Nrs: Chapter 113 - Sales Of Real Property


Published: 2015

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[Rev. 11/21/2013 9:34:44

AM--2013]



CHAPTER 113 - SALES OF REAL PROPERTY

SALES BY PUBLIC OFFICERS

NRS 113.010           Successor

in office may execute deeds.

NRS 113.020           Evidentiary

effect of deed made by successor in office.

RISKS OF VENDOR AND PURCHASER (UNIFORM ACT)

NRS 113.030           Short

title.

NRS 113.040           Rights

and duties under contract for purchase and sale of real property when property

destroyed.

NRS 113.050           Construction.

REQUIRED DISCLOSURES

General Information

NRS 113.060           Certain

sellers to give notice of rates for water and sewerage services.

NRS 113.065           Required

disclosures upon sale of home or improved lot adjacent to open range;

disclosures constitute affirmative defense in action resulting from presence of

certain rights-of-way or of livestock entering property.

NRS 113.070           Required

disclosures by certain sellers relating to zoning classifications, designations

in master plan regarding land use and general land uses described in master

plan.

NRS 113.080           Additional

required disclosures by certain sellers in county whose population is 700,000

or more relating to gaming enterprise districts.

NRS 113.085           Required

disclosures by seller of real property subject to private transfer fee

obligations.

 

Condition of Residential Property Offered for Sale

NRS 113.100           Definitions.

NRS 113.110           Conditions

required for “conveyance of property” and to complete service of document.

NRS 113.120           Regulations

prescribing format and contents of form for disclosing condition of property.

NRS 113.130           Completion

and service of disclosure form before conveyance of property; discovery or

worsening of defect after service of form; exceptions; waiver.

NRS 113.135           Certain

sellers to provide copies of certain provisions of NRS and give notice of

certain soil reports; initial purchaser entitled to rescind sales agreement in

certain circumstances; waiver of right to rescind.

NRS 113.140           Disclosure

of unknown defect not required; form does not constitute warranty; duty of

buyer and prospective buyer to exercise reasonable care.

NRS 113.150           Remedies

for seller’s delayed disclosure or nondisclosure of defects in property;

waiver.

_________

_________

SALES BY PUBLIC OFFICERS

      NRS 113.010  Successor in office may execute deeds.  Where

lands, or any estate or interest therein, have been or may hereafter be sold by

a sheriff, constable or other authorized officer, for taxes or under an

execution or order of sale, and the purchaser or his or her assigns may be

entitled to a deed, and the sheriff or other officer who made the sale shall

have died, or shall be absent from the state, or in any way disqualified, it

shall be lawful for the successor of the sheriff, constable or other officer to

make such deed to the purchaser, his or her assignee or assignees, in the same

manner and with the same effect as if made by the officer making the sale.

      [1:15:1862; B § 309; BH § 2660; C § 2732; RL § 1662;

NCL § 2162]

      NRS 113.020  Evidentiary effect of deed made by successor in office.  Deeds, made as provided in NRS 113.010, shall have the same force and effect as

evidence as if made by the officer making the sale.

      [2:15:1862; B § 310; BH § 2661; C § 2733; RL § 1663;

NCL § 2163]

RISKS OF VENDOR AND PURCHASER (UNIFORM ACT)

      NRS 113.030  Short title.  NRS 113.040 and 113.050

may be cited as the Uniform Vendor and Purchaser Risk Act.

      (Added to NRS by 1977, 659)

      NRS 113.040  Rights and duties under contract for purchase and sale of real

property when property destroyed.  Any

contract made in this state after July 1, 1977, for the purchase and sale of

real property shall be interpreted as including an agreement that the parties

shall have the following rights and duties, unless the contract expressly

provides otherwise:

      1.  If, when neither the legal title nor

possession of the subject matter of the contract has been transferred, all or a

material part of the subject matter is destroyed without fault of the purchaser

or is taken by eminent domain, the vendor cannot enforce the contract and the

purchaser is entitled to recover any portion of the price that the purchaser

has paid.

      2.  If, when either the legal title or the

possession of the subject matter of the contract has been transferred, all or

any part of the subject matter is destroyed without fault of the vendor or is

taken by eminent domain, the purchaser is not thereby relieved of a duty to pay

the price nor is the purchaser entitled to recover any portion of the price

which the purchaser has paid.

