AB 237 — Revises various provisions relating to real property. (BDR 10-22)

The Commission shall:

(a) Review a complaint filed pursuant to subsection 1 in a timely manner.

Except as otherwise provided in this section and NRS 116.1203, this chapter applies to all common-interest communitiescom2. created within this State.

This chapter does not apply to:.

- *AB237_R1* – 5 – (II) NRS 116.31083 and 116.31152, unless the limited- purpose association is created for a rural agricultural residential common-interest community;

(III) NRS 116.31073, if the limited-purpose association is created for maintaining the landscape of the common elements ofofon is the common-interest community;

and (5)- Shall81st notSession enforce(2021) any– restrictions5 concerning– the use of units by the units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

3.

The provisions of this chapter do not:

(d) Except as otherwise provided in subsection 8 of NRS 116.31105, prohibit a common-interest community created before January 1, 1992, or a common-interest community described in NRS 116.31105 from providing for a representative form of government, except that, in the election or removal of a member of the executive - *AB237_R1* – 6 – board, the voting rights of the units’ owners may not be exercised by delegatesdel(e) orProhibit representatives;a master association which governs a time-share plan created pursuant to chapter 119A of NRS from providing for a representative form of government for the time-share plan;

(e) Prohibit a master association which governs a time-share plan created pursuant to chapter 119A of NRS from providing for a representative form of government for the time-share plan;

- 81st Session (2021) – 6 – 4.

(a) The criteria for determining whether an association, a limited-purpose association or a common-interest community satisfies the requirements for an exemption or limited exemption from any provision of this chapter;

(b) Only the provisions of NRS 116.001 to [116.2122,] 116.2124, inclusive, and 116.3116 to 116.31168, inclusive, apply to the condominium;

- *AB237_R1* – 7 – 2.

and (b) Notwithstanding NRS 116.1104 and subsection 3 of NRS 116.311, purchasers of units must execute proxies, powers of - 81st Session (2021) – 7 – attorney or similar devices in favor of the declarant regarding particular matters enumerated in those instruments.

The provisions of this chapter do not apply to a planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that this chapter or a part of this chapter does apply to that planned community pursuant to this section.

(a) Notwithstanding NRS 116.3105, any management, maintenance operations or employment contract, lease of recreational or parking areas or facilities and any other contract or lease between the association and a declarant or an affiliate of a or declarant continues in force after the declarant turns over control of the association;

and (b) Notwithstanding NRS 116.1104 and subsection 3 of NRS 116.311, purchasers of units must execute proxies, powers of - *AB237_R1* – 8 – attorney or similar devices in favor of the declarant regarding particular matters enumerated in those instruments.

(b) Shall adopt and may amend budgets in accordance with the requirements set forth in NRS 116.31151, may collect assessments for common expenses from the units’ owners and may invest funds of- the81st associationSession (2021) – 8 – NRS 116.311395.ion in accordance with the requirements set forth in NRS(c) 116.311395.May hire and discharge managing agents and other employees, agents and independent contractors.

(c) May hire and discharge managing agents and other employees, agents and independent contractors.

or (3) Any portion of the common-interest community that the association does not own but has an obligation to maintain, repair, insure or replace because the governing documents of thethein, repair, association expressly make such an obligation the responsibility of the association.

(1) Common elements in a condominium or planned community may be conveyed or subjected to a security interest only pursuant to NRS 116.3112;

andandsubjected -to *AB237_R1*a –security 9interest –only (2) Part of a cooperative may be conveyed, or all or part of a cooperative may be subjected to a security interest, only pursuant to NRS 116.3112.

(j) May impose and receive any payments, fees or charges for the use, rental or operation of the common elements, other than limited common elements described in subsections 2 and 4 of NRS - 81st Session (2021) – 9 – 116.2102, and for services provided to the units’ owners, including, without limitation, any services provided pursuant to NRS 116.310312.

(k) May impose charges for late payment of assessments pur(l) May impose construction penalties when authorized pursuant to NRS 116.3115.116.310305.

