- Author: George Haines
- Published
Section NRS 107.080 of the Nevada Revised Statutes governs the “power of sale” process in a deed of trust, giving trustees the authority to foreclose non-judicially when a borrower defaults.
This statute specifically applies to debt secured by a deed of trust, where the borrower’s obligation to repay is secured by the property as security for the debt. It outlines the legal steps, notice requirements, timelines, and borrower protections involved in a foreclosure sale. Freedom Law Firm’s experienced Nevada foreclosure defense attorneys explain how it works and what every homeowner should know.
What Does NRS 107.080 Cover?
At its core, NRS 107.080 defines how a trustee may sell real property when a borrower defaults on the loan secured by a deed of trust—the document commonly used instead of a mortgage in Nevada. Trust agreements are subject to the requirements of NRS 107.080.
The statute details:
- Power of sale: The trustee’s legal authority to sell the property after default.
- Notice requirements: Exact timing, posting, mailing, and publication obligations before any sale, pursuant to NRS 107.080.
- Effects of sale: How ownership transfers to the buyer and how borrower rights end.
- Voiding a sale: Circumstances that make a foreclosure sale invalid.
- Record-keeping and fees: How deeds, notices, and fees must be filed and recorded with the county.
Unlike judicial foreclosure (handled through court), this process allows a lender to foreclose without filing a lawsuit—but only if strict statutory steps are followed.
Power of Sale Under a Deed of Trust
Most Nevada home loans are secured by a deed of trust rather than a traditional mortgage. This legal instrument involves:
- A trustor (the borrower),
- A beneficiary (the lender), and
- A trustee (a neutral third party with authority to sell the property if the borrower defaults).
Under NRS 107.080, a breach of the loan terms—typically by missing payments—gives the trustee the authority to exercise the power of sale. The trustee may exercise this power only after the breach of obligation and compliance with all statutory notice, waiting, and mediation requirements.
Borrower Protections and the Mediation Program
For owner-occupied homes, the law adds an extra layer of protection through the Nevada Foreclosure Mediation Program (NRS 107.086).
This program gives homeowners the opportunity to:
- Meet with the lender before the sale,
- Explore loan modification or repayment options, and
- Avoid unnecessary foreclosure when resolution is possible.
Failing to offer or complete required mediation can halt or invalidate a foreclosure sale.
To learn how Nevada’s foreclosure defenses work in practice, see:
👉 Can Bankruptcy Stop Foreclosure?
Notice and Timing Requirements
NRS 107.080 requires multiple formal notices before a trustee may sell a property. These steps ensure borrowers are informed and given a chance to cure the default.
1. Notice of Default and Election to Sell
- Must be recorded and mailed to the borrower.
- Initiates a waiting period of at least 15 days (if the property is owner-occupied) or 35 days (for other properties), plus an additional 3-month period before the sale can proceed. These specific day and time requirements are critical milestones in the foreclosure process.
- Must include the total amount owed and contact information for reinstatement.
2. Notice of Sale
- Must be provided by recording, mail, and public posting for at least 20 days before the auction.
- Must be published once a week for three consecutive weeks in a local newspaper or online for timeshare properties, meeting statutory week-based publication requirements.
- The sale must occur between 9 a.m. and 5 p.m. at a designated public place in the county.
Failure to comply with any of these notice or timing rules can make the sale voidable by the court.
Quick Reference Table: Key NRS 107.080 Requirements
| Step | Description | Minimum Waiting Period | Key Legal Reference |
|---|---|---|---|
| Notice of Default | Filed by trustee; mailed to borrower and beneficiaries | 15–35 days + 3 months | NRS 107.080(2)(a) |
| Notice of Sale | Posted, mailed, recorded, and published | 20 days before sale | NRS 107.080(4) |
| Trustee’s Deed | Must be recorded within 30 days after sale | — | NRS 107.080(5) |
| Right to Challenge | Borrower may file action if improper notice given | Within 30 days of sale | NRS 107.080(6) |
Trustee’s Duties and Record-Keeping Obligations
Under NRS 107.080, the trustee must record a trustee’s deed upon sale within 30 days after the auction.
