Category Archives: NV Cases

Significant case law in Nevada

Important Nevada Law About Tax Lien Certificates and Collection of Tax Liens for Investors

This is a reprint of some of the laws pertaining to collection of tax liens for persons who have invested in Nevada Tax Lien Certificates, which they may have purchased in Las Vegas (Clark County) or Douglas County, or any other Nevada county that sells tax lien certificates.

“NRS” means Nevada Revised Statutes.  These are the laws current as of the July 16, 2012.

Sales of Tax Liens

NRS 361.731  “Tax lien” defined.  As used in NRS 361.731 to 361.733, inclusive, unless the context otherwise requires, “tax lien” means a perpetual lien which remains against a parcel of real property until the taxes assessed against that parcel and any penalties, interest and costs which may accrue thereon are paid.

(Added to NRS by 2005, 508)

NRS 361.7312  Authority of county to sell tax lien; prohibited purchasers.

1.  Except as otherwise provided in this section, a county may, in lieu of the remedies for the collection of delinquent taxes set forth in NRS 361.5648 to 361.730, inclusive, sell a tax lien against a parcel of real property upon which the taxes are delinquent pursuant to the provisions of NRS 361.731 to 361.733, inclusive.

2.  Except as otherwise provided in this section, a county may sell a tax lien to any purchaser. A county may not sell a tax lien to a government, governmental agency or political subdivision of a government, or to any insurer other than an insurer that:

(a) Is entitled to receive the credit set forth in NRS 680B.050 because it owns and substantially occupies and uses a building in this State as its home office or as a regional home office; or

(b) Issues in this State a policy of insurance for medical malpractice.

3.  For the purposes of this section:

(a) “Insurer” has the meaning ascribed to it in NRS 679A.100.

(b) “Policy of insurance for medical malpractice” has the meaning ascribed to it in NRS 679B.144.

(Added to NRS by 2005, 509)

NRS 361.7314  Adoption of procedure for sale and transfer of tax liens by county treasurer.

1.  Before a county may offer for sale tax liens against parcels of real property located within the county, the board of county commissioners of that county must adopt by resolution a procedure for the sale and transfer of tax liens by the county treasurer.

2.  The procedure must include, but is not limited to:

(a) The requirements for notice of the sale of the tax lien. The notice must include:

(1) The date, time and location of the sale; and

(2) An indication of all other tax liens against the property that have been previously sold.

(b) The manner in which:

(1) A tax lien is selected for sale;

(2) The price to purchase a tax lien is determined; and

(3) The holder of a certificate of purchase issued pursuant to NRS 361.7318 may collect the delinquent taxes, interest, penalties and costs on the parcel of real property which is the subject of the tax lien.

(Added to NRS by 2005, 509)

NRS 361.7316  Sale of tax lien by county treasurer: Time and conditions of sale; scope of lien; method of payment; enforcement of unsold lien.

1.  A county treasurer may sell a tax lien against a parcel of real property after the first Monday in June after the taxes on that parcel become delinquent if:

(a) The parcel is on the secured roll;

(b) The taxes on the parcel are delinquent pursuant to the provisions of NRS 361.483;

(c) The tax receiver has given notice of the delinquency pursuant to NRS 361.5648; and

(d) The price for the tax lien established by the county treasurer is at least equal to the amount of the taxes which are delinquent for the parcel and any penalties, interest and costs which may accrue thereon.

2.  The county treasurer may sell a tax lien separately or in combination with other tax liens in accordance with the procedure adopted by the board of county commissioners pursuant to NRS 361.7314.

3.  Each tax lien must relate to the taxes assessed against the parcel for at least 1 year, and any penalties, interest and costs which may accrue thereon.

4.  The county treasurer may sell a tax lien which relates to the taxes assessed against the parcel for any year of assessment and any penalties, interest and costs accrued thereon if those taxes are delinquent pursuant to the provisions of NRS 361.483.

5.  If two or more parcels are assessed as a single parcel, one tax lien may be sold for that single parcel.

6.  A tax lien must be purchased in cash or by certified check, money order or wire transfer of money.

7.  If a tax lien offered for sale is not sold at the sale conducted by the county treasurer, the county may collect the delinquent taxes pursuant to the remedies for the collection of delinquent taxes set forth in NRS 361.5648 to 361.730, inclusive.

(Added to NRS by 2005, 509)

NRS 361.7318  Certificate of purchase: Issuance; rights of holder; contents; transfer; security interest.

1.  The county treasurer shall issue a certificate of purchase to each purchaser of a tax lien.

2.  The holder of a certificate of purchase is entitled to receive:

(a) The amount of the taxes which are delinquent for the year those taxes are assessed against the parcel of real property which is the subject of the tax lien and any penalties, interest and costs imposed pursuant to the provisions of this chapter; and

(b) Interest on the amount described in paragraph (a) which accrues at a rate established by the board of county commissioners. The interest must be calculated annually from the date on which the certificate of purchase is issued. The rate of interest established by the board may not be less than 10 percent per annum or more than 20 percent per annum.

3.  Each certificate of purchase must include:

(a) A description of the parcel of real property which is the subject of the tax lien;

(b) The years the taxes which are delinquent were assessed on the parcel;

(c) The amount the county treasurer received for the tax lien;

(d) The amount of the delinquent taxes owed on the parcel and any penalties, interest and costs imposed pursuant to the provisions of this chapter; and

(e) A statement that the amount indicated on the certificate pursuant to paragraph (d) bears interest at the rate established by the board of county commissioners, from the date on which the certificate of purchase is issued.

4.  The holder of a certificate of purchase may transfer the certificate to another person by signing the certificate before a notary public. A certificate of purchase may not be transferred to a government, governmental agency or political subdivision of a government. The transferee must submit the certificate to the county treasurer for entry of the transfer in the record of sales of tax liens maintained by the county treasurer pursuant to NRS 361.7322.

