Nevada residential and commercial property owners that learn that the city, county, or state government might seize their property through eminent domain should take steps to protect their interests and rights. In the early phases of planning, it is possible to fight land grabs and rezoning. However, losing the property might become an inevitable outcome. When that is the case, people should know how to protect their rights to receive fair compensation by negotiating favorable terms.
City, county, and state governments use eminent domain to convert private property to public use. When eminent domain actions succeed, private property owners are required to surrender portions of their property or entire parcels for uses deemed to be in the public interest. Some examples of when the government might initiate an eminent domain action include the following:
While governmental entities can seize property through Nevada’s eminent domain laws, property owners are entitled to compensation for their land. Negotiations can help landowners secure fair compensation for their land.
Developers may submit proposals requesting the rezoning of specific areas to support commercial uses or higher-density housing for their projects. Residential and commercial property owners who will be impacted by the proposal can object to the plans and ask for mitigation for problems like increased pollution and traffic.
In some cases, it will be impossible to save a property from rezoning or eminent domain actions. When surrender is inevitable, fighting for just compensation might allow property owners to receive compensation for the fair market value of the land that they will lose. To ensure that property owners receive an appropriate amount of compensation, they will need to have proper appraisals completed with the most current maps.
Property developers might need to rely on eminent domain actions and rezoning efforts to repurpose properties for other uses. These types of proposals commonly receive stiff opposition. Developers must be prepared to present their plans in a careful and thorough way to zoning boards and commissions so that they can show their benefits to the city or county where the developments will be located. Developers may need to survey owners and negotiate surrenders in advance. This can make succeeding with a rezoning or eminent domain action likelier.
Changes to Nevada eviction law passed in 2019 impacting the process of eviction between landlords and tenants. The law presented new requirements that landlords must adhere to during the eviction process. Landlords are now required to use licensed process servers to serve tenants with notices of eviction. A landlord also cannot charge his or her tenants more than 5% of the balances owed when tenants are late with rent payments. Tenants who receive eviction notices must be given seven judicial days to either move from the property or pay the past due rent.
In the past, landlords were allowed to serve eviction notices to tenants personally. However, under the change in law, residential landlords are required to have attorneys, sheriffs, constables, or licensed process servers serve eviction notices. Proof of service must be filed with the Court. While this might seem to be onerous, requiring eviction notices to be served by licensed process servers can be helpful to both landlords and tenants. The new requirement helps to ensure adequate service and lessens the chance of a tenant later arguing that they were not given adequate notice of eviction proceedings.
For tenants who receive eviction notices for failing to pay rent, seven judicial days to pay what is owed or to relocate is allowed. Tenants who receive 24-hour lockout notices must be given a minimum of 24 hours before he or she is locked out. Previously, the sheriff or constable could show up to remove evicted tenants during the 24-hour lockout period. Now, however, authorities are required to wait the full 24 hours. As previously required, a landlord must store belongings of an evicted tenant for 30 days and allow reasonable access to the personal property. The changes in law, however, now allows a tenant to dispute the landlord’s inventory of the property within 20 days of lockout, vacancy, or inventory list, whichever is latest. A tenant is now also allowed to file a motion expedited action on retrieving personal property after an eviction.
Another major change applies to late fees that can be charged by residential landlords to tenants who are late on paying rent. In the past, landlords could charge a “reasonable” late fee. However, what was reasonable was not defined and was often left to the Court’s discretion. The 2019 change in law establishes a limit on the fees allowed. Landlords can no longer charge more than 5% of the balance of the late payment as a fee.
These changes are important for both landlords and tenants alike to be aware of going forward.
Disclaimer: The standard eviction process and requirements as described herein may not apply during the time of an eviction moratorium.
Small condo association management in Nevada poses unique challenges because of fewer resources, but it can be done successfully by following a few tips. When condo associations have fewer members, they have fewer dues to support the work of the homeowners association and to improve the community for everyone. Managers can take several steps to improve efficiency and to make the HOA successful and responsive to the needs of the individual owners.
One challenge that managers of small condo associations face is raising money. They must be careful with how much they charge residents. They should avoid charging excessive fees because that could deter others from purchasing properties within the community. If a fee increase is projected, residents should be promptly notified so that they can make budgetary adjustments.
Decisions that are made affect the condo association’s members. Managers should listen to members and allow them to provide input. While managers do not have to take every suggestion, listening can help the members feel valued. Transparency and communication are key to successfully managing a small condo association. The members are likely to be happier when they know what decisions are being made and the reasons for them.
