Senate Bill No. 134–Senator Shaffer

 

February 14, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes pertaining to sales of real property. (BDR 9‑454)

 

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.

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to real property; providing a statutory foreclosure mechanism for contracts of sale for the purchase of real property; making various changes regarding statutory releases and deeds of trust; 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 107 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 and 3 of this act.

1-3    Sec. 2.  1.  In any deed conveyed to a trustee pursuant to an

1-4  installment sales contract entered into pursuant to this chapter, a vendor

1-5  and vendee must:

1-6    (a) Irrevocably grant, transfer and assign their respective rights, titles

1-7  and interests in the real property that is the subject of the deed conveyed

1-8  to a trustee pursuant to an installment sales contract to the trustee; and

1-9    (b) Confer upon the trustee the authority:

1-10      (1) Of foreclosure under power of sale with respect to the

1-11  nonjudicial foreclosure of a deed conveyed to a trustee pursuant to an

1-12  installment sales contract; and

1-13      (2) To issue a deed upon foreclosure and sale.

1-14    2.  A deed issued upon foreclosure and sale conveys title to the real

1-15  property without covenant or warranty.

1-16    3.  A person, including a vendor, vendee or trustee, may purchase at a

1-17  sale conducted pursuant to a foreclosure under power of sale.

1-18    Sec. 3.  1.  Except as otherwise provided in a deed conveyed to a

1-19  trustee pursuant to an installment sales contract or an installment sales

1-20  contract entered into pursuant to this chapter or the provisions of this

1-21  chapter, the laws of this state pertaining to deeds of trusts, where not

1-22  inconsistent with the provisions of this chapter, apply to an installment

1-23  sales contract entered into pursuant to this chapter.


2-1    2.  The provisions of NRS 107.015 to 107.311, inclusive, and section 2

2-2  of this act apply only to an installment sales contract, or supplement or

2-3  amendment to an installment sales contract which states clearly that it is

2-4  to be governed by those provisions.

2-5    Sec. 4.  NRS 107.015 is hereby amended to read as follows:

2-6    107.015  As used in this chapter:

2-7    1.  “Deed conveyed to a trustee pursuant to an installment sales

2-8  contract” includes a contract between a vendor and vendee in which:

2-9    (a) A vendor agrees to sell an interest in real property located in this

2-10  state to a vendee;

2-11    (b) A vendee agrees to pay the purchase price of the real property in

2-12  installments;

2-13    (c) A vendor retains title to the property as security for the obligations

2-14  of the vendee; and

2-15    (d) A vendor agrees to convey or cause to be conveyed title to the real

2-16  property to the vendee upon payment of the purchase price.

2-17  The term does not include an option contract for the purchase of real

2-18  property or a purchase and sale agreement entered into with the good

2-19  faith expectation of a separate transaction in which a third party or the

2-20  seller agrees to finance the purchase price in a single installment.

2-21    2.  “Facsimile machine” means a device which receives and copies a

2-22  reproduction or facsimile of a document or photograph which is

2-23  transmitted electronically or telephonically by telecommunications lines.

2-24    [2.] 3.  “Nonjudicial foreclosure” means a foreclosure of a deed of

2-25  trust or deed conveyed to a trustee pursuant to an installment sales

2-26  contract using a power of sale without judicial intervention or the order,

2-27  approval or other action of any court, unless the jurisdiction of the court

2-28  is invoked by an interested person or exercised as provided by other law.

2-29    4.  “Power of sale” means the power established in a deed of trust,

2-30  deed conveyed to a trustee pursuant to an installment sales contract or

2-31  other written instrument which confers upon a trustee, a vendor or his

2-32  successor or assign, the power to sell certain real property that secures

2-33  an obligation upon a breach or default in the performance of the

2-34  obligation.

2-35    5.  “Title insurer” [has the meaning ascribed to it in NRS 692A.070.]

2-36  means a company organized under the laws of this state to transact as

2-37  insurer the business of title insurance and any foreign or alien company

2-38  licensed to transact business as an insurer engaged in title insurance.

2-39    6.  “Trustee” means the person appointed as trustee in a deed of trust

2-40  or deed conveyed to a trustee pursuant to an installment sales contract

2-41  who has the powers conferred by NRS 107.015 to 107.311, inclusive, and

2-42  section 2 of this act.

2-43    7.  “Vendee” means the purchaser of an interest in real property

2-44  pursuant to an installment sales contract.

2-45    8.  “Vendor” means the seller of an interest in real property pursuant

2-46  to a deed conveyed to a trustee pursuant to an installment sales contract.

 

 

 


3-1    Sec. 5.  NRS 107.020 is hereby amended to read as follows:

3-2    107.020  1.  Transfers in trust of any estate in real property may be

3-3  made after March 29, 1927, to secure the performance of an obligation or

3-4  the payment of any debt.

3-5    2.  Transfers in trust of any estate in real property may be made on or

3-6  after October 1, 2001, to secure the performance of an obligation or the

3-7  payment of any debt created pursuant to a deed conveyed to a trustee

3-8  pursuant to an installment sales contract.

3-9    Sec. 6.  NRS 107.025 is hereby amended to read as follows:

3-10    107.025  A deed of trust or a deed conveyed to a trustee pursuant to

3-11  an installment sales contract may encumber an estate for years however

3-12  created, including a lease of a dwelling unit of a cooperative housing

3-13  corporation, unless prohibited by the instrument creating the estate, and

3-14  foreclosure may be had by the exercise of a power of sale in accordance

3-15  with the provisions of this chapter.

