Senate Bill No. 273–Senator Schneider

 

March 13, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Requires contractor or his representative to be present at certain inspections conducted at residence or appurtenance that is subject of claim for constructional defect. (BDR 3‑252)

 

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.

 

AN ACT relating to real property; requiring a contractor or his representative to be present at certain inspections conducted at a residence or appurtenance that is the subject of a claim for a constructional defect; 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 40 of NRS is hereby amended by adding

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

1-3  A contractor or his representative must be present at any

1-4  inspection at the residence or appurtenance, if any, that is the

1-5  subject of a claim governed by NRS 40.600 to 40.695, inclusive,

1-6  and this section, which is conducted by the claimant or his

1-7  representative, including, without limitation, an expert hired or

1-8  retained by the claimant to conduct the inspection.

1-9  Sec. 2.  NRS 40.600 is hereby amended to read as follows:

1-10      40.600  As used in NRS 40.600 to 40.695, inclusive, and

1-11  section 1 of this act, unless the context otherwise requires, the

1-12  words and terms defined in NRS 40.605 to 40.630, inclusive, have

1-13  the meanings ascribed to them in those sections.

 

 

2-1  Sec. 3.  NRS 40.635 is hereby amended to read as follows:

2-2  40.635  NRS 40.600 to 40.695, inclusive[:] , and section 1 of

2-3  this act:

2-4  1.  Apply to any claim that arises before, on or after July 1,

2-5  1995, as the result of a constructional defect, except a claim for

2-6  personal injury or wrongful death, if the claim is the subject of an

2-7  action commenced on or after July 1, 1995.

2-8  2.  Prevail over any conflicting law otherwise applicable to the

2-9  claim or cause of action.

2-10      3.  Do not bar or limit any defense otherwise available except as

2-11  otherwise provided in those sections.

2-12      4.  Do not create a new theory upon which liability may be

2-13  based.

2-14      Sec. 4.  NRS 40.650 is hereby amended to read as follows:

2-15      40.650  1.  If a claimant unreasonably rejects a reasonable

2-16  written offer of settlement made as part of a response made pursuant

2-17  to NRS 40.645 or 40.682 or does not permit the contractor or

2-18  independent contractor a reasonable opportunity to repair the defect

2-19  pursuant to an accepted offer of settlement and thereafter

2-20  commences an action governed by NRS 40.600 to 40.695, inclusive,

2-21  and section 1 of this act, the court in which the action is

2-22  commenced may:

2-23      (a) Deny the claimant’s attorney’s fees and costs; and

2-24      (b) Award attorney’s fees and costs to the contractor.

2-25  Any sums paid under a homeowner’s warranty, other than sums paid

2-26  in satisfaction of claims that are collateral to any coverage issued to

2-27  or by the contractor, must be deducted from any recovery.

2-28      2.  If a contractor fails to:

2-29      (a) Make an offer of settlement;

2-30      (b) Make a good faith response to the claim asserting no

2-31  liability;

2-32      (c) Complete,in a good and workmanlike manner, the repairs

2-33  specified in an accepted offer;

2-34      (d) Agree to a mediator or accept the appointment of a mediator

2-35  pursuant to NRS 40.680 or subsection 4 of NRS 40.682; or

2-36      (e) Participate in mediation,

2-37  the limitations on damages and defenses to liability provided in

2-38  NRS 40.600 to 40.695, inclusive, and section 1 of this act do not

2-39  apply and the claimant may commence an action without satisfying

2-40  any other requirement of NRS 40.600 to 40.695, inclusive[.] , and

2-41  section 1 of this act.

2-42      3.  If coverage under a homeowner’s warranty is denied by an

2-43  insurer in bad faith, the homeowner and the contractor have a right

2-44  of action for the sums that would have been paid if coverage had

2-45  been provided, plus reasonable attorney’s fees and costs.

