Seller disclosure requirements in Nevada

Is a disclosure form required by law?

Yes. NRS 113.130 says the seller must complete a disclosure form and serve it on the buyer or the buyer’s agent at least 10 days before the property is conveyed. “Conveyance” happens when escrow closes or, if there is no escrow, when the buyer receives the deed (NRS 113.110). The law covers “residential property,” meaning land with at least one and no more than four dwelling units (NRS 113.100).

The seller must fill out the form personally. The statute says a seller’s agent “shall not complete a disclosure form” on the seller’s behalf, and the Real Estate Division’s guide says a licensee may not complete it unless he or she is the seller. Service is complete on personal delivery, or three days after mailing (NRS 113.110).

The buyer cannot waive the form, and the seller cannot ask the buyer to waive it as a condition of sale (NRS 113.130(3)).

What the form covers

The state publishes the form as Form 547. It asks whether the seller is aware of problems with the electrical, plumbing, sewer, heating and cooling systems and with appliances. It then asks about 17 other topics, including:

• water damage, structural defects and work done without building permits;
• a pending construction-defect claim (NRS 40.600 to 40.695);
• unstable soil, drainage, flooding and flood-plain location;
• the roof, pool or spa, infestation, mold and environmental hazards such as asbestos or radon;
• homeowner association dues, unpaid assessments and litigation;
• water source, solar panels (owned, leased or financed) and any private transfer fee;
• whether the home was built before 1978.

Each question is answered “yes,” “no” or “n/a.” Every “yes” must be explained. The Division’s guide adds that if the seller has no knowledge, “no” is an appropriate answer to the “Are you aware” questions. The form is a statement of what the seller knows. It is not a warranty and does not replace an inspection (NRS 113.140). Buyers must still “exercise reasonable care to protect” themselves (NRS 113.140(3)). See our guide to home inspection costs.

Exemptions

NRS 113.130(2) says the disclosure rule does not apply to a sale:

• by foreclosure under NRS chapter 107;
• between co-owners, spouses, or people related within the third degree of consanguinity;
• that is the first sale of a home built by a licensed contractor;
• by someone who holds the property only temporarily to sell it for an owner who moved to another county, state or country;
• by a fiduciary (such as a personal representative, guardian or trustee) who holds the property only to sell it for a person who is deceased or incapacitated.

In a foreclosure sale, the trustee and beneficiary must still give written notice of any defects they know about, no later than conveyance or when the buyer asks (NRS 113.130(4)). For the process itself, see foreclosure in Nevada.

The Division’s guide says the form “is not required for new home sales.” The first buyer of a newly built home has separate rights: the seller must provide copies of specific statutes and notify the buyer of soil reports, and the buyer may rescind within 20 days after receiving requested reports (NRS 113.135).

What happens if a seller does not disclose?

A lawsuit for treble damages must start within 1 year after the buyer discovers (or should have discovered) the defect, or 2 years after conveyance, whichever is later (NRS 113.150(4)). No damages are owed for an error caused by the seller’s reliance on information from a government employee or from a licensed contractor, engineer, surveyor, certified inspector or pesticide applicator (NRS 113.150(5)).

A buyer may waive rights under NRS 113.150, but only in a signed, notarized document (NRS 113.150(6)). The Division’s guide tells a buyer who is asked to waive to contact an attorney, because a licensee cannot explain the legal consequences.

Example: a seller knows the roof leaks and answers “no” on the form. The buyer closes, then pays $9,000 to replace the roof. If the cost was not capped in the purchase agreement, the buyer may recover up to $27,000, plus court costs and attorney’s fees.

Federal lead-based paint rule (homes built before 1978)

For most homes built before 1978, federal law adds its own disclosures (EPA). The seller must:

• give the buyer the EPA booklet on lead hazards;
• disclose what he or she knows about lead-based paint and hazards, and share any records and reports;
• include a Lead Warning Statement in the contract;
• allow 10 days for the buyer to inspect for lead paint or assess lead hazards. The parties can shorten or lengthen the period in writing, and the buyer may waive it;
• keep signed copies for three years after the sale.

The Nevada form flags this on question 12.