[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.
_________
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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)
