What is the process for getting deposit on real estate transaction held in escrow returned if seller will not sign release?

Asked over 1 year ago - Albany, NY

We signed a real estate purchase contract (standard NY) which included contingency re: home inspection. Inspector found serious structural damage costing over 3K to repair. We decided to use that provision to cancel the contract. Seller will not sign release for cause so that we could have our deposit refunded. I thought escrow was to protect both parties but we feel held hostage to a seller who is actually in breach of contract and just being mean-spirited. HELP

Attorney answers (4)

  1. Richard J. Chertock

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    Answered . I assume you are being represented by an attorney on this purchase. If that is the case you should be asking him or her this question. If you are not represented you should hire an attorney immediately. If the seller is refusing to return the down payment and you are not in breach of the contract you will have to bring an action in court. Once you have a court order awarding the escrow to you the escrow agent will be required to return the escrow to you.

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  2. Yefim Rubinov

    Contributor Level 17

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    Answered . I hope that you are repented by a lawyer. If so, then ask him or her. Maybe you should ask an adjustment of price and proceed with the sale. If that's not an option, then does your contract require you to notify his lawyer in writing canceling the contract? You also may able to sue. Consult your lawyer and if you don't have one, then hire one right away.

  3. Michael T Millar

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    Answered . The answer depends on what the contract provided. Typically, a home inspection clause does not give you the right to cancel simply because of the results of the home inspection report. Rather, you first must request that the seller make the repairs. It is only after the seller refuses to make repairs that you would have the right to cancel.

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  4. Cheryl Rivera Smith

    Contributor Level 20

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    Answered . In Texas, it would be to go to small claims court. I am sure NY has something similar.

Related Topics

Escrow in real estate

Escrow refers to money someone deposits with a neutral third party until an event (like a home sale) takes place and it is delivered to another person.

    Real estate

    The term real estate means land and items permanently attached to it, like buildings. This area of law deals with who has the right to own and use these items.

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