EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 489 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 9, inclusive, of this act.

1-3 Sec. 2. "Brokerage agreement" means a contract between a dealer

1-4 and a client in which the dealer agrees to accept compensation to:

1-5 1. Assist, solicit or negotiate the sale or exchange of an interest in a

1-6 manufactured home, mobile home or commercial coach; or

1-7 2. Induce any person to buy or exchange an interest in a

1-8 manufactured home, mobile home or commercial coach.

1-9 Sec. 3. "Client" means a person who has entered into a brokerage

1-10 agreement with a dealer.

1-11 Sec. 4. 1. Any money that a dealer receives from a client or other

1-12 person concerning the sale or exchange of an interest in a manufactured

1-13 home, mobile home or commercial coach must be accounted for by the

1-14 dealer when:

2-1 (a) The sale or exchange of the interest in the manufactured home,

2-2 mobile home or commercial coach is executed; or

2-3 (b) The contract for the sale or exchange of the interest in the

2-4 manufactured home, mobile home or commercial coach is rescinded by

2-5 the dealer, client or any other person,

2-6 whichever occurs earlier.

2-7 2. The dealer shall:

2-8 (a) Prepare or cause to be prepared a written itemized statement

2-9 concerning each expenditure or deduction of money made by the dealer;

2-10 (b) Deliver or cause to be delivered to each person from whom the

2-11 dealer received money a copy of the written itemized statement; and

2-12 (c) Maintain a copy of the written itemized statement at his place of

2-13 business.

2-14 3. Except as otherwise provided in a brokerage agreement or an

2-15 escrow agreement signed by the parties to a sale or exchange of an

2-16 interest in a manufactured home, mobile home or commercial coach and

2-17 the escrow agent or escrow officer licensed pursuant to the provisions of

2-18 chapter 645A or 692A of NRS, no money concerning that sale or

2-19 exchange held by a dealer may be distributed until:

2-20 (a) An application for:

2-21 (1) A certificate of ownership for the manufactured home, mobile

2-22 home or commercial coach; or

2-23 (2) A certificate of title or certificate of ownership that does not

2-24 pass immediately upon the sale or transfer of the manufactured home,

2-25 mobile home or commercial coach,

2-26 has been submitted to the division;

2-27 (b) Each person who has a financial interest in the manufactured

2-28 home, mobile home or commercial coach has executed a document that

2-29 releases or waives his interest; and

2-30 (c) Each party to the sale or exchange has complied with the

2-31 requirements for the sale or exchange that are set forth in the regulations

2-32 adopted pursuant to the provisions of this chapter.

2-33 Sec. 5. A brokerage agreement that includes a provision that grants

2-34 a dealer the exclusive right to assist, solicit or negotiate the sale or

2-35 exchange of an interest in a manufactured home, mobile home or

2-36 commercial coach on behalf of a client is enforceable if the agreement:

2-37 1. Is in writing;

2-38 2. Sets forth the date the brokerage agreement expires;

2-39 3. Does not require the client to perform any act concerning the

2-40 brokerage agreement after the agreement expires; and

2-41 4. Is signed by the client or his representative and the dealer or his

2-42 representative.

3-1 Sec. 6. 1. A dealer who has entered into a brokerage agreement

3-2 with a client for the sale or exchange of an interest in a manufactured

3-3 home, mobile home or commercial coach shall:

3-4 (a) Seek the price and terms for the sale or exchange that are set forth

3-5 in the brokerage agreement or are approved by the client;

3-6 (b) Present all offers made to or by the client as soon as practicable;

3-7 (c) Disclose to the client all the material facts known by him

3-8 concerning the sale or exchange;

3-9 (d) Advise the client to obtain advice from an expert concerning any

3-10 matters that are beyond the knowledge or expertise of the dealer;

3-11 (e) As soon as practicable, account for all money and property he

3-12 receives in which the client may have a financial interest; and

3-13 (f) As soon as practicable, deliver to each party a copy of the executed

3-14 contract for the sale or exchange.

3-15 2. A dealer shall not enter into a brokerage agreement with a client

3-16 for the sale or exchange of an interest in a manufactured home, mobile

3-17 home or commercial coach unless the dealer has determined that the

3-18 client will be able to deliver good title upon the execution of the sale or

3-19 exchange of the interest in the manufactured home, mobile home or

3-20 commercial coach.

3-21 Sec. 7. 1. Unless otherwise specifically waived in writing by the

3-22 buyer, for each sale of a manufactured home, mobile home or

3-23 commercial coach in which the dealer is the seller or an agent of the

3-24 seller, there is an implied warranty by the dealer that all the essential

3-25 systems are in working order upon the execution of the sale. For the

3-26 purposes of this subsection, the words "as is" or any similar words do not

3-27 constitute a waiver of the implied warranty unless the words specifically

3-28 refer to a specific component of an essential system.