Additional duties include:
- Posting a copy of the deed on the property within five days of recording. The trustee is required to post a copy of the trustee’s deed on the property within 5 days after recording.
- Filing the notice of default and election to sell with the county recorder, who collects applicable recording fees.
- Submitting a sworn affidavit—under penalty of perjury—identifying the debtor and detailing the amounts owed, missed payments, interest, and associated costs.
Failure to meet these statutory duties can result in civil penalties, damages, or an injunction halting the sale. Lenders and trustees can face significant consequences, including damages or voided sales, for failing to comply with NRS 107.080’s provisions.
When Can a Foreclosure Sale Be Declared Void?
The law allows a borrower to challenge a foreclosure sale if the trustee fails to comply with the statute. A homeowner may file a lawsuit within 30 days after the sale if:
- Proper notices were not recorded, mailed, or published.
- The waiting period was not observed.
- Mediation rights were denied or ignored.
- The trustee failed to record the deed within 30 days.
It is essential to respect all statutory procedures and the rights of the parties involved to ensure the validity and enforceability of the sale.
If the court finds a violation, it may:
- Void the sale,
- Award up to $5,000 or treble damages, and
- Issue an injunction preventing further action until compliance.
What Happens After a Trustee’s Sale?
After a compliant sale, the highest bidder receives a Trustee’s Deed, which conveys only the interest secured by the loan, not a warranty of title. In some cases, a successor in interest to the beneficiary may also exercise rights or receive the property following the sale. This deed vests ownership immediately—there is no right of redemption for the former owner once the sale concludes. Buying property at a foreclosure sale results in receiving a Trustee’s Deed, which conveys only the interest pledged to secure the loan without warranties about the title.
However, buyers at foreclosure auctions assume certain risks. If statutory procedures were defective, a court may later invalidate the transaction.
Why NRS 107.080 Matters for Homeowners
Understanding NRS 107.080 is crucial because it determines whether a foreclosure is lawful, voidable, or void.
It ensures:
- Homeowners receive proper notice and opportunity to respond,
- Trustees follow transparent, recorded procedures, and
- Courts can remedy non-compliance.
In short, this statute balances lender rights with homeowner protections, ensuring fairness in Nevada’s non-judicial foreclosure system.
When to Call a Nevada Foreclosure Attorney
If you’ve received a Notice of Default, Notice of Sale, or believe your foreclosure violated NRS 107.080, act immediately.
An experienced attorney can:
- Verify if notice and timing requirements were followed,
- Halt an unlawful sale,
- Represent you in mediation, and
- Explore bankruptcy as a way to stop foreclosure and keep your home.
Learn how legal action can help you regain control:
👉 Can Chapter 13 Bankruptcy Save Your Home from Foreclosure?
Key Takeaway
Section NRS 107.080 governs Nevada’s non-judicial foreclosure process.
It defines how a trustee may sell property after default, mandates strict notice and timing rules, and gives homeowners legal remedies if those requirements are violated. Staying informed—and getting legal help early—can protect your home and financial future.
Concerned your lender violated NRS 107.080?
Freedom Law Firm’s foreclosure defense team has helped hundreds of Nevadans stop illegal foreclosures, defend their rights, and save their homes.
Call 702-880-5554 or visit FreedomLegalTeam.com to schedule your free consultation today.
Resources
- Nevada Revised Statutes Chapter 107 – Deeds of Trust
- Nevada Foreclosure Mediation Program (NRS 107.086)
- U.S. Department of Housing and Urban Development – Avoiding Foreclosure
- Consumer Financial Protection Bureau – Foreclosure Protections
This content is for informational purposes only and does not constitute legal advice. Always consult a licensed Nevada attorney for advice regarding your specific situation.
