Nevada § 111.2397 - Prohibition on entering into or recording certain service agreements

§ 111.2397. Prohibition on entering into or recording certain service agreements

1. A service provider shall not enter into or record a service agreement with an owner

of residential property that provides for performance of the service agreement more

than 1 year from the date of execution of the service agreement if the service agreement: (a) Purports to run with the land or bind future owners of interests in the residential

property; (b) Allows for the assignment of the right to provide service without requiring notice

to and agreement of the owner of the residential property; or (c) Purports to create a security interest in the residential property, including,

without limitation, a lien or encumbrance. 2. The provisions of this section do not apply to: (a) A home warranty or similar product that covers the cost of maintenance of a major

housing system, including, without limitation, a plumbing or electrical system, for

a set period of time; (b) An insurance contract; (c) An option to purchase or right of refusal; (d) A maintenance or repair agreement entered into by a homeowners' association in

a common-interest community; (e) A mechanic's lien; (f) A mortgage loan or a commitment to make or receive a mortgage loan; (g) A security agreement relating to the sale or rental of personal property or fixtures; (h) Any utility service provided by a public utility, including, without limitation,

water, sewer, electrical, telephone or cable; or (i) A declaration created in the formation of a common-interest community or an amendment

thereto. 3. A service agreement prohibited pursuant to this section that is recorded on or

after June 15, 2023, is void and unenforceable. A county recorder may refuse to record any written instrument that contains a service

agreement that is prohibited pursuant to this section. A person who submits a written instrument for recordation to the county recorder

that contains such a service agreement is guilty of a misdemeanor. 4. The recording of a service agreement prohibited pursuant to this section does not

provide actual or constructive notice to a bona fide purchaser or creditor of residential

property. 5. A violation of subsection 1 constitutes a deceptive trade practice for the purposes

of NRS 598.0903 to 598.0999 , inclusive. Any person with an interest in a residential property for which a service agreement

prohibited pursuant to this section is recorded may bring a civil action in any court

of competent jurisdiction for such a violation. If a person brings such an action, the court may award the person: (a) Any equitable relief that the court deems appropriate; (b) Actual damages; and (c) Actual costs and attorney's fees. 6. On or before July 31, 2023, a service provider that has entered into a service

agreement on or before June 15, 2023, shall record a notice of service agreement with

the county recorder of the county in which the real property that is the subject of

the service agreement is located, which must include, without limitation: (a) The title “Notice of Service Agreement” in not less than 14-point boldface type; (b) A legal description of the real property; (c) The amount of the fee provided in the service agreement or the method by which

the fee must be calculated; (d) The date or circumstances under which the obligation set forth in the service

agreement expires; (e) The name, address and telephone number of the service provider; and (f) If the service provider is: (1) A natural person, the notarized signature of the service provider; or (2) A business entity, the notarized signature of an authorized officer or employee

of the business entity. 7. If a service provider fails to record the notice required pursuant to subsection

6 on or before July 31, 2023, the service agreement is hereby declared void and unenforceable

and any interest in the real property that is subject to the service agreement may

be conveyed free and clear of the service agreement. 8. As used in this section: (a) “ Residential property ” means any land in this State which is primarily used for personal, family or household

purposes to which is affixed not less than one nor more than four dwelling units. (b) “ Service agreement ” means a contract under which a person agrees to provide services in connection with

the maintenance, purchase or sale of residential property. (c) “ Service provider ” means a person who provides services to another party.