SB391 - Revises provisions relating to real property. (BDR 10-84)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 2) EXEMPT (Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT S.B. 391 - *SB391_R1* SENATE BILL NO. 391–SENATOR NEAL MARCH 17, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to real property. (BDR 10-84) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Contains Appropriation not included in Executive Budget. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to real property; limiting, with certain exceptions, the total aggregate number of units of residential real property in this State that may be purchased in any 1 calendar year by certain corporate investors; requiring, with certain exceptions, certain corporate investors in residential real property in this State to register with the Securities Division of the Office of the Secretary of State each time before purchasing a unit of residential real property; authorizing the Attorney General to bring certain actions; requiring the Secretary of State to establish requirements for the form and contents of an instrument that creates a life estate; prohibiting a county recorder from recording certain deeds and documents under certain circumstances; making an appropriation; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Section 2 of this bill provides, with certain exceptions, that: (1) the total 1 aggregate number of units of residential real property in this State that may be 2 purchased in any 1 calendar year by corporations, limited-liability companies and 3 any affiliates of such entities must not exceed 100 units; and (2) a corporation, 4 limited-liability company or affiliate of such an entity is prohibited from purchasing 5 any unit of residential real property in this State if, as a result of the purchase, the 6 total aggregate number of units of residential real property purchased in this State 7 during the current calendar year by any corporations, limited-liability companies 8 and affiliates of such entities would exceed 100 units. 9 Section 2 also requires the Securities Division of the Office of the Secretary of 10 State to create and maintain a registry of corporations, limited-liability companies 11 – 2 – - *SB391_R1* and any affiliates of such entities that purchase or own residential real property in 12 this State. Section 2 requires, with certain exceptions, a corporation, limited- 13 liability company or any affiliate of such an entity to register with the Securities 14 Division each time before the entity purchases any unit of residential real property 15 in this State. Section 2 exempts from that requirement a corporation, limited- 16 liability company or affiliate of such an entity that owns less than 10 units of 17 residential real property in this State. Section 2: (1) authorizes the Secretary of 18 State to charge a fee to each such corporation, limited-liability company or affiliate 19 of such an entity; and (2) requires the Secretary of State to adopt regulations 20 necessary to carry out the provisions of section 2. For the purposes of section 2, the 21 term “corporation” does not include a family trust company or a housing authority. 22 Section 3.5 of this bill authorizes the Attorney General, upon the request of the 23 Secretary of State, to bring an action against an entity that violates or proposes to 24 violate the provisions of section 2 to obtain an injunction or other equitable relief 25 appropriate to ensure compliance with or enforce the provisions of section 2. 26 Existing law sets forth the requirements for recording certain documents that 27 relate to real property. (NRS 111.312) Section 5 of this bill prohibits a county 28 recorder from filing a deed for a unit of residential real property purchased by a 29 corporation, limited-liability company or affiliate of such an entity unless the entity 30 submits to the county recorder for recording, concurrently with the deed to be 31 recorded, a copy of the certificate of registration for that purchase issued by the 32 Secretary of State pursuant to section 2. Section 5 requires a county recorder to 33 provide to the Secretary of State upon request certain information relating to the 34 requirement of section 2. 35 Section 4 of this bill requires the Secretary of State to adopt regulations 36 establishing requirements for the form and contents of any instrument that creates a 37 life estate. Section 5 prohibits a county recorder from recording a document that is 38 such an instrument unless the document complies with those requirements. 39 Section 6 of this bill makes an appropriation to the Office of the Secretary of 40 State for personnel, travel, operating, equipment, information services and 41 contractor costs to carry out the provisions of section 2. 42 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 111 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 to 4, inclusive, of this 2 act. 3 Sec. 2. 1. Except as otherwise provided in subsection 2: 4 (a) The total aggregate number of units of residential real 5 property in this State that may be purchased in any 1 calendar 6 year by corporations, limited-liability companies and affiliates of 7 such entities must not exceed 100 units. 8 (b) A corporation, limited-liability company or affiliate of such 9 an entity shall not purchase any unit of residential real property in 10 this State if, as a result of the purchase, the total aggregate 11 number of units of residential real property purchased in this State 12 during the current calendar year by corporations, limited-liability 13 companies and affiliates of such entities would exceed 100 units. 14 2. The provisions of subsection 1 do not apply to: 15 – 3 – - *SB391_R1* (a) The intracorporate sale or transfer of units of residential 1 real property; 2 (b) The sale of newly constructed units of residential real 3 property; 4 (c) The sale of a mobile home or manufactured home; or 5 (d) The sale of an apartment building. 6 3. The Securities Division of the Office of the Secretary of 7 State shall create and maintain a registry of corporations, limited- 8 liability companies and affiliates of such entities that purchase or 9 own residential real property in this State. The Securities Division 10 shall make the registry available on the Internet website of the 11 Office of the Secretary of State. 12 4. Except as otherwise provided in this subsection, a 13 corporation, limited-liability company or affiliate of such an entity 14 must register with the Securities Division of the Office of the 15 Secretary of State each time before the entity purchases any unit 16 of residential real property in this State. The requirement to 17 register does not apply to a corporation, limited-liability company 18 or affiliate of such an entity that owns less than 10 units of 19 residential real property in this State. 20 5. The Secretary of State shall issue a certificate of 21 registration to each corporation, limited-liability company or 22 affiliate of such an entity that registers pursuant to this section. 