3-16    Sec. 7.  NRS 107.026 is hereby amended to read as follows:

3-17    107.026  Except as otherwise provided in NRS 104.9335, a deed of

3-18  trust or a deed conveyed to a trustee pursuant to an installment sales

3-19  contract given to secure a loan made to purchase the real property on

3-20  which the deed of trust or the deed conveyed to a trustee pursuant to an

3-21  installment sales contract is given has priority over all other liens created

3-22  against the purchaser or vendee before he acquires title to the real property.

3-23    Sec. 8.  NRS 107.027 is hereby amended to read as follows:

3-24    107.027  1.  The shares which accompany a lease of a dwelling unit in

3-25  a cooperative housing corporation are appurtenant to the lease. Any

3-26  security interest in , [or] lien on or deed conveyed to a trustee pursuant to

3-27  an installment sales contract for the lease encumbers the shares whether

3-28  or not the instrument creating the interest , [or] lien or deed conveyed to a

3-29  trustee pursuant to an installment sales contract expressly includes the

3-30  shares.

3-31    2.  No security interest in , [or] lien on or deed conveyed to a trustee

3-32  pursuant to an installment sales contract for shares of a cooperative

3-33  housing corporation is effective unless the instrument which purports to

3-34  create the interest , [or] lien or deed conveyed to a trustee pursuant to an

3-35  installment sales contract encumbers the lease to which the shares pertain.

3-36    Sec. 9.  NRS 107.055 is hereby amended to read as follows:

3-37    107.055  If a party to a deed of trust [,] or an installment sales contract

3-38  executed after July 1, 1971, desires to charge an assumption fee for a

3-39  change in parties, the amount of such charge must be clearly set forth in the

3-40  deed of trust or installment sales contract at the time of execution.

3-41    Sec. 10.  NRS 107.073 is hereby amended to read as follows:

3-42    107.073  1.  Except as otherwise provided in subsection 2, a recorded

3-43  deed of trust or deed conveyed to a trustee pursuant to an installment

3-44  sales contract may be discharged by an entry on the margin of the record

3-45  thereof, signed by the trustee or his personal representative or assignee in

3-46  the presence of the recorder or his deputy, acknowledging the satisfaction

3-47  of or value received for the deed of trust or deed conveyed to a trustee

3-48  pursuant to an installment sales contract and the debt secured thereby.

3-49  The recorder or his deputy shall subscribe the entry as witness. The entry


4-1  has the same effect as a reconveyance of the deed of trust or deed conveyed

4-2  to a trustee pursuant to an installment sales contract which is

4-3  acknowledged and recorded as provided by law. The recorder shall

4-4  properly index each marginal discharge.

4-5    2.  If the deed of trust or deed conveyed to a trustee pursuant to an

4-6  installment sales contract has been recorded by a microfilm or other

4-7  photographic process, a marginal release may not be used and an

4-8  acknowledged reconveyance of the deed of trust or deed conveyed to a

4-9  trustee pursuant to an installment sales contract must be recorded.

4-10    3.  If the recorder or his deputy is presented with a certificate executed

4-11  by the trustee or his personal representative or assignee, specifying that the

4-12  deed of trust or deed conveyed to a trustee pursuant to an installment

4-13  sales contract has been paid or otherwise satisfied or discharged, the

4-14  recorder or his deputy shall discharge the deed of trust or deed conveyed to

4-15  a trustee pursuant to an installment sales contract upon the record.

4-16    Sec. 11.  NRS 107.077 is hereby amended to read as follows:

4-17    107.077  1.  Within 21 calendar days after receiving written notice

4-18  that a debt secured by a deed of trust [made on or after October 1, 1991,] or

4-19  a deed conveyed to a trustee pursuant to an installment sales contract has

4-20  been paid or otherwise satisfied or discharged, the beneficiary shall deliver

4-21  to the trustee or the trustor the original note and deed of trust, or the

4-22  original installment sales contract and deed conveyed to a trustee

4-23  pursuant to an installment sales contract, if he is in possession of those

4-24  documents, and a properly executed request to reconvey the estate in real

4-25  property conveyed to the trustee by the grantor. If the beneficiary delivers

4-26  the original note and deed of trust , or the original installment sales

4-27  contract and deed conveyed to a trustee pursuant to an installment sales

4-28  contract, to the trustee or the trustee has those documents in his possession,

4-29  the trustee shall deliver those documents to the grantor.

4-30    2.  Within 45 calendar days after a debt secured by a deed of trust

4-31  [made on or after October 1, 1991,] or a deed conveyed to a trustee

4-32  pursuant to an installment sales contract is paid or otherwise satisfied or

4-33  discharged, and a properly executed request to reconvey is received by the

4-34  trustee, the trustee shall cause to be recorded a reconveyance of the deed of

4-35  trust [.] or the deed conveyed to a trustee pursuant to an installment sales

4-36  contract.