      (Added to NRS by 1977, 659)

      NRS 113.050  Construction.  NRS 113.030 and 113.040

shall be interpreted and construed to effectuate its general purpose to make

uniform the law of those states which enact it.

      (Added to NRS by 1977, 659)

REQUIRED DISCLOSURES

General Information

      NRS 113.060  Certain sellers to give notice of rates for water and sewerage

services.

      1.  Any person who is proposing to sell a

previously unsold home or improved lot for which water or sewerage services

will be provided by a public utility that:

      (a) Serves or plans to serve more than 25

customers; and

      (b) Presently serves fewer than 2,000 customers,

Ê shall post

in a conspicuous place on the property or at his or her sales office if an

improved lot is being sold, a notice which states the current rates to be

charged for such services or, if the public utility is not presently serving

customers, the projected rates to be charged. The notice must also contain the

name, address and telephone number of the public utility and the Division of

Consumer Complaint Resolution of the Public Utilities Commission of Nevada.

      2.  Before the home or lot is sold, the

seller shall give the purchaser a copy of the notice described in subsection 1.

      (Added to NRS by 1987, 476; A 1997, 1963)

      NRS 113.065  Required disclosures upon sale of home or improved lot adjacent

to open range; disclosures constitute affirmative defense in action resulting

from presence of certain rights-of-way or of livestock entering property.

      1.  Before the purchaser of a home or an

improved or unimproved lot that is adjacent to open range signs a sales

agreement, the seller shall, by separate written document, disclose to the

purchaser:

      (a) Information regarding grazing on the open

range. The written document must contain a statement with the following

language:

 

This property is adjacent to open range

on which livestock are permitted to graze or roam. Unless you construct a fence

that will prevent livestock from entering this property, livestock may enter

the property and you will not be entitled to collect damages because the

livestock entered the property. Regardless of whether you construct a fence, it

is unlawful to kill, maim or injure livestock that have entered this property.

 

      (b) That the parcel may be subject to claims made

by a county or this State of rights-of-way granted by Congress over public

lands of the United States not reserved for public uses in chapter 262, section

8, 14 Statutes 253 (former 43 U.S.C. § 932, commonly referred to as R.S. 2477),

and accepted by general public use and enjoyment before, on or after July 1, 1979, or other rights-of-way. Such rights-of-way may be:

             (1) Unrecorded, undocumented or

unsurveyed; and

             (2) Used by persons, including, without

limitation, miners, ranchers or hunters, for access or recreational use, in a

manner which interferes with the use and enjoyment of the parcel.

      2.  The seller shall:

      (a) Retain a copy of the disclosure document that

has been signed by the purchaser acknowledging the date of receipt by the

purchaser of the original document;

      (b) Provide a copy of the signed disclosure

document to the purchaser; and

      (c) Record, in the office of the county recorder

in the county where the property is located, the original disclosure document

that has been signed by the purchaser.

      3.  Compliance with this section by a

seller constitutes an affirmative defense in any action brought against the

seller by the purchaser based upon any damages allegedly suffered as the result

of the presence of the rights-of-way described in subsection 1 or of livestock

entering the property.

      4.  As used in this section, “open range”

has the meaning ascribed to it in NRS

568.355.

      (Added to NRS by 2001, 17; A 2009, 670)

      NRS 113.070  Required disclosures by certain sellers relating to zoning

classifications, designations in master plan regarding land use and general

land uses described in master plan.

      1.  Before the initial purchaser of a

residence signs a sales agreement or opens escrow, whichever occurs earlier,

the seller shall, by separate written document, disclose to the initial

purchaser the zoning classifications and the designations in the master plan

regarding land use adopted pursuant to chapter

278 of NRS, and the general land uses described therein, for the adjoining

parcels of land. The written document must contain a statement with the

following language:

 

Zoning classifications describe the

land uses currently permitted on a parcel of land. Designations in the master

plan regarding land use describe the land uses that the governing city or

county proposes for a parcel of land. Zoning classifications and designations

in the master plan regarding land use are established and defined by local

ordinances. If the zoning classification for a parcel of land is inconsistent

with the designation in the master plan regarding land use for the parcel, the

possibility exists that the zoning classification may be changed to be

consistent with the designation in the master plan regarding land use for the

parcel. Additionally, the local ordinances that establish and define the

various zoning classifications and designations in the master plan regarding

land use are also subject to change.

