Senate Bill No. 204–Committee on Judiciary

 

CHAPTER..........

 

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, lessee or tenant of the property under certain circumstances; 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; requiring certain disclosures to be made to a person who purchases, leases or takes possession of a manufactured home, mobile home or commercial coach if the home or coach has been the site for the manufacture of methamphetamine; providing a penalty; 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. NRS 40.770 is hereby amended to read as follows:

    40.770  1.  [In] Except as otherwise provided in subsection 5,

in any sale , lease or rental of real property, the fact that the

property is or has been:

    (a) The site of a homicide, suicide or death by any other cause,

except a death that results from a condition of the property [, or

the] ;

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

    (b)] other than a crime that involves the manufacturing of any

material, compound, mixture or preparation which contains any

quantity of methamphetamine; or

    (c) Occupied by a person exposed to the human

immunodeficiency virus or suffering from acquired immune

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

transmitted through occupancy of the property,

is not material to the transaction.

    2.  In any sale , lease or rental of real property, the fact that a

sex offender, as defined in NRS 179D.400, resides or is expected to

reside in the community is not material to the transaction, and the

seller , lessor or landlord or any agent of the seller , lessor or

landlord does not have a duty to disclose such a fact to a buyer ,

lessee or tenant or any agent of a buyer [.] , lessee or tenant.

    3.  A seller , lessor or landlord or any agent of the seller ,

lessor or landlord is not liable to the buyer , lessee or tenant in any

action at law or in equity because of the failure to disclose any fact

described in subsection 1 or 2 that is not material to the transaction

[.] or of which the seller, lessor or landlord or agent of the seller,

lessor or landlord had no actual knowledge.

    4.  Except as otherwise provided in an agreement between a

buyer , lessee or tenant and his agent, an agent of the buyer , lessee

or tenant is not liable to the buyer , lessee or tenant in any action at

law or in equity because of the failure to disclose any fact described

in subsection 1 or 2 that is not material to the transaction [.] or of

which the agent of the buyer, lessee or tenant had no actual

knowledge.

    5.  For purposes of this section, the fact that the property is or

has been the site of a crime that involves the manufacturing of any

material, compound, mixture or preparation which contains any

quantity of methamphetamine is not material to the transaction if:

    (a) All materials and substances involving methamphetamine

have been removed from or remediated on the property by an

entity certified or licensed to do so; or

    (b) The property has been deemed safe for habitation by a

governmental entity.

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

    113.130  1.  Except as otherwise provided in subsections 2

and 3:

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

purchaser:

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

residential property; and

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

agent with the completed disclosure form.

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

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

discovers a new defect in the residential property that was not

identified on the completed disclosure form or discovers that a

defect identified on the completed disclosure form has become

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

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

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

the conveyance of the property to the purchaser. If the seller does

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

        (1) Rescind the agreement to purchase the property; or

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

revealed by the seller or his agent without further recourse.

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

residential property:

    (a) [By a government or governmental agency.

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

foreclosure.

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

related within the third degree of consanguinity.

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

constructed by a licensed contractor . [and not occupied by the

purchaser for more than 120 days.

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

savings and loan association or mortgage or farm loan association,

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

if it has acquired the property for development, for the convenient

transaction of its business, or as a result of foreclosure of the

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

obligation it has originated or holds.

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

of or title to the property solely to facilitate the sale of the property

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

country before title to the property is transferred to a purchaser.

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

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

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

notarized.

    Sec. 3.  Chapter 489 of NRS is hereby amended by adding

thereto the provisions set forth as sections 4 to 9, inclusive, of this

act.

    Sec. 4.  As used in sections 4 to 9, inclusive, of this act, unless

the context otherwise requires, the words and terms defined in

sections 5 and 6 of this act have the meanings ascribed to them in

those sections.

    Sec. 5.  “Transferee” means any person who purchases,

leases or takes possession in any other manner or attempts to

purchase, lease or take possession in any other manner of a

manufactured home, mobile home or commercial coach or any

interest therein from a transferor.

    Sec. 6.  “Transferor” means any person who:

    1.  Sells or leases or attempts to sell or lease a manufactured

home, mobile home or commercial coach or any interest therein to

a transferee; or

    2.  Transfers or attempts to transfer a manufactured home,

mobile home or commercial coach or any interest therein to a

transferee in any other manner.

    Sec. 7.  1.  Except as otherwise provided in this section and

unless required to make a disclosure pursuant to NRS 40.770, if a

manufactured home, mobile home or commercial coach is or has

been the site of a crime that involves the manufacturing of any

material, compound, mixture or preparation which contains any

quantity of methamphetamine, a transferor or his agent who has

actual knowledge of such information shall disclose the

information to a transferee or his agent.

    2.  The disclosure described in subsection 1 is not required if:

    (a) All materials and substances involving methamphetamine

have been removed from or remediated on the manufactured

home, mobile home or commercial coach by an entity certified or

licensed to do so; or

    (b) The manufactured home, mobile home or commercial

coach has been deemed safe for habitation by a governmental

entity.

    3.  The disclosure described in subsection 1 is not required for

any sale or other transfer or intended sale or other transfer of a

manufactured home, mobile home or commercial coach by a

transferor:

    (a) To any co-owner of the manufactured home, mobile home

or commercial coach, the spouse of the transferor or a person

related within the third degree of consanguinity to the transferor;

or

    (b) If the transferor is a dealer and this is the first sale or

transfer of a new manufactured home, mobile home or

commercial coach.

    4.  The Division may adopt regulations to carry out the

provisions of this section.

    Sec. 8.  1.  A transferor or his agent, or both, who violates

any provision of section 7 of this act may be held liable to the

transferee in any action at law or in equity.

    2.  An agent of a transferee who has actual knowledge of any

information required to be disclosed pursuant to section 7 of this

act may be held liable to the transferee in any action at law or in

equity if he fails to disclose that information to the transferee.

    3.  If a transferor makes a disclosure pursuant to section 7 of

this act, the transferee may:

    (a) Rescind the agreement to purchase, lease or take

possession of the manufactured home, mobile home or

commercial coach;

    (b) Make the agreement to purchase, lease or take possession

of the manufactured home, mobile home or commercial coach

contingent upon the repair of any damage to the manufactured

home, mobile home or commercial coach that has been caused by

the manufacturing of any material, compound, mixture or

preparation which contains any quantity of methamphetamine; or

    (c) Accept the manufactured home, mobile home or

commercial coach with the damage as disclosed by the transferor

without further recourse.

    4.  The rights and remedies provided by this section are in

addition to any other rights or remedies that may exist at law or in

equity.

    Sec. 9.  The failure of a licensed dealer, rebuilder or

salesman to make the disclosure required pursuant to section 7 of

this act constitutes grounds for disciplinary action pursuant to

NRS 489.381.

 

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