4-37    3.  If the beneficiary fails to deliver to the trustee a properly executed

4-38  request to reconvey pursuant to subsection 1, or if the trustee fails to cause

4-39  to be recorded a reconveyance of the deed of trust or the deed conveyed to

4-40  a trustee pursuant to an installment sales contract pursuant to subsection

4-41  2, the beneficiary or the trustee, as the case may be, is liable in a civil

4-42  action to the grantor, his heirs or assigns in the sum of $500, plus a

4-43  reasonable attorney’s fee and the costs of bringing the action, and he is

4-44  liable in a civil action to any party to the deed of trust or the deed conveyed

4-45  to a trustee pursuant to an installment sales contract for any actual

4-46  damages caused by his failure to comply with the provisions of this section

4-47  and for a reasonable attorney’s fee and the costs of bringing the action.

4-48    4.  Except as otherwise provided in this subsection, if a reconveyance is

4-49  not recorded pursuant to subsection 2 within [:


5-1    (a) Seventy-five calendar days after the payment, satisfaction or

5-2  discharge of the debt, if the payment, satisfaction or discharge was made

5-3  on or after October 1, 1993; or

5-4    (b) Ninety] 60 calendar days after the payment, satisfaction or discharge

5-5  of the debt, [if the payment, satisfaction or discharge was made before

5-6  October 1, 1993,] a title insurer may prepare and cause to be recorded a

5-7  release of the deed of trust [.] or the deed conveyed to a trustee pursuant

5-8  to an installment sales contract. At least 30 calendar days before the

5-9  recording of a release pursuant to this subsection, the title insurer shall

5-10  mail, by first-class mail, postage prepaid, notice of the intention to record

5-11  the release of the deed of trust or the deed conveyed to a trustee pursuant

5-12  to an installment sales contract to the trustee [, trustor] and beneficiary of

5-13  record, or their successors in interest, at the last known address of each

5-14  such person. A release prepared and recorded pursuant to this subsection

5-15  shall be deemed a reconveyance of a deed of trust [.] or a deed conveyed to

5-16  a trustee pursuant to an installment sales contract. The title insurer shall

5-17  not cause a release to be recorded pursuant to this subsection if the title

5-18  insurer receives written instructions to the contrary from the trustee [, the

5-19  trustor, the owner of the land, the holder of the escrow or the owner of the

5-20  debt secured by the deed of trust] or his agent, or the beneficiary of record

5-21  or his agent.

5-22    5.  The release prepared pursuant to subsection 4 must set forth:

5-23    (a) The name of the beneficiary;

5-24    (b) The name of the trustor;

5-25    (c) The recording reference to the deed of trust [;] or the deed conveyed

5-26  to a trustee pursuant to an installment sales contract;

5-27    (d) A statement that the debt secured by the deed of trust or the deed

5-28  conveyed to a trustee pursuant to an installment sales contract has been

5-29  paid in full or otherwise satisfied or discharged; and

5-30    (e) [The date and amount of payment or other satisfaction or discharge;

5-31  and

5-32    (f)] The name and address of the title insurer issuing the release.

5-33    6.  A release prepared and recorded pursuant to subsection 4 does not

5-34  relieve a beneficiary or trustee of the requirements imposed by subsections

5-35  1 and 2.

5-36    7.  A trustee may charge a reasonable fee to the trustor or the owner of

5-37  the land for services relating to the preparation, execution or recordation of

5-38  a reconveyance or release pursuant to this section. A trustee shall not

5-39  require the fees to be paid before the opening of an escrow, or earlier than

5-40  60 calendar days before the payment, satisfaction or discharge of the debt

5-41  secured by the deed of trust [.] or the deed conveyed to a trustee pursuant

5-42  to an installment sales contract. If a fee charged pursuant to this

5-43  subsection does not exceed [$100,] $150, the fee is conclusively presumed

5-44  to be reasonable.

5-45    8.  In addition to any other remedy provided by law, a title insurer who

5-46  improperly causes to be recorded a release of a deed of trust or a deed

5-47  conveyed to a trustee pursuant to an installment sales contract pursuant

5-48  to this section is liable for actual damages and for a reasonable attorney’s


6-1  fee and the costs of bringing the action to any person who is injured

6-2  because of the improper recordation of the release.

6-3    9.  Any person who willfully violates this section is guilty of a

6-4  misdemeanor.

6-5    Sec. 12.  NRS 107.078 is hereby amended to read as follows:

6-6    107.078  1.  If a deed of trust [made on or after October 1, 1995,] or a

6-7  deed conveyed to a trustee pursuant to an installment sales contract

6-8  authorizes the grantor to discharge in part the debt secured by the deed of

6-9  trust or the deed conveyed to a trustee pursuant to an installment sales

6-10  contract and the deed of trust or the deed conveyed to a trustee pursuant

6-11  to an installment sales contract authorizes a partial reconveyance of the

6-12  estate in real property in consideration of a partial discharge, the

6-13  beneficiary shall, within 21 calendar days after receiving notice that the

6-14  debt secured by the deed of trust or the deed conveyed to a trustee

6-15  pursuant to an installment sales contract has been partially discharged,

6-16  deliver to the trustee a properly executed request for a partial reconveyance

6-17  of the estate in real property conveyed to the trustee by the grantor.

6-18    2.  Within 45 calendar days after a debt secured by a deed of trust

6-19  [made on or after October 1, 1995,] or a deed conveyed to a trustee

6-20  pursuant to an installment sales contract is partially discharged and a

6-21  properly executed request for a partial reconveyance is received by the

6-22  trustee, the trustee shall cause to be recorded a partial reconveyance of the

6-23  deed of trust [.] or the deed conveyed to a trustee pursuant to an

6-24  installment sales contract.

