PRIVATE TRANSFER FEES FOR TRANSFER OF REAL PROPERTY
NRS 111.825 Definitions. As used in NRS 111.825 to 111.880, inclusive, the words and terms defined in NRS 111.830 to 111.855, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2011, 317)
NRS 111.830 "Buyer" defined. "Buyer" includes, without limitation, a grantee or other transferee of an interest in real property.
(Added to NRS by 2011, 317)
NRS 111.835 "Payee" defined. "Payee" means the natural person to whom or the entity to which a private transfer fee is to be paid and the successors or assigns of the natural person or entity.
(Added to NRS by 2011, 317)
NRS 111.840 "Private transfer fee" defined.
1. "Private transfer fee" means a fee or charge required by a private transfer fee obligation and payable upon the transfer of an interest in real property, or payable for the right to make or accept such a transfer, regardless of whether the fee or charge is a fixed amount or is determined as a percentage of the value of the interest in real property or the purchase price or other consideration paid for the transfer of the interest in real property.
2. The term does not include any:
(a) Consideration payable by the buyer to the seller for the interest in real property being transferred, including any subsequent additional consideration payable by the buyer based upon any subsequent appreciation, development or sale of the property if the additional consideration is payable on a one-time basis only and the obligation to make the payment does not bind successors in title to the property;
(b) Commission payable to a licensed real estate broker for the transfer of real property pursuant to an agreement between the broker and the seller or buyer, including any subsequent additional commission payable by the seller or buyer based upon any subsequent appreciation, development or sale of the property;
(c) Interest, charge, fee or other amount payable by a borrower to a lender pursuant to a loan secured by a mortgage on real property, including, without limitation, any fee payable to the lender for consenting to an assumption of the loan or a transfer of the real property, any amount paid to the lender pursuant to an agreement which gives the lender the right to share in any subsequent appreciation in the value of the property, and any other consideration payable to the lender in connection with the loan;
(d) Rent, reimbursement, charge, fee or other amount payable by a lessee to a lessor under a lease, including, without limitation, any fee payable to the lessor for consenting to any assignment, subletting, encumbrance or transfer of the lease;
(e) Consideration payable to the holder of an option to purchase an interest in real property or to the holder of a right of first refusal to purchase an interest in real property for waiving, releasing or not exercising the option or right upon the transfer of the real property to another person;
(f) Tax, fee, charge, assessment, fine or other amount payable to or imposed by a governmental entity;
(g) Fee, charge, assessment, fine or other amount payable to an association of property owners or any other form of organization of property owners, including, without limitation, a unit-owners' association or master association of a common-interest community, a unit-owners' association of a condominium hotel or an association of owners of a time-share plan, pursuant to a declaration, covenant or specific statute applicable to the association or organization; or
(h) Fee or charge payable to the master developer of a planned community by the first purchaser of each lot in the planned community in the event that the first purchaser fails to construct and obtain a municipal certificate of occupancy for a residence on the lot and retain ownership of the residence for 1 year before conveying the residence, provided that the obligation of the first purchaser of the lot to pay the fee or charge is on a one-time basis only and does not bind subsequent purchasers of the lot.
(Added to NRS by 2011, 317)
NRS 111.845 "Private transfer fee obligation" defined. "Private transfer fee obligation" means an obligation arising under a declaration or covenant recorded against the title to real property, or under any other contractual agreement or promise, whether or not recorded, that requires or purports to require the payment of a private transfer fee to the declarant or other person specified in the declaration, covenant or agreement, or to his or her successors or assigns, upon a subsequent transfer of an interest in the real property.
(Added to NRS by 2011, 318)
NRS 111.850 "Seller" defined. "Seller" includes, without limitation, a grantor or other transferor of an interest in real property.
(Added to NRS by 2011, 318)
NRS 111.855 "Transfer" defined. "Transfer" means the sale, gift, conveyance, assignment, inheritance or other transfer of an interest in real property.
(Added to NRS by 2011, 318)
NRS 111.860 Legislative findings and declaration. The Legislature finds and declares that:
1. The public policy of this State favors the marketability of real property and the transferability of interests in real property free of defects in title or unreasonable restraints on the alienation of real property; and
2. A private transfer fee obligation violates the public policy of this State by impairing the marketability and transferability of real property and by constituting an unreasonable restraint on the alienation of real property regardless of the duration or amount of the private transfer fee or the method by which the private transfer fee obligation is created or imposed.
(Added to NRS by 2011, 318)
NRS 111.865 Private transfer fee obligations prohibited.
1. Except as otherwise provided in NRS 111.870:
(a) A person shall not, on or after May 20, 2011, create or record a private transfer fee obligation in this State; and
(b) A private transfer fee obligation that is created or recorded in this State on or after May 20, 2011, is void and unenforceable.
2. The provisions of subsection 1 do not validate or make enforceable any private transfer fee obligation that was created or recorded in this State before May 20, 2011.
(Added to NRS by 2011, 318)
NRS 111.870 Creation before May 20, 2011; recordation; amendment; failure to record.
