Assembly Bill No. 558–Assemblyman Beers

March 15, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Requires mortgage company to disclose certain costs to buyers and sellers of real property. (BDR 54-1213)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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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).

 

AN ACT relating to mortgage companies; requiring mortgage companies to disclose certain costs to buyers and sellers of real property; authorizing a seller to rescind contract in certain circumstances; and providing other matters properly relating thereto.

 

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

1-1 Section 1. Chapter 645B of NRS is hereby amended by adding

1-2 thereto a new section to read as follows:

1-3 1. Within 24 hours after an agreement for the purchase of real

1-4 property is entered into or within 24 hours after the mortgage company

1-5 notifies the buyer or seller that the mortgage company will loan money

1-6 that is secured by a lien on the real property to the buyer, whichever

1-7 occurs later, a mortgage company must provide to the buyer and seller of

1-8 the real property a dated written statement signed by a representative of

1-9 the mortgage company that lists separately each cost the seller is required

1-10 to pay with respect to the loan of the buyer and the manner in which any

1-11 payment will be applied.

1-12 2. If the seller does not agree to pay the costs set forth in the

1-13 statement provided pursuant to subsection 1, the seller may rescind any

1-14 agreement for the purchase of the real property within 24 hours after

1-15 receiving the statement without any penalties.

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