New case law from the Nevada Supreme Court gives you guidance on how to cancel an escrow when the agreement has either neglected to set a time for closing or has omitted that time is of the essence.  Mayfield v. Koroghli, 124 Nev. Adv. Op. No. 34 (Nev. 2008). [mayfield-case].

If you are involved in a transaction where close of escrow has passed without a succesful closing and you are not sure how to cancel or complete the escrow you should communicate with the the other side that performance be complete by a certain time or date and give the opposing side, “a reasonable time for the completion,” and “clear notice of your intention to abandon the contract unless it is completed within the specified time.”  If you have contacted me with the concern of the ability to cancel such a problemed escrow/transaction you know that this style of communiation has been my advice.  Bascially to always give the other side a chance, a new deadline.  Typically, if for example, a buyer is delayed and you have granted or merely allowed by inaction extensions, yet the escrow just seems to have a life of its own, you can get the other side to give themselves a deadline by merely asking.   Ask the buyer how much time they will need and when they say, “I am certain we will be done by Friday,” make that new date the new closing, in writing, mutually.  When that date comes and goes, you have a much stronger power to cancel.

NOTE on previous discussions I have shared that under NGA # 2 v. Rains, 946 P.2d 163 (Nev. 1997), [Rains Case] if the parties are “silent” to a close of escrow and continue to cooperate with each other, then the contract is extended.  “Silence can raise [a right] quite as effectively as can words.”  Citations Omitted.  Therefore if you find yourself in this predicament, where the escrow has extended but you can’t seem to close and now you would like to cancel…you must follow the Mayfield guide and give a reasonable amount of time to complete and make your intentions clear.

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