3-1  Sec. 5.  NRS 40.655 is hereby amended to read as follows:

3-2  40.655  1.  Except as otherwise provided in NRS 40.650, in a

3-3  claim governed by NRS 40.600 to 40.695, inclusive, and section 1

3-4  of this act, the claimant may recover only the following damages to

3-5  the extent proximately caused by a constructional defect:

3-6  (a) Any reasonable attorney’s fees;

3-7  (b) The reasonable cost of any repairs already made that were

3-8  necessary and of any repairs yet to be made that are necessary to

3-9  cure any constructional defect that the contractor failed to cure and

3-10  the reasonable expenses of temporary housing reasonably necessary

3-11  during the repair;

3-12      (c) The reduction in market value of the residence or accessory

3-13  structure, if any, to the extent the reduction is because of structural

3-14  failure;

3-15      (d) The loss of the use of all or any part of the residence;

3-16      (e) The reasonable value of any other property damaged by the

3-17  constructional defect;

3-18      (f) Any additional costs reasonably incurred by the claimant,

3-19  including, but not limited to, any costs and fees incurred for the

3-20  retention of experts to:

3-21          (1) Ascertain the nature and extent of the constructional

3-22  defects;

3-23          (2) Evaluate appropriate corrective measures to estimate the

3-24  value of loss of use; and

3-25          (3) Estimate the value of loss of use, the cost of temporary

3-26  housing and the reduction of market value of the residence; and

3-27      (g) Any interest provided by statute.

3-28      2.  The amount of any attorney’s fees awarded pursuant to this

3-29  section must be approved by the court.

3-30      3.  If a contractor complies with the provisions of NRS 40.600

3-31  to 40.695, inclusive, and section 1 of this act, the claimant may not

3-32  recover from the contractor, as a result of the constructional defect,

3-33  anything other than that which is provided pursuant to NRS 40.600

3-34  to 40.695, inclusive[.] , and section 1 of this act.

3-35      4.  As used in this section, “structural failure” means physical

3-36  damage to the load-bearing portion of a residence or appurtenance

3-37  caused by a failure of the load-bearing portion of the residence or

3-38  appurtenance.

3-39      Sec. 6.  NRS 40.665 is hereby amended to read as follows:

3-40      40.665  In addition to any other method provided for settling a

3-41  claim pursuant to NRS 40.600 to 40.695, inclusive, and section 1 of

3-42  this act, a contractor may, pursuant to a written agreement entered

3-43  into with a claimant, settle a claim by repurchasing the claimant’s

3-44  residence and the real property upon which it is located. The

4-1  agreement may include provisions which reimburse the claimant

4-2  for:

4-3  1.  The market value of the residence as if no constructional

4-4  defect existed, except that if a residence is less than 2 years of age

4-5  and was purchased from the contractor against whom the claim is

4-6  brought, the market value is the price at which the residence was

4-7  sold to the claimant;

4-8  2.  The value of any improvements made to the property by a

4-9  person other than the contractor;

4-10      3.  Reasonable attorney’s fees and fees for experts; and

4-11      4.  Any costs, including costs and expenses for moving and

4-12  costs, points and fees for loans.

4-13  Any offer of settlement made that includes the items listed in this

4-14  section shall be deemed reasonable for the purposes of subsection 1

4-15  of NRS 40.650.

4-16      Sec. 7.  NRS 40.667 is hereby amended to read as follows:

4-17      40.667  1.  Except as otherwise provided in subsection 2, a

4-18  written waiver or settlement agreement executed by a claimant after

4-19  a contractor has corrected or otherwise repaired a constructional

4-20  defect does not bar a claim for the constructional defect if it is

4-21  determined that the contractor failed to correct or repair the defect

4-22  properly.

4-23      2.  The provisions of subsection 1 do not apply to any written

4-24  waiver or settlement agreement described in subsection 1, unless:

4-25      (a) The claimant has obtained the opinion of an expert

4-26  concerning the constructional defect;

4-27      (b) The claimant has provided the contractor with a written

4-28  notice of the defect pursuant to NRS 40.645 or 40.682 and a copy of

4-29  the expert’s opinion; and

4-30      (c) The claimant and the contractor have complied with the

4-31  requirements for inspection and repair as provided in NRS 40.600 to

4-32  40.695, inclusive[.] , and section 1 of this act.

4-33      3.  If a claimant does not prevail in any action which is not

4-34  barred pursuant to this section, the court may:

4-35      (a) Deny the claimant’s attorney’s fees, fees for an expert

4-36  witness or costs; and

4-37      (b) Award attorney’s fees and costs to the contractor.