6-25    3.  If the beneficiary fails to deliver to the trustee a properly executed

6-26  request for a partial reconveyance pursuant to subsection 1, or if the trustee

6-27  fails to cause to be recorded a partial reconveyance of the deed of trust or

6-28  the deed conveyed to a trustee pursuant to an installment sales contract

6-29  pursuant to subsection 2, the beneficiary or the trustee, as the case may be,

6-30  is liable in a civil action to the grantor, his heirs or assigns in the amount of

6-31  $500, plus a reasonable attorney’s fee and the costs of bringing the action,

6-32  and he is liable in a civil action to any party to the deed of trust or the deed

6-33  conveyed to a trustee pursuant to an installment sales contract for any

6-34  actual damages caused by his failure to comply with the provisions of this

6-35  section and for a reasonable attorney’s fee and the costs of bringing the

6-36  action.

6-37    4.  Except as otherwise provided in this subsection, if a partial

6-38  reconveyance is not recorded pursuant to subsection 2 within [75] 60

6-39  calendar days after the partial satisfaction of the debt , [and if the

6-40  satisfaction was made on or after October 1, 1995,] a title insurer may

6-41  prepare and cause to be recorded a partial release of the deed of trust [.] or

6-42  the deed conveyed to a trustee pursuant to an installment sales contract.

6-43  At least 30 calendar days before the recording of a partial release pursuant

6-44  to this subsection, the title insurer shall mail, by first-class mail, postage

6-45  prepaid, notice of the intention to record the partial release of the deed of

6-46  trust or the deed conveyed to a trustee pursuant to an installment sales

6-47  contract to the trustee [, trustor] and beneficiary of record, or their

6-48  successors in interest, at the last known address of each such person. A

6-49  partial release prepared and recorded pursuant to this subsection shall be


7-1  deemed a partial reconveyance of a deed of trust [.] or a deed conveyed to

7-2  a trustee pursuant to an installment sales contract. The title insurer shall

7-3  not cause a partial release to be recorded pursuant to this subsection if the

7-4  title insurer receives written instructions to the contrary from the trustee [,

7-5  trustor, owner of the land, holder of the escrow or owner of the debt

7-6  secured by the deed of trust] or his agent, or the beneficiary of record or

7-7  his agent.

7-8    5.  The release prepared pursuant to subsection 4 must set forth:

7-9    (a) The name of the beneficiary;

7-10    (b) The name of the trustor;

7-11    (c) The recording reference to the deed of trust [;] or the deed conveyed

7-12  to a trustee pursuant to an installment sales contract;

7-13    (d) A statement that the debt secured by the deed of trust or the deed

7-14  conveyed to a trustee pursuant to an installment sales contract has been

7-15  partially discharged;

7-16    (e) [The date and amount of partial payment or other partial satisfaction

7-17  or discharge;

7-18    (f)] The name and address of the title insurer issuing the partial release;

7-19  and

7-20    [(g)] (f) The legal description of the estate in real property which is

7-21  reconveyed.

7-22    6.  A partial release prepared and recorded pursuant to subsection 4

7-23  does not relieve a beneficiary or trustee of the requirements imposed by

7-24  subsections 1 and 2.

7-25    7.  A trustee may charge a reasonable fee to the trustor or the owner of

7-26  the land for services relating to the preparation, execution or recordation of

7-27  a partial reconveyance or partial release pursuant to this section. A trustee

7-28  shall not require the fees to be paid before the opening of an escrow or

7-29  earlier than 60 calendar days before the partial payment or partial

7-30  satisfaction or discharge of the debt secured by the deed of trust [.] or the

7-31  deed conveyed to a trustee pursuant to an installment sales contract. If a

7-32  fee charged pursuant to this subsection does not exceed [$100,] $150, the

7-33  fee is conclusively presumed to be reasonable.

7-34    8.  In addition to any other remedy provided by law, a title insurer who

7-35  improperly causes to be recorded a partial release of a deed of trust or a

7-36  deed conveyed to a trustee pursuant to an installment sales contract

7-37  pursuant to this section is liable for actual damages and for a reasonable

7-38  attorney’s fee and the costs of bringing the action to any person who is

7-39  injured because of the improper recordation of the partial release.

7-40    9.  Any person who willfully violates this section is guilty of a

7-41  misdemeanor.

7-42    Sec. 13.  NRS 107.080 is hereby amended to read as follows:

7-43    107.080  1.  Where any transfer in trust of any estate in real property

7-44  is made after March 29, 1927, to secure the performance of an obligation

7-45  or the payment of any debt, a power of sale is hereby conferred upon the

7-46  trustee to be exercised after a breach of the obligation for which the

7-47  transfer is security.

