(Reprinted with amendments adopted on April 18, 2003)

 

Senate Bill No. 273–Senator Schneider

 

March 13, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Enacts provisions relating to inspections and claims for constructional defects. (BDR 3‑252)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to real property; providing that a contractor must be given notice of and a reasonable opportunity to be present at certain inspections which involve conditions or damage that have the potential to result in a claim for a constructional defect; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 40 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  If an owner of a residence or appurtenance, a

1-4  homeowner’s association that is responsible for a residence or

1-5  appurtenance or a representative of such an owner or

1-6  homeowner’s association has hired, contracted with or paid any

1-7  person to inspect the residence or appurtenance to obtain

1-8  information related to any condition or damage which has the

1-9  potential to result in a claim for a constructional defect, the person

1-10  may not conduct the inspection of the residence or appurtenance

1-11  unless the contractor who is allegedly responsible for the

1-12  condition or damage has been provided with:

1-13      (a) Notice of the inspection not less than 3 working days

1-14  before the date that the inspection is conducted; and

2-1  (b) A reasonable opportunity to be present or to have a

2-2  representative of the contractor present when the inspection is

2-3  conducted.

2-4  2.  The provisions of this section apply to an inspection

2-5  regardless of whether a claim has been made or an action has

2-6  been commenced against the contractor pursuant to NRS 40.600

2-7  to 40.695, inclusive.

2-8  Sec. 2.  NRS 40.600 is hereby amended to read as follows:

2-9  40.600  As used in NRS 40.600 to 40.695, inclusive, and

2-10  section 1 of this act, unless the context otherwise requires, the

2-11  words and terms defined in NRS 40.605 to 40.630, inclusive, have

2-12  the meanings ascribed to them in those sections.

2-13      Sec. 3.  NRS 40.635 is hereby amended to read as follows:

2-14      40.635  NRS 40.600 to 40.695, inclusive[:] , and section 1 of

2-15  this act:

2-16      1.  Apply to any claim that arises before, on or after July 1,

2-17  1995, as the result of a constructional defect, except a claim for

2-18  personal injury or wrongful death, if the claim is the subject of an

2-19  action commenced on or after July 1, 1995.

2-20      2.  Prevail over any conflicting law otherwise applicable to the

2-21  claim or cause of action.

2-22      3.  Do not bar or limit any defense otherwise available except as

2-23  otherwise provided in those sections.

2-24      4.  Do not create a new theory upon which liability may be

2-25  based.

2-26      Sec. 4.  NRS 40.650 is hereby amended to read as follows:

2-27      40.650  1.  If a claimant unreasonably rejects a reasonable

2-28  written offer of settlement made as part of a response made pursuant

2-29  to NRS 40.645 or 40.682 or does not permit the contractor or

2-30  independent contractor a reasonable opportunity to repair the defect

2-31  pursuant to an accepted offer of settlement and thereafter

2-32  commences an action governed by NRS 40.600 to 40.695, inclusive,

2-33  and section 1 of this act, the court in which the action is

2-34  commenced may:

2-35      (a) Deny the claimant’s attorney’s fees and costs; and

2-36      (b) Award attorney’s fees and costs to the contractor.

2-37  Any sums paid under a homeowner’s warranty, other than sums paid

2-38  in satisfaction of claims that are collateral to any coverage issued to

2-39  or by the contractor, must be deducted from any recovery.

2-40      2.  If a contractor fails to:

2-41      (a) Make an offer of settlement;

2-42      (b) Make a good faith response to the claim asserting no

2-43  liability;

2-44      (c) Complete,in a good and workmanlike manner, the repairs

2-45  specified in an accepted offer;

3-1  (d) Agree to a mediator or accept the appointment of a mediator

3-2  pursuant to NRS 40.680 or subsection 4 of NRS 40.682; or

3-3  (e) Participate in mediation,

3-4  the limitations on damages and defenses to liability provided in

3-5  NRS 40.600 to 40.695, inclusive, and section 1 of this act do not

3-6  apply and the claimant may commence an action without satisfying

3-7  any other requirement of NRS 40.600 to 40.695, inclusive[.] , and

3-8  section 1 of this act.

3-9  3.  If coverage under a homeowner’s warranty is denied by an

3-10  insurer in bad faith, the homeowner and the contractor have a right

3-11  of action for the sums that would have been paid if coverage had

3-12  been provided, plus reasonable attorney’s fees and costs.

