Cancellation After Inspection
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Cancellation After Inspection
We made an offer and it was accepted on a home. After inspection, we
discovered structural, electrical, and mold issues. We also found out there was an open 24k claim for a burst pipe and water damage. Needless to say, we canceled the offer based on the 65-page inspection. The sellers keep putting off signing the cancellation which puts us in a bad spot because we want to offer on a better home. The listing agent already put the home back on MLS. We don’t have a signed cancellation or our earnest money. They keep making excuses that the sellers work long hours and can’t make it into the office. Now we have to make an offer with a cancellation contingency. What can we do?
Asked on November 7, 2018 under Real Estate Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
From your question, we assume that your contract with the seller had an inspection contingency allowing cancellation with the return of your earnest money after inspection. In that event, legally, they must return the money to you...but unfortunately, when someone will not honor their legal obligations, the only way to force them to do so is to sue them to enforce the contract and its inspection contingency. So you should get your money back, but doing so will take time and filing a lawsuit, since only a court can order them to fulfill their obligations.
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