NONREFUNDABLE DEPOSIT DEEMED INVALID

An agreement for a “nonrefundable” escrow deposit is invalid and unenforceable, according to the recent California case of Kuish v. Smith (2010 WL 373225).  This case serves as a good reminder for REALTORS® that inserting a “nonrefundable deposit” provision into a real property purchase contract may be legally ineffective.

Tagged as: Be the Smart Investor, CALIFORNIA ASSOCIATION OF REALTORS, non refundable deposit, Reggie Lal