Can I get my inspection, appraisal and application fee back if the seller has now backed out of the deal?

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Can I get my inspection, appraisal and application fee back if the seller has now backed out of the deal?

I signed a contract to purchase a home. I paid for the application fee, inspection and appraisal. The contract was already in the hands of the underwriter with closing date of 07/29. They asked if I could postpone for another month because the renter couldn’t find a place to live. I agreed. We moved the closing date to 08/29. A week into that month the seller decided to back off; they no longer wants to sell the house. Now I’m left with no application fee, inspection and appraisal money and want my money refunded to me. How can I write a legal letter demanding the refund before taking further action?

Asked on August 24, 2016 under Real Estate Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

The fact that thwe seller backed out of the transaction does not require the lender, inspector, or appraiser, who have nothing to do with his decision, to refund your money or mean that they should not be paid for the services they provided or began providing. They do not need to give you a refund unless your agreement or contract with them requires a refund in these circumstances. You can, however, very likely sue the seller for all costs or losses you suffered, including these, due to his refusing to sell after you had contracted for the sale; you would sue for breach of contract.


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