 

      2.  If the residence is located within a

subdivision, the disclosure made pursuant to subsection 1 must be made

regarding all parcels of land adjoining the unit of the subdivision in which

the residence is located. If the residence is located on land divided by a

parcel map and not located within a subdivision, the disclosure must be made

regarding all parcels of land adjoining the parcel map. Such a disclosure must

be made regardless of whether the adjoining parcels are owned by the seller.

The seller shall retain a copy of the disclosure document which has been signed

by the initial purchaser acknowledging the date of receipt by the initial

purchaser of the original document.

      3.  The information contained in the

disclosure document required by subsection 1 must:

      (a) Be updated not less than once every 6 months,

if the information is available from the local government;

      (b) Advise the initial purchaser that the master

plan is for the general, comprehensive and long-term development of land in the

area and that the designations in the master plan regarding land use provide

the most probable indication of future development which may occur on the

surrounding properties;

      (c) Advise the initial purchaser that the master

plan and zoning ordinances and regulations adopted pursuant to the master plan

are subject to change; and

      (d) Provide the initial purchaser with

instructions on how to obtain more current information regarding zoning

classifications and designations in the master plan regarding land use.

      4.  As used in this section, “seller” means

a person who sells or attempts to sell any land or tract of land in this state

which is divided or proposed to be divided over any period into two or more

lots, parcels, units or interests, including, but not limited to, undivided

interests, which are offered, known, designated or advertised as a common unit

by a common name or as a part of a common promotional plan of advertising and

sale.

      (Added to NRS by 1989, 817; A 1995, 380; 1997, 1711; 1999, 910, 1633, 1637)

      NRS 113.080  Additional required disclosures by certain sellers in county

whose population is 700,000 or more relating to gaming enterprise districts.

      1.  Except as otherwise provided in

subsection 3, in a county whose population is 700,000 or more, a seller may not

sign a sales agreement with the initial purchaser of a residence unless the

seller, at least 24 hours before the time of the signing, provides the initial

purchaser with a disclosure document that contains:

      (a) A copy of the most recent gaming enterprise

district map that has been made available for public inspection pursuant to NRS 463.309 by the city or town in which

the residence is located or, if the residence is not located in a city or town,

by the county in which the residence is located; and

      (b) The location of the gaming enterprise

district that is nearest to the residence, regardless of the jurisdiction in

which the nearest gaming enterprise district is located.

Ê The seller

shall retain a copy of the disclosure document that has been signed by the

initial purchaser acknowledging the time and date of receipt by the initial

purchaser of the original document.

      2.  The information contained in the

disclosure document required by subsection 1 must:

      (a) Be updated not less than once every 6 months;

      (b) Advise the initial purchaser that gaming

enterprise districts are subject to change; and

      (c) Provide the initial purchaser with

instructions on how to obtain more current information regarding gaming

enterprise districts.

      3.  The initial purchaser of a residence

may waive the 24-hour period required by subsection 1 if the seller provides

the initial purchaser with the information required by subsections 1 and 2 and

the initial purchaser signs a written waiver. The seller shall retain a copy of

the written waiver that has been signed by the initial purchaser acknowledging

the time and date of receipt by the initial purchaser of the original document.

      4.  As used in this section, “seller” has

the meaning ascribed to it in NRS 113.070.

      (Added to NRS by 1999, 909; A 1999, 1637; 2011, 1142)

      NRS 113.085  Required disclosures by seller of real property subject to

private transfer fee obligations.

      1.  A seller of real property that is

subject to a private transfer fee obligation shall furnish to the buyer a

written statement which discloses the existence of the private transfer fee

obligation, includes a description of the private transfer fee obligation and

sets forth a notice in substantially the following form:

 

       A private transfer fee

obligation has been created with respect to this property. The private transfer

fee obligation may lower the value of this property. The laws of this State

prohibit the enforcement of certain private transfer fee obligations that are

created or recorded on or after May 20, 2011, (NRS 111.865) and impose certain notice

requirements with respect to private transfer fee obligations that were created

before May 20, 2011 (NRS 111.870).

 

      2.  As used in this section, “private

transfer fee obligation” has the meaning ascribed to it in NRS 111.845.

