Nevada Legislative Update

Nevada Legislative Update

The Nevada legislature recently amended its laws governing the amount of a deficiency judgment and its laws governing eminent domain.  All the legislation discussed in this memorandum was effective May 25, 2015.

 

NEVADA ASSEMBLY BILL 195

 

Except as otherwise provided below, the court must not render a deficiency judgment against the borrower, guarantor or surety who is personally liable for the debt for more than the lesser of:

  • The amount by which the amount of the indebtedness which was secured exceeds the fair market value of the property sold at the time of the sale, with interest from the date of the sale; or
  • The amount which is the difference between the amount for which the property was actually sold and the amount of the indebtedness which was secured, with interest from the date of sale.

 

If the debt was secured by a one-to-four family residence upon which the borrower, guarantor or surety maintains his or her principal residence, the court must not render judgment for more than the lesser of:

  • The amount by which the amount of the indebtedness which was secured exceeds the fair market value of the property sold at the time of the sale, with interest from the date of the sale;
  • The amount which is the difference between the amount for which the property was actually sold and the amount of the indebtedness which was secured, with interest from the date of sale; or
  • If the person seeking the judgment acquired the right to obtain the judgment from a person who previously held that right, the amount by which the amount of the consideration paid for that right exceeds the fair market value of the property sold at the time of sale or the amount for which the property was actually sold, whichever is greater, with interest from the date of sale and reasonable costs.

 

The court must not render judgment for more than the amount of the consideration paid for the right to enforce an obligation plus interest from the date on which the person acquired the right and reasonable costs, if:

  • A person acquired the right to enforce an obligation secured by a junior mortgage or lien on real property from a person who previously held that right;
  • The person files a civil action to obtain a money judgment against the borrower after a foreclosure sale or a sale in lieu of a foreclosure sale;
  • The obligation was secured by a junior mortgage or lien on a one-to-four family residence upon which the borrower maintains his or her principal residence, and
  • Such action is not barred by law.

 

NEVADA ASSEMBLY BILL 201

 

Notwithstanding any other provision of law, a local government must not enter into an agreement with any person for the purpose of exercising the power of eminent domain to take a mortgage, deed of trust, or mortgage lien on private property or any note secured by a mortgage, deed of trust or mortgage lien on private property.