2.3 Nevada Property Disclosures
Key Takeaways
- NRS 113.130 requires the seller to serve the Seller's Real Property Disclosure Form at least 10 days before conveyance for residential property of 1-4 dwelling units
- A defect discovered or worsening after service but before closing must be disclosed in writing as soon as practicable; the buyer may then rescind or close 'as-is'
- Under NRS 40.770, a death, suicide, felony crime, or occupancy by someone with HIV is NOT a material fact — but a meth-lab history and a death caused by a property condition ARE
- Federal law (42 U.S.C. 4852d) requires lead-based paint disclosure plus the EPA pamphlet and a 10-day inspection opportunity for all pre-1978 housing, regardless of state exemptions
- A licensee has an independent duty under NRS 645.252 to disclose known/should-have-known defects even when the seller is statutorily exempt from the disclosure form
The Seller's Real Property Disclosure Form (NRS 113.130)
Nevada's residential disclosure regime is in NRS Chapter 113. The Real Estate Division prescribes the Seller's Real Property Disclosure Form, and the seller must complete and serve it on the purchaser (or the purchaser's agent).
Timing — the 10-Day Rule
NRS 113.130 requires the completed form be served at least 10 days before residential property is conveyed to the purchaser. This is a common exam catch: the deadline is keyed to conveyance (closing), not to signing the purchase agreement.
| Item | Rule |
|---|---|
| Who provides | Seller (the seller's agent may serve it) |
| Deadline | At least 10 days before conveyance |
| Property covered | Residential real property, 1-4 dwelling units |
| Form | Seller's Real Property Disclosure Form |
Defects Discovered After Service
If, after the form is served but before closing, the seller discovers a new defect or learns an existing one has worsened, the seller must inform the purchaser or the purchaser's agent in writing, as soon as practicable. If the seller will not repair or replace it, the buyer may rescind the purchase agreement or close and accept the property as-is with no further recourse.
Statutory Exemptions from the Form
| Exempt transfer | Rationale |
|---|---|
| Transfer by foreclosure / trustee's sale | Lender lacks occupancy knowledge |
| Transfer between co-owners or spouses | Parties already know the property |
| Transfer by a fiduciary in administering an estate | Executor lacks personal knowledge |
| First sale of a never-occupied dwelling | New-construction warranties apply |
Trap: Even when the seller is exempt from the FORM, the licensee's independent duty to disclose known defects under NRS 645.252 still applies. Exemption from the statute does not exempt the agent.
Stigmatized Property (NRS 40.770)
Nevada law expressly limits what counts as a material fact about psychological or reputational "stigma." Under NRS 40.770, in any sale, lease, or rental, the following are NOT material and create no liability for failure to disclose:
- The property was the site of a homicide, suicide, or death by any cause
- The property was the site of a felony (other than methamphetamine manufacturing)
- An occupant had or died from HIV/AIDS or any disease unlikely to be transmitted by occupancy
The Two Exceptions
| Stigma | Disclose? |
|---|---|
| Routine death or suicide in the home | No — not material |
| Past felony on the property (non-meth) | No — not material |
| Death caused by a condition of the property | Yes — that's a property defect |
| Methamphetamine manufacturing on site | Yes — meth contamination is material |
Worked example: a seller's prior tenant died of natural causes in the bedroom — no disclosure required. But if the death resulted from a faulty gas furnace, the defective furnace is a material property condition and must be disclosed. A meth-lab history must always be disclosed because of the contamination hazard.
Direct-question nuance: A licensee may not make an affirmative false statement. If asked directly about a fact NRS 40.770 makes non-material, the agent need not volunteer it, but cannot lie.
Licensee's Independent Disclosure Duty (NRS 645.252 & 645.259)
Apart from the seller's form, the licensee owes an independent duty to disclose material facts the licensee knows or should have known to ALL parties. NRS 645.259 addresses agent liability:
| Situation | Result |
|---|---|
| Agent knows the client misrepresented a material fact | Agent must inform the other party |
| Agent knows of an undisclosed defect | Agent must disclose it to the buyer |
| Agent actively conceals a known defect | Agent is liable for damages |
Federal Lead-Based Paint Disclosure (42 U.S.C. 4852d)
For housing built before 1978, federal Title X requires, regardless of any Nevada exemption:
| Requirement | Detail |
|---|---|
| Disclose | Known lead-based paint and hazards |
| Provide | EPA pamphlet "Protect Your Family From Lead in Your Home" |
| Inspection window | 10-day opportunity to test (buyer may waive) |
| Form | Lead-Based Paint Disclosure with Lautenberg/EPA language |
| Records | Provide any reports the seller has |
Warning: This federal duty overrides any state-law exemption. A foreclosure-exempt 1965 home still needs lead-paint disclosure.
Common-Law Fraud and Misrepresentation
Beyond the statutes, a licensee can face civil liability for fraud or negligent misrepresentation. The classic elements an injured buyer must prove are:
| Element | Meaning |
|---|---|
| False statement of material fact | A misstatement that matters to the decision |
| Knowledge / should have known of falsity | Scienter or negligence |
| Intent to induce reliance | Statement made to get the buyer to act |
| Justifiable reliance | The buyer reasonably believed it |
| Damages | The buyer suffered measurable harm |
Active concealment — painting over a water stain or steering a buyer away from a cracked slab — is treated as affirmative misrepresentation even if no words are spoken. Silence about a known material defect can also be actionable when there is a duty to speak, which Nevada licensees have under NRS 645.252.
Putting the Disclosure Layers Together
| Source | What it governs |
|---|---|
| NRS 113.130 | Seller's form, 10-day-before-conveyance service |
| NRS 40.770 | What stigma is/ is not a material fact |
| NRS 645.252 / 645.259 | Licensee's independent disclosure duty and liability |
| 42 U.S.C. 4852d | Federal lead-based paint disclosure, pre-1978 homes |
Worked synthesis: a 1970 condo sold out of foreclosure with a known roof leak the agent has seen. The seller form is exempt (foreclosure), but the agent must still disclose the roof leak (645.252), provide the lead-paint disclosure and EPA pamphlet (federal Title X), and may stay silent about a prior natural-cause death (40.770) unless asked directly.
Under NRS 113.130, when must the seller serve the Seller's Real Property Disclosure Form?
Under NRS 40.770, which fact about a Nevada home IS material and must be disclosed?
A licensee knows the seller hid a recurring basement flooding problem and the property is a foreclosure exempt from the seller disclosure form. What must the licensee do?