3-13      Sec. 5.  NRS 40.655 is hereby amended to read as follows:

3-14      40.655  1.  Except as otherwise provided in NRS 40.650, in a

3-15  claim governed by NRS 40.600 to 40.695, inclusive, and section 1

3-16  of this act, the claimant may recover only the following damages to

3-17  the extent proximately caused by a constructional defect:

3-18      (a) Any reasonable attorney’s fees;

3-19      (b) The reasonable cost of any repairs already made that were

3-20  necessary and of any repairs yet to be made that are necessary to

3-21  cure any constructional defect that the contractor failed to cure and

3-22  the reasonable expenses of temporary housing reasonably necessary

3-23  during the repair;

3-24      (c) The reduction in market value of the residence or accessory

3-25  structure, if any, to the extent the reduction is because of structural

3-26  failure;

3-27      (d) The loss of the use of all or any part of the residence;

3-28      (e) The reasonable value of any other property damaged by the

3-29  constructional defect;

3-30      (f) Any additional costs reasonably incurred by the claimant,

3-31  including, but not limited to, any costs and fees incurred for the

3-32  retention of experts to:

3-33          (1) Ascertain the nature and extent of the constructional

3-34  defects;

3-35          (2) Evaluate appropriate corrective measures to estimate the

3-36  value of loss of use; and

3-37          (3) Estimate the value of loss of use, the cost of temporary

3-38  housing and the reduction of market value of the residence; and

3-39      (g) Any interest provided by statute.

3-40      2.  The amount of any attorney’s fees awarded pursuant to this

3-41  section must be approved by the court.

3-42      3.  If a contractor complies with the provisions of NRS 40.600

3-43  to 40.695, inclusive, and section 1 of this act, the claimant may not

3-44  recover from the contractor, as a result of the constructional defect,

4-1  anything other than that which is provided pursuant to NRS 40.600

4-2  to 40.695, inclusive[.] , and section 1 of this act.

4-3  4.  As used in this section, “structural failure” means physical

4-4  damage to the load-bearing portion of a residence or appurtenance

4-5  caused by a failure of the load-bearing portion of the residence or

4-6  appurtenance.

4-7  Sec. 6.  NRS 40.665 is hereby amended to read as follows:

4-8  40.665  In addition to any other method provided for settling a

4-9  claim pursuant to NRS 40.600 to 40.695, inclusive, and section 1 of

4-10  this act, a contractor may, pursuant to a written agreement entered

4-11  into with a claimant, settle a claim by repurchasing the claimant’s

4-12  residence and the real property upon which it is located. The

4-13  agreement may include provisions which reimburse the claimant

4-14  for:

4-15      1.  The market value of the residence as if no constructional

4-16  defect existed, except that if a residence is less than 2 years of age

4-17  and was purchased from the contractor against whom the claim is

4-18  brought, the market value is the price at which the residence was

4-19  sold to the claimant;

4-20      2.  The value of any improvements made to the property by a

4-21  person other than the contractor;

4-22      3.  Reasonable attorney’s fees and fees for experts; and

4-23      4.  Any costs, including costs and expenses for moving and

4-24  costs, points and fees for loans.

4-25  Any offer of settlement made that includes the items listed in this

4-26  section shall be deemed reasonable for the purposes of subsection 1

4-27  of NRS 40.650.

4-28      Sec. 7.  NRS 40.667 is hereby amended to read as follows:

4-29      40.667  1.  Except as otherwise provided in subsection 2, a

4-30  written waiver or settlement agreement executed by a claimant after

4-31  a contractor has corrected or otherwise repaired a constructional

4-32  defect does not bar a claim for the constructional defect if it is

4-33  determined that the contractor failed to correct or repair the defect

4-34  properly.

4-35      2.  The provisions of subsection 1 do not apply to any written

4-36  waiver or settlement agreement described in subsection 1, unless:

4-37      (a) The claimant has obtained the opinion of an expert

4-38  concerning the constructional defect;

4-39      (b) The claimant has provided the contractor with a written

4-40  notice of the defect pursuant to NRS 40.645 or 40.682 and a copy of

4-41  the expert’s opinion; and

4-42      (c) The claimant and the contractor have complied with the

4-43  requirements for inspection and repair as provided in NRS 40.600 to

4-44  40.695, inclusive[.] , and section 1 of this act.