7-48    2.  The power of sale must not be exercised, however, until:

7-49    (a) In the case of any trust agreement coming into force:


8-1       (1) On or after July 1, 1949, and before July 1, 1957, the grantor, or

8-2  his successor in interest, a beneficiary under a subordinate deed of trust or

8-3  any other person who has a subordinate lien or encumbrance of record on

8-4  the property, has for a period of 15 days, computed as prescribed in

8-5  subsection 3, failed to make good the deficiency in performance or

8-6  payment; or

8-7       (2) On or after July 1, 1957, the grantor, or his successor in interest, a

8-8  beneficiary under a subordinate deed of trust or deed conveyed to a trustee

8-9  pursuant to an installment sales contract, or any other person who has a

8-10  subordinate lien or encumbrance of record on the property, has for a period

8-11  of 35 days, computed as prescribed in subsection 3, failed to make good

8-12  the deficiency in performance or payment;

8-13    (b) The beneficiary, the successor in interest of the beneficiary or the

8-14  trustee first executes and causes to be recorded in the office of the recorder

8-15  of the county wherein the trust property [,] or property that is the subject

8-16  of a deed conveyed to a trustee pursuant to an installment sales contract,

8-17  or some part thereof, is situated a notice of the breach and of his election to

8-18  sell or cause to be sold the property to satisfy the obligation; and

8-19    (c) Not less than 3 months have elapsed after the recording of the

8-20  notice.

8-21    3.  The 15- or 35-day period provided in paragraph (a) of subsection 2

8-22  commences on the first day following the day upon which the notice of

8-23  default and election to sell is recorded in the office of the county recorder

8-24  of the county in which the property is located and a copy of the notice of

8-25  default and election to sell is mailed by registered or certified mail, return

8-26  receipt requested and with postage prepaid to the grantor, and to the person

8-27  who holds the title of record on the date the notice of default and election

8-28  to sell is recorded, at their respective addresses, if known, otherwise to the

8-29  address of the trust property [.] or property that is the subject of a deed

8-30  conveyed to a trustee pursuant to an installment sales contract. The

8-31  notice of default and election to sell must describe the deficiency in

8-32  performance or payment and may contain a notice of intent to declare the

8-33  entire unpaid balance due if acceleration is permitted by the obligation

8-34  secured by the deed of trust [,] or the deed conveyed to a trustee pursuant

8-35  to an installment sales contract, but acceleration must not occur if the

8-36  deficiency in performance or payment is made good and any costs, fees

8-37  and expenses incident to the preparation or recordation of the notice and

8-38  incident to the making good of the deficiency in performance or payment

8-39  are paid within the time specified in subsection 2.

8-40    4.  The trustee, or other person authorized to make the sale under the

8-41  terms of the trust deed , [or] transfer in trust [,] or deed conveyed to a

8-42  trustee pursuant to an installment sales contract, shall, after expiration of

8-43  the 3-month period following the recording of the notice of breach and

8-44  election to sell, and before the making of the sale, give notice of the time

8-45  and place thereof in the manner and for a time not less than that required

8-46  by law for the sale or sales of real property upon execution. The sale itself

8-47  may be made at the office of the trustee, if the notice so provides, whether

8-48  the property so conveyed in trust is located within the same county as the

8-49  office of the trustee or not.


9-1    5.  Every sale made under the provisions of this section and other

9-2  sections of this chapter vests in the purchaser or vendee the title of the

9-3  grantor and his successors in interest without equity or right of redemption.

9-4  The sale of a lease of a dwelling unit of a cooperative housing corporation

9-5  vests in the purchaser title to the shares in the corporation which

9-6  accompany the lease.

9-7    Sec. 14.  NRS 107.090 is hereby amended to read as follows:

9-8    107.090  1.  As used in this section, “person with an interest” means

9-9  any person who has or claims any right, title or interest in, or lien or charge

9-10  upon, the real property described in the deed of trust [,] or the deed

9-11  conveyed to a trustee pursuant to an installment sales contract, as

9-12  evidenced by any document or instrument filed or recorded in the office of

9-13  the county recorder of the county in which any part of the real property is

9-14  situated.

9-15    2.  A person with an interest or any other person who is or may be held

9-16  liable for any debt secured by a lien on the property desiring a copy of a

9-17  notice of default or notice of sale under a deed of trust or a deed conveyed

9-18  to a trustee pursuant to an installment sales contract with power of sale

9-19  upon real property may at any time after recordation of the deed of trust or

9-20  the deed conveyed to a trustee pursuant to an installment sales contract

9-21  file in the office of the county recorder of the county in which any part of

9-22  the real property is situated an acknowledged request for a copy of the

9-23  notice of default or of sale. The request must state the name and address of

9-24  the person requesting copies of the notices and identify the deed of trust or

9-25  the deed conveyed to a trustee pursuant to an installment sales contract

9-26  by stating the names of the parties thereto, the date of recordation and the

9-27  book and page where it is recorded.

9-28    3.  The trustee or person authorized to record the notice of default shall,

9-29  within 10 days after the notice of default is recorded and mailed pursuant

9-30  to NRS 107.080, cause to be deposited in the United States mail an

9-31  envelope, registered or certified, return receipt requested and with postage

9-32  prepaid, containing a copy of the notice, addressed to:

9-33    (a) Each person who has filed a request for a copy of the notice; and

9-34    (b) Each other person with an interest whose interest or claimed interest

9-35  is subordinate to the deed of trust [.] or the deed conveyed to a trustee

9-36  pursuant to an installment sales contract.

9-37    4.  The trustee or person authorized to make the sale shall, at least 20

9-38  days before the date of sale, cause to be deposited in the United States mail

9-39  an envelope, registered or certified, return receipt requested and with

9-40  postage prepaid, containing a copy of the notice of time and place of sale,

9-41  addressed to each person described in subsection 3.

9-42    5.  No request filed pursuant to the provisions of subsection 2 affects

9-43  the title to real property.

