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Old 03-16-2010, 12:46 PM
 
7 posts, read 23,430 times
Reputation: 10

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Hello,
I made a sale contract on a house with few appliances in Kansas. I paid $2000 as earnest money deposit.
As per the contract, I have 10 days to do an inspection on the house and appliances. During inspection, I found the appliances are not in an acceptable condition and the inspector also found some repairs to be done. I asked the professional inspection company to include this in their inspection report, but they did not include that as they are not authorized to certify appliances. Also the carpet looks too bad and it was giving squeaky sounds when we walk on that.
I submitted Offer to renegotiate and asked the seller to pay $3800 towards the closing cost and do all the other repairs that the professional inspectors have documented. Seller rejected the offer. Then I asked to pay $2000 which was also rejected by the seller. So I decided to walk out of the contract.
As per contract, there is no specific condition which is called as "What is NOT an Unacceptable condition". It has "N/A" for that.
The seller has accepted to cancel the contract but not ready to release the Earnest deposit from the Escrow account.
Is there anything I am doing against the rules here? Am I eligible to get back my earnest money? Please advice..
Thanks..

Last edited by kshomebuyer; 03-16-2010 at 12:47 PM.. Reason: Formating issue
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Old 03-16-2010, 12:52 PM
 
Location: Kansas
3,855 posts, read 13,223,598 times
Reputation: 1734
They will probably do whatever they can to keep the $2k.
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Old 03-16-2010, 12:56 PM
 
7 posts, read 23,430 times
Reputation: 10
I have filed a case in small claims as per the real estate agent's advice. Is there a possibilty for me to win the case and get back my $2k? I am not sure how I should present my case there to impress the Judge. Please let me know if you have any advice.
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Old 03-16-2010, 01:20 PM
 
29,981 posts, read 42,766,727 times
Reputation: 12828
Quote:
Originally Posted by kshomebuyer View Post
Hello,
I made a sale contract on a house with few appliances in Kansas. I paid $2000 as earnest money deposit.
As per the contract, I have 10 days to do an inspection on the house and appliances. During inspection, I found the appliances are not in an acceptable condition and the inspector also found some repairs to be done. I asked the professional inspection company to include this in their inspection report, but they did not include that as they are not authorized to certify appliances. Also the carpet looks too bad and it was giving squeaky sounds when we walk on that.
I submitted Offer to renegotiate and asked the seller to pay $3800 towards the closing cost and do all the other repairs that the professional inspectors have documented. Seller rejected the offer. Then I asked to pay $2000 which was also rejected by the seller. So I decided to walk out of the contract.
As per contract, there is no specific condition which is called as "What is NOT an Unacceptable condition". It has "N/A" for that.
The seller has accepted to cancel the contract but not ready to release the Earnest deposit from the Escrow account.
Is there anything I am doing against the rules here? Am I eligible to get back my earnest money? Please advice..
Thanks..
Failing to release the $$ from escrow will keep the Seller from being able to accept other offers on their home, in good faith. This is a huge red flag for future potential buyers and a material fact of the property which the listing broker must disclose to any parties who may bring an offer until such a time that the issue is settled.

If on the Seller's disclosure the appliances/carpet were represented to be in good working order, even though the inspection company will not comment, you did actually discover "unacceptable conditions" during the inspection period.

Giving written notice of "unacceptable conditions", the failure to resolve "unacceptable conditions" within the agreed contractual time frame, the cancellation of the contract, along with the return of earnest $$, is very clear if you were using a contract approved by the Kansas Board of Realtors.

Be certain, as you pursue this matter to keep impecable records in writing of the timeline for court and be certain to sue the Seller for your legal costs in addition to the return of your earnest $$.

You are fortunate that the earnest $$ is being held in an escrow account that is bound by state law rather than having made it out directly to the Seller! It might be prudent, over-kill but prudent, to submit a copy of the filed pending suit for the return of the earnest money to the administrator of the escrow account. Generally there is a contract form which requires the signature of both the Seller and the Buyer before earnest money can be released. Your Buyers Agent should be able to assist you with this. If not, hire a RE attorney.

Good Luck!
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Old 03-16-2010, 01:49 PM
 
Location: Kansas
3,855 posts, read 13,223,598 times
Reputation: 1734
^Very sound and knowledgable advice.
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Old 03-16-2010, 03:54 PM
 
7 posts, read 23,430 times
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Thanks for the advice.. I see seller has already SOLD the house, this issue did not stop him from the selling the house.
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Old 03-18-2010, 10:29 AM
 
Location: Kansas
3,855 posts, read 13,223,598 times
Reputation: 1734
Coincidence?
http://www.city-data.com/forum/kansa...ler-issue.html
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Old 03-18-2010, 10:29 AM
 
1,662 posts, read 4,475,473 times
Reputation: 539
Quote:
Originally Posted by kshomebuyer View Post
Thanks for the advice.. I see seller has already SOLD the house, this issue did not stop him from the selling the house.
Since the house sold anyway, you might try contacting the seller and asking nicely for $1,800 of your money back. Let him keep $200 for his trouble, but obviously it wasn't much because he did sell the house, and maybe you can avoid going to court altogether.

Maybe I am just naive, but I think you can get further in life by being civil, nice, and understanding than by being adversarial.

Life's too short ...
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Old 03-18-2010, 10:30 AM
 
1,662 posts, read 4,475,473 times
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Quote:
Originally Posted by drjones96 View Post
And consistent advice to both!
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Old 03-20-2010, 12:35 AM
 
Location: KANSAS
8 posts, read 16,360 times
Reputation: 10
A person who represents themself in a Court of Law, has a Fool for a Client!
Unless, You have personal knowledge and experience in R. E. Law, you would be Well Advised to seek council on this matter. I have noticed the sellers post on this same contract dispute here. Kansas has a three day right to rescind in contractural law, You may be out of statutory limitations by now. Most R.E. Law Firms will give you a free consultation. Search around, there are quite a few to choose from. Good Luck!
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