Legal Question in Real Estate Law in Nevada

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.