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Meritage Homes of Nevada sent registered letter refusing to return my ...

Sent to General Experts July 24 2006 at 8:32 AM
   

Meritage Homes will not release my security deposit ($3500) due to non-performance on my behalf. My rationale: similar new house being built across the street from my just completed house was selling at a $20000 discount. I discussed this prior to my close of escrow with Meritage sales and loan officers. Meritage claims since I did not close the agreement was terminated due to non performance and my earnest deposit money is non-refundable.

 

Customer (name blocked for privacy)
Status:  Closed   Value: $15
Info Request
July 24 2006 at 8:41 AM (8 minutes and 30 seconds later)
         
REPLIED to Info RequestCheck Mark

Do you have any contract or other paper signed by you that implicitly states "earnest deposit money is non-refundable"?



The answer is an advisory opinion (not legal or financial advice). After accepting the answer bookmark it - you may return to this page later for reference or to ask for clarification. Appreciate your positive feedback.
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Lev -- Money-Tax,Investment,Collectibles -- 100% Positive Feedback on 125 General Accepts
Three years with HRB
Reply
July 24 2006 at 9:12 AM (30 minutes and 48 seconds later)
         
Reply to Lev's Post: No, there is a section of the contract 19.3 "notwithstanding any other provision in this agreement, if a dispute arises between buyer and seller prior to closing and such dispute cannot in the sole and sbsolute judgement of seller be resolved to the mutual stisfaction of both parties then seller shall have the absolute right upon written notice to buyer to terminate the agreement and return the deposit and any and all other sums actually received by seller from buyer hereunder as partial payments of the purchase price and no cause of action shall accrue to or on behalf of buyer as a result of or in connection with such termination"
Customer (name blocked for privacy)
Answer
July 24 2006 at 9:52 AM (40 minutes and 6 seconds later)
         
ACCEPTEDCheck Mark

Most earnest money is held by real estate brokers. Whenever a licensed real estate firm or agent holds any earnest money, it must be deposited in a trust or escrow account until closing.

Please verify if your purchase contracts do not have a rescission (“cooling off”) period. The 19.3 paragraph from the contract doesn't give the right to hold earnest money.

According to the terms of the standard Offer to Purchase and Contract and the rules governing real estate brokers, if there is a dispute between buyer and the seller over an earnest money deposit, the broker must continue to hold the funds in trust until the dispute is resolved in writing or until a court decides the matter. For disputes less than $5000 you may bring the case in Small Claims Court - http://www.co.clark.nv.us/justicecourt_lv/smallclaim.htm



The answer is an advisory opinion (not legal or financial advice). After accepting the answer bookmark it - you may return to this page later for reference or to ask for clarification. Appreciate your positive feedback.
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Lev -- Money-Tax,Investment,Collectibles -- 100% Positive Feedback on 125 General Accepts
Three years with HRB
Reply
July 24 2006 at 10:11 AM (19 minutes and 21 seconds later)
         
Reply to Lev's Post: The Chicago Title Company had the $3500 deposit but gave it to Meritage Homes in May. I would have closed on this house in April. I contacted the Sales and Mortgage departments that regarding the $20,000 discount on the house across the street, I even discussed my sales position changed since I originally signed the contract and I now make less money and was concerned about the house payment. I went back and forth between the Meritage Mortgage and Meritage Sales and finally Chicago Title seeking the deposit. I contacted Chicago Title who informed me that they are supposed to return the deposit to the builder according to Section 19.1 of remedies in the contract. Chicago claims I need to get the deposit back from the Meritage Sales. I contacted the vice president/marketing and received a registered letter claiming my non-performance made my deposit non-refundable.
Customer (name blocked for privacy)
Answer
July 24 2006 at 11:34 AM (1 hour and 23 minutes and 18 seconds later)
         
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Lev -- Money-Tax,Investment,Collectibles -- 100% Positive Feedback on 125 General Accepts
Three years with HRB
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