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?
1 Answer from Attorneys
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.
Related Questions & Answers
What happens after death to a single person's property that lives in an apartment?... Asked 6/05/13, 2:11 pm in United States Nevada Real Estate and Real Property
Suv crashed into my home is home insurance enough? Asked 5/14/13, 12:31 pm in United States Nevada Real Estate and Real Property
My stetdaughter lives in Las Vegas. Her and her husband bought a house at the high... Asked 5/10/13, 6:36 am in United States Nevada Real Estate and Real Property
Situation: A married couple bought a house in Nevada after being married. The... Asked 4/05/13, 11:37 pm in United States Nevada Real Estate and Real Property
In the state of nv is there a law where the buyer/seller cannot talk or contact the... Asked 2/17/13, 11:19 am in United States Nevada Real Estate and Real Property