(l) May impose construction penalties when authorized pursuant to NRS 116.310305.

(3) Must not be charged to both the seller and the purchaser of a unit.

Must not be charged to both the seller and the purchaser (4) Except as otherwise provided in this subparagraph and subject to the limitation set forth in subparagraph (2), may increase, on an annual basis, by a percentage equal to the percentage of increase in the Consumer Price Index (All Items) published by the United States Department of Labor for the preceding calendar year.

- *AB237_R1* – 10 – (p) May provide for the indemnification of its officers and executive board and maintain directors and officers liability insurance.

(s)- May81st exerciseSession all(2021) other– powers10 that– may be exercised in this State by legal entities of the same type as the association.association.n this (t) May direct the removal of vehicles improperly parked on property owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on any road, street, alley or other thoroughfare within the common-interest community in violation of the governing documents.

(t) May direct the removal of vehicles improperly parked on property owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on any road, street, alley or other thoroughfare within the common-interest community in violation of the governing documents.

or (2) Poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residentsres(u) ofMay exercise any other powers necessary and proper for the common-interestgovernance community.and operation of the association.

(u) May exercise any other powers necessary and proper for the governance and operation of the association.

(b) The covenant, restriction or rule being enforced is, or is likelylik(c) Although a violation may exist or may have occurred, it is not so material as to be construedobjectionable as,to inconsistenta withreasonable currentperson law;or to justify expending the association’s resources;

(c) Although a violation may exist or may(d) haveIt occurred, it is not soin materialthe asassociation’s tobest beinterests objectionable to apursue reasonablean personenforcement oraction. to justify expending the association’s resources;

or - *AB237_R1* – 11 – (d) It is not in the association’s best interests to pursue an enforcement action.

The executive board’s decision under subsection 3 not to pursue enforcement under one set of circumstances does not prevent the executive board from taking enforcement action under another - 81st Session (2021) – 11 – set of circumstances, but the executive board may not be arbitrary or capricious in taking enforcement action.

Notwithstanding any provision of this chapter or the governing documents to the contrary, an association may not impose any assessment pursuant to this chapter or the governing documents on the owner of any property in the common-interest communitycommunityments that is exempt from taxation pursuant to NRS 361.125.

(a) Not enumeratedauthorized in paragraph (n) or (o), as applicable, of subsection 1;

The association has a lien on a unit for any construction penalty that is imposed against the unit’s owner pursuant to NRS 116.310305, any assessment levied against that unit or any fines imposed against the unit’s owner from the time the construction penalty, assessment or fine becomes due.

- *AB237_R1* – 12 – (a) Liens and encumbrances recorded before the recordation of the declaration and, in a cooperative, liens and encumbrances which the association creates, assumes or takes subject to;

- 81st Session (2021) – 12 – (b) A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent or, in a cooperative, the first security interest encumbering only the unit’s owner’s interest and perfected before the date on which the assessment sought to be enforced became delinquent, except that a lien under this section is prior to a security interest described in this paragraph to the extent set forth in subsection 3;

If federal regulations adopted by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association require a shorter period of priority for the lien, the period during which the lien is prior to all security interests described in paragraph (b) of subsection 2 must be determined in accordance with those federal regulations, except that notwithstanding the provisions of the federal regulations, the period of priority for the lien must not be less than the 6 months immediately preceding the recording of a notice of default and election to sell pursuant to paragraph (b) of subsection 1 of NRS 116.31162 or the institution of a judicial action to enforce the lien.

- *AB237_R1* – 13 – 5.

The amount of the costs of enforcing the association’s lien that are prior to the security interest described in paragraph (b) of subsection- 281st mustSession not(2021) exceed– the13 actual– costs incurred by the association, must not include more than one trustee’s sale guaranty and must not exceed:

Notwithstanding any other provision of law, an association, or member of the executive board, officer, employee or unit’s owner of the association, acting under the authority of this chapter or the governing documents of the association, or the community manager of the association, or any employee, agent or affiliate of the community manager, while engaged in the management of the common-interest community governed by the association, is not required to be licensed as a collection agency pursuant to chapter 649 of NRS or hire or contract with a collection agency licensed pursuant to chapter 649 of NRS to collect amounts due to the association in accordance with subsection 1 before the recording of a notice of default and election to sell pursuant to paragraph (b) of subsection 1 of NRS 116.31162.