Trying to balance a small condo association’s budgets with the desired services can be challenging. Board members must have realistic discussions and take care to not overspend. They should also prioritize repairs and upkeep instead of putting them off. Condo boards should analyze the likely costs that the repairs might require if they are left to the future and allowed to deteriorate further. Without spending on repairs, the future costs may strain the condo association’s budget even further. Managers should carefully research costs and bids before moving forward.
While small condo associations may rely on the help that volunteers can offer, they should not place too many expectations on residents who agree to step up and contribute. Managers should remember that the residents already have to balance their careers and lives. They should not pile too much volunteer work on residents who may already be stretched thin.
Good organization is critical for efficiently managing a condo association. Boards and managers should keep meticulous records about everything that happens, including meetings, finances, and decision-making processes.
Loan modification scams cost consumers considerably and it is imperative to know how to spot them and avoid them. As the economy shudders, these real estate scams will become increasingly common and consumers should stay alert for deals that “sound too good to be true.” The following tips can help consumers avoid the traps these scammers set.
Many scammers offer their services only after homeowners pay an upfront fee. Once paid, the scammer vanishes into thin air, phone numbers no longer work, and the money evaporates.
Scammers may offer to forward the mortgage payment to the lender. Homeowners should never send these payments to anyone but the lender.
If the person’s title sounds too good to be true, or too illustrious for the job duty, it is likely a made-up, meaningless title crafted to entice consumers to fork over their money.
The internet is filled with information, and a quick search can help consumers find practically anything and everything about a company. If the company doesn’t have a website (or has a website that looks less than professional), isn’t registered to do business in the state, or has a host of negative reviews, consumers should run.
Scammers are masters of making outlandish promises. They will tell consumers their interpretation of the law and how they have a system that uses a rule or statute to go around the law or regulation. It may sound official, it may sound good, but any legal advice they offer should always be verified by a licensed attorney.
Scammers know that consumers facing mortgage defaults and foreclosure are under significant stress. They use this to their advantage and prey on people eager for a way out of their financial predicament. Consumers contacted by these fraudsters should always be skeptical, should never pay for the “help,” and should guard personal details, deeds, and other documentation carefully.
Finally, the US Department of Housing and Urban Development offers free loan modification counseling. Consumers can contact the nearest office and learn more about the options available to them and the steps required to complete a proper loan modification.
Plaintiffs can pursue expectation, restitutionary, general, special, and reliance damages when signatories to a contract fail to fulfill their contractual obligations. In Nevada, a plaintiff must establish that the defendant breached the contract and that the breach caused the plaintiff harm. Depending on the types of damages, the court may use the market value measure or cost expectancy measure to determine the final damage award.
In Nevada, there are four (4) essential elements required to establish a breach of contract claim. The essential elements of a claim for breach of contract are:
1. The existence of an enforceable agreement between the parties;
2. Plaintiff’s performance (or ability to perform);
3. Defendant’s unjustified or unexcused failure to perform; and
4. Damages resulting from the unjustified or unexcused failure to perform.
Plaintiffs in Nevada breach of contract claims can pursue the following types of damages from the defendant(s):
COVID-19 has created contractual ripples that are rolling across the country and businesses should confirm their legal obligations before assuming they’re protected by a force majeure clause. Business owners should not make this assumption without first consulting with their attorney. In many instances, these clauses do not protect business owners against failure to perform contractual obligations in the midst of a pandemic.
Does Coronavirus qualify as an “act of God”? In most cases, Force Majeure would refer to hurricanes, tornadoes, floods, fires, etc. Most contracts allow parties to the contract to forego, postpone, or cancel contractual obligations when these events prevent them from fulfilling the terms of the contract.
However, most force majeure clauses are specific in their scope and the events that are covered. Because global pandemic wasn’t on the minds of most when these contracts were drawn up, there is a possibility that most businesses are not protected.
For many business owners, the events of the past months were completely out of their control. To various degrees, governments across the country closed businesses and restricted commerce. This resulted in significant supply chain disruptions and other ripples that prohibited many businesses from providing services and products for suppliers, distributors, clients, and employees.
Indeed, there are justifiable arguments that these events were beyond control of business owners. However, for business owners with “beyond control” language in their contracts, they must demonstrate that these closures and surrounding events prohibited them from fulfilling their contractual obligations.
If a business can’t claim protection under force majeure, it may be possible to apply the doctrine of frustration. Essentially, a business may be able to argue that the events were unforeseeable and uncontrollable, and created conditions that made it impossible for the business to fulfill their contractual obligations.
