The seller wants out of the contract are the inspection fees refundable?

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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. 

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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