4-38      Sec. 8.  NRS 40.668 is hereby amended to read as follows:

4-39      40.668  1.  Notwithstanding the provisions of NRS 40.600 to

4-40  40.695, inclusive, and section 1 of this act, a claimant may not

4-41  commence an action against a subdivider or master developer for a

4-42  constructional defect in an appurtenance constructed on behalf of

4-43  the subdivider or master developer in a planned unit development, to

4-44  the extent that the appurtenance was constructed by or through a

4-45  licensed general contractor, unless:

5-1  (a) The subdivider or master developer fails to provide to the

5-2  claimant the name, address and telephone number of each contractor

5-3  hired by the subdivider or master developer to construct the

5-4  appurtenance within 30 days of the receipt by the subdivider or

5-5  master developer of a request from the claimant for such

5-6  information; or

5-7  (b) After the claimant has made a good faith effort to obtain full

5-8  recovery from the contractors hired by the subdivider or master

5-9  developer to construct the appurtenance, the claimant has not

5-10  obtained a full recovery.

5-11      2.  All statutes of limitation or repose applicable to a claim

5-12  governed by this section are tolled from the time the claimant

5-13  notifies a contractor hired by the subdivider or master developer of

5-14  the claim until the earlier of the date:

5-15      (a) A court determines that the claimant cannot obtain a full

5-16  recovery against those contractors; or

5-17      (b) The claimant receives notice that those contractors are

5-18  bankrupt, insolvent or dissolved.

5-19  Tolling pursuant to this subsection applies only to the subdivider or

5-20  master developer. Notwithstanding any applicable statute of

5-21  limitation or repose, the claimant may commence an action against

5-22  the subdivider or master developer for the claim within 1 year after

5-23  the end of the tolling described in this subsection.

5-24      3.  Nothing in this section prohibits the commencement of an

5-25  action against a subdivider or master developer for a constructional

5-26  defect in a residence sold, designed or constructed by or on behalf of

5-27  the subdivider or master developer.

5-28      4.  Nothing in this section prohibits a person other than the

5-29  claimant from commencing an action against a subdivider or master

5-30  developer to enforce his own rights.

5-31      5.  The provisions of this section do not apply to a subdivider or

5-32  master developer who acts as a general contractor or uses his license

5-33  as a general contractor in the course of constructing the

5-34  appurtenance that is the subject of the action.

5-35      6.  As used in this section:

5-36      (a) “Master developer” means a person who buys, sells or

5-37  develops a planned unit development, including, without limitation,

5-38  a person who enters into a development agreement pursuant to

5-39  NRS 278.0201.

5-40      (b) “Planned unit development” has the meaning ascribed to it in

5-41  NRS 278A.065.

5-42      (c) “Subdivider” has the meaning ascribed to it in

5-43  NRS 278.0185.

 

 

6-1  Sec. 9.  NRS 40.675 is hereby amended to read as follows:

6-2  40.675  1.  A contractor who makes or provides for repairs

6-3  under NRS 40.600 to 40.695, inclusive, and section 1 of this act

6-4  may take reasonable steps to prove that the repairs were made and to

6-5  have them inspected.

6-6  2.  The provisions of NRS 40.600 to 40.695, inclusive, and

6-7  section 1 of this act regarding inspection and repair are in addition

6-8  to any rights of inspection and settlement provided by common law

6-9  or by another statute.

6-10      Sec. 10.  NRS 40.680 is hereby amended to read as follows:

6-11      40.680  1.  Except as otherwise provided in this chapter,

6-12  before an action based on a claim governed by NRS 40.600 to

6-13  40.695, inclusive, and section 1 of this act may be commenced in

6-14  court, the matter must be submitted to mediation, unless mediation

6-15  is waived in writing by the contractor and the claimant.

6-16      2.  The claimant and contractor must select a mediator by

6-17  agreement. If the claimant and contractor fail to agree upon a

6-18  mediator within 45 days after a mediator is first selected by the

6-19  claimant, either party may petition the American Arbitration

6-20  Association, the Nevada Arbitration Association, Nevada Dispute

6-21  Resolution Services or any other mediation service acceptable to the

6-22  parties for the appointment of a mediator. A mediator so appointed

6-23  may discover only those documents or records which are necessary

6-24  to conduct the mediation. The mediator shall convene the mediation

6-25  within 60 days after the matter is submitted to him, unless the

6-26  parties agree to extend the time. Except in a complex matter,

6-27  the claimant shall, before the mediation begins, deposit $50 with the

6-28  mediation service and thecontractor shall deposit with the

6-29  mediation service the remaining amount estimated by the mediation

6-30  service as necessary to pay the fees and expenses of the mediator for

6-31  the first session of mediation, and the contractorshall deposit

6-32  additional amounts demanded by the mediation service as incurred

6-33  for that purpose. In a complex matter, each party shall share equally

6-34  in the deposits estimated by the mediation service. Unless otherwise

6-35  agreed, the total fees for each day of mediation and the mediator

6-36  must not exceed $750 per day.