For example, if a supplier was unable to deliver certain critical components because of a factory shutdown thus preventing the business owner from completing and furnishing a finished product to a customer, this may be considered frustration.
This is similar to the doctrines of impossibility and impracticability of performance. Because the shutdowns were ordered by city and state governments, businesses may be able to argue that a supervening prohibition by law prevented them from performing as agreed upon in the contract. However, it is important to understand that such provisions do not excuse non-performance based on changing economic circumstances or changes in market conditions.
During these uncertain times, it is in the best interest of all parties to a contract to try to work together and do all that they can to satisfy their obligations under the contract in an attempt to avoid litigation. However, if the parties are not able to reach an amicable resolution, it is important to consult an attorney.
People and businesses that are involved in the real estate market in Nevada and Northern California are encountering significant changes in how the industry functions because of COVID-19. The pandemic has decimated certain real estate sectors like short-term/vacation rentals and has changed the way that brokers and agents perform their jobs. Mortgage interest rates have plummeted, and former vacation rentals are now being listed for sale. The pandemic has rattled financial markets around the world and is now impacting real estate. What will the future hold?
As the pandemic took hold in the U.S., mortgage interest rates fell sharply. In early March, they fell to a low of 3.29%. Currently, average mortgage interest rates are hovering around 3.342%. The falling interest rates have created an opportunity for people with existing mortgages to refinance their mortgage loans for a better rate so that they can pay off their homes faster. It has also drawn more buyers into the market because of the availability of cheaper financing. This could result in sellers raising their asking prices to pre-pandemic levels.
Brokers and agents have had to make adjustments to how they perform their jobs. While they previously might have met prospective buyers and shown homes to them in person, the pandemic has forced brokers and agents to rely more on virtual tours. As short-term/vacation rental homes have sat empty, more of them are being listed for sale. The increase in inventory is creating a buyer’s market at a time when many Americans have lost their jobs and are feeling the pinch of the economic downturn. Despite these problems, the housing market has since rebounded in Nevada.
Since interest rates are low, the pandemic has created a good market for investors. The delays and price drop initially caused by the stay-at-home order and general anxiety have stopped. In Reno, for example, the median home prices increased to $435,000 in July, which was a 7.4% increase from the median home prices in June and a record for the market. Year-to-year, the increase from July 2019 to July 2020 was 7.1%. Closing delays are also no longer occurring. Deals are closing quickly, and the number of homes sold increased by 29.8% in July as compared to June. In Las Vegas, the number of homes sold in July versus June increased by 34.9%, and there was a year-over-year increase of 5.1%. While it is too early to tell the long-term effects of the unemployment rate and possible consequences on the real estate market, the current state of things in the local industry is looking up.
Technological advancements have a profound impact on the real estate industry. In today’s digital world, people and businesses rely on cell phones, email, the internet, and other technologies to stay connected and perform a range of tasks. Just as they have made day-to-day tasks easier, such advances have revolutionized how buyers, sellers, and agents in the real estate market operate.
Thanks to websites, home search apps, and other technologies, potential homebuyers have more access to information than ever before. When considering purchasing a home or a commercial property, buyers often look at the area demographics, crime statistics, school details, and other such information to help guide their decisions. Rather than searching for such information one topic at a time, real estate search websites and apps often include these details with the other property information.
Technological developments have improved and simplified the experience of buying a home. Websites and real estate search apps put property listings at potential buyers’ fingertips, allowing them to access the pertinent details for the property, look at pictures, and even take virtual tours. According to a survey by the National Association of REALTORS, 78% of Generation Xers, 80% of younger Millennials, and 81% of older Millennials used mobile devices to find their homes in 2018. The advent of these real estate resources lets people look for properties in almost any location from anywhere.
Technology has opened up the possibility of investing in real estate to a much wider group. Purchasing real estate as an investment was once widely considered an opportunity only for the wealthy. However, through real estate crowdfunding websites, small investors and individuals can now purchase partial ownership in properties; similar, for example, to the way people may invest in partial shares of mutual funds, stock, or bonds.
Although technology has benefitted the real estate market as a whole, it has also created the potential for legal mishaps. While email and text communications help expedite the process, realtors and sellers/buyers alike still must be cautious and make sure that all material terms to a transaction be documented in writing and included in final contract documents. For instance, an email regarding a change in terms should be transferred to a written addendum to the contract. The final contract is binding so agreements made solely via text or email can create ambiguities and potential problems should a future lawsuit arise.