5.  Notwithstanding the provisions of NRS 104.9109, a security interest in a certificate of purchase may be created and perfected in the manner provided for general intangibles set forth in NRS 104.9101 to 104.9709, inclusive.

(Added to NRS by 2005, 510)

NRS 361.732  Issuance of duplicate certificate of purchase.  If the holder of a certificate of purchase requests the county treasurer to issue a duplicate certificate, the holder must submit to the county treasurer a notarized affidavit which attests that the certificate was lost or destroyed. The county treasurer shall, upon receipt of the affidavit, issue to the holder an exact duplicate of the certificate of purchase.

(Added to NRS by 2005, 511)

NRS 361.7322  Preparation and maintenance of record of each tax lien sold.  The county treasurer shall prepare and maintain a record of each tax lien he or she sells pursuant to the provisions of NRS 361.731 to 361.733, inclusive. The record must include:

1.  The date of the sale of the tax lien;

2.  A description of the parcel of real property which is the subject of the tax lien;

3.  The year the taxes which are delinquent were assessed on the parcel;

4.  The name of the owner of the parcel, if known;

5.  The name and address of the original purchaser of the tax lien;

6.  The amount of the delinquent taxes owed on the parcel and any penalties, interest and costs imposed pursuant to the provisions of this chapter on the date the county treasurer sells the tax lien;

7.  The name and address of any person to whom the certificate of purchase is transferred and the date of the transfer;

8.  The name of the person who redeems the tax lien, the date of that redemption and the amount paid to redeem the tax lien; and

9.  The date of any judgment entered pursuant to NRS 361.700.

(Added to NRS by 2005, 510)

NRS 361.7324  Procedure when taxes on parcel again become delinquent during year after tax lien sold.

1.  If a tax lien against a parcel of real property has been sold in the year immediately preceding the date that taxes on that parcel again become delinquent pursuant to NRS 361.483, the county treasurer shall:

(a) Collect the delinquent taxes in the manner set forth in NRS 361.5648 to 361.730, inclusive;

(b) Redeem the tax lien pursuant to NRS 361.7326; or

(c) Cause written notice of the delinquency to be sent by certified mail to the holder of the certificate of purchase who is listed in the record maintained by the county treasurer pursuant to NRS 361.7322.

2.  Within 90 days after receiving a notice from the county treasurer pursuant to paragraph (c) of subsection 1, the holder of the certificate of purchase may:

(a) Purchase from the county treasurer a tax lien against the parcel for the current year of assessment pursuant to NRS 361.7318; or

(b) Consent to the redemption of the tax lien pursuant to NRS 361.7326.

3.  If the holder of the certificate of purchase consents to the redemption of the tax lien pursuant to NRS 361.7326, the county treasurer shall:

(a) Redeem the tax lien pursuant to that section; or

(b) Sell the tax lien to another person, who shall redeem any previous tax lien pursuant to NRS 361.7326.

(Added to NRS by 2005, 511)

NRS 361.7326  Redemption of tax lien after sale: Authorized persons; amount of required payment; issuance and contents of certificate of redemption; recording of information.

1.  In addition to the persons authorized to redeem a tax lien pursuant to NRS 361.7324, any tax lien sold pursuant to the provisions of NRS 361.731 to 361.733, inclusive, may be redeemed by any of the following persons, as their interests in the parcel of real property which is the subject of the tax lien may appear of record:

(a) The owner of the parcel of real property.

(b) The beneficiary under a deed of trust.

(c) The mortgagee under a mortgage.

(d) The person to whom the property was assessed.

(e) The person who holds a contract to purchase the property before its conveyance to the county treasurer.

(f) The successor in interest of any person specified in this subsection.

2.  A person who redeems a tax lien must pay to the county treasurer the amount stated on the certificate of purchase of the tax lien, including interest at the rate stated on the certificate and any fees paid by the holder of the certificate of purchase to the county treasurer.

3.  If the person who redeems the tax lien has been served with a summons pursuant to NRS 361.670, the person must pay the costs incurred by the holder of the certificate of purchase to commence the action.

4.  The county treasurer shall issue a certificate of redemption to each person who redeems a tax lien pursuant to this section.

5.  A certificate of redemption issued pursuant to subsection 4 must include:

(a) A description of the parcel of real property which is the subject of the tax lien;

(b) The date the tax lien is redeemed;

(c) The name and address of the person who redeems the tax lien; and

(d) The amount paid to redeem the tax lien.

6.  The county treasurer shall record the information set forth in subsection 5 in the record he or she maintains pursuant to NRS 361.7322.

7.  A certificate of redemption may be recorded in the office of the county recorder.

(Added to NRS by 2005, 511)

NRS 361.7328  Redemption of tax lien after sale: Notification and payment of holder of certificate of purchase.

1.  The county treasurer shall, within 10 days after a tax lien is redeemed pursuant to NRS 361.7326, mail a certified copy of the certificate of redemption to the holder of the certificate of purchase of the tax lien.

2.  The county treasurer shall pay to the holder of the certificate of purchase the amount indicated on the certificate pursuant to NRS 361.7318 at the time the holder presents the certificate for payment.

(Added to NRS by 2005, 512)

NRS 361.733  Commencement of action for collection by holder of certificate of purchase.  If a tax lien is not redeemed pursuant to NRS 361.7326 within the time allowed for the collection of the delinquent taxes set forth in NRS 361.5648 to 361.620, inclusive, the holder of the certificate of purchase may commence an action for the collection of the delinquent taxes, penalties, interest and costs.

(Added to NRS by 2005, 512)