Nevada Revised Statutes 677.630 – Permissible transactions in real property
1. A licensee may purchase, hold, develop and convey real property, including apartments and other buildings, for the following purposes only:
Terms Used In Nevada Revised Statutes 677.630
- Appraisal: A determination of property value.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- mortgage: includes a deed of trust. See Nevada Revised Statutes 0.037
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) Real property conveyed to it in satisfaction of debts contracted in the course of its business.
(b) Real property purchased at sale under judgments, decrees or mortgage foreclosures or foreclosures of or trustees’ sales under deeds of trust, or pursuant to an order of a bankruptcy court. A licensee shall not bid against its debtor at any such sale in a larger amount than is necessary to satisfy its debt and costs.
(c) Real property necessary as premises for the transaction of its business. A licensee shall not invest directly or indirectly an amount exceeding one-third of its stockholders’ equity in the lot and building in which the business of the company is carried on, furniture and fixtures, and vaults, necessary and proper to carry on its business.
(d) Real property purchased or held for the purpose of development. An investment for this purpose must not exceed the market value of the property as evidenced by an appraisal prepared by a member of the American Institute of Real Estate Appraisers, the National Association of Review Appraisers and Mortgage Underwriters, the Society of Real Estate Appraisers or the Independent Fee Appraisers Society or an appraiser approved by the Commissioner. Within 120 days after the investment is made:
(1) The licensee shall provide the Commissioner with a certified copy of one or more appraisal reports and a report from a title insurer which shows, for not less than the immediately preceding 3 years, the chain of title and the amount of consideration for which the title was transferred, if that information is available.
(2) The Commissioner may require a statement from the licensee disclosing whether any director, officer or employee of the licensee has, or has had within the immediately preceding 3 years, any direct or indirect interest in the property. For the purposes of this subparagraph, ‘interest’ includes ownership of stock in a corporation which has an interest in the property. If the total amount to be invested in real property for residential development, excluding any real property which is mortgaged to the licensee as security for money owing to the licensee, exceeds the stockholders’ equity of the licensee, the investment may not be made without the written approval of the Commissioner. Any person who fails to make a disclosure required by this section is guilty of a misdemeanor.
2. No real estate acquired pursuant to paragraph (a) or (b) of subsection 1 may be held for a longer period than 5 years unless it has been improved by the licensee and is producing a fair income based upon the appraised value.