SellingNorthernNV

Quality Real Estate News and Market Data

Duty to execute documents to release earnest deposit

In today’s market of short sale and REO transaction, there is a common problem I’ve been encountering when these transactions go south. It can sometimes be difficult to get the other party (typically the seller) to sign cancelation instructions which are needed in order to have the buyer’s earnest deposit (or any other money) refunded.

The following Nevada Revised Statute addresses this problem:

NRS 645A.175 Duty to execute documents necessary to release money deposited in escrow; exception for good faith disputes; recovery of damages for failure to execute; award of attorney’s fees.

1. Except as otherwise provided in subsection 2 or in the escrow agreement between the parties and the holder of the escrow, upon the close of an escrow for the sale of real property or on the date the escrow is scheduled to close if it has not closed, each party shall execute the documents necessary to release the money deposited in the escrow.

2. A party may refuse to execute a document necessary to release the money deposited in the escrow only if a good faith dispute exists concerning that money.

3. Except as otherwise provided in NRS 645.8701 to 645.8811, inclusive, if a party refuses to execute a document necessary to release the money deposited in the escrow within 30 days after the holder of the escrow makes a written request for the execution, the party injured by the failure of the other party to execute the document may collect from that party:

(a) Actual damages of not less than $100 nor more than 1 percent of the purchase price of the real property for which the money was deposited in the escrow, whichever is greater;

(b) The money deposited in the escrow which was not held to resolve a good faith dispute concerning the sale of the property; and

(c) A reasonable attorney’s fee.

(Added to NRS by 1995, 1527; A 1999, 1180)

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my blog at www.SellingNorthernNV.com

Joshua Talayka
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521


About The Author

Josh Talayka
Aside from my knowledge and experience in the Real Estate Industry, i also bring to the table a background in both Retail Sales and the Information Technology Industry. My Sales experience gives me the ability to handle objections easily and quickly take control in any negotiation. Whether you are looking to buy or sell, I guarantee that with me in your corner you’ll have the upper hand throughout the transaction. My experience in the Information Technology Industry gives me a unique edge in today’s high paced, internet driven world.

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