Sandoval signs bill to reform Nevada construction defect law

The bill saw final approval in the Legislature on Friday, when Senate Republicans beat back efforts by Democrats to amend Assembly Bill 125 and passed the measure on a party-line vote.

“During my State of the State address, I challenged the Legislature with passing meaningful construction defect reform,” Sandoval said in a statement. “They have met that challenge with the Homeowner Protections Act, which discourages frivolous litigation and strengthens Nevada’s rebounding housing market.

“This piece of legislation incorporates bipartisan perspectives brought forth by policymakers and leaders of industry for more than a decade,” he said. “I would like to thank Assemblyman Ira Hansen for leading on this issue.”

The bill takes effect immediately.

Called the Homeowner Protections Act of 2015 by supporters, the legislation restricts the definition of what constitutes a home defect, repeals a provision allowing attorney fees and costs in a home defect judgment, and requires specific descriptions of defects.

It also reduces the statute of limitations to six years from as many as 10 years in current law and disallows homeowner association boards from filing a defect suit on behalf of homes within their communities.

Democrats argued the bill went too far in restricting the legal rights of homeowners to fix problems with their homes.

Sen. Aaron Ford, D-Las Vegas, called the measure the “homeowner rejection” act rather than a homeowner protection act at a joint hearing on the bill.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.