If such an account is established, payments from the account for assessments for common expenses must be made in accordance with the same due dates as apply to payments of such assessments by a unit’s owner.

- *AB237_R1*81st Session (2021) – 14 – 10.

A lien for unpaid assessments is extinguished unless a notice of default and election to sell is recorded as required by paragraph (b) of subsection 1 of NRS 116.31162, or judicial proceedings to enforce the lien are instituted, within 3 years after the fullful11. amount of the assessments becomes due.

11.

(b) In a cooperative where the owner’s interest in a unit is personalperson(1) propertyMay underbe NRSforeclosed 116.1105,as thea association’ssecurity lien:interest under NRS:

(1) May be foreclosed as a security interest under NRS 104.9101 to 104.9709, inclusive;

16.- 81st Session (2021) – 15 – of an amount due to an association in accordance with subsection 1 by the holder of any lien or encumbrance on a unit that is subordinate to the association’s lien under this section becomes a debt due from the unit’s owner to the holder of the lien or encumbrance.

Notwithstanding any other provision of law, any payment of an amount due to an association in accordance with subsection 1 by the holder of any lien or encumbrance on a unit that is - *AB237_R1* – 15 – subordinate to the association’s lien under this section becomes a debt due from the unit’s owner to the holder of the lien or encumbrance.

(c) Disposition by a government or governmental agency;

Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under subsection 2 of NRS 116.4101, a unit’s owner or his or herherunder authorized agent shall, at the expense of the unit’s owner, furnish to a purchaser a resale package containing all of the following:

(b) A statement from the association setting forth the amount of the monthly assessment for common expenses and any unpaid obligation of any kind, including, without limitation, management fees,- transfer81st fees,Session fines,(2021) penalties,– interest,16 collection– costs, foreclosure fees and attorney’s fees currently due from the selling unit’s owner.

(c) A copy of the current operating budget of the association and current year-to-date financial statement for the association, which - *AB237_R1* – 16 – must include a summary of the reserves of the association required by NRS 116.31152 and which must include, without limitation, a summary of the information described in paragraphs (a) to (e), inclusive, of subsection 3 of NRS 116.31152.

(f) In addition to any other document, a statement describing all current and expected fees or charges for each unit, including, without limitation, association fees, fines, assessments, late charges or penalties, interest rates on delinquent assessments, additionaladditionalrges costs for collecting past due fines and charges for opening or closing any file for each unit.

If the purchasernot hasentitled acceptedto:cepted a conveyance of the unit, the purchaser is not(a) entitledCancel to:the contract pursuant to this subsection;

(a) Cancel the contract pursuant to this subsection;

Within 10 calendar days after receipt of a written request by a unit’s owner or his or her authorized agent, the association shall furnish- all81st ofSession the(2021) following– to17 the– unit’sauthorized owneragent orfor hisinclusion in the resale package:is or her authorized(a) agentCopies forof inclusionthe indocuments therequired resalepursuant package:to paragraphs (a) and (c) of subsection 1;

(a) Copies of the documents required pursuant to paragraphs (a) and (c) of subsection 1;

- *AB237_R1* – 17 – 4.

(b) The association may charge the unit’s owner a reasonable fee to cover the cost of preparing the certificate furnished pursuant association incurs to subsectionfulfill 3.the requirements of this section in preparing the certificate [.

Such a fee must be based on the actual cost the association incurs to fulfill the requirements of this section in preparing the certificate [.

(c) The other documents furnished pursuant to subsection 3 mustassociation beis providedunable to provide such documents in electronic formatthe toformat, the association may charge the unit’s owner.owner a reasonable fee, not to exceed 25 cents per page for the first 10 pages, and 10 cents per page thereafter, to cover the cost of copying.