9-44    Sec. 15.  NRS 107.095 is hereby amended to read as follows:

9-45    107.095  1.  The notice of default required by NRS 107.080 must also

9-46  be sent by registered or certified mail, return receipt requested and with

9-47  postage prepaid, to each guarantor or surety of the debt. If the address of

9-48  the guarantor or surety is unknown, the notice must be sent to the address

9-49  of the trust property [.] or property that is the subject of an installment


10-1  sales contract. Failure to give the notice, except as otherwise provided in

10-2  subsection 3, releases the guarantor or surety from his obligation to the

10-3  beneficiary, but does not affect the validity of a sale conducted pursuant to

10-4  NRS 107.080 nor the obligation of any guarantor or surety to whom the

10-5  notice was properly given.

10-6    2.  Failure to give the notice of default required by NRS 107.090,

10-7  except as otherwise provided in subsection 3, releases the obligation to the

10-8  beneficiary of any person who has complied with NRS 107.090 and who is

10-9  or may otherwise be held liable for the debt or other obligation secured by

10-10  the deed of trust [,] or the deed conveyed to a trustee pursuant to an

10-11  installment sales contract, but such a failure does not affect the validity of

10-12  a sale conducted pursuant to NRS 107.080 nor the obligation of any person

10-13  to whom the notice was properly given pursuant to this section or to NRS

10-14  107.080 or 107.090.

10-15  3.  A guarantor, surety or other obligor is not released pursuant to this

10-16  section if:

10-17  (a) The required notice is given at least 15 days before the later of:

10-18     (1) The expiration of the 15- or 35-day period described in NRS

10-19  107.080; or

10-20     (2) Any extension of that period by the beneficiary; or

10-21  (b) The notice is rescinded before the sale is advertised.

10-22  Sec. 16.  NRS 107.100 is hereby amended to read as follows:

10-23  107.100  1.  At any time after the filing of a notice of breach and

10-24  election to sell real property under a power of sale contained in a deed of

10-25  trust [,] or a deed conveyed to a trustee pursuant to an installment sales

10-26  contract, the trustee or beneficiary of the deed of trust or the deed

10-27  conveyed to a trustee pursuant to an installment sales contract may apply

10-28  to the district court for the county in which the property or any part of the

10-29  property is located for the appointment of a receiver of such property.

10-30  2.  A receiver shall be appointed where it appears that personal

10-31  property subject to the deed of trust or the deed conveyed to a trustee

10-32  pursuant to an installment sales contract is in danger of being lost,

10-33  removed, materially injured or destroyed, that real property subject to the

10-34  deed of trust or the deed conveyed to a trustee pursuant to an installment

10-35  sales contract is in danger of substantial waste or that the income

10-36  therefrom is in danger of being lost, or that the property is or may become

10-37  insufficient to discharge the debt which it secures.

10-38  Sec. 17.  NRS 107.200 is hereby amended to read as follows:

10-39  107.200  Except as otherwise provided in NRS 107.230, the beneficiary

10-40  of a deed of trust [secured on or after October 1, 1995,] or a deed conveyed

10-41  to a trustee pursuant to an installment sales contract shall, within 21 days

10-42  after receiving a request from a person authorized to make such a request

10-43  pursuant to NRS 107.220, cause to be mailed, postage prepaid, or sent by

10-44  facsimile machine to that person a statement regarding the debt secured by

10-45  the deed of trust [.] or the deed conveyed to a trustee pursuant to an

10-46  installment sales contract. The statement must include:

10-47  1.  The amount of the unpaid balance of the debt secured by the deed of

10-48  trust [,] or the deed conveyed to a trustee pursuant to an installment sales


11-1  contract, the rate of interest on the unpaid balance and the total amount of

11-2  principal and interest which is due and has not been paid.

11-3    2.  The amount of the periodic payments, if any, required under the

11-4  note [.] or installment sales contract.

11-5    3.  The date the payment of the debt is due.

11-6    4.  The period for which real estate taxes and special assessments have

11-7  been paid, if that information is known to the beneficiary.

11-8    5.  The amount of property insurance covering the real property and the

11-9  term and premium of that insurance, if that information is known to the

11-10  beneficiary.

11-11  6.  The amount in an account, if any, maintained for the accumulation

11-12  of money for the payment of taxes and insurance premiums.

11-13  7.  The amount of any additional charges, costs or expenses paid or

11-14  incurred by the beneficiary which is a lien on the real property described in

11-15  the deed of trust [.] or the deed conveyed to a trustee pursuant to an

11-16  installment sales contract.

11-17  8.  Whether the debt secured by the deed of trust or the deed conveyed

11-18  to a trustee pursuant to an installment sales contract may be transferred

11-19  to a person other than the grantor.

11-20  Sec. 18.  NRS 107.210 is hereby amended to read as follows:

11-21  107.210  Except as otherwise provided in NRS 107.230 and 107.240,

11-22  the beneficiary of a deed of trust [secured on or after October 1, 1995,] or a

11-23  deed conveyed to a trustee pursuant to an installment sales contract shall,

11-24  within 21 days after receiving a request from a person authorized to make

11-25  such a request pursuant to NRS 107.220, cause to be mailed, postage

11-26  prepaid, or sent by facsimile machine to that person a statement of the

11-27  amount necessary to discharge the debt secured by the deed of trust [.] or

11-28  the deed conveyed to a trustee pursuant to an installment sales contract.

