The Nevada residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Nevada Have To Disclose Property Defects?
Nevada does require real estate sellers to disclose any material defects with a property. In most cases, this is through a standardized disclosure form provided by statute, but any disclosure which provides the required information is valid.
Whether or not the buyer and seller use the standard form, the seller always has a duty to disclose all material defects that are not obvious on a diligent inspection of the property, even if the buyer agrees to take the property “as-is.”
The basic duty to disclose cannot be waived under any circumstances, unless the sale falls under a recognized legal exemption. Nevada exempts the following common transfers, among others, from the disclosure form requirement:
- Court-ordered sales and transfers
- Sales by foreclosure or other debt default
- Transfer as part of the execution of a will or estate
- Transfer to a spouse, parent, child, uncle/aunt, or niece/nephew
Required Seller Disclosures in Nevada
Nevada sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Seller’s Real Property Disclosure: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Common-Interest Community: Disclosure required when the property being purchased is part of a common-interest community. This notifies the buyer of their rights and documentary entitlements.
- Construction Defect: Gives notice to a purchaser when the property is subject to a construction defect claim.
- Gaming Districts: When selling a newly constructed property located within a county of population greater than 700,000, this disclosure presents information regarding the proximity of gaming enterprise districts to the residence being sold.
- Impact Fees: Discloses any impact fees related to the property, prior to transfer 0f ownership.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
- Lien for Deferred Taxes: Declares, as applicable, any active lien for deferred taxes pending on the property.
- Open Range: Notifies the buyer that the property lies in the vicinity of an open range.
- Private Transfer Fee Obligation: Notifies the buyer that the residence is subject to a PTFO.
- Road Maintenance District: Provides required notice when a property is located within a road maintenance district, including detail about the amount of any potential assessments that might be charged.
- Soil Report: Provides information about a property’s soil report, when selling a recently built home that has not been occupied for 120 days after completion.
- Water and Sewer Rates: The water and sewer rates must be disclosed if the property being transferred fits all the following descriptions:
- Previously unsold residence or improved lot
- Serviced by a public utility for water and sewerage
- Public utility serves a minimum of 25 customers and a maximum of 2,000
Sources
- 1 Nev. Rev. Stat. § 113.130(1)
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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.Ê A seller’s agent shall not complete a disclosure form regarding the residential property on behalf of the seller.
(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.
(c) A seller’s agent is not liable to the purchaser for damages if:
(1) The seller is aware of a defect and fails to disclose the defect to the purchaser on the disclosure form as required pursuant to paragraph (a); 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 pursuant to paragraph (b).
Source Link - 2 Nev. Rev. Stat. § 113.130(2) - (4)
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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.
(e) By a fiduciary under title 12 or 13 of NRS, including, without limitation, a personal representative, guardian, trustee or person acting under a power of attorney, 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 is deceased or incapacitated.
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.
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