Bulletin: NV2019002

Dear Associates:

The following is a summary of legislation of interest to the title industry that was passed during the 2019 legislative session, as provided by the Nevada Land Title Association.

BILLS THAT PASSED

AB65 Revises provisions relating to notaries public.

Existing law requires that an oath or affirmation administered by a notarial officer must be signed by the affiant in the presence of the notarial officer. (NRS 240.1655) Sections 1 and 4 of this bill eliminate obsolete language that refers to fees that a notary public or an electronic notary may charge to administer an oath or affirmation without a signature. (NRS 240.100, 240.197) Existing law requires the Secretary of State to authenticate the signature and office of a notarial officer on a document intended for use in the United States. (NRS 240.1657) Section 2 of this bill eliminates this requirement and provides that the Secretary of State is only required to authenticate the signature and office of a notarial officer on a document intended for use in a foreign country. Under existing law, a person must be a notarial officer in this State for not less than 4 years to register as an electronic notary public. (NRS 240.192) Section 3 of this bill eliminates this requirement and authorizes the Secretary of State to establish a process for a person to submit an application to register as an electronic notary public simultaneously with an application for appointment as a notary public. Under current law, a person may nominate another person to be his or her appointed guardian by completing a notarized form witnessed by two persons. (NRS 159.0753) Section 5 of this bill eliminates the requirement that the certificate of acknowledgment of notary public used on this form include language indicating the notarial officer declares under penalty of perjury that the persons whose names are subscribed to the document appear to be of sound mind and under no duress, fraud or undue influence.

Sections 1, 2, 4, 5, 6, and 7 of this act effective April 22, 2019. Section 3 of this act effective: (a) On the date that the Secretary of State has established a process by which a person may submit an application to register as an electronic notary public simultaneously with an application for appointment as a notary public; or (b) On July 1, 2019, whichever is earlier.

AB79 Revises provisions governing the collection of delinquent property taxes.

This bill authorizes a county treasurer to use an expedited procedure for the sale of abandoned property on which delinquent taxes and associated interest, penalties and costs are owed. Section 1 sets forth the criteria to be used to determine whether property is abandoned. Sections 2, 3 and 5 of this bill establish the expedited procedure for the sale of abandoned property. Sections 2 and 3 provide that if property is determined to be abandoned pursuant to section 1, the certificate made out by the county treasurer, as tax receiver for the county, provides a 1-year redemption period rather than a 2-year redemption period. If the property that is determined to be abandoned pursuant to section 1 is not redeemed within the redemption period, section 5 requires the county treasurer to provide the owner of the property at least 45-days' notice, rather than 90-days' notice, of the sale of the property. See NRS 361.570, 361.585, 361.590, 361.595, 361.603-361.608.
Effective July 1, 2019

AB286 Makes various changes relating to trusts and estates.

Existing law authorizes a trust instrument to provide that community property or separate property transferred into an irrevocable trust of which both spouses are current permissible beneficiaries remains community property or separate property, as applicable, during the marriage. (NRS 123.125) Section 8 of this bill authorizes a trust instrument to provide that community property or separate property transferred into an irrevocable trust of which both spouses are distribution beneficiaries remains community property or separate property, as applicable, during the marriage.

(NRS 115.050) Section 7 of this bill provides that if the sum of $550,000 is paid to the defendant in execution or to a spouse, then the sum of $550,000 generally possesses all the protections that the original homestead possessed. Existing law provides that the homestead is exempt from execution of a judgment. (NRS 21.090) Section 2 of this bill provides that the sum of $550,000 that is paid to the defendant or spouse is also generally exempt from execution of a judgment. Section 6.5 of this bill provides that the proceeds of $550,000 from the sale of a homestead are only exempt from execution if: (1) such proceeds are reinvested in another property of like kind for which the declaration of a homestead will be made; and (2) the other property is identified not later than 45 days after the sale of the homestead and taken possession of not later than 180 days after the sale of the homestead.
Effective October 1, 2019

AB335 Revises provisions relating to the fees that a unit-owners' association for a common-interest community may charge for certain services; revising provisions relating to the resale of a unit in a common-interest community or condominium hotel; and providing other matters properly relating thereto.

