AB 398 — Revises provisions relating to sales of residential property. (BDR 10-812)

(ReprintedAssembly withBill amendmentsNo. adopted on April 15, 2021) FIRST REPRINT A.B.

398398–Committee Aon SSEMBLYCommerce Band ILLNLabor O.CHAPTER..........

398–COMMITTEE ON C OMMERCE AND LABOR M ARCH 25, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to sales of residential property.

(BDR 10-812) 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.

Under existing law, at least 10 days before residential property is conveyed to a purchaser, the seller is required to complete and serve upon the purchaser ayed to a disclosure form which provides an evaluation of the condition of any electrical, heating, cooling, plumbing and sewer systems on the property, and of the condition ofindicate whether any of those systems or other aspects of the property whichhas affecta itsdefect useof orwhich value.the seller is aware.

The(NRS seller113.120, must113.130) indicateThis whetherbill anyprovides ofexplicitly thosethat systemsa orseller’s otheragent aspectsshall ofnot complete the propertydisclosure hasform aon defectbehalf of which the sellerseller. is aware.

(NRS 113.120, 113.130) This bill provides explicitly This bill also provides that a seller’s agent is not liable to the purchaser if:

or (2) after service of the completed disclosure form but before conveyance of the property to the purchaser, the seller 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 and fails to inform the purchaser or the purchaser’s agent of that fact as required.

failsEXPLANATION to inform the purchaser or - *AB398_R1* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(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- identified81st onSession the(2021) completed– disclosure2 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.

(1) The seller is aware of a defect and fails to disclose the defect to the purchaser on the disclosure form as required pursua(2) After service of the completed disclosure form but before conveyance of the property to the purchaser, the seller 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 and fails to inform the purchaser or the purchaser’s agent of that fact as required pursuant to paragraph (b).(a);

or (2) After service of the completed disclosure form but before conveyance of the property to the purchaser, the seller 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 and fails to inform the purchaser or the purchaser’s agent of that fact as required pursuant to paragraph (b).

- *AB398_R1* – 3 – 2.

(c) Which is the first sale of a residence that was constructed by a licensedl(d) contractor.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.

(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.

- 81st Session (2021) – 3 – 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, orprovide:pon upon the request of the (a) Written notice to the purchaser of any defects in the residentialproperty property,of provide:which the trustee or beneficiary, respectively, is aware;

(a) Written notice to the purchaser of any defects in the property of which the trustee or beneficiary, respectively, is aware;

H~~~~~ 21 - *AB398_R1*81st Session (2021)