A Nevada purchase agreement is signed for a property that the parties later discover is subject to an unrecorded easement used by a neighboring rancher for water access. The buyer claims the seller should have disclosed this. Under NRS Chapter 113, which statement best describes the seller's disclosure obligation?
Correct Answer
B) The seller must disclose known material conditions affecting the property, which would include a known unrecorded easement
Under NRS Chapter 113, Nevada sellers are required to complete a Seller's Real Property Disclosure Form and disclose all known material defects and conditions that affect the property. A known unrecorded easement that allows a neighbor to access the property for water is a material condition that would affect a buyer's decision to purchase and must be disclosed. The fact that the easement is unrecorded does not eliminate the seller's duty to disclose what the seller actually knows.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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