11-29  The statement must set forth:

11-30  1.  The amount of money necessary to discharge the debt secured by

11-31  the deed of trust or the deed conveyed to a trustee pursuant to an

11-32  installment sales contract on the date the statement is prepared by the

11-33  beneficiary; and

11-34  2.  The information necessary to determine the amount of money

11-35  required to discharge the debt on a per diem basis for a period, not to

11-36  exceed 30 days, after the statement is prepared by the beneficiary.

11-37  Sec. 19.  NRS 107.220 is hereby amended to read as follows:

11-38  107.220  1.  A statement described in NRS 107.200 or 107.210 may

11-39  be requested by:

11-40  (a) The grantor of, or his successor in interest in, the property which is

11-41  the subject of the deed of trust [;] or the deed conveyed to a trustee

11-42  pursuant to an installment sales contract;

11-43  (b) A person who has a subordinate lien or encumbrance of record on

11-44  the property which is secured by the deed of trust [;] or the deed conveyed

11-45  to a trustee pursuant to an installment sales contract;

11-46  (c) A title insurer; or

11-47  (d) An authorized agent of any person described in paragraph (a), (b)
or (c).


12-1  A written statement signed by any person described in paragraph (a), (b) or

12-2  (c) which appoints a person to serve as his agent if delivered personally to

12-3  the beneficiary or delivered by mail, return receipt requested, is proof of

12-4  the identity of an agent.

12-5    2.  For the purposes of paragraph (a) of subsection 1, a policy of title

12-6  insurance, preliminary report issued by a title company, certified copy of

12-7  letters testamentary or letters of guardianship, or an original or

12-8  photographic copy of a deed, if delivered personally to the beneficiary or

12-9  delivered by mail, return receipt requested, is proof of the identity of a

12-10  successor in interest of the grantor, if the person demanding the statement

12-11  is named as successor in interest in the document.

12-12  Sec. 20.  NRS 107.240 is hereby amended to read as follows:

12-13  107.240  If the debt secured by a deed of trust or a deed conveyed to a

12-14  trustee pursuant to an installment sales contract for which a statement

12-15  described in NRS 107.210 has been requested is subject to a recorded

12-16  notice of default or a filed complaint commencing a judicial foreclosure,

12-17  the beneficiary may refuse to deliver the statement unless the written

12-18  request for the statement is received before the publication of a notice of

12-19  sale or the notice of the date of sale established by a court.

12-20  Sec. 21.  NRS 107.250 is hereby amended to read as follows:

12-21  107.250  1.  A person who receives a statement pursuant to NRS

12-22  107.200 or 107.210 may rely upon the accuracy of the information

12-23  contained in the statement. If the beneficiary notifies the person who

12-24  requested the statement of any amendment to the statement, the amended

12-25  statement may be relied upon by that person in the same manner as the

12-26  original statement.

12-27  2.  If notification of an amendment to a statement is not given in

12-28  writing, a written amendment to the statement must be delivered to the

12-29  person who requested the original statement not later than the next business

12-30  day after notification.

12-31  3.  If a statement prepared by the beneficiary pursuant to NRS 107.200

12-32  does not contain the entire amount necessary to discharge the debt secured

12-33  by the deed of trust or the deed conveyed to a trustee pursuant to an

12-34  installment sales contract and:

12-35  (a) A transaction has occurred which has resulted in the transfer of title

12-36  or recordation of a lien; or

12-37  (b) A trustee’s sale or a sale supervised by a court has taken place,

12-38  the beneficiary may recover that money as an unsecured debt of the grantor

12-39  pursuant to the terms of the note [.] or installment sales contract.

12-40  Sec. 22.  NRS 107.260 is hereby amended to read as follows:

12-41  107.260  If a person who is authorized pursuant to NRS 107.220 to

12-42  request a statement described in NRS 107.200 or 107.210 includes in his

12-43  request for such a statement a request for a copy of the note , [or] deed of

12-44  trust, installment sales contract or deed conveyed to a trustee pursuant to

12-45  an installment sales contract, the beneficiary shall mail a copy of the note

12-46  , [or] deed of trust , installment sales contract or deed conveyed to a

12-47  trustee pursuant to an installment sales contract with the statement at no

12-48  additional charge.

 


13-1    Sec. 23.  NRS 107.270 is hereby amended to read as follows:

13-2    107.270  If the beneficiary has more than one place of business, a

13-3  request for a statement described in NRS 107.200 or 107.210 must be made

13-4  to the address to which the periodic payments under the note or installment

13-5  sales contract are made. If no periodic payments are made under the note

13-6  [,] or installment sales contract, the request must be mailed to the address

13-7  of the beneficiary listed on the note , [or] deed of trust [.] , installment

13-8  sales contract or deed conveyed to a trustee pursuant to an installment

13-9  sales contract.

13-10  Sec. 24.  NRS 107.280 is hereby amended to read as follows:

13-11  107.280  Except as otherwise provided in a statement described in NRS

13-12  107.200 or 107.210, the information contained in the statement applies

13-13  only to the debt secured by the deed of trust or the deed conveyed to a

13-14  trustee pursuant to an installment sales contract which is payable at the

13-15  address to which the periodic payments are made. If periodic payments are

13-16  not made under the note [,] or installment sales contract, the statement

13-17  applies only to the entire debt secured by the deed of trust [.] or the deed

13-18  conveyed to a trustee pursuant to an installment sales contract.