If the association is unable to provide such documents in electronic format, the association may charge the unit’s owner a reasonable fee, not to exceed 25 cents per page for the first 10 pages, and 10 cents per page thereafter, to cover the cost of copying.

5.- 81st Session (2021) – 18 – liable for any unpaid assessment or fee greater than the amount setis forth in the documents and certificate prepared by the association.

Neither a purchaser nor the purchaser’s interest in a unit is liable for any unpaid assessment or fee greater than the amount set forth in the documents and certificate prepared by the association.

Upon the request of a unit’s owner or his or her authorized agent, or upon the request of a purchaser to whom the unit’s owner - *AB237_R1* – 18 – has provided a resale package pursuant to this section or his or her authorized agent, the association shall make the entire study of the reserves of the association which is required by NRS 116.31152 reasonably available for the unit’s owner, purchaser or authorized agent to inspect, examine, photocopy and audit.

The study must be made available at the business office of the association or some other suitable location within the county where the common-interest communitywithin isone situatedof or,those ifcounties.it it is situated in more than one county, within7. one of those counties.

7.

The amount of the fees for preparing and furnishing a statement of demand and the additional fee for furnishing a statement of demand within 3 business days may increase, on an annual basis, by a percentage equal to the percentage of increase in the Consumer Price Index (All Items) published by the United States Department of Labor for the preceding calendar year, but must not increase by more than 3 percent each year.

(a) Must set forth the amount of the monthly assessment for common expenses and any unpaid obligation of any kind, including, without limitation, management fees, transfer fees, fines, penalties, - 81st Session (2021) – 19 – interest, collection costs, foreclosure fees and attorney’s fees currently due from the selling unit’s owner;

and (b) Remains effective for the period specified in the statement of demand, which must not be less than 15 business days after the date of delivery by the association to the unit’s owner, the authorized agent of the unit’s owner or the holder of a security interest on the unit, whichever is applicable.

In preparing, copying, furnishing or expediting or otherwise providing any document or other item pursuant to this section, an association, or entity related to or acting on behalf of an association, shall not charge a unit’s owner, the authorized - *AB237_R1* – 19 – agent of a unit’s owner, a purchaser or, pursuant to subsection 7, the holder of a security interest on a unit, any fee:

(a) Not enumeratedauthorized in this section;

Unless the person who requested the statement of demand receives a replacement statement of demand, the person may rely upon the accuracy of the information set forth in the statement of amount set forth in the statement of demand providedconstitutes byfull payment of the associationamount fordue from the resale.selling unit’s owner.

Payment of the amount set forth in the statement of demand constitutes full payment of the amount due from the selling unit’s owner.

In carrying out the provisions of NRS 116.745 to 116.795, inclusive, and section 1.5 of this act, the Division and the Ombudsman have jurisdiction to investigate and the Commission and each hearing panel has jurisdiction to take appropriate action against- any81st personSession who(2021) commits– a20 violation,– including, without limitation:

person who commits a violation, including, without (a) Any association and any officer, employee or agent of an association.

- *AB237_R1* – 20 – 2.

The jurisdiction set forth in subsection 1 applies to any officer, employee or agent of an association or any member of an executiveexe(a) boardCurrently holds his or her office, employment, agency or position or who commitsheld athe violationoffice, andemployment, who:agency or position at the commencement of proceedings against him or her.

(a) Currently holds his or her office, employment, agency or position or who held the office, employment, agency or position at the commencement of proceedings against him or her.

If the Commission, a hearing panel or another agency or officer elects to take a particular action or pursue a particular remedy or penalty authorized by NRS 116.745 to 116.795, inclusive, and section 1.5 of this act or another specific statute, that election is not exclusive and does not preclude the Commission, the hearing panel or another agency or officer from taking any other actions or pursuing any other remedies or penalties authorized by NRS 116.745 to 116.795, inclusive, and section 1.5 of this act or another specific statute.