5-1  3.  If a claimant does not prevail in any action which is not

5-2  barred pursuant to this section, the court may:

5-3  (a) Deny the claimant’s attorney’s fees, fees for an expert

5-4  witness or costs; and

5-5  (b) Award attorney’s fees and costs to the contractor.

5-6  Sec. 8.  NRS 40.668 is hereby amended to read as follows:

5-7  40.668  1.  Notwithstanding the provisions of NRS 40.600 to

5-8  40.695, inclusive, and section 1 of this act, a claimant may not

5-9  commence an action against a subdivider or master developer for a

5-10  constructional defect in an appurtenance constructed on behalf of

5-11  the subdivider or master developer in a planned unit development, to

5-12  the extent that the appurtenance was constructed by or through a

5-13  licensed general contractor, unless:

5-14      (a) The subdivider or master developer fails to provide to the

5-15  claimant the name, address and telephone number of each contractor

5-16  hired by the subdivider or master developer to construct the

5-17  appurtenance within 30 days of the receipt by the subdivider or

5-18  master developer of a request from the claimant for such

5-19  information; or

5-20      (b) After the claimant has made a good faith effort to obtain full

5-21  recovery from the contractors hired by the subdivider or master

5-22  developer to construct the appurtenance, the claimant has not

5-23  obtained a full recovery.

5-24      2.  All statutes of limitation or repose applicable to a claim

5-25  governed by this section are tolled from the time the claimant

5-26  notifies a contractor hired by the subdivider or master developer of

5-27  the claim until the earlier of the date:

5-28      (a) A court determines that the claimant cannot obtain a full

5-29  recovery against those contractors; or

5-30      (b) The claimant receives notice that those contractors are

5-31  bankrupt, insolvent or dissolved.

5-32  Tolling pursuant to this subsection applies only to the subdivider or

5-33  master developer. Notwithstanding any applicable statute of

5-34  limitation or repose, the claimant may commence an action against

5-35  the subdivider or master developer for the claim within 1 year after

5-36  the end of the tolling described in this subsection.

5-37      3.  Nothing in this section prohibits the commencement of an

5-38  action against a subdivider or master developer for a constructional

5-39  defect in a residence sold, designed or constructed by or on behalf of

5-40  the subdivider or master developer.

5-41      4.  Nothing in this section prohibits a person other than the

5-42  claimant from commencing an action against a subdivider or master

5-43  developer to enforce his own rights.

5-44      5.  The provisions of this section do not apply to a subdivider or

5-45  master developer who acts as a general contractor or uses his license

6-1  as a general contractor in the course of constructing the

6-2  appurtenance that is the subject of the action.

6-3  6.  As used in this section:

6-4  (a) “Master developer” means a person who buys, sells or

6-5  develops a planned unit development, including, without limitation,

6-6  a person who enters into a development agreement pursuant to

6-7  NRS 278.0201.

6-8  (b) “Planned unit development” has the meaning ascribed to it in

6-9  NRS 278A.065.

6-10      (c) “Subdivider” has the meaning ascribed to it in

6-11  NRS 278.0185.

6-12      Sec. 9.  NRS 40.675 is hereby amended to read as follows:

6-13      40.675  1.  A contractor who makes or provides for repairs

6-14  under NRS 40.600 to 40.695, inclusive, and section 1 of this act

6-15  may take reasonable steps to prove that the repairs were made and to

6-16  have them inspected.

6-17      2.  The provisions of NRS 40.600 to 40.695, inclusive, and

6-18  section 1 of this act regarding inspection and repair are in addition

6-19  to any rights of inspection and settlement provided by common law

6-20  or by another statute.

6-21      Sec. 10.  NRS 40.680 is hereby amended to read as follows:

6-22      40.680  1.  Except as otherwise provided in this chapter,

6-23  before an action based on a claim governed by NRS 40.600 to

6-24  40.695, inclusive, and section 1 of this act may be commenced in

6-25  court, the matter must be submitted to mediation, unless mediation

6-26  is waived in writing by the contractor and the claimant.