1. The payee under a private transfer fee obligation that was created before May 20, 2011, shall, on or before July 31, 2012, record in the office of the county recorder of the county in which the real property that is subject to the private transfer fee obligation is located a notice which includes:
(a) The title "Notice of Private Transfer Fee Obligation" in not less than 14-point boldface type;
(b) The legal description of the real property;
(c) The amount of the private transfer fee or the method by which the private transfer fee must be calculated;
(d) If the real property is residential property, the amount of the private transfer fee that would be imposed on the sale of a home for $100,000, the sale of a home for $250,000 and the sale of a home for $500,000;
(e) The date or circumstances under which the private transfer fee obligation expires, if any;
(f) The purpose for which the money received from the payment of the private transfer fee will be used;
(g) The name, address and telephone number of the payee; and
(h) If the payee is:
(1) A natural person, the notarized signature of the payee; or
(2) An entity, the notarized signature of an authorized officer or employee of the entity.
2. Upon any change in the information set forth in the notice described in subsection 1, the payee may record an amendment to the notice.
3. If the payee fails to comply with the requirements of subsection 1:
(a) The private transfer fee obligation is void and unenforceable and any interest in the real property that is subject to the private transfer fee obligation may thereafter be conveyed free and clear of the private transfer fee obligation; and
(b) The payee is subject to the liability described in NRS 111.880.
4. Any person with an interest in the real property that is subject to the private transfer fee obligation may record in the office of the county recorder of the county in which the real property is located an affidavit which:
(a) States that the affiant has actual knowledge of, and is competent to testify to, the facts set forth in the affidavit;
(b) Sets forth the legal description of the real property that is subject to the private transfer fee obligation;
(c) Sets forth the name of the owner of the real property as recorded in the office of the county recorder;
(d) States that the private transfer fee obligation was created before May 20, 2011, and specifies the date on which the private transfer fee obligation was created;
(e) States that the payee under the private transfer fee obligation failed on or before July 31, 2012, to record in the office of the county recorder of the county in which the real property that is subject to the private transfer fee obligation is located a notice which complies with the requirements of subsection 1; and
(f) Is signed by the affiant under penalty of perjury.
5. When properly recorded, the affidavit described in subsection 4 constitutes prima facie evidence that:
(a) The real property described in the affidavit was subject to a private transfer fee obligation that was created before May 20, 2011;
(b) The payee under the private transfer fee obligation failed on or before July 31, 2012, to record in the office of the county recorder of the county in which the real property that was subject to the private transfer fee obligation is located a notice which complies with the requirements of subsection 1; and
(c) The private transfer fee obligation is void and unenforceable and any interest in the real property that is subject to the private transfer fee obligation may thereafter be conveyed free and clear of the private transfer fee obligation.
(Added to NRS by 2011, 318)
NRS 111.875 Enforcement of private transfer fee obligations created before May 20, 2011.
1. If a written request for a written statement of the amount of the transfer fee due upon the sale of real property is sent by certified mail, return receipt requested, to the payee under a private transfer fee obligation that was created before May 20, 2011, at the address appearing in the recorded notice described in NRS 111.870, the payee shall provide such a written statement to the person who requested the written statement not later than 30 days after the date of mailing.
2. If the payee fails to comply with the requirements of subsection 1:
(a) The private transfer fee obligation is void and unenforceable and any interest in the real property that is subject to the private transfer fee obligation may thereafter be conveyed free and clear of the private transfer fee obligation; and
(b) The payee is subject to the liability described in NRS 111.880.
3. The person who requested the written statement may record in the office of the county recorder of the county in which the real property is located an affidavit which:
(a) States that the affiant has actual knowledge of, and is competent to testify to, the facts set forth in the affidavit;
(b) Sets forth the legal description of the real property that is subject to the private transfer fee obligation;
(c) Sets forth the name of the owner of the real property as recorded in the office of the county recorder;
(d) Expressly refers to the recorded notice described in NRS 111.870 by:
(1) The date on which the notice was recorded in the office of the county recorder; and
(2) The book, page and document number, as applicable, of the recorded notice;
(e) States that a written request for a written statement of the amount of the transfer fee due upon the sale of the real property was sent by certified mail, return receipt requested, to the payee at the address appearing in the recorded notice described in NRS 111.870, and that the payee failed to provide such a written statement to the person who requested the written statement within 30 days after the date of mailing; and
(f) Is signed by the affiant under penalty of perjury.
4. When properly recorded, the affidavit described in subsection 3 constitutes prima facie evidence that:
(a) A written request for a written statement of the amount of the transfer fee due upon the sale of the real property was sent by certified mail, return receipt requested, to the payee at the address appearing in the recorded notice described in NRS 111.870;
(b) The payee failed to provide such a written statement to the person who requested the written statement within 30 days after the date of mailing; and
(c) The private transfer fee obligation is void and unenforceable and any interest in the real property that is subject to the private transfer fee obligation may thereafter be conveyed free and clear of the private transfer fee obligation.
(Added to NRS by 2011, 320)
NRS 111.880 Liability for creation after May 20, 2011.
1. Any person who creates or records a private transfer fee obligation in the person's favor on or after May 20, 2011, or who fails to comply with a requirement imposed by subsection 1 of NRS 111.870 or subsection 1 of NRS 111.875 is liable for all:
(a) Damages resulting from the enforcement of the private transfer fee obligation upon the transfer of an interest in the real property, including, without limitation, the amount of any private transfer fee paid by a party to the transfer; and
(b) Attorney's fees, expenses and costs incurred by a party to the transfer or mortgagee of the real property to recover any private transfer fee paid or in connection with an action to quiet title.
2. A principal is liable pursuant to this section for the acts or omissions of an authorized agent of the principal.
(Added to NRS by 2011, 321)