If you truly want this home, than you should stand your grounds with negotiation. They should either A. repair the roof; or, B. credit your for the estimated cost of repairs.
If you inform the escrow company that they don't want to sign; and they don't inform the escrow company they want to rebuttle, which then they can't open a new escrow and they can't relist in the MLS as active, for another buyer until settled. SO inform the escrow company to inform the Seller that if they don't sign in whatever the legal days are in your state, they will release the EMD to you.
If you are looking for a way to back out of this purchase, just read your contract, their are often plenty of contingencies, which require you to approve or disapprove.
Thumbs up for the good answers below are appreciated ;)
So, instