The seller wants out of the contract are the inspection fees refundable?
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The seller wants out of the contract are the inspection fees refundable?
I made an offer on a house. The
owners accepted knowing that
inspections were required.
Inspections were completed. Items
to be corrected /fixed were agreed
upon signed off by both parties.
I signed the loan docs on a
Thursday and a few hours prior to
the appraisal, on the following
Monday, the buyers decided to
terminate the contract. Is this
legal? Can they just walk away? Do
they have to reimburse me for all
of the inspection fees 850?
Asked on November 14, 2017 under Real Estate Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
They can only legally get out of the contract in the following conditions:
1) There is some term or provision in the contract allowing early termination under these circumstances and they fully comply with its requirements.
2) The other party breached or violated the contract in some material way. (E.g. like a buyer not making a required deposit.)
3) The other party knowingly lied about something important to get them to agree to the transaction (fraud).
Otherwise, a contract is a contract: parties may be held to it. If a party violates the contract, like if the sellers try to pull out, the other party can sue to recover any losses, expenses, costs, etc. they incurred due to the breach or the contract not being carried through; buyers would potentially also sue for "specific performance," or a court order requiring the sellers to go through with the sale.
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