arrangement which is a qualified plan pursuant to the Internal Revenue Code; and
(4) A trust forming part of a stock bonus, pension or profit-sharing plan which is a qualified plan pursuant to sections 401 et seq. of the Internal Revenue Code (26 U.S.C. §§ 401 et seq.).
(r) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support, education and maintenance of a child, whether collected by the judgment debtor or the state.
(s) All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the payment of such support and maintenance to which the former spouse may be entitled.
2. [No] Except as otherwise provided in NRS 115.010, no article or species of property mentioned in this section is exempt from execution issued upon a judgment to recover for its price, or upon a judgment of foreclosure of a mortgage or other lien thereon.
3. Any exemptions specified in subsection (d) of section 522 of the Bankruptcy Act of 1978 (92 Stat. 2586) do not apply to property owned by a resident of this state unless conferred also by subsection 1, as limited by subsection 2, of this section.
Sec. 9. NRS 31.045 is hereby amended to read as follows:
31.0451. Execution on the writ of attachment by attaching property of the defendant may occur only if:
(a) The judgment creditor serves the defendant with notice of the execution when the notice of the hearing is served pursuant to NRS 31.013; or
(b) Pursuant to an ex parte hearing, the sheriff serves upon the judgment debtor notice of the execution and a copy of the writ at the same time and in the same manner as set forth in NRS 21.076.
If the attachment occurs pursuant to an ex parte hearing, the clerk of the court shall attach the notice to the writ of attachment at the time the writ is issued.
2. The notice required pursuant to subsection 1 must be substantially in the following form:

NOTICE OF EXECUTION

YOUR PROPERTY IS BEING ATTACHED OR

YOUR WAGES ARE BEING GARNISHED

Plaintiff, .................... (name of person), alleges that you owe him money. He has begun the procedure to collect that money. To secure satisfaction of judgment the court has ordered the garnishment of your wages, bank account or other personal property held by third persons or the taking of money or other property in your possession.

Certain benefits and property owned by you may be exempt from execution and may not be taken from you. The following is a partial list of exemptions:

1. Payments received under the Social Security Act.

2. Payments for benefits or the return of contributions under the public employees' retirement system.

3. Payments for public assistance granted through the welfare division of the department of human resources.

4. Proceeds from a policy of life insurance.

5. Payments of benefits under a program of industrial insurance.

6. Payments received as unemployment compensation.

7. Veteran's benefits.

8. A homestead in a dwelling or a mobile home, not to exceed $125,000, unless [the] :

(a) The judgment is for a medical bill, in which case all of the primary dwelling, including a mobile or manufactured home, may be exempt.

9. A vehicle, if your equity in the vehicle is less than $4,500.

10. Seventy-five percent of the take-home pay for any pay period, unless the weekly take-home pay is less than 30 times the federal minimum wage, in which case the entire amount may be exempt.

14. A vehicle for use by you or your dependent which is specially equipped or modified to provide mobility for a person with a permanent disability.

15. A prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

These exemptions may not apply in certain cases such as proceedings to enforce a judgment for support of a child or a judgment of foreclosure on a mechanic's lien. You should consult an attorney immediately to assist you in determining whether your property or money is exempt from execution. If you cannot afford an attorney, you may be eligible for assistance through .................... (name of organization in county providing legal services to the indigent or elderly persons).

PROCEDURE FOR CLAIMING EXEMPT PROPERTY

If you believe that the money or property taken from you is exempt or necessary for the support of you or your family, you must file with the clerk of the court on a form provided by the clerk a notarized affidavit claiming the exemption. A copy of the affidavit must be served upon the sheriff and the judgment creditor within 8 days after the notice of execution is mailed. The property must be returned to you within 5 days after you file the affidavit unless the judgment creditor files a motion for a hearing to determine the issue of exemption. If this happens, a hearing will be held to determine whether the property or money is exempt. The hearing must be held within 10 days after the motion for a hearing is filed.

IF YOU DO NOT FILE THE AFFIDAVIT WITHIN THE TIME SPECIFIED, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE JUDGMENT CREDITOR, EVEN IF THE PROPERTY OR MONEY IS EXEMPT.

If you received this notice with a notice of a hearing for attachment and you believe that the money or property which would be taken from you by a writ of attachment is exempt or necessary for the support of you or your family, you are entitled to describe to the court at the hearing why you believe your property is exempt. You may also file a motion with the court for a discharge of the writ of attachment. You may make that motion any time before trial. A hearing will be held on that motion.

IF YOU DO NOT FILE THE MOTION BEFORE THE TRIAL, YOUR PROPERTY MAY BE SOLD AND THE MONEY GIVEN TO THE PLAINTIFF, EVEN IF THE PROPERTY OR MONEY IS EXEMPT OR NECESSARY FOR THE SUPPORT OF YOU OR YOUR FAMILY.

Sec. 10. NRS 115.010 is hereby amended to read as follows:
115.0101. The homestead is not subject to forced sale on execution or any final process from any court, except as otherwise provided by subsections 2 [and 3.] , 3 and 5.
2. The exemption provided in subsection 1 extends only to that amount of equity in the property held by the claimant which does not exceed $125,000 in value [.
3. The] , unless allodial title has been established and not relinquished, in which case the exemption provided in subsection 1 extends to all equity in the dwelling, its appurtenances and the land on which it is located.
3. Except as otherwise provided in subsection 4, the exemption provided in subsection 1 does not extend to process to enforce the payment of obligations contracted for the purchase of the property, or for improvements made thereon, including any mechanic's lien lawfully obtained, or for legal taxes, or for:
(a) Any mortgage or deed of trust thereon executed and given; or
(b) Any lien to which prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070,
by both husband and wife, when that relation exists.
4. If allodial title has been established and not relinquished, the exemption provided in subsection 1 extends to process to enforce the payment of obligations contracted for the purchase of the property, and for improvements made thereon, including any mechanic's lien lawfully obtained, and for legal taxes levied by a state or local government, and for:
(a) Any mortgage or deed of trust thereon; and
(b) Any lien even if prior consent has been given through the acceptance of property subject to any recorded declaration of restrictions, deed restriction, restrictive covenant or equitable servitude, specifically including any lien in favor of an association pursuant to NRS 116.3116 or 117.070,
unless a waiver for the specific obligation to which the judgment relates has been executed by all allodial titleholders of the property.
5. Establishment of allodial title does not exempt the property from forfeiture pursuant to NRS 179.1156 to 179.119, inclusive, or 207.350 to 207.520, inclusive.
6. Any declaration of homestead which has been filed before October 1, 1995, shall be deemed to have been amended on that date by extending the homestead exemption commensurate with any increase in the amount of equity held by the claimant in the property selected and claimed for the exemption up to the amount permitted by law on that date, but the increase does not impair the right of any creditor to execute upon the property when that right existed before October 1, 1995.
Sec. 11. The provisions of this act do not affect contracts executed before July 1, 1998.
Sec. 12. This act becomes effective:
1. Upon passage and approval for purposes of the adoption of regulations and any other preparatory administrative tasks that are necessary to ensure the effective and efficient implementation of the allodial title program; and
2. On July 1, 1998, for all other purposes.
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