Nevada enacts new tenant rights during property ownership changes

On February 26, 2025, the Nevada State Legislature introduced Assembly Bill 283, aimed at addressing tenant rights and responsibilities in the context of property ownership changes, particularly following residential foreclosures. The bill seeks to clarify the legal framework surrounding the notification process for tenants when a property is sold, ensuring that their rights are preserved during transitions in ownership.

Key provisions of AB283 stipulate that if a property has been sold through foreclosure, tenants or subtenants who are not named on the mortgage or deed may be removed from the premises after receiving a notice of change in ownership. This notice must be provided with a specific timeframe for tenants to vacate, depending on the type of tenancy. For periodic tenancies of less than one month, the notice period aligns with the duration of the tenancy, while for other tenancies, a minimum of 60 days is required.

The bill also mandates that during the notice period, the new owner assumes the rights and obligations of the previous landlord, ensuring continuity in the lease agreements. Tenants are to be informed of the new owner's contact information for rent payments and reminded that their existing lease remains in effect until the notice period concludes.

Debate surrounding AB283 has highlighted concerns from tenant advocacy groups, who argue that the bill may facilitate quicker evictions without adequate protections for vulnerable renters. Opponents emphasize the need for more robust safeguards to prevent unjust evictions, particularly in a housing market where many are already facing financial hardships.

Economically, the bill could have significant implications for both landlords and tenants. Proponents argue that it streamlines the process for property owners, potentially encouraging investment in rental properties. However, critics warn that it may exacerbate housing instability for tenants, particularly those who are already at risk of displacement.

As the legislative process unfolds, experts suggest that the bill's passage could lead to increased scrutiny of tenant rights in Nevada, potentially prompting further legislative efforts to balance the interests of landlords and renters. The outcome of AB283 will likely set a precedent for future housing policies in the state, making it a critical issue for stakeholders on both sides of the housing debate.