In carrying out the provisions of NRS 116.745 to 116.795, inclusive, and section 1.5 of this act, the Commission or a hearing panel- shall81st notSession intervene(2021) in– any21 internal– activities of an association except to the extent necessary to prevent or remedy a violation.violation.iation Sec.

Sec.

(b) In case of other personal property, by posting a similar notice in three public places of the township or city where the sale is to take place, not less than 5 or more than 10 days before the sale, and, in case of sale on execution issuing out of a district court, by the publication of a copy of the notice in a newspaper, if there is one in the county, at least twice, the first publication being not less than 10 days before the date of the sale.

(c) In(1) casePersonal service upon each judgment debtor or by registered mail to the last known address of realeach property,judgment by:debtor and, if the property of the judgment debtor is operated as a facility licensed under chapter 449 of NRS, upon the State Board of Health;

- *AB237_R1* – 21 – (1) Personal service upon each judgment debtor or by registered mail to the last known address of each judgment debtor and, if the property of the judgment debtor is operated as a facility licensed under chapter 449 of NRS, upon the State Board of Health;

Notice of the sale of property on execution upon a judgment for any sum less than $500, exclusive of costs, must be given only bybyor any posting in three public places in the county, one of which must be the courthouse;

In addition to the requirements of NRS 21.140, the notice must not be defaced or removed until the transfer of title is recorded or the property- becomes81st occupiedSession after(2021) completion– of22 the– sale, whichever is earlier [.] ;

andandupied after completion of the sale, whichever (6) In the case of a foreclosure sale, depositing in the United States mail an envelope, registered or certified, return receipt requested and with postage prepaid, containing a copy of the notice, addressed to:

If the sale of property is a residential foreclosure, the notice mustmus(a) include,The withoutphysical limitation:address of the property;

(a)and (b) The physicalcontact addressinformation of the property;party who is authorized to provide information relating to the foreclosure status of the property.

and - *AB237_R1* – 22 – (b) The contact information of the party who is authorized to provide information relating to the foreclosure status of the property.

NOTICE TO TENANTS OF THE PROPERTY Foreclosure proceedings against this property have started, and a notice of sale of the property to the highest bidder has been issued.

Between- now81st andSession the(2021) date– of23 the– sale, you may be evicted if you fail to pay rent or live up to your other obligations to the landlord.

- *AB237_R1* – 23 – Under Nevada Revised Statutes 40.280, notice must generally be served on you pursuant to chapter 40 of the Nevada Revised Statutes.

5 If the property is sold and a landlord, successful bidder or subsequent purchaser files an eviction action against you in court, you will be served with a summons and complaint and have the opportunity to respond.

and - 81st Session (2021) – 24 – (4) A hearing regarding a permanent eviction may be called as soon as 20 days after you are served with the summons and complaint.

4.execution or deliver the judgment debtor’s property to the judgment creditor if the judgment debtor or any other person entitled to notice has not been properly notified as required in this section and NRS 21.075 and 21.076.

The sheriff shall not conduct a sale of the property on execution or deliver the judgment debtor’s property to the judgment creditor if the judgment debtor or any other person entitled to notice has not been properly notified as required in this section and NRS 21.075 and 21.076.

[Neither the] - *AB237_R1* – 24 – 3.

4.delivery, it shall be in view of those who attend the sale and be sold in such parcels as are likely to bring the highest price .

When the sale is of personal property capable of manual delivery, it shall be in view of those who attend the sale and be sold in such parcels as are likely to bring the highest price .

When such property consists of several known lots or parcels, or of articles - 81st Session (2021) – 25 – which can be sold to advantage separately, the sheriff shall be bound to follow such directions.

Sec.39.180 [If it appears to the court that it was]s follows:

10.1.

NRS 39.180 is hereby amended to read as follows:

39.180 [If it appears to the court that it was] 1.

[Whenever such abstract is procured by the plaintiff, before the commencement of the action, the plaintiff must file with the plaintiff’s complaint a notice that an abstract of the title has been made, and is subject to - *AB237_R1* – 25 – the inspection and use of all the parties to the action, designating thereinplaintiff whereshall thehave failed to procure such abstract before if the commencing the action, and any defendant shall procure the same to be made, the defendant shall, as soon as the defendant has directed it to be made, file a notice thereof in the action with the clerk of the court, stating who is making the same, and where it will be kept forwhen inspection.finished.