6-37      3.  Ifthe parties do not reach an agreement concerning the

6-38  matter during mediation or if the contractor fails to pay the required

6-39  fees and appear, the claimant may commence his action in court

6-40  and:

6-41      (a) The reasonable costs and fees of the mediation are

6-42  recoverable by the prevailing party as costs of the action.

6-43      (b) Either party may petition the court in which the action is

6-44  commenced for the appointment of a special master.

6-45      4.  A special master appointed pursuant to subsection 3 may:

7-1  (a) Review all pleadings, papers or documents filed with the

7-2  court concerning the action.

7-3  (b) Coordinate the discovery of any books, records, papers or

7-4  other documents by the parties, including the disclosure of witnesses

7-5  and the taking of the deposition of any party.

7-6  (c) Order any inspections on the site of the property by a party

7-7  and any consultants or experts of a party.

7-8  (d) Order settlement conferences and attendance at those

7-9  conferences by any representative of the insurer of a party.

7-10      (e) Require any attorney representing a party to provide

7-11  statements of legal and factual issues concerning the action.

7-12      (f) Refer to the judge who appointed him or to the presiding

7-13  judge of the court in which the action is commenced any matter

7-14  requiring assistance from the court.

7-15  The special master shall not, unless otherwise agreed by the parties,

7-16  personally conduct any settlement conferences or engage in any ex

7-17  parte meetings regarding the action.

7-18      5.  Upon application by a party to the court in which the action

7-19  is commenced, any decision or other action taken by a special

7-20  master appointed pursuant to this section may be appealed to the

7-21  courtfor a decision.

7-22      6.  A report issued by a mediator or special master that indicates

7-23  that either party has failed to appear before him or to mediate in

7-24  good faith is admissible in the action, but a statement or admission

7-25  made by either party in the course of mediation is not admissible.

7-26      Sec. 11.  NRS 40.688 is hereby amended to read as follows:

7-27      40.688  1.  If a claimant attempts to sell a residence that is or

7-28  has been the subject of a claim governed by NRS 40.600 to 40.695,

7-29  inclusive, and section 1 of this act, he shall disclose, in writing, to

7-30  any prospective purchaser of the residence, not less than 30 days

7-31  before the close of escrow for the sale of the residence or, if escrow

7-32  is to close less than 30 days after the execution of the sales

7-33  agreement, then immediately upon the execution of the sales

7-34  agreement or, if a claim is initiated less than 30 days before the

7-35  close of escrow, within 24 hours after giving written notice to the

7-36  contractor pursuant to subsection 1 of NRS 40.645 or subsection 1

7-37  of NRS 40.682:

7-38      (a) All notices given by the claimant to the contractor pursuant

7-39  to NRS 40.600 to 40.695, inclusive, and section 1 of this act that

7-40  are related to the residence;

7-41      (b) All opinions the claimant has obtained from experts

7-42  regarding a constructional defect that is or has been the subject of

7-43  the claim;

7-44      (c) The terms of any settlement, order or judgment relating to

7-45  the claim; and

8-1  (d) A detailed report of all repairs made to the residence by or

8-2  on behalf of the claimant as a result of a constructional defect that is

8-3  or has been the subject of the claim.

8-4  2.  Before taking any action on a claim pursuant to NRS 40.600

8-5  to 40.695, inclusive, and section 1 of this act, the attorney for a

8-6  claimant shall notify the claimant in writing of the provisions of this

8-7  section.

8-8  Sec. 12.  NRS 40.6882 is hereby amended to read as follows:

8-9  40.6882  “Complainant” means a person who makes a claim or

8-10  files an action against a design professional pursuant to NRS 40.600

8-11  to 40.695, inclusive[.] , and section 1 of this act.