6-27      2.  The claimant and contractor must select a mediator by

6-28  agreement. If the claimant and contractor fail to agree upon a

6-29  mediator within 45 days after a mediator is first selected by the

6-30  claimant, either party may petition the American Arbitration

6-31  Association, the Nevada Arbitration Association, Nevada Dispute

6-32  Resolution Services or any other mediation service acceptable to the

6-33  parties for the appointment of a mediator. A mediator so appointed

6-34  may discover only those documents or records which are necessary

6-35  to conduct the mediation. The mediator shall convene the mediation

6-36  within 60 days after the matter is submitted to him, unless the

6-37  parties agree to extend the time. Except in a complex matter,

6-38  the claimant shall, before the mediation begins, deposit $50 with the

6-39  mediation service and thecontractor shall deposit with the

6-40  mediation service the remaining amount estimated by the mediation

6-41  service as necessary to pay the fees and expenses of the mediator for

6-42  the first session of mediation, and the contractorshall deposit

6-43  additional amounts demanded by the mediation service as incurred

6-44  for that purpose. In a complex matter, each party shall share equally

6-45  in the deposits estimated by the mediation service. Unless otherwise

7-1  agreed, the total fees for each day of mediation and the mediator

7-2  must not exceed $750 per day.

7-3  3.  Ifthe parties do not reach an agreement concerning the

7-4  matter during mediation or if the contractor fails to pay the required

7-5  fees and appear, the claimant may commence his action in court

7-6  and:

7-7  (a) The reasonable costs and fees of the mediation are

7-8  recoverable by the prevailing party as costs of the action.

7-9  (b) Either party may petition the court in which the action is

7-10  commenced for the appointment of a special master.

7-11      4.  A special master appointed pursuant to subsection 3 may:

7-12      (a) Review all pleadings, papers or documents filed with the

7-13  court concerning the action.

7-14      (b) Coordinate the discovery of any books, records, papers or

7-15  other documents by the parties, including the disclosure of witnesses

7-16  and the taking of the deposition of any party.

7-17      (c) Order any inspections on the site of the property by a party

7-18  and any consultants or experts of a party.

7-19      (d) Order settlement conferences and attendance at those

7-20  conferences by any representative of the insurer of a party.

7-21      (e) Require any attorney representing a party to provide

7-22  statements of legal and factual issues concerning the action.

7-23      (f) Refer to the judge who appointed him or to the presiding

7-24  judge of the court in which the action is commenced any matter

7-25  requiring assistance from the court.

7-26  The special master shall not, unless otherwise agreed by the parties,

7-27  personally conduct any settlement conferences or engage in any ex

7-28  parte meetings regarding the action.

7-29      5.  Upon application by a party to the court in which the action

7-30  is commenced, any decision or other action taken by a special

7-31  master appointed pursuant to this section may be appealed to the

7-32  courtfor a decision.

7-33      6.  A report issued by a mediator or special master that indicates

7-34  that either party has failed to appear before him or to mediate in

7-35  good faith is admissible in the action, but a statement or admission

7-36  made by either party in the course of mediation is not admissible.

7-37      Sec. 11.  NRS 40.688 is hereby amended to read as follows:

7-38      40.688  1.  If a claimant attempts to sell a residence that is or

7-39  has been the subject of a claim governed by NRS 40.600 to 40.695,

7-40  inclusive, and section 1 of this act, he shall disclose, in writing, to

7-41  any prospective purchaser of the residence, not less than 30 days

7-42  before the close of escrow for the sale of the residence or, if escrow

7-43  is to close less than 30 days after the execution of the sales

7-44  agreement, then immediately upon the execution of the sales

7-45  agreement or, if a claim is initiated less than 30 days before the

8-1  close of escrow, within 24 hours after giving written notice to the

8-2  contractor pursuant to subsection 1 of NRS 40.645 or subsection 1

8-3  of NRS 40.682:

8-4  (a) All notices given by the claimant to the contractor pursuant

8-5  to NRS 40.600 to 40.695, inclusive, and section 1 of this act that

8-6  are related to the residence;

8-7  (b) All opinions the claimant has obtained from experts

8-8  regarding a constructional defect that is or has been the subject of

8-9  the claim;

8-10      (c) The terms of any settlement, order or judgment relating to

8-11  the claim; and

8-12      (d) A detailed report of all repairs made to the residence by or

8-13  on behalf of the claimant as a result of a constructional defect that is

8-14  or has been the subject of the claim.

8-15      2.  Before taking any action on a claim pursuant to NRS 40.600

8-16  to 40.695, inclusive, and section 1 of this act, the attorney for a

8-17  claimant shall notify the claimant in writing of the provisions of this

8-18  section.

8-19      Sec. 12.  NRS 40.6882 is hereby amended to read as follows:

8-20      40.6882  “Complainant” means a person who makes a claim or

8-21  files an action against a design professional pursuant to NRS 40.600

8-22  to 40.695, inclusive[.] , and section 1 of this act.