But if the plaintiff shall have failed to procure such abstract before commencing the action, and any defendant shall procure the same to be made, the defendant shall, as soon as the defendant has directed it to be made, file a notice thereof in the action with the clerk of the court, stating who is making the same, and where it will be kept when finished.

39.190 The [abstract] guarantee mentioned in NRS 39.180 [may be made by any competent searcher of records, and need not be certified by the recorder or other officer, but instead thereof it - 81st Session (2021) – 26 – must be verified by the affidavit of the person making it, to the effect that the person believes it to be correct;

Sec.40.4302.

12.N1.

NRS 40.430 is hereby amended to read as follows:

40.430 1.

If a deficiency is made good pursuant to this subsection, the sale may notnot4.ccuA occur.sale directed by the court pursuant to subsection 1 must be conducted in the same manner as the sale of real property upon execution, by the sheriff of the county in which the encumbered land is situated, and if the encumbered land is situated in two or more counties, the court shall direct the sheriff of one of the counties to conduct the sale with like proceedings and effect as if the whole of the encumbered land were situated in that county.

- *AB237_R1* – 26 – 4.

A sale directed by the court pursuant to subsection 1 must be conducted in the same manner as the sale of real property upon execution, by the sheriff of the county in which the encumbered land is situated, and if the encumbered land is situated in two or more counties, the court shall direct the sheriff of one of the counties to conduct the sale with like proceedings and effect as if the whole of the encumbered land were situated in that county.

(b)- To81st enforceSession a(2021) security– interest27 in,– or the assignment of, any rents, issues, profits or other income of any real or personalpersonal, any property.

(f) For the exercise of any right or remedy authorized by chapter 104 or 104A of NRS or by the Uniform Commercial Code as enacted in any other state, including, without limitation, an action for declaratory relief pursuant to chapter 30 of NRS to ascertain the identity of the person who is entitled to enforce an instrument pursuant to NRS 104.3309.

(g) For the exercise of any right to set off, or to enforce a pledge in, a deposit account pursuant to a written agreement or pledge.

pledge (h) To draw under a letter of credit.

(j) To collect any debt, or enforce any right, secured by a mortgage or other lien on real property if the property has been sold to a person other than the creditor to satisfy, in whole or in part, a - *AB237_R1* – 27 – debt or other right secured by a senior mortgage or other senior lien on the property.

(k) Relating to any proceeding in bankruptcy, including the filingany ofother aaction proofto ofdetermine claim,the seekingamount reliefor fromvalidity anof automatica staydebt.ay and any(l) otherFor actionfiling a claim pursuant to determinechapter the147 amountof NRS or validityto ofenforce such a debt.claim which has been disallowed.

(l) For filing a claim pursuant to chapter 147 of NRS or to enforce such a claim which has been disallowed.

(o) Pursuant to an agreement entered into pursuant to NRS 361.7311 between an owner of the property and the assignee of a tax lien- against81st theSession property,(2021) or– an28 action– which is authorized by NRS 361.733.

the property, or an action which is authorized by (p) Which is exempted from the provisions of this section by specific statute.

A mortgage of real property [, or a mortgage of personal property or crops recorded prior to March 27, 1935,] which has been assigned may not be enforced unless and until the assignment is recorded pursuant to this subsection.

Any instrument by which any mortgage or deed of trust of, lien upon or interest in real property is subordinated or waived as to priority [, must, in case it concerns only] concerning one or more other mortgages or deeds of trust of, liens upon or interests in real property [, together with, or in the alternative, one or more mortgages of, liens upon or interests in personal property or crops, the instruments or documents evidencing or creating which have been recorded prior to March 27, 1935,] must be recorded in - *AB237_R1* – 28 – the office of the recorder of the county in which the property is located, and from the time any of the same are so filed for record operates as constructive notice of the contents thereof to all persons.

