NV Assembly Bill 284 | NNA
Law

NV Assembly Bill 284

Notary Law Update: NV Assembly Bill 284

State: Nevada

Summary:

Assembly Bill 284 stiffens penalties for the offense of mortgage fraud and also defines the new crime of “making a false representation concerning title.” The offense is broadly defined, but may be specifically committed by any person who notarizes a document purporting to create in interest in, or a lien or encumbrance against, real property.

Signed:  May 20, 2011

Effective:  July 01, 2011

Chapter: 81

Affects:

Amends Sections 205.372 and 205.395 of the Nevada Revised Statutes

Changes:
  1. Amends the definition of “mortgage fraud.” (Note: the definition applies in any “mortgage lending transaction” which includes the step of “execution of any document in connection with making or obtaining the loan” – which would necessarily involve Notary Signing Agents.
  2. Prescribes that in addition to a class C felony conviction punishable by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years, or by a fine of not more than $10,000, or by both fine and imprisonment, any person who commits mortgage fraud is subject to a civil penalty of not more than $5,000 for each violation and is liable for the Attorney General’s costs in bringing the matter before the court.
  3. Additionally prescribes that the owner or holder of the beneficial interest in real property which is the subject of mortgage lending fraud may bring a civil action in the district court in and for the county in which the real property is located to recover any damages suffered by the owner or holder of the beneficial interest plus reasonable attorney's fees and costs.
  4. Includes in the new definition of the offense of “false representation concerning title” executing or notarizing a document purporting to create an interest in, or a lien or encumbrance against, real property that is recorded in the office of the county recorder in which the real property is located, with knowledge or reason to know that the document is forged or groundless, contains a material misstatement or false claim or is otherwise invalid.
  5. Prescribes that making a false representation concerning title is a class C felony punishable as stipulated in NRS 193.130.
  6. Defines the term "pattern of making false representations concerning title" as one or more violations of making a false representation of title committed in two or more transactions: (a) which have the same or similar pattern, purposes, results, accomplices, victims or methods of commission, or are otherwise interrelated by distinguishing characteristics;   (b) which are not isolated incidents within the preceding 4 years; and (c) in which the aggregate loss or intended loss is more than $250.
  7. Prescribes that a person who engages in a pattern of making false representations concerning title is guilty of a category B felony punishable by imprisonment in the state prison for a minimum term of not less than 3 years and a maximum term of not more than 20 years, or by a fine of not more than $50,000, or by both fine and imprisonment.
  8. Additionally prescribes that any person who makes a false representation of title is subject to a civil penalty of not more than $5,000 for each violation and is liable for the Attorney General’s costs in bringing the matter before the court. Finally, bill also permits the owner or holder of the beneficial interest in real property which is the subject of a false representation concerning title to bring a civil action in the district court in and for the county in which the real property is located to recover any damages suffered by the owner or holder of the beneficial interest plus reasonable attorney's fees and costs, provided the owner or holder of the beneficial interest in the real property first sends a written request to the person who made the false representation to record a document which corrects the false representation. If the person records such a document not later than 20 days after the date of the written request, the owner or holder of the beneficial interest may not bring the civil action. 
Analysis:

Assembly Bill 284 stiffens penalties for the offense of mortgage fraud and also defines the new crime of “making a false representation concerning title.” The offense is broadly defined but may be committed specifically by any person who executes or notarizes any document purporting to create in interest in, or a lien or encumbrance against, real property. This includes any Notary or Notary Signing Agent who runs afoul of this new provision. The penalties are stiff. A person who makes a false representation concerning title may be convicted of a class C felony with hefty fines and/or imprisonment, may incur a civil penalty of up to $5,000 for each violation and reimbursement of the Attorney General’s court costs, and also may be subject to a civil action for any damages suffered by the person against whom the offense was committed, including reimbursement of the person’s court costs. However, the victim of the false representation of title may not bring the civil action if the victim requests the person who made the false representation to record a document which corrects the false representation and such document is recorded not later than 20 days after the date of the written request.

Read the bill text.

Knowledge Center