8-23      Sec. 13.  NRS 40.6884 is hereby amended to read as follows:

8-24      40.6884  1.  Except as otherwise provided in subsection 2, in

8-25  an action governed by NRS 40.600 to 40.695, inclusive, and section

8-26  1 of this act that is commenced against a design professional or a

8-27  person primarily engaged in the practice of professional

8-28  engineering, land surveying, architecture or landscape architecture,

8-29  including, without limitation, an action for professional negligence,

8-30  the attorney for the complainant shall file an affidavit with the court

8-31  concurrently with the service of the first pleading in the action

8-32  stating that the attorney:

8-33      (a) Has reviewed the facts of the case;

8-34      (b) Has consulted with an expert;

8-35      (c) Reasonably believes the expert who was consulted is

8-36  knowledgeable in the relevant discipline involved in the action; and

8-37      (d) Has concluded on the basis of his review and the

8-38  consultation with the expert that the action has a reasonable basis in

8-39  law and fact.

8-40      2.  The attorney for the complainant may file the affidavit

8-41  required pursuant to subsection 1 at a later time if he could not

8-42  consult with an expert and prepare the affidavit before filing the

8-43  action without causing the action to be impaired or barred by the

8-44  statute of limitations or repose, or other limitations prescribed by

8-45  law. If the attorney must submit the affidavit late, he shall file an

9-1  affidavit concurrently with the service of the first pleading in the

9-2  action stating his reason for failing to comply with subsection 1 and

9-3  the attorney shall consult with an expert and file the affidavit

9-4  required pursuant to subsection 1 not later than 45 days after filing

9-5  the action.

9-6  3.  In addition to the statement included in the affidavit

9-7  pursuant to subsection 1, a report must be attached to the affidavit.

9-8  Except as otherwise provided in subsection 4, the report must be

9-9  prepared by the expert consulted by the attorney and include,

9-10  without limitation:

9-11      (a) The resume of the expert;

9-12      (b) A statement that the expert is experienced in each discipline

9-13  which is the subject of the report;

9-14      (c) A copy of each nonprivileged document reviewed by the

9-15  expert in preparing his report, including, without limitation, each

9-16  record, report and related document that the expert has determined is

9-17  relevant to the allegations of negligent conduct that are the basis for

9-18  the action;

9-19      (d) The conclusions of the expert and the basis for the

9-20  conclusions; and

9-21      (e) A statement that the expert has concluded that there is a

9-22  reasonable basis for filing the action.

9-23      4.  In an action brought by a claimant in which an affidavit is

9-24  required to be filed pursuant to subsection 1:

9-25      (a) The report required pursuant to subsection 3 is not required

9-26  to include the information set forth in paragraphs (c) and (d) of

9-27  subsection 3 if the claimant or his attorney files an affidavit, at the

9-28  time that the affidavit is filed pursuant to subsection 1, stating that

9-29  he made reasonable efforts to obtain the nonprivileged documents

9-30  described in paragraph (c) of subsection 3, but was unable to obtain

9-31  such documents before filing the action;

9-32      (b) The claimant or his attorney shall amend the report required

9-33  pursuant to subsection 3 to include any documents and information

9-34  required pursuant to paragraph (c) or (d) of subsection 3 as soon as

9-35  reasonably practicable after receiving the document or information;

9-36  and

9-37      (c) The court may dismiss the action if the claimant and his

9-38  attorney fail to comply with the requirements of paragraph (b).

9-39      5.  An expert consulted by an attorney to prepare an affidavit

9-40  pursuant to this section must not be a party to the action.

9-41      6.  As used in this section, “expert” means a person who is

9-42  licensed in a state to engage in the practice of professional

9-43  engineering, land surveying, architecture or landscape architecture.

 

 

10-1      Sec. 14.  NRS 40.6885 is hereby amended to read as follows:

10-2      40.6885  1.  The court shall dismiss an action governed by

10-3  NRS 40.600 to 40.695, inclusive, and section 1 of this act that is

10-4  commenced against a design professional or a person primarily

10-5  engaged in the practice of professional engineering, land surveying,

10-6  architecture or landscape architecture, including, without limitation,

10-7  an action for professional negligence, if the attorney for the

10-8  complainant fails to:

10-9      (a) File an affidavit required pursuant to NRS 40.6884;

10-10     (b) File a report required pursuant to subsection 3 of NRS

10-11  40.6884; or

10-12     (c) Name the expert consulted in the affidavit required pursuant

10-13  to subsection 1 of NRS 40.6884.