      (Added to NRS by 2011, 321)

Condition of Residential Property Offered for Sale

      NRS 113.100  Definitions.  As

used in NRS 113.100 to 113.150,

inclusive, unless the context otherwise requires:

      1.  “Defect” means a condition that

materially affects the value or use of residential property in an adverse

manner.

      2.  “Disclosure form” means a form that

complies with the regulations adopted pursuant to NRS

113.120.

      3.  “Dwelling unit” means any building,

structure or portion thereof which is occupied as, or designed or intended for

occupancy as, a residence by one person who maintains a household or by two or

more persons who maintain a common household.

      4.  “Residential property” means any land

in this state to which is affixed not less than one nor more than four dwelling

units.

      5.  “Seller” means a person who sells or

intends to sell any residential property.

      (Added to NRS by 1995, 842; A 1999, 1446)

      NRS 113.110  Conditions required for “conveyance of property” and to complete

service of document.  For the

purposes of NRS 113.100 to 113.150,

inclusive:

      1.  A “conveyance of property” occurs:

      (a) Upon the closure of any escrow opened for the

conveyance; or

      (b) If an escrow has not been opened for the

conveyance, when the purchaser of the property receives the deed of conveyance.

      2.  Service of a document is complete:

      (a) Upon personal delivery of the document to the

person being served; or

      (b) Three days after the document is mailed,

postage prepaid, to the person being served at the person’s last known address.

      (Added to NRS by 1995, 844)

      NRS 113.120  Regulations prescribing format and contents of form for

disclosing condition of property.  The

Real Estate Division of the Department of Business and Industry shall adopt

regulations prescribing the format and contents of a form for disclosing the

condition of residential property offered for sale. The regulations must ensure

that the form:

      1.  Provides for an evaluation of the

condition of any electrical, heating, cooling, plumbing and sewer systems on

the property, and of the condition of any other aspects of the property which

affect its use or value, and allows the seller of the property to indicate

whether or not each of those systems and other aspects of the property has a

defect of which the seller is aware.

      2.  Provides notice:

      (a) Of the provisions of NRS

113.140 and subsection 5 of NRS 113.150.

      (b) That the disclosures set forth in the form

are made by the seller and not by the seller’s agent.

      (c) That the seller’s agent, and the agent of the

purchaser or potential purchaser of the residential property, may reveal the

completed form and its contents to any purchaser or potential purchaser of the

residential property.

      (Added to NRS by 1995, 842)

      NRS 113.130  Completion and service of disclosure form before conveyance of

property; discovery or worsening of defect after service of form; exceptions;

waiver.

      1.  Except as otherwise provided in

subsection 2:

      (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 the seller’s agent shall

serve the purchaser or the purchaser’s 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 the

seller’s 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 the seller’s agent shall inform the purchaser or the

purchaser’s 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 the seller’s agent without further

recourse.

      2.  Subsection 1 does not apply to a sale

or intended sale of residential property:

      (a) By foreclosure pursuant to chapter 107 of NRS.

      (b) Between any co-owners of the property,

spouses or persons related within the third degree of consanguinity.

      (c) Which is the first sale of a residence that

was constructed by a licensed contractor.

      (d) 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

not waive any of the requirements of subsection 1. A seller of residential

property may not require a purchaser to waive any of the requirements of

subsection 1 as a condition of sale or for any other purpose.

      4.  If a sale or intended sale of

residential property is exempted from the requirements of subsection 1 pursuant

to paragraph (a) of subsection 2, the trustee and the beneficiary of the deed

of trust shall, not later than at the time of the conveyance of the property to

the purchaser of the residential property, or upon the request of the purchaser

of the residential property, provide:

      (a) Written notice to the purchaser of any

defects in the property of which the trustee or beneficiary, respectively, is

aware; and

      (b) If any defects are repaired or replaced or

attempted to be repaired or replaced, the contact information of any asset

management company who provided asset management services for the property. The

asset management company shall provide a service report to the purchaser upon

request.

      5.  As used in this section:

      (a) “Seller” includes, without limitation, a

client as defined in NRS 645H.060.

      (b) “Service report” has the meaning ascribed to

it in NRS 645H.150.

      (Added to NRS by 1995, 842; A 1997, 349; 2003, 1339; 2005, 598; 2011, 2832)

      NRS 113.135  Certain sellers to provide copies of certain provisions of NRS

and give notice of certain soil reports; initial purchaser entitled to rescind

sales agreement in certain circumstances; waiver of right to rescind.

