We had a buyer make an offer on our house, and through our agent we had come to an agreement on a price pending an inspection. The buyer put $3000.00 down in escrow on a $282,000 purchase price. The inspection revealed we had polybutelene plumbing and we renegotiated the price down to $277,000. All new agreements were signed by both parties and we set a close date. 10 days before the close our buyer now wants out due to the plumbing and the $3000 back. They have fired their agent and will not show up at our set closing date. We are not going to let them back out of the agreement. How much of a case if any do they have to get the escrow money back? The property inspection was quite through and they took 3 days before signing the new agreement after the inspection. Then waited 2 1/2 weeks before deciding they wanted out.
1 Answer from Attorneys
Re: escrow money
If the buyer was given an opportunity to inspect, and all notices and disclosures were given, then the buyer has a very weak case in getting the earnest money back. Most real property contracts have a liquidated damages clause, that is that if the buyer pulls out at the last minute without good cause then the seller, as her sole remedy, gets to keep the earnest money deposit. In your case this would be the $3000.00.