23 6. The Secretary of State may charge a fee to each 24 corporation, limited-liability company or affiliate of such an entity 25 that registers with the Securities Division pursuant to subsection 4. 26 7. The Secretary of State shall adopt any regulations 27 necessary to carry out the provisions of this section. 28 8. As used in this section: 29 (a) “Corporation” does not include: 30 (1) A family trust company, as defined in NRS 669.042. 31 (2) A housing authority, as defined in NRS 315.021. 32 (b) “Limited-liability company” has the meaning ascribed to it 33 in NRS 86.061. 34 (c) “Manufactured home” has the meaning ascribed to it in 35 NRS 489.113. 36 (d) “Mobile home” has the meaning ascribed to it in 37 NRS 489.120. 38 Sec. 3. (Deleted by amendment.) 39 Sec. 3.5. 1. The Attorney General, upon the request of the 40 Secretary of State, may bring an action in any court of competent 41 jurisdiction against an entity that violates or proposes to violate 42 the provisions of section 2 of this act to obtain an injunction or 43 other equitable relief appropriate to ensure compliance with or 44 enforce the provisions of section 2. 45 – 4 – - *SB391_R1* 2. The provisions of this section do not abrogate or limit the 1 right of any person to bring any civil action pursuant to any other 2 statute or the common law. 3 Sec. 4. The Secretary of State shall adopt regulations 4 establishing requirements for the form and contents of any 5 instrument that creates a life estate. 6 Sec. 5. NRS 111.312 is hereby amended to read as follows: 7 111.312 1. The county recorder shall not record with respect 8 to real property, a notice of completion, a declaration of homestead, 9 a restrictive covenant modification form, a restrictive covenant 10 modification document, a lien or notice of lien, an affidavit of death, 11 a mortgage or deed of trust, any conveyance of real property or 12 instrument in writing setting forth an agreement to convey real 13 property or a notice pursuant to NRS 111.3655 unless the document 14 being recorded contains: 15 (a) The mailing address of the grantee or, if there is no grantee, 16 the mailing address of the person who is requesting the recording of 17 the document; and 18 (b) Except as otherwise provided in subsection 2, the assessor’s 19 parcel number of the property at the top left corner of the first page 20 of the document, if the county assessor has assigned a parcel 21 number to the property. The parcel number must comply with the 22 current system for numbering parcels used by the county assessor’s 23 office. The county recorder is not required to verify that the 24 assessor’s parcel number is correct. 25 2. Any document relating exclusively to the transfer of water 26 rights may be recorded without containing the assessor’s parcel 27 number of the property. 28 3. The county recorder shall not record with respect to real 29 property any deed, including, without limitation: 30 (a) A grant, bargain and sale deed; 31 (b) Quitclaim deed; 32 (c) Warranty deed; or 33 (d) Trustee’s deed upon sale, 34  unless the document being recorded contains the name and 35 address of the person to whom a statement of the taxes assessed on 36 the real property is to be mailed. 37 4. The assessor’s parcel number shall not be deemed to be a 38 complete legal description of the real property conveyed. 39 5. Except as otherwise provided in subsection 6, if a document 40 that is being recorded includes a legal description of real property 41 that is provided in metes and bounds, the document must include the 42 name and mailing address of the person who prepared the legal 43 description. The county recorder is not required to verify the 44 accuracy of the name and mailing address of such a person. 45 – 5 – - *SB391_R1* 6. If a document including the same legal description described 1 in subsection 5 previously has been recorded, the document must 2 include all information necessary to identify and locate the previous 3 recording, but the name and mailing address of the person who 4 prepared the legal description is not required for the document to be 5 recorded. The county recorder is not required to verify the accuracy 6 of the information concerning the previous recording. 7 7. Except as otherwise provided in subsection 10, if a 8 corporation, limited-liability company or affiliate of such an entity 9 purchases a unit of residential real property, the county recorder 10 shall not record the deed unless the corporation, limited-liability 11 company or affiliate of such an entity submits to the county 12 recorder for recording, concurrently with the deed to be recorded, 13 a copy of the certificate of registration issued by the Secretary of 14 State pursuant to section 2 of this act for that purchase and the 15 name of the corporation, limited-liability company or affiliate of 16 such an entity on the deed matches the name on the certificate of 17 registration accompanying the deed. 18 8. If a document is an instrument that creates a life estate, the 19 county recorder shall not record the document unless the 20 document satisfies the requirements established by the Secretary 21 of State pursuant to section 4 of this act. 22 9. The county recorder shall provide to the Secretary of State, 23 upon request, any information collected by the county recorder 24 relating to the provisions of subsection 7 that the Secretary of 25 State deems necessary to determine whether the purchase of a unit 26 of residential real property by a corporation, limited-liability 27 company or affiliate of such an entity complies with the provisions 28 of section 2 of this act and the regulations adopted pursuant 29 thereto. 30 10. The provisions of subsection 7 do not apply to a 31 corporation, limited-liability company or affiliate of such an entity 32 that owns less than 10 units of residential real property in this 33 State. 34 11. As used in this section, the terms “corporation” and 35 “limited-liability company” have the meanings ascribed to them in 36 section 2 of this act. 37 Sec. 6. 1. There is hereby appropriated from the State 38 General Fund to the Office of the Secretary of State for the costs of 39 personnel, travel, operating, equipment, information services and 40 contractors to carry out the provisions of section 2 of this act the 41 following sums: 42 For the Fiscal Year 2025-2026 .................................. $476,004 43 For the Fiscal Year 2026-2027 .................................... $81,705 44 – 6 – - *SB391_R1* 2. Any balance of the sums appropriated by subsection 1 1 remaining at the end of the respective fiscal years must not be 2 committed for expenditure after June 30 of the respective fiscal 3 years by the entity to which the appropriation is made or any entity 4 to which money from the appropriation is granted or otherwise 5 transferred in any manner, and any portion of the appropriated 6 money remaining must not be spent for any purpose after 7 September 18, 2026, and September 17, 2027, respectively, by [Text truncated for display. 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