(Reprinted with amendments adopted on April 3, 2003)

 

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, lessees and tenants of real property. (BDR 3‑562)

 

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 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; 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] Except as otherwise provided in subsection 5,

1-3  in any sale , lease or rental of real property, the fact that the

1-4  property is or has been:

1-5  (a) The site of a homicide, suicide or death by any other cause,

1-6  except a death that results from a condition of the property [, or

1-7  the] ;

1-8  (b) The site of any crime punishable as a felony [; or

2-1  (b)] other than a crime that involves the manufacturing of any

2-2  material, compound, mixture or preparation which contains any

2-3  quantity of methamphetamine; or

2-4  (c) Occupied by a person exposed to the human

2-5  immunodeficiency virus or suffering from acquired immune

2-6  deficiency syndrome or any other disease that is not known to be

2-7  transmitted through occupancy of the property,

2-8  is not material to the transaction.

2-9  2.  In any sale , lease or rental of real property, the fact that a

2-10  sex offender, as defined in NRS 179D.400, resides or is expected to

2-11  reside in the community is not material to the transaction, and the

2-12  seller , lessor or landlord or any agent of the seller , lessor or

2-13  landlord does not have a duty to disclose such a fact to a buyer ,

2-14  lessee or tenant or any agent of a buyer [.] , lessee or tenant.

2-15      3.  A seller , lessor or landlord or any agent of the seller ,

2-16  lessor or landlord is not liable to the buyer , lessee or tenant in any

2-17  action at law or in equity because of the failure to disclose any fact

2-18  described in subsection 1 or 2 that is not material to the transaction

2-19  [.] or of which the seller, lessor or landlord or agent of the seller,

2-20  lessor or landlord had no actual knowledge.

2-21      4.  Except as otherwise provided in an agreement between a

2-22  buyer , lessee or tenant and his agent, an agent of the buyer , lessee

2-23  or tenant is not liable to the buyer , lessee or tenant in any action at

2-24  law or in equity because of the failure to disclose any fact described

2-25  in subsection 1 or 2 that is not material to the transaction [.] or of

2-26  which the agent of the buyer, lessee or tenant had no actual

2-27  knowledge.

2-28      5.  For purposes of this section, the fact that the property is or

2-29  has been the site of a crime that involves the manufacturing of any

2-30  material, compound, mixture or preparation which contains any

2-31  quantity of methamphetamine is not material to the transaction if:

2-32      (a) All materials and substances involving methamphetamine

2-33  have been removed from or remediated on the property by an

2-34  entity certified or licensed to do so; or

2-35      (b) The property has been deemed safe for habitation by a

2-36  governmental entity.

2-37      Sec.  2.  NRS 113.130 is hereby amended to read as follows:

2-38      113.130  1.  Except as otherwise provided in subsections 2

2-39  and 3:

2-40      (a) At least 10 days before residential property is conveyed to a

2-41  purchaser:

2-42          (1) The seller shall complete a disclosure form regarding the

2-43  residential property; and

2-44          (2) The seller or his agent shall serve the purchaser or his

2-45  agent with the completed disclosure form.

3-1  (b) If, after service of the completed disclosure form but before

3-2  conveyance of the property to the purchaser, a seller or his agent

3-3  discovers a new defect in the residential property that was not

3-4  identified on the completed disclosure form or discovers that a

3-5  defect identified on the completed disclosure form has become

3-6  worse than was indicated on the form, the seller or his agent shall

3-7  inform the purchaser or his agent of that fact, in writing, as soon as

3-8  practicable after the discovery of that fact but in no event later than

3-9  the conveyance of the property to the purchaser. If the seller does

3-10  not agree to repair or replace the defect, the purchaser may:

3-11          (1) Rescind the agreement to purchase the property; or

3-12          (2) Close escrow and accept the property with the defect as

3-13  revealed by the seller or his agent without further recourse.

3-14      2.  Subsection 1 does not apply to a sale or intended sale of

3-15  residential property:

3-16      (a) [By a government or governmental agency.

3-17      (b) Pursuant to a court order or by foreclosure or deed in lieu of

3-18  foreclosure.

3-19      (c)] Between any co-owners of the property, spouses or persons

3-20  related within the third degree of consanguinity.

3-21      [(d)] (b) Which is the first sale of a residence that was

3-22  constructed by a licensed contractor . [and not occupied by the

3-23  purchaser for more than 120 days.

3-24      (e) By any bank, thrift company, credit union, trust company,

3-25  savings and loan association or mortgage or farm loan association,

3-26  licensed as such under the laws of this state or of the United States,

3-27  if it has acquired the property for development, for the convenient

3-28  transaction of its business, or as a result of foreclosure of the

3-29  property encumbered in good faith as security for a loan or other

3-30  obligation it has originated or holds.

3-31      (f)] (c) By a person who takes temporary possession or control

3-32  of or title to the property solely to facilitate the sale of the property

3-33  on behalf of a person who relocates to another county, state or

3-34  country before title to the property is transferred to a purchaser.

3-35      3.  A purchaser of residential property may waive any of the

3-36  requirements of subsection 1. Any such waiver is effective only if it

3-37  is made in a written document that is signed by the purchaser and

3-38  notarized.

 

3-39  H