10-14     2.  The fact that an attorney for a complainant has complied or

10-15  failed to comply with the provisions of NRS 40.6884 is admissible

10-16  in the action.

10-17     Sec. 15.  NRS 40.689 is hereby amended to read as follows:

10-18     40.689  1.  Upon petition by a party:

10-19     (a) The court shall give preference in setting a date for the trial

10-20  of an action commenced pursuant to NRS 40.600 to 40.695,

10-21  inclusive , [;] and section 1 of this act; and

10-22     (b) The court may assign an action commenced pursuant to NRS

10-23  40.600 to 40.695, inclusive, and section 1 of this act to a senior

10-24  judge.

10-25     2.  If the action is assigned to a senior judge upon petition by a

10-26  party:

10-27     (a) Any additional expenses caused by the assignment must be

10-28  borne equally by each party involved; or

10-29     (b) The judge may distribute any additional expenses among the

10-30  parties as he deems appropriate.

10-31     Sec. 16.  NRS 40.690 is hereby amended to read as follows:

10-32     40.690  1.  A claimgoverned by NRS 40.600 to 40.695,

10-33  inclusive, and section 1 of this act may notbe brought by a

10-34  claimant or contractor against a government, governmental agency

10-35  or political subdivision of a government, during the period in which

10-36  a claim for a constructional defect is being settled, mediated or

10-37  otherwise resolved pursuant to NRS 40.600 to 40.695, inclusive[.] ,

10-38  and section 1 of this act. The settlement of such a claim does not

10-39  affect the rights or obligations of the claimant or contractor in any

10-40  action brought by the claimant or contractor against a third party.

10-41     2.  A contractor or claimant may require a party against whom

10-42  the contractor or claimant asserts a claim governed by NRS 40.600

10-43  to 40.695, inclusive, and section 1 of this act to appear and

10-44  participate in proceedings held pursuant to those sections as if the

10-45  party were a contractor and the party requiring him to appear were a

11-1  claimant. The party must receive notice of the proceedings from the

11-2  contractor or claimant.

11-3      Sec. 17.  NRS 40.695 is hereby amended to read as follows:

11-4      40.695  1.  Except as otherwise provided in subsection 2,

11-5  statutes of limitation or repose applicable to a claim based on a

11-6  constructional defect governed by NRS 40.600 to 40.695, inclusive,

11-7  and section 1 of this act are tolled from the time notice of the claim

11-8  is given, until 30 days after mediation is concluded or waived in

11-9  writing pursuant to NRS 40.680 or subsection 4 of NRS 40.682.

11-10     2.  Tolling under this section applies:

11-11     (a) Only to a claim that is not a complex matter.

11-12     (b) To a third party regardless of whether the party is required to

11-13  appear in the proceeding.

11-14     Sec. 18.  NRS 113.135 is hereby amended to read as follows:

11-15     113.135  1.  Upon signing a sales agreement with the initial

11-16  purchaser of residential property that was not occupied by the

11-17  purchaser for more than 120 days after substantial completion of the

11-18  construction of the residential property, the seller shall:

11-19     (a) Provide to the initial purchaser a copy of NRS 11.202 to

11-20  11.206, inclusive, and 40.600 to 40.695, inclusive[;] , and section 1

11-21  of this act;

11-22     (b) Notify the initial purchaser of any soil report prepared for the

11-23  residential property or for the subdivision in which the residential

11-24  property is located; and

11-25     (c) If requested in writing by the initial purchaser not later than

11-26  5 days after signing the sales agreement, provide to the purchaser

11-27  without cost each report described in paragraph (b) not later than 5

11-28  days after the seller receives the written request.

11-29     2.  Not later than 20 days after receipt of all reports pursuant to

11-30  paragraph (c) of subsection 1, the initial purchaser may rescind the

11-31  sales agreement.

11-32     3.  The initial purchaser may waive his right to rescind the sales

11-33  agreement pursuant to subsection 2. Such a waiver is effective only

11-34  if it is made in a written document that is signed by the purchaser.

11-35     Sec. 19.  The amendatory provisions of this act do not apply to

11-36  a claim initiated or an action commenced pursuant to NRS 40.600 to

11-37  40.695, inclusive, and section 1 of this act, unless the claim was

11-38  initiated or the action was commenced on or after October 1, 2003.

 

11-39  H