Senate Bill No. 204–Committee on Judiciary

 

(On Behalf of the City of North Las Vegas)

 

February 25, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises certain provisions governing disclosure of certain information to purchasers of real property. (BDR 3‑562)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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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 the fact that real property has been the site for the manufacture of methamphetamine is not immaterial for the purposes of making disclosures to a purchaser of the property; removing the exemption from the requirement of completing and providing a disclosure form to a purchaser of residential property that is provided to the seller of the property in certain types of transactions; 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. NRS 40.770 is hereby amended to read as follows:

1-2  40.770  1.  In any sale of real property, the fact that the

1-3  property is or has been:

1-4  (a) The site of a homicide, suicide or death by any other

1-5  cause, except a death that results from a condition of the property[,

1-6  or the] ;

1-7  (b) The site of any crime punishable as a felony[; or

1-8  (b)] other than a crime that involves manufacturing any

1-9  material, compound, mixture or preparation which contains any

1-10  quantity of methamphetamine; or

2-1  (c) Occupied by a person exposed to the human

2-2  immunodeficiency virus or suffering from acquired immune

2-3  deficiency syndrome or any other disease that is not known to be

2-4  transmitted through occupancy of the property,

2-5  is not material to the transaction.

2-6  2.  In any sale of real property, the fact that a sex offender, as

2-7  defined in NRS 179D.400, resides or is expected to reside in the

2-8  community is not material to the transaction, and the seller or any

2-9  agent of the seller does not have a duty to disclose such a fact to a

2-10  buyer or any agent of a buyer.

2-11      3.  A seller or any agent of the seller is not liable to the buyer in

2-12  any action at law or in equity because of the failure to disclose any

2-13  fact described in subsection 1 or 2 that is not material to the

2-14  transaction[.] or of which the agent or seller had no actual

2-15  knowledge.

2-16      4.  Except as otherwise provided in an agreement between a

2-17  buyer and his agent, an agent of the buyer is not liable to the buyer

2-18  in any action at law or in equity because of the failure to disclose

2-19  any fact described in subsection 1 or 2 that is not material to the

2-20  transaction[.] or of which the agent or seller had no actual

2-21  knowledge.

2-22      Sec. 2.  NRS 113.130 is hereby amended to read as follows:

2-23      113.130  1.  Except as otherwise provided in subsections 2

2-24  and 3:

2-25      (a) At least 10 days before residential property is conveyed to a

2-26  purchaser:

2-27          (1) The seller shall complete a disclosure form regarding the

2-28  residential property; and

2-29          (2) The seller or his agent shall serve the purchaser or his

2-30  agent with the completed disclosure form.

2-31      (b) If, after service of the completed disclosure form but before

2-32  conveyance of the property to the purchaser, a seller or his agent

2-33  discovers a new defect in the residential property that was not

2-34  identified on the completed disclosure form or discovers that a

2-35  defect identified on the completed disclosure form has become

2-36  worse than was indicated on the form, the seller or his agent shall

2-37  inform the purchaser or his agent of that fact, in writing, as soon as

2-38  practicable after the discovery of that fact but in no event later than

2-39  the conveyance of the property to the purchaser. If the seller does

2-40  not agree to repair or replace the defect, the purchaser may:

2-41          (1) Rescind the agreement to purchase the property; or

2-42          (2) Close escrow and accept the property with the defect as

2-43  revealed by the seller or his agent without further recourse.

2-44      2.  Subsection 1 does not apply to a sale or intended sale of

2-45  residential property:

3-1  (a) [By a government or governmental agency.

3-2  (b) Pursuant to a court order or by foreclosure or deed in lieu of

3-3  foreclosure.

3-4  (c)] Between any co-owners of the property, spouses or persons

3-5  related within the third degree of consanguinity.

3-6  [(d)] (b) Which is the first sale of a residence that was

3-7  constructed by a licensed contractor . [and not occupied by the

3-8  purchaser for more than 120 days.

3-9  (e) By any bank, thrift company, credit union, trust company,

3-10  savings and loan association or mortgage or farm loan association,

3-11  licensed as such under the laws of this state or of the United States,

3-12  if it has acquired the property for development, for the convenient

3-13  transaction of its business, or as a result of foreclosure of the

3-14  property encumbered in good faith as security for a loan or other

3-15  obligation it has originated or holds.

3-16      (f)] (c) By a person who takes temporary possession or control

3-17  of or title to the property solely to facilitate the sale of the property

3-18  on behalf of a person who relocates to another county, state or

3-19  country before title to the property is transferred to a purchaser.

3-20      3.  A purchaser of residential property may waive any of the

3-21  requirements of subsection 1. Any such waiver is effective only if it

3-22  is made in a written document that is signed by the purchaser and

3-23  notarized.

 

3-24  H