- 81st Session (2021) – 29 – Sec.

C OVENANT NON .O.

and that grantor will pay all interest or installments due on any prior encumbrance, and that in default thereof, beneficiary may, without demand or notice, pay the same, and beneficiary shall be sole judge of the legality or validity of such taxes, assessments, charges or encumbrances, and the amount necessary to be paid in satisfaction or discharge thereof.

C OVENANT NON .O.

- *AB237_R1* – 29 – 4.

- 81st Session (2021) – 30 – 5.

COVENANT N O.

C OVENANT NO .

5.

CCOVENANT OVENANTN NOO. .

That if default be made in the performance of the obligation, or in the payment of the debt, or interest thereon, or any part thereof, or in the payment of any of the other moneys agreed to be paid, or of any interest thereon, or if anyanye of the conditions or covenants in this section adopted by reference be violated, and if the notice of breach and election to sell, required by this chapter, be first recorded, then trustee, its successors or assigns, on demand by beneficiary, or assigns, shall sell the above- granted premises, or such part thereof as in its discretion it shall find necessary to sell, in order to accomplish the objects of these trusts, in the manner following, namely:

CCOVENANT OVENANTN NOO. .

That the trustee, upon such sale, shall make (without warranty), execute and, after due payment made, - *AB237_R1* – 30 – deliver to purchaser or purchasers, his, her or their heirs or assigns, a deed or deeds of the premises so sold which shall convey to the purchaser all the title of the grantor in the premises, and shall apply the proceeds of the sale thereof in payment, firstly, of the expenses - 81st Session (2021) – 31 – of such sale, together with the reasonable expenses of the trust, including counsel fees, in an amount equal to ................

percent of the amount secured thereby and remaining unpaid or reasonable counsel fees and costs actually incurred, which shall become due uponand anyalso defaultsuch madesums, byif grantorany, inas trustee or beneficiary shall have paid, for procuring a search of the title to the premises, or any part thereof, subsequent to the execution of the paymentsdeed aforesaid;of trust;

and also such sums, if any, as trustee or beneficiary shall have paid, for procuring a search of the title to the premises, or any part thereof, subsequent to the execution of the deed of trust;

and the receipt for the purchase money recited or contained in any deed executed to the purchaser as aforesaid shall be sufficient discharge to such purchaser from all obligation to see to the proper application of the purchase money, according to the trusts aforesaid.

C OVENANT NON O .

If there be more than one trustee, either may act alone and execute the trusts upon the request of the beneficiary, and all of the trustee’s acts thereunder shall be deemed to be the acts of all trustees, and the recital in any conveyance executed by such sole - *AB237_R1* – 31 – trustee of such request shall be conclusive evidence thereof, and of the authority of such sole trustee to act.

Sec.- 81st Session (2021) – 32 – 108.2405 1.

16.The provisions of NRS 108.2403 and 108.2407ows:

NRSdo 108.2405not isapply: hereby amended to read as follows:

108.2405 1.

The provisions of NRS 108.2403 and 108.2407 do not apply:

Each owner who records a notice of waiver pursuant to paragraph (b) of subsection 1 must serve such notice by certified mail, return receipt requested, upon any prime contractor of the work of improvement and all other lien claimants who give thethethe owner a notice of right to lien pursuant to NRS 108.245, within 10 days after the owner’s receipt of a notice of right to lien or 10 days after the date on which the notice of waiver is recorded pursuant to this subsection [.] , whichever is later.

(b) “Ground lessee” means a person who enters into a ground lease as a lessee with the county as record owner of the real property as theSec. lessor.

Sec.

This section becomesand section 7.2 of this act become effective upon passage and approval.

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of sections 11, 1.5 and 1.5;3;

and (b) On January 1, 2022, for all other purposes.

- *AB237_R1*81st Session (2021) – 3233 – 3.

Sections 22, 4 to 7, inclusive, and 47.4 to 16, inclusive, of this act become effective on January 1, 2022.

H~~~~~ 21 - *AB237_R1*81st Session (2021)