NRS107.130. Expedited procedure for exercise of trustee’s power of sale involving abandoned residential property; inspection of real property to determine abandonment; required notice, certification and affidavit; civil penalty for noncompliance with certain requirements. [Effective through June 30, 2017.]

      1.  A beneficiary may elect to use an expedited procedure for the exercise of the trustee’s power of sale pursuant to NRS 107.080 if, after an investigation, the beneficiary:

      (a) Determines that real property is abandoned residential property; and

      (b) Receives from the applicable governmental entity a certification pursuant to subsection 4.

      2.  Each board of county commissioners of a county and each governing body of an incorporated city shall designate an agency or a contractor to inspect real property upon receipt of a request pursuant to paragraph (b) of subsection 3 and to provide certifications that real property is abandoned residential property pursuant to subsection 4.

      3.  If a beneficiary has a reasonable belief that real property may be abandoned residential property, the beneficiary or its agent:

      (a) May enter the real property, but may not enter any dwelling or structure, to investigate whether the real property is abandoned residential property. Notwithstanding any other provision of law, a beneficiary and its agents who enter real property pursuant to this paragraph are not liable for trespass.

      (b) May request a certification pursuant to subsection 4 from the agency or contractor designated by the applicable governmental entity pursuant to subsection 2.

      4.  Upon receipt of a request pursuant to paragraph (b) of subsection 3, the agency or contractor designated by the applicable governmental entity shall inspect the real property to determine the existence of two or more conditions pursuant to subparagraph (7) of paragraph (b) of subsection 1 of NRS 107.0795. The designee and any employees of the designee may enter the real property, but may not enter any dwelling or structure, to perform an inspection pursuant to this subsection, and the designee and any employees who enter real property pursuant to this subsection are not liable for any civil damages as a result of any act or omission, not amounting to gross negligence, or for trespass. If the designee or an employee of the designee determines that the real property is abandoned residential property, the designee shall serve a notice by first-class mail to the grantor or the successor in interest of the grantor and by posting the notice on the front door of the residence. The notice must provide that unless a lawful occupant of the real property contacts the designee within 30 days after service of the notice, the designee will issue a certification that the real property is abandoned residential property and that the beneficiary may use the certification to seek an expedited procedure for the exercise of the trustee’s power of sale. If a grantor or the successor in interest of the grantor or a lawful occupant of the real property fails to contact the designee within 30 days after service of the notice, the designee shall provide to the beneficiary a certification that the real property is abandoned residential property. The certification required by this subsection must:

      (a) Be signed and verified by the designee or the employee or employees of the designee who inspected the real property;

      (b) State that, upon information and belief of the designee, after investigation by the designee or the employee or employees of the designee, the real property is abandoned residential property; and

      (c) State the conditions or circumstances supporting the determination that the property is abandoned residential property. Documentary evidence in support of such conditions or circumstances must be attached to the certification.

      5.  For an inspection, service of notice and issuance of a certification pursuant to subsection 4, the agency or contractor designated pursuant to subsection 2 by the applicable governmental entity may charge and receive from the beneficiary a fee of not more than $300.

      6.  A beneficiary who elects to use an expedited procedure for the exercise of the trustee’s power of sale pursuant to NRS 107.080 must include, or cause to be included, with the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 an affidavit setting forth the facts supporting the determination that the real property is abandoned residential property and the certification provided to the beneficiary pursuant to subsection 4. The affidavit required by this subsection must:

      (a) Be signed and verified by the beneficiary;

      (b) State that, upon information and belief of the beneficiary after investigation by the beneficiary or its agent, the property is abandoned residential property; and

      (c) State the conditions or circumstances supporting the determination that the property is abandoned residential property. Documentary evidence in support of such conditions or circumstances must be attached to the affidavit.

      7.  If the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 includes the affidavit and certification described in subsection 6, before the sale, the grantor or a successor in interest of the grantor may record in the office of the county recorder in the county where the real property is located an affidavit stating that the real property is not abandoned residential property, unless the grantor or the successor in interest of the grantor has surrendered the property as evidenced by a document signed by the grantor or successor confirming the surrender or by the delivery of the keys to the real property to the beneficiary. Upon the recording of such an affidavit:

      (a) The grantor or the successor in interest must mail by registered or certified mail, return receipt requested, to the beneficiary and the trustee a copy of the affidavit; and

      (b) The notice of default and election to sell and the affidavit and certification described in subsection 6 are deemed to be withdrawn.

      8.  If the notice of default and election to sell recorded pursuant to subsection 2 of NRS 107.080 includes the affidavit and certification described in subsection 6, the trustee’s sale of the abandoned residential property must be conducted within 6 months after the beneficiary received the certification. If the trustee’s sale is not conducted within 6 months after the beneficiary received the certification:

      (a) The notice of default and election to sell and the affidavit and certification described in subsection 6 are deemed to be withdrawn; and

      (b) The beneficiary is liable to the grantor or the successor in interest of the grantor for a civil penalty of not more than $500.

      9.  The period specified in subsection 8 is tolled:

      (a) If a borrower has filed a case under 11 U.S.C. Chapter 7, 11, 12 or 13, until the bankruptcy court enters an order closing or dismissing the bankruptcy case or granting relief from a stay of the trustee’s sale.

      (b) If a court issues a stay or enjoins the trustee’s sale, until the court issues an order granting relief from the stay or dissolving the injunction.

      10.  As used in this section:

      (a) “Applicable governmental entity” means:

             (1) If the real property is within the boundaries of a city, the governing body of the city; and

             (2) If the real property is not within the boundaries of a city, the board of county commissioners of the county in which the property is located.

      (b) “Beneficiary” means the beneficiary of the deed of trust or the successor in interest of the beneficiary or any person designated or authorized to act on behalf of the beneficiary or its successor in interest.

      (Added to NRS by 2013, 1546)