13-19  Sec. 25.  NRS 107.290 is hereby amended to read as follows:

13-20  107.290  If a person requests a statement described in NRS 107.200 or

13-21  107.210 and it is not clear from the request which statement is requested,

13-22  the request shall be deemed a request for a statement of the amount

13-23  necessary to discharge the debt secured by a deed of trust [.] or a deed

13-24  conveyed to a trustee pursuant to an installment sales contract.

13-25  Sec. 26.  NRS 107.311 is hereby amended to read as follows:

13-26  107.311  The provisions of NRS 107.310 do not apply to deeds of trust

13-27  or deeds conveyed to a trustee pursuant to installment sales contracts

13-28  insured by the Federal Housing Administrator or guaranteed by the

13-29  Secretary of Veterans Affairs.

13-30  Sec. 27.  NRS 40.255 is hereby amended to read as follows:

13-31  40.255  1.  Except as provided in subsection 2, in any of the following

13-32  cases, a person who holds over and continues in possession of real property

13-33  or a mobile home after a 3-day written notice to quit has been served upon

13-34  him, and also upon any subtenant in actual occupation of the premises,

13-35  pursuant to NRS 40.280, may be removed as prescribed in NRS 40.290 to

13-36  40.420, inclusive:

13-37  (a) Where the property or mobile home has been sold under an

13-38  execution against him or a person under whom he claims, and the title

13-39  under the sale has been perfected;

13-40  (b) Where the property or mobile home has been sold upon the

13-41  foreclosure of a mortgage, or under an express power of sale contained

13-42  therein, executed by him or a person under whom he claims, and the title

13-43  under the sale has been perfected;

13-44  (c) Where the property or mobile home has been sold under a power of

13-45  sale granted by NRS 107.080 to [the trustee of] a trustee pursuant to a

13-46  deed of trust or a deed conveyed to a trustee pursuant to an installment

13-47  sales contract executed by such person or a person under whom he claims,

13-48  and the title under such sale has been perfected; or


14-1    (d) Where the property or mobile home has been sold by him or a

14-2  person under whom he claims, and the title under the sale has been

14-3  perfected.

14-4    2.  This section does not apply to the tenant of a mobile home lot in a

14-5  mobile home park.

14-6    Sec. 28.  NRS 40.455 is hereby amended to read as follows:

14-7    40.455  1.  Upon application of the judgment creditor , or the

14-8  beneficiary of the deed of trust or the deed conveyed to a trustee pursuant

14-9  to an installment sales contract within 6 months after the date of the

14-10  foreclosure sale or the trustee’s sale held pursuant to NRS 107.080,

14-11  respectively, and after the required hearing, the court shall award a

14-12  deficiency judgment to the judgment creditor , or the beneficiary of the

14-13  deed of trust or the deed conveyed to a trustee pursuant to an installment

14-14  sales contract if it appears from the sheriff’s return , or the recital of

14-15  consideration in the trustee’s deed or in the deed conveyed to a trustee

14-16  pursuant to an installment sales contract that there is a deficiency of the

14-17  proceeds of the sale and a balance remaining due to the judgment creditor ,

14-18  or the beneficiary of the deed of trust [,] or the deed conveyed to a trustee

14-19  pursuant to an installment sales contract, respectively.

14-20  2.  If the indebtedness is secured by more than one parcel of real

14-21  property, more than one interest in the real property or more than one

14-22  mortgage , [or] deed of trust [,] or deed conveyed to a trustee pursuant to

14-23  an installment sales contract, the 6-month period begins to run after the

14-24  date of the foreclosure sale or trustee’s sale of the last parcel or other

14-25  interest in the real property securing the indebtedness, but in no event may

14-26  the application be filed more than 2 years after the initial foreclosure sale

14-27  or trustee’s sale.

14-28  Sec. 29.  NRS 116.110383 is hereby amended to read as follows:

14-29  116.110383  “Security interest” means an interest in real estate or

14-30  personal property, created by contract or conveyance, which secures

14-31  payment or performance of an obligation. The term includes a lien created

14-32  by a mortgage, deed of trust, trust deed, security deed, contract for deed,

14-33  [land] installment sales contract, lease intended as security, assignment of

14-34  lease or rents intended as security, pledge of an ownership interest in an

14-35  association and any other consensual lien or contract for retention of title

14-36  intended as security for an obligation.

14-37  Sec. 30.  NRS 116.31168 is hereby amended to read as follows:

14-38  116.31168  1.  The provisions of NRS 107.090 apply to the

14-39  foreclosure of an association’s lien as if a deed of trust or the deed

14-40  conveyed to a trustee pursuant to an installment sales contract were

14-41  being foreclosed. The request must identify the lien by stating the names of

14-42  the unit’s owner and the common-interest community.

14-43  2.  An association may, after recording a notice of default and election

14-44  to sell, waive the default and withdraw the notice or any proceeding to

14-45  foreclose. The association is thereupon restored to its former position and

14-46  has the same rights as though the notice had not been recorded.

14-47  Sec. 31.  NRS 361A.060 is hereby amended to read as follows:

14-48  361A.060  “Owner” means any person having a legal or equitable

14-49  freehold estate in agricultural or open-space real property, including a


15-1  contract vendee of [a land] an installment sales contract respecting the

15-2  property, but excluding a lessee or tenant of the property.

15-3    Sec. 32.  The amendatory provisions of this act do not apply to

15-4  offenses committed before October 1, 2001.

 

15-5  H