Legal Question in Real Estate Law in Nevada
non-refundable earnest deposit
I entered into a bidding war for real estate in Nevada. I won by offering 2000 cash over the asking price for the house and agreeing to a $10000 non refundable deposit. The contract is signed by both buyer and seller. It simply states that the buyer has accepted a non refundable deposit of 10000. It also states that the seller will lease-back the property after close of escrow for a period not to exceed one month. The appraiser found the property to be 7500 less than the asking price, not to mention the 2000 cash given to the buyer. Furthermore, the seller's have since claimed that a surround sound stereo system that they led me to believe came with the property is not now included. I am in a weak position and have no negotiating leverage. The property has also not been inspected yet and I have no recourse on this either. My only hope might be Nevada disclosure law. I did not receive any disclosure form on this property. Can I get out of this agreement based on the fact that I did not receive any disclosure form? PLEASE HELP ME
1 Answer from Attorneys
Re: non-refundable earnest deposit
You don't mention whether Realtors were involved in the transaction. If you had a buyer's broker, you should lean on that person to help resolve these problems. If not, the purchase agreement must be examined by someone knowledgable in the pertinent law in Nevada.
There may well exist a way for you to get out of the transaction. For example, if the offer was made contingent upon being able to secure financing, and you cannot now do so (due to the low appraisal), you can cancel the purchase, and probably be entitled to refund of both the earnest money deposit and the $2000 "kicker" you gave. If it was to be a cash purchase, this won't, of course, apply.
Disclosure requirements in Nevada vary according to what kind of seller is involved in the transaction. If you are buying from a developer, and you are the "initial purchaser" of the property, the requirements are much more stringent. If this is a completely "private" purchase (from one individual to another), disclosure requirements are different. In either case, the disclosure must be made more than 10 days before "conveyance," generally defined as the close of escrow in a sale like yours. If the seller fails to serve you a completed disclosure form, you may rescind the agreement.
If the problem with the overpricing is simply that you offered more than the property was worth (according to the appraiser), you may be stuck with the deal you struck. You should have gotten an appraisal BEFORE making the offer and not offered more than the fair value of the house.
If you are in northern Nevada, and would like to have an attorney review the agreement for any such potential "weasel" clauses, please call my office at 775-358-1958. I would be happy to provide a free initial consultation.
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