Scared of secret land deals in Nevada? Read this first

Have you ever been caught off guard in a real estate deal, only to find out later that crucial details were hidden from you? Many in Nevada face similar issues, and understanding the law is key to protecting yourself. This article guides you through a significant court ruling on escrow agents’ duty to disclose fraud, helping you navigate potential legal challenges. Read on to learn how the MARK PROPERTIES INC v. NATIONAL TITLE CO case might offer solutions for your situation.

Situation

Situation Example

In Nevada, there was a real estate deal that involved Mark Properties, Inc., a company that worked with Terra Vegas Corporation to buy a large piece of land in North Las Vegas. The deal was set up as a “double escrow,” which is when a property is bought and sold at the same time between different people, allowing one of them to make money. Mark Properties said they didn’t know the seller was Rowe Land, a company linked to Terra Vegas’s friend, and that this company made money from the deal. Mark Properties claimed they were not told the truth and thought the seller was someone unrelated, which they believed was fraud.

Judgment

The court decided that Mark Properties, Inc. had a point in their appeal. It ruled that National Title Company might have needed to tell about any known fraud to the involved parties. Because of this, the case against National Title was sent back to a lower court to see if they failed to do their duty. But the court agreed with Lawyers’ Title of Nevada, Inc., because Mark Properties was not part of their specific escrow, so they had no duty to inform them. (Case No. 32954)

Solution

Immediate Actions

If you find yourself in a real estate deal where you suspect something is wrong, the first thing to do is gather all your documents. This includes emails, contracts, and any communication related to the transaction. These documents will be crucial if you need to take legal action. Next, consider contacting a real estate lawyer who understands escrow laws in your state. They can help you understand your rights and what steps to take next. It’s also a good idea to communicate with the other parties involved to see if the issue can be resolved before things escalate.

Filing and Submitting a Complaint

To officially start a legal process, you will need to file a complaint. This is a document that you submit to the court that outlines your issue and what you want the court to do about it. Your lawyer can help you draft this document, ensuring it includes all necessary details like the names of involved parties, a description of the transaction, and why you believe there was wrongdoing. Once the complaint is ready, your lawyer will file it with the appropriate court. After filing, the court will schedule a time to hear the case, and both parties will prepare to present their sides.

Negotiation and Settlement Strategies

Before going to court, it’s often beneficial to try to settle the dispute out of court. This can save time and money. Your lawyer can help negotiate with the other party or their lawyers to reach a fair agreement. If both sides can agree on a settlement, it can be a quicker and less stressful solution than a court battle. During negotiations, be open to compromises, but also ensure your rights are protected. If a settlement is reached, make sure everything is documented in writing to avoid future issues.

FAQ

What is double escrow?

Double escrow is when a property is bought and sold at the same time in two separate deals. It usually involves an intermediary who buys the property from the original seller and then sells it to the final buyer on the same day.

Who is liable in fraud?

The person or party responsible for fraud is usually the one who lied or deceived someone else, causing them to lose money or suffer damage.

What is fiduciary duty?

Fiduciary duty is when someone, like a real estate agent, has a legal responsibility to act in the best interests of another person. They must prioritize the client’s interests above their own.

Is escrow agent liable?

An escrow agent can be liable if they know of fraudulent activities and do not inform the involved parties. However, they are not required to actively look for fraud.

What is summary judgment?

Summary judgment is a court decision made without a full trial. It’s granted when there are no significant facts in dispute, making a trial unnecessary.

Can escrow agent investigate?

Escrow agents are not required to investigate transactions for fraud. But if they know about fraud, they must tell the involved parties.

What is duty to disclose?

Duty to disclose means that people, like escrow agents, must tell others about important information or fraud that could affect a deal.

How is negligence proven?

Negligence is proven by showing that someone did not act with the care expected, leading to harm or loss. This involves proving a duty, breach, causation, and damages.

What is breach of duty?

A breach of duty happens when someone does not fulfill their legal responsibilities, causing harm or loss to someone else.

How to prove fraud?

To prove fraud, you need to show a false statement of fact, knowledge that it’s false, intent to deceive, reliance by the victim, and resulting damages.