The Nevada legislature recently mandated that a trustee’s deed must be recorded within 30 days following the trustee’s foreclosure sale of a property. In other words, the trustee may no longer allow the property to remain in the name of the foreclosed borrower indefinitely. If the trustee is delivering the deed to the successful bidder, the deed must be delivered within 20 days from the date of the sale. The successful bidder must then record within ten days from the date of the receipt of the deed.
The new law means that real property transfer taxes will be paid in a timelier manner. A successful bidder who fails to comply may be liable for actual damages, attorney’s fees and costs. This law is effective July 1, 2009.
Effective October 1, 2009, an escrow officer may not disburse funds the same day as a deposit unless the funds deposited are in one of the following forms:
- Electronic interbank transfer;
- Any of the following IF they are drawn on a Nevada financial institution: cashier’s check, money order, certified check, cashier’s check; negotiable order of withdrawal (any one of which must be payable in Nevada);
- Any depository check, including any cashier’s check or teller’s check, that is governed by the federal Expedited Funds Availability Act;
- Any other form that permits conversion of the deposit to cash on the same day it is made.
Moral of the story: plan ahead in order to comply with this requirement.
-Robert B. Noggle, Esq.