3-29 2. As used in this section, "essential system" means the heating, air-

3-30 conditioning, electrical, plumbing and drainage systems of a

3-31 manufactured home, mobile home or commercial coach.

3-32 Sec. 8. The administrator shall prescribe, by regulation, the form of

3-33 the contract that must be used for the sale of a manufactured home,

3-34 mobile home or commercial coach.

3-35 Sec. 9. 1. Except as otherwise provided in subsection 2, a dealer

3-36 shall not obtain or attempt to obtain the signature of a buyer on a

3-37 contract for the sale or exchange of an interest in a mobile home,

3-38 manufactured home or commercial coach if any of the essential

3-39 provisions of the contract are not set forth in the contract.

3-40 2. The dealer may insert:

3-41 (a) The identification number or identifying marks of a manufactured

3-42 home, mobile home or commercial coach; and

4-1 (b) The date the first installment payment for the sale or exchange is

4-2 due from the buyer,

4-3 into the blank spaces of a contract after the contract has been signed by a

4-4 buyer if the manufactured home, mobile home or commercial coach was

4-5 not delivered to the buyer on the date the contract was executed.

4-6 3. The administrator shall prescribe, by regulation, the essential

4-7 provisions of a contract.

4-8 Sec. 10. NRS 489.031 is hereby amended to read as follows:

4-9 489.031 As used in this chapter, unless the context otherwise requires,

4-12 sections.

4-13 Sec. 11. NRS 489.076 is hereby amended to read as follows:

4-14 489.076 1. "Dealer" means any person who:

4-43 whether or not they are owned by such persons.

5-1 2. The term does not include:

5-2 (a) Receivers, trustees, administrators, executors, guardians or other

5-3 persons appointed by or acting under the order of any court;

5-4 (b) Public officers while performing their official duties;

5-5 (c) Banks, savings and loan associations, credit unions, thrift companies

5-6 or other financial institutions proceeding as repossessors or liquidators of

5-7 their own security; [or]

5-8 (d) A person who rents or leases his manufactured home, mobile

5-9 home or commercial coach; or

5-10 (e) An owner selling his private residence.

5-11 Sec. 12. NRS 489.137 is hereby amended to read as follows:

5-12 489.137 "Salesman" means any person employed by a dealer or

5-17 consideration from his employer.

5-18 Sec. 13. NRS 489.325 is hereby amended to read as follows:

5-19 489.325 1. The administrator may adopt regulations which provide

5-39 subparagraph 1 of paragraph (c) of subsection 2 of NRS 489.4971.

5-40 Sec. 14. NRS 489.4975 is hereby amended to read as follows:

5-41 489.4975 1. When any person obtains a final judgment in any court

5-43 action [described in NRS 489.4973,] for fraud, misrepresentation or

6-1 deceit, the judgment creditor may, upon termination of all proceedings,

6-2 including appeals in connection with any judgment, file a verified petition

6-3 in the court in which the judgment was entered for an order directing

6-4 payment out of the account in the amount of actual damages included in

6-5 the judgment and unpaid, but not more than $25,000 per claimant and the

6-6 liability of the account may not exceed $100,000 for any licensee.

6-7 2. A copy of the petition must be served upon the administrator and an

6-8 affidavit of service filed with the court.

6-9 3. The court shall act upon the petition within 30 days after service

6-10 and, upon the hearing of the petition, the judgment creditor must show

6-11 that:

6-12 (a) He is not the spouse of the judgment debtor, or the personal

6-13 representative of that spouse.

6-14 (b) He has complied with all the requirements of NRS 489.4971 to

6-15 489.4989, inclusive.

6-16 (c) He has obtained a judgment of the kind described in subsection 1,

6-17 stating the amount of the judgment and the amount owing on it at the date

6-18 of the petition.

6-19 (d) A writ of execution has been issued upon the judgment and that no

6-20 assets of the judgment debtor liable to be levied upon in satisfaction of the

6-21 judgment could be found, or that the amount realized on the sale of any of

6-22 them as were found under the execution was insufficient to satisfy the

6-23 judgment, stating the amount so realized and the balance remaining due.

6-24 (e) He and the division have made reasonable searches and inquiries to

6-25 ascertain whether the judgment debtor possesses real or personal property

6-26 or other assets, liable to be sold or applied in satisfaction of the judgment.

6-27 (f) The petition has been filed [no] not more than 1 year after the

6-28 termination of all proceedings, including reviews and appeals, in

6-29 connection with the judgment.

6-30 Sec. 15. NRS 489.715 is hereby amended to read as follows:

6-31 489.715 1. Full disclosure of all terms and conditions of an offer to

6-41 dealer or an employee or agent of the dealer.

7-1 Sec. 16. NRS 489.4973 is hereby repealed.

7-2 TEXT OF REPEALED SECTION

7-3 489.4973 Service of copy of complaint upon administrator after