Section 1.5 of this bill declares that: (1) the State has certain compelling interests related to attainable housing, stabilizing neighborhoods and supporting certain housing programs; (2) ensuring a fair and competitive housing market is necessary to support certain public interests; (3) preserving the stability and character of the State's communities is essential; and (4) reducing speculative investment in residential real estate by certain buyers is necessary to further certain public interests. Section 2 of this bill provides, with certain exceptions, that: (1) the total aggregate number of units of residential real property in this State that may be purchased in any 1 calendar year by corporations, foreign corporations, multinational corporations, pooled investment vehicles, limited-liability companies and any affiliates of such entities must not exceed 1,000 units; and (2) a corporation, foreign corporation, multinational corporation, pooled investment vehicle, limited-liability company or affiliate of such an entity is prohibited from purchasing any unit of residential real property in this State if, as a result of the purchase, the total aggregate number of units of residential real property purchased in this State during the current calendar year by any corporations, foreign corporations, multinational corporations, pooled investment vehicles, limited-liability companies and affiliates of such entities would exceed 1,000 units. Section 2 also requires the Securities Division of the Office of the Secretary of State to create and maintain: (1) a registry of corporations, foreign corporations, multinational corporations, pooled investment vehicles, limited-liability companies and any affiliates of such entities that purchase or own residential real property in this State and; (2) a database that tracks the aggregate number of units of residential real property purchased annually by corporations, foreign corporations, multinational corporations, pooled investment vehicles, limited-liability companies and any affiliates of such entities. Section 2 requires, with certain exceptions, a corporation, foreign corporation, multinational corporation, pooled investment vehicle, limited-liability company or any affiliate of such an entity to register with the Securities Division before the entity purchases any unit of residential real property in this State. Section 2 exempts from that requirement a corporation, foreign corporation, multinational corporation, pooled investment vehicle, limited-liability company or affiliate of such an entity that owns fewer than 15 units of residential real property in this State. Section 2 further requires each corporation, foreign corporation, multinational corporation, pooled investment vehicle, limited-liability company or affiliate of such an entity to report to the Secretary of State certain information related to each purchase of a unit of residential real property in this State within 10 business days after the completion of such a purchase. Section 2: (1) requires the Secretary of State to immediately update the database that tracks the aggregate number of units of residential real property purchased annually and reduce the available annual allotment; (2) requires the Secretary of State to provide certain periodic reports to each county recorder or his or her designee related to such purchases to ensure compliance with certain provisions related to deeds; (3) authorizes the Secretary of State to establish certain reasonable fees; and (4) requires the Secretary of State to adopt regulations necessary to carry out the provisions of section 2. For the purposes of section 2, the term “corporation” does not include a family trust company or a housing authority. Section 2.5 of this bill provides that: (1) any purchase of a unit of residential real property that violates section 2 is void; and (2) if a deed for a transaction that violates section 2 is recorded, the deed is subject to nullification. Section 2.5 authorizes: (1) the Secretary of State to investigate any potential violations of section 2 and disclose certain information to the Attorney General; and (2) the Attorney General to initiate legal proceedings to enforce the provisions of section 2.5. Section 3 of this bill authorizes the Attorney General, upon the request of the Secretary of State, to bring an action against an entity that violates or proposes to violate the provisions of section 2 to obtain an injunction or other equitable relief appropriate to ensure compliance with or enforce the provisions of section 2. Existing law sets forth the requirements for recording certain documents that relate to real property. (NRS 111.312) Section 5 of this bill prohibits a county recorder from filing a deed for a unit of residential real property purchased by a corporation, foreign corporation, multinational corporation, pooled investment vehicle, limited-liability company or affiliate of such an entity unless the entity submits to the county recorder for recording, concurrently with the deed to be recorded, a copy of the certificate of registration for that purchase issued by the Secretary of State pursuant to section 2. Section 5 requires a county recorder to provide to the Secretary of State upon request certain information relating to the requirement imposed by section 2. Section 4 of this bill requires the Secretary of State to adopt regulations establishing requirements for the form and contents of any instrument that creates a life estate. Section 5 prohibits a county recorder from recording a document that is such an instrument unless the document complies with those requirements. Section 5.5 of this bill provides that the provisions of this act do not apply to the purchase of a unit of residential real property completed on or before July 1, 2026.

Statutes affected:
As Introduced: 111.312
Reprint 1: 111.312