Legal Question in Real Estate Law in Nevada

Seller of residential property refuses to sign Escrow EDM of $20K after buyer (me) was denied loan which was a contingency in the RE contract. What are my options to get my deposit returned?

Asked on 6/14/13, 9:22 pm

1 Answer from Attorneys

Rick Williams Law Offices of Frederick D. (Rick) Williams, Chtd.
0 users found helpful
0 attorneys agreed

That's a huge earnest money deposit for a residence. If, indeed, approval of your loan was a precondition to performance of the contract, you should be able to escape without paying any penalty. You may be compelled to prove you have been denied and did not just drop the application and approval process.

You may need an experienced Nevada real estate attorney to draft a demand letter to the seller, citing to (for example) Nevada Revised Statute 645A.175: "Duty to execute documents necessary to release money deposited in escrow." Enforcement of the contract provision that made your loan qualification a condition of going forward will be your goal. Do not count on the unbiased title/escrow company to support you, as they will sooner deposit the money with the court and force you and the seller to formally litigate over it in what is called an interpleader action. That could become rather expensive and your money could be tied up by the dispute for a couple years.

Try to use honey to catch this fly, instead of vinegar, and you may get out of the contract without incurring thousands of dollars in legal fees.

Read more
6/18/13, 5:11 pm

Related Questions & Answers

More Real Estate and Real Property questions and answers in Nevada

Looking for something else?

Get Free Legal Advice

88122 active attorneys ready to answer your legal questions today.

Real Estate and Real Property Legal Forms

Browse and download our attorney-prepared and up-to-date legal forms from $4.99

Find a Legal Form

Featured Attorneys

Anthony RoachLaw Office of Anthony A. RoachChatsworth, CA
Terry A. NelsonNelson & LawlessRiverside, San Bernardino, CA
Timothy McCormickLibris Solutions - Dispute Resolution ServicesSan Francisco, CA
Find An Attorney

Are you an Attorney?

Earn additional revenue and grow your business. Join LawGuru Now