8-12      Sec. 13.  NRS 40.6884 is hereby amended to read as follows:

8-13      40.6884  1.  Except as otherwise provided in subsection 2, in

8-14  an action governed by NRS 40.600 to 40.695, inclusive, and section

8-15  1 of this act that is commenced against a design professional or a

8-16  person primarily engaged in the practice of professional

8-17  engineering, land surveying, architecture or landscape architecture,

8-18  including, without limitation, an action for professional negligence,

8-19  the attorney for the complainant shall file an affidavit with the court

8-20  concurrently with the service of the first pleading in the action

8-21  stating that the attorney:

8-22      (a) Has reviewed the facts of the case;

8-23      (b) Has consulted with an expert;

8-24      (c) Reasonably believes the expert who was consulted is

8-25  knowledgeable in the relevant discipline involved in the action; and

8-26      (d) Has concluded on the basis of his review and the

8-27  consultation with the expert that the action has a reasonable basis in

8-28  law and fact.

8-29      2.  The attorney for the complainant may file the affidavit

8-30  required pursuant to subsection 1 at a later time if he could not

8-31  consult with an expert and prepare the affidavit before filing the

8-32  action without causing the action to be impaired or barred by the

8-33  statute of limitations or repose, or other limitations prescribed by

8-34  law. If the attorney must submit the affidavit late, he shall file an

8-35  affidavit concurrently with the service of the first pleading in the

8-36  action stating his reason for failing to comply with subsection 1 and

8-37  the attorney shall consult with an expert and file the affidavit

8-38  required pursuant to subsection 1 not later than 45 days after filing

8-39  the action.

8-40      3.  In addition to the statement included in the affidavit

8-41  pursuant to subsection 1, a report must be attached to the affidavit.

8-42  Except as otherwise provided in subsection 4, the report must be

8-43  prepared by the expert consulted by the attorney and include,

8-44  without limitation:

8-45      (a) The resume of the expert;

9-1  (b) A statement that the expert is experienced in each discipline

9-2  which is the subject of the report;

9-3  (c) A copy of each nonprivileged document reviewed by the

9-4  expert in preparing his report, including, without limitation, each

9-5  record, report and related document that the expert has determined is

9-6  relevant to the allegations of negligent conduct that are the basis for

9-7  the action;

9-8  (d) The conclusions of the expert and the basis for the

9-9  conclusions; and

9-10      (e) A statement that the expert has concluded that there is a

9-11  reasonable basis for filing the action.

9-12      4.  In an action brought by a claimant in which an affidavit is

9-13  required to be filed pursuant to subsection 1:

9-14      (a) The report required pursuant to subsection 3 is not required

9-15  to include the information set forth in paragraphs (c) and (d) of

9-16  subsection 3 if the claimant or his attorney files an affidavit, at the

9-17  time that the affidavit is filed pursuant to subsection 1, stating that

9-18  he made reasonable efforts to obtain the nonprivileged documents

9-19  described in paragraph (c) of subsection 3, but was unable to obtain

9-20  such documents before filing the action;

9-21      (b) The claimant or his attorney shall amend the report required

9-22  pursuant to subsection 3 to include any documents and information

9-23  required pursuant to paragraph (c) or (d) of subsection 3 as soon as

9-24  reasonably practicable after receiving the document or information;

9-25  and

9-26      (c) The court may dismiss the action if the claimant and his

9-27  attorney fail to comply with the requirements of paragraph (b).

9-28      5.  An expert consulted by an attorney to prepare an affidavit

9-29  pursuant to this section must not be a party to the action.

9-30      6.  As used in this section, “expert” means a person who is

9-31  licensed in a state to engage in the practice of professional

9-32  engineering, land surveying, architecture or landscape architecture.

9-33      Sec. 14.  NRS 40.6885 is hereby amended to read as follows:

9-34      40.6885  1.  The court shall dismiss an action governed by

9-35  NRS 40.600 to 40.695, inclusive, and section 1 of this act that is

9-36  commenced against a design professional or a person primarily

9-37  engaged in the practice of professional engineering, land surveying,

9-38  architecture or landscape architecture, including, without limitation,

9-39  an action for professional negligence, if the attorney for the

9-40  complainant fails to:

9-41      (a) File an affidavit required pursuant to NRS 40.6884;

9-42      (b) File a report required pursuant to subsection 3 of NRS

9-43  40.6884; or

9-44      (c) Name the expert consulted in the affidavit required pursuant

9-45  to subsection 1 of NRS 40.6884.

