Legal Question in Real Estate Law in Nevada

sellers' default in not being able to finish a new home

We entered into a Real Estate and Sale Agreement to buy a new home. The seller is unable to complete the premises to our satisfaction. Certain items in the agreement have not been installed, e.g. an underground sprinkler system. Although given a list of items to be corrected perhaps only 20% have been corrected. One such item was to repaint the interior due to paint being too thin. This hasn't been done. All of this has resulted in a number of inconveniences to us. We've made an earnest money deposit of $18,000. What are our options under the circumstances and how should we proceed?


Asked on 4/02/01, 3:43 pm

1 Answer from Attorneys
Rick Williams Law Offices of Frederick D. (Rick) Williams, Chtd.

Re: sellers' default in not being able to finish a new home

One option is for you to assert your rights under the default provisions of the agreement, and back out of the purchase (and receive refund of your earnest money deposit). If, however, you are still interested in completing the purchase, the real estate broker can direct the escrow agent to withhold sufficient funds from the sellers' proceeds to complete all the repairs. This may require that an estimate be done by a contractor, or the brokers (assuming there are two involved) may mutually agree on a sum that will be enough to ensure the work is completed. I hope you engaged a "buyer's broker" in the deal, and are not relying just on the listing broker, whose primary loyalties are to the sellers. Lean on your representative in the transaction (your broker) to properly represent your interests here. I guarantee he or she has encountered this in many transactions, and will know just what to do to compel completion of the conditions of sale.

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Answered on 6/07/01, 4:26 pm


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