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Energy Consumption Evaluation - New Nevada Law Effective January 1, 2011

Attention Nevada Realtors!  In case you missed it...  Here is the information from GLVAR:

Beginning January 1, 2011, the seller of residential property must provide the purchaser with an evaluation of the energy consumption of the home on a form provided by the Nevada Energy Commissioner. The form must be provided prior to closing the sale, and certain exemptions apply.

Nevada Revised Statutes ("NRS") 701.250
How To Complete The Seller's Energy Consumption Evaluation Form


The new requirements are found in NRS 113.115, which was passed by the Nevada Legislature in 2007 and amended in 2009. The Nevada Energy Commissioner recently adopted regulations that provide a framework for the evaluation form. For a copy of the regulations, click here.

Note: All residential transactions that close on or after January 1, 2011 must comply with the new law. Either the evaluation form must be completed and provided to the buyer or the parties may waive the requirement by using the waiver form on the bottom of page 4 of the form.

Who should complete the form?

Like the Seller's Real Property Disclosure form, the energy evaluation should be completed and signed by the seller, not the real estate licensee. Alternatively, if the seller chooses to have an energy evaluation performed by a certified inspector, the inspector will complete and sign the form.

When must the form be provided?

NRS 113.115(2) states that the seller must provide the evaluation form "before closing a transaction for the conveyance of residential property." The law does not specify a date or a number of days prior to closing.

What transactions are exempt?

NRS 113.115(3) provides four exemptions:

1. By foreclosure pursuant to chapter 107 of NRS. (Note: This means the Trustee's sale; it does not mean an REO. REO transactions are not exempt under this provision.)
2. Between any co-owners of the property, spouses or persons related within the third degree of consanguinity.
3. By a person who takes temporary possession or control of or title to the property solely to facilitate the sale of the property on behalf of a person who relocates to another county, state or country before title to the property is transferred to a purchaser.
4. If the seller and purchaser agree to waive the requirements of subsection 1 [of NRS 113.115].

Additionally, per NRS 113.115(4), if the seller completed an evaluation within the previous 5 years before signing the purchase agreement with the buyer, the seller may provide that evaluation to satisfy the requirements of NRS 113.115(1).

May the buyer and seller waive the evaluation form?

Yes. When the buyer and seller mutually agree to waive the requirements of NRS 113.115(1), the evaluation is not required. The waiver is found at the bottom of page 4 of the form.

Does this new law apply to transactions already in escrow as of January 1, 2011?

Yes. The seller in any residential transaction that closes on or after January 1, 2011 must comply with the new evaluation form. If the parties choose to waive the requirement, use the waiver at the bottom of page 4 of the form.

If the seller provides the evaluation form, does the buyer have the right to cancel based on what's disclosed?

There is no independent statutory right of cancellation provided in NRS 113.115 or NRS 701.250. Thus, for a buyer to cancel based on what's disclosed on the evaluation form, it would have to arise from a contractual right such as the due diligence period.

Does the buyer have to sign the form?

Yes. The buyer signs on page 4 that he/she has received the evaluation form. From a risk management standpoint, a fully executed copy of the form should be kept in both the listing and buyer agents' files.


Jan O’Brien is an expert with the Las Vegas short sale process.   She is the co-author of the Certified Foreclosure Alternatives Consultant designation course.   Call Jan direct at 702-858-9191 to schedule a Foreclosure Alternatives Consultation today.

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