Nevada Amends Real Property Provisions
The state of Nevada has modified several provisions regarding real property pursuant to Senate Bill 382. These provisions are effective as of October 1, 2019.
Definitions
Section 1 of the bill adds additional definitions, including those for “noncommercial lender,” “proprietary lease,” and “residential foreclosure.” Many of these newly added definitions are found elsewhere in Nevada provisions regarding deeds of trust.
Statutory Covenant
Under existing law, parties to a deed of trust may set out certain amounts for statutory covenants. Section 5 has been amended to specify the amounts that apply if parties fail to set these amounts. Under this new provision, if no amount is set out, the amount shall be the full replacement value of the buildings and improvements which are on the premises or which shall be erected upon the premises.
Mortgage as a Conveyance
Section 23 of the bill prohibits a mortgage of real property from being deemed a conveyance for the purpose of enabling the mortgagor to take possession of the real property in the absence of a foreclosure sale or in accordance with a court order.
For the full text of Senate Bill 382, please refer to https://legiscan.com/NV/text/SB382/id/2027535/Nevada-2019-SB382-Enrolled.pdf.
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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