10-1      2.  The fact that an attorney for a complainant has complied or

10-2  failed to comply with the provisions of NRS 40.6884 is admissible

10-3  in the action.

10-4      Sec. 15.  NRS 40.689 is hereby amended to read as follows:

10-5      40.689  1.  Upon petition by a party:

10-6      (a) The court shall give preference in setting a date for the trial

10-7  of an action commenced pursuant to NRS 40.600 to 40.695,

10-8  inclusive , [;] and section 1 of this act; and

10-9      (b) The court may assign an action commenced pursuant to NRS

10-10  40.600 to 40.695, inclusive, and section 1 of this act to a senior

10-11  judge.

10-12     2.  If the action is assigned to a senior judge upon petition by a

10-13  party:

10-14     (a) Any additional expenses caused by the assignment must be

10-15  borne equally by each party involved; or

10-16     (b) The judge may distribute any additional expenses among the

10-17  parties as he deems appropriate.

10-18     Sec. 16.  NRS 40.690 is hereby amended to read as follows:

10-19     40.690  1.  A claimgoverned by NRS 40.600 to 40.695,

10-20  inclusive, and section 1 of this act may notbe brought by a

10-21  claimant or contractor against a government, governmental agency

10-22  or political subdivision of a government, during the period in which

10-23  a claim for a constructional defect is being settled, mediated or

10-24  otherwise resolved pursuant to NRS 40.600 to 40.695, inclusive[.] ,

10-25  and section 1 of this act. The settlement of such a claim does not

10-26  affect the rights or obligations of the claimant or contractor in any

10-27  action brought by the claimant or contractor against a third party.

10-28     2.  A contractor or claimant may require a party against whom

10-29  the contractor or claimant asserts a claim governed by NRS 40.600

10-30  to 40.695, inclusive, and section 1 of this act to appear and

10-31  participate in proceedings held pursuant to those sections as if the

10-32  party were a contractor and the party requiring him to appear were a

10-33  claimant. The party must receive notice of the proceedings from the

10-34  contractor or claimant.

10-35     Sec. 17.  NRS 40.695 is hereby amended to read as follows:

10-36     40.695  1.  Except as otherwise provided in subsection 2,

10-37  statutes of limitation or repose applicable to a claim based on a

10-38  constructional defect governed by NRS 40.600 to 40.695, inclusive,

10-39  and section 1 of this act are tolled from the time notice of the claim

10-40  is given, until 30 days after mediation is concluded or waived in

10-41  writing pursuant to NRS 40.680 or subsection 4 of NRS 40.682.

10-42     2.  Tolling under this section applies:

10-43     (a) Only to a claim that is not a complex matter.

10-44     (b) To a third party regardless of whether the party is required to

10-45  appear in the proceeding.

11-1      Sec. 18.  NRS 113.135 is hereby amended to read as follows:

11-2      113.135  1.  Upon signing a sales agreement with the initial

11-3  purchaser of residential property that was not occupied by the

11-4  purchaser for more than 120 days after substantial completion of the

11-5  construction of the residential property, the seller shall:

11-6      (a) Provide to the initial purchaser a copy of NRS 11.202 to

11-7  11.206, inclusive, and 40.600 to 40.695, inclusive[;] , and section 1

11-8  of this act;

11-9      (b) Notify the initial purchaser of any soil report prepared for the

11-10  residential property or for the subdivision in which the residential

11-11  property is located; and

11-12     (c) If requested in writing by the initial purchaser not later than

11-13  5 days after signing the sales agreement, provide to the purchaser

11-14  without cost each report described in paragraph (b) not later than 5

11-15  days after the seller receives the written request.

11-16     2.  Not later than 20 days after receipt of all reports pursuant to

11-17  paragraph (c) of subsection 1, the initial purchaser may rescind the

11-18  sales agreement.

11-19     3.  The initial purchaser may waive his right to rescind the sales

11-20  agreement pursuant to subsection 2. Such a waiver is effective only

11-21  if it is made in a written document that is signed by the purchaser.

11-22     Sec. 19.  The amendatory provisions of this act do not apply to

11-23  a claim initiated or an action commenced pursuant to NRS 40.600 to

11-24  40.695, inclusive, and section 1 of this act, unless the claim was

11-25  initiated or the action was commenced on or after October 1, 2003.

 

11-26  H