Evictions After Foreclosure in Nevada

Nevada has enacted laws dealing specifically with evictions after foreclosure.  The applicable statutory scheme depends on whether the eviction involves a former property owner or the previous property owner’s tenant.  Here is an overview of Nevada’s eviction procedure for both scenarios. 

The Foreclosure Process

The most common foreclosure process in Nevada is the trust deed foreclosure contained in NRS Chapter 107.  The lienholder must first serve a 90 Day Notice of Default and Election to Sell on the defaulting homeowner. 

After this Notice expires, the lienholder must then serve a Notice of Sale on the homeowner. This notice advises the landlord that the dwelling will be sold 21 days (or more) after the notice is recorded. The landlord can pay the lienholder in full and stop the foreclosure up to five days before the sale date.  If that does not occur the dwelling will be sold at auction.

Evicting the Former Owner After Foreclosure

If the former owner is occupying the property after a foreclosure, the new owner is required by law to give him a three-day notice to vacate the premises pursuant to NRS 40.255(1). If the former owner chooses not to leave within 3 days, the new owner can initiate formal eviction proceedings against him. The “summary” eviction process found in NRS 40.253-40.254 cannot be used to evict a former owner after a foreclosure.  

The “formal” eviction process involves stricter rules than the “summary” eviction procedure authorized by Nevada law. It involves filing an eviction lawsuit in court and pursuing that action to a judgment, which will result in a Writ of Restitution directing the sheriff or constable to forcibly remove the former owner from the property.  The Nevada court can rule that the previous owner must pay for the new owner’s attorneys’ fees and court costs as well.

Evicting the Former Owner’s Tenant(s) After Foreclosure

Evicting a former owner’s tenant(s) involves a different process found in NRS 40.25.  This statute requires the former owner to provide notice to the tenant that the ownership of the property has changed. This notice will permit the tenants to stay in the property for a minimum of 60 days.  The Notice must contain specific information, including the following:

  • The name and address of the person who will be collecting the rent
  • That the lease of the previous landlord will remain the same until the lease expires.
  • That the tenants’ failure to pay the rent will result in the commencement of the eviction process

During the notice period, the new owner and former owner’s tenants have the same rights and obligations as other landlords and tenants in Nevada. For example, if the tenant violates the lease or Nevada Law involving a tenant’s obligations to the landlord or the property, the new owner can evict them.  The tenants must continue to pay the rent as long as they live in the dwelling pursuant to NRS 118A.210. If rent is not paid, the landlord can evict the tenants with a 7 day pay rent or quit notice.

The tenants also have the right to leave without any penalties or obligation to the new owner.  The parties are also free to negotiate a new lease or a “cash for keys” transaction involving payment to the tenants in exchange for their agreement to vacate the property on a date certain. 

Please contact Lynx Legal at 888-441-2355 or with any questions regarding the above, or if you are ready to start a case. Our experienced professionals are standing by to assist in any way we can.

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