Good morning. We found a home we liked, made a purchase offer dependent on home inspection results, and put down $1000 in earnest money into an escrow account. The home inspection came back with estimates of repair for half the value of the home. The sellers are not willing to credit that amount and said they will find their own independent contractors to do their own estimates and possibly repair. We are no longer interested in the home, because of health and safety discoveries. Contract"a. seller’s expense, repair such defects prior to closing; b. at closing, credit Buyer in an amount equal to the reasonable cost to repaid such defects; or c. neither repair nor provide a credit. Upon receipt of Seller’s notice electing option c, or in the event Seller fails to provide any notice to Buyer within the time specified, Buyer shall have five days to provide written notice to Seller of Buyer’s election to either proceed with the transaction with no repairs or credits, or to declare this Contract null and void, and the earnest money shall be returned to the Buyer. If no such notice is given by Buyer to Seller within the time specified, this Contract shall remain in full force and effect.
Seller appears to have not taken any action and has not opted for a,b,or c. I think that you can argue that seller failed to provide notice within the time specified so you can declare contract null and void and claim your earnest money. Good luck
Hire a real estate lawyer immediately! You will need one for this or any other purchase. Do not attempt this DIY. You might have the right to void the contract if your timing is right. Contact and hire a lawyer ASAP. Do not REPEAT - DO NOT DIY!
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Speak to your real estate closing attorney regarding the exact terms of the home inspection provision in the contract. More likely than not, there is a basis for you to back out and receive a full refund of your earnest money.
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You are probably quoting from a contract that is not the commonly used Multiboard contract utilized by most realtors in the Chicago area. A good real estate attorney can create an exit strategy and protect your earnest money by modifying the contract during attorney review. It sounds the express language of the agreement only gives you an out if the seller refuses to do repairs. I agree with the others who are saying you should have this contract reviewed by an experienced real estate attorney.
Please consult your closing attorney about the specific terms of your contract, and if and how you can cancel the transaction. Most real estate contracts have an inspection contingency that allows the buyer to back out of the deal within five days of execution if the condition of the property is found to be too poor; but without seeing your whole contract, I cannot advise you about the inspection contingency (if any). Again, please contact your closing attorney or hire counsel to handle this matter cleanly and quickly.
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