      1.  Upon signing a sales agreement with the

initial purchaser of residential property that was not occupied by the

purchaser for more than 120 days after substantial completion of the

construction of the residential property, the seller shall:

      (a) Provide to the initial purchaser a copy of NRS 11.202 to 11.206, inclusive, and 40.600 to 40.695, inclusive;

      (b) Notify the initial purchaser of any soil

report prepared for the residential property or for the subdivision in which

the residential property is located; and

      (c) If requested in writing by the initial

purchaser not later than 5 days after signing the sales agreement, provide to

the purchaser without cost each report described in paragraph (b) not later

than 5 days after the seller receives the written request.

      2.  Not later than 20 days after receipt of

all reports pursuant to paragraph (c) of subsection 1, the initial purchaser

may rescind the sales agreement.

      3.  The initial purchaser may waive his or

her right to rescind the sales agreement pursuant to subsection 2. Such a

waiver is effective only if it is made in a written document that is signed by

the purchaser.

      (Added to NRS by 1999, 1446)

      NRS 113.140  Disclosure of unknown defect not required; form does not

constitute warranty; duty of buyer and prospective buyer to exercise reasonable

care.

      1.  NRS 113.130

does not require a seller to disclose a defect in residential property of which

the seller is not aware.

      2.  A completed disclosure form does not

constitute an express or implied warranty regarding any condition of

residential property.

      3.  Neither this chapter nor chapter 645 of NRS relieves a buyer or

prospective buyer of the duty to exercise reasonable care to protect himself or

herself.

      (Added to NRS by 1995, 843; A 2001, 2896)

      NRS 113.150  Remedies for seller’s delayed disclosure or nondisclosure of

defects in property; waiver.

      1.  If a seller or the seller’s agent fails

to serve a completed disclosure form in accordance with the requirements of NRS 113.130, the purchaser may, at any time before the

conveyance of the property to the purchaser, rescind the agreement to purchase

the property without any penalties.

      2.  If, before the conveyance of the

property to the purchaser, a seller or the seller’s agent informs the purchaser

or the purchaser’s agent, through the disclosure form or another written

notice, of a defect in the property of which the cost of repair or replacement

was not limited by provisions in the agreement to purchase the property, the

purchaser may:

      (a) Rescind the agreement to purchase the

property at any time before the conveyance of the property to the purchaser; or

      (b) Close escrow and accept the property with the

defect as revealed by the seller or the seller’s agent without further

recourse.

      3.  Rescission of an agreement pursuant to

subsection 2 is effective only if made in writing, notarized and served not

later than 4 working days after the date on which the purchaser is informed of

the defect:

      (a) On the holder of any escrow opened for the

conveyance; or

      (b) If an escrow has not been opened for the

conveyance, on the seller or the seller’s agent.

      4.  Except as otherwise provided in

subsection 5, if a seller conveys residential property to a purchaser without

complying with the requirements of NRS 113.130 or

otherwise providing the purchaser or the purchaser’s agent with written notice

of all defects in the property of which the seller is aware, and there is a

defect in the property of which the seller was aware before the property was

conveyed to the purchaser and of which the cost of repair or replacement was

not limited by provisions in the agreement to purchase the property, the

purchaser is entitled to recover from the seller treble the amount necessary to

repair or replace the defective part of the property, together with court costs

and reasonable attorney’s fees. An action to enforce the provisions of this

subsection must be commenced not later than 1 year after the purchaser

discovers or reasonably should have discovered the defect or 2 years after the

conveyance of the property to the purchaser, whichever occurs later.

      5.  A purchaser may not recover damages

from a seller pursuant to subsection 4 on the basis of an error or omission in

the disclosure form that was caused by the seller’s reliance upon information

provided to the seller by:

      (a) An officer or employee of this State or any

political subdivision of this State in the ordinary course of his or her

duties; or

      (b) A contractor, engineer, land surveyor,

certified inspector as defined in NRS

645D.040 or pesticide applicator, who was authorized to practice that

profession in this State at the time the information was provided.

      6.  A purchaser of residential property may

waive any of his or her rights under this section. Any such waiver is effective

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

notarized.

      (Added to NRS by 1995, 843; A 1997, 350, 1797)

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