(NRS 116.3102) Section 1 of this bill authorizes an association to impose a fee for opening or closing any file for each unit. (NRS 116.4109, 116B.760) Sections 3 and 5 of this bill: (1) specify that certain periods for taking certain actions relating to the resale package must be measured in either calendar days or business days; and (2) provide that the resale package remains effective for 90 calendar days. Section 3 also requires an association for a common-interest community to provide a copy of a statement of demand to an interested party not later than 10 calendar days after receipt of a written request to do so. Section 3.5 of this bill: (1) establishes a maximum fee that an association for a common-interest community may charge for furnishing a certificate for inclusion in the resale package; (2) eliminates the authority to charge a fee for providing certain documents in electronic format; and (3) increases the amount an association for a common-interest community may charge for furnishing a statement of demand.
Sections 3, 5, and 7 of this act effective May 25, 2019. Sections 1, 2, 3.5 and 6 of this act effective on January 1, 2020.

AB393 Provides protections to certain governmental and tribal employees and certain other persons during a government shutdown.

Section 6 of this bill provides that if a mortgagor or grantor of a deed of trust under a residential mortgage loan is a federal worker, tribal worker, state worker or, in certain circumstances, a household member or landlord of such a worker, a person is prohibited from conducting a foreclosure sale during the period commencing on the date that a shutdown begins and ending on the date that is 90 days after the date on which the shutdown ends. Section 6 also provides that in any civil action for a foreclosure sale that is filed during that period, the court is authorized or required, depending on the circumstances, to stay the proceedings in the action for a certain period or issue an order that conserves the interests of the parties unless the court determines that the ability of the defendant to comply with the terms of the obligation secured by the residential mortgage loan is not materially affected by the shutdown. Section 6 further provides that any such protection against foreclosure only applies to a residential mortgage loan that was secured before the shutdown. Section 6 provides that any person who knowingly conducts a foreclosure sale in violation of the provisions of section 6 is guilty of a misdemeanor and is liable for actual damages, reasonable attorney's fees and costs incurred by the injured party. See NRS Chapter 40.
Effective June 8, 2019.

AB481 Revises provisions relating to civil actions and homesteads.

(NRS 115.005, 115.010) Sections 2, 4 and 5 of this bill increase the amount of equity protected in a homestead property from $550,000 to $605,000.
Effective October 1, 2019.

SB117 Authorizes certain persons to record a declaration relating to real property under certain circumstances; revising certain provisions concerning restrictions and prohibitions relating to real property.

(NRS 111.237) Section 1.5 of this bill provides that any restriction or prohibition based on race, color, religion, ancestry, national origin, sexual orientation, or gender identity or expression is void, instead of voidable, eliminating the requirement to file an affidavit with the county recorder to void such a provision. Section 1.5 also adds disability, familial status and sex to the list of restrictions and prohibitions which are void. Section 1.5 authorizes an owner or owners of real property that is subject to a restriction or prohibition that is void and unenforceable by operation of law to record a declaration of removal of discriminatory restriction that acts to remove such a provision from the original recorded instrument.
Effective May 16, 2019, for the purpose of performing any preparatory administrative tasks necessary to carry out the provisions of this act; and on October 1, 2019, for all other purposes.

SB220 Revises provisions relating to Internet privacy.

Existing law requires an operator of an Internet website or online service which collects certain items of personally identifiable information about consumers in this State to make available a notice containing certain information relating to the privacy of covered information collected by the operator. (NRS 603A.340) Section 6 of this bill revises the definition of the term “operator” to exclude certain financial institutions and entities that are subject to certain federal laws concerning privacy. Section 2 of this bill requires an operator to establish a designated request address through which a consumer may submit a verified request directing the operator not to make any sale of covered information collected about the consumer. Section 1.6 of this bill defines the term “sale” to mean the exchange of covered information for monetary consideration by the operator to a person for the person to license or sell the covered information to additional persons. Section 2 prohibits an operator who has received such a request from making any sale of any covered information collected about the consumer. Section 7 of this bill authorizes the Attorney General to seek an injunction or a civil penalty against an operator who violates section 2.
Effective October 1, 2019.

SB382 Revises provisions governing deeds of trust; revising provisions relating to foreclosure mediation; revising provisions governing notice requirements for certain mechanics' liens; revising provisions relating to how a mortgage of real property is not deemed a conveyance; revising provisions relating to recording estates in property; revising provisions relating to common-interest ownership; and providing other matters properly relating thereto.

(NRS 107.015) adds additional definitions to existing law that are currently found in various provisions governing deeds of trust. (NRS 107.025, 107.027, 107.080) Sections 2, 3 and 9 of this bill revise the terminology used for a deed of trust that encumbers a lease of a dwelling unit of a cooperative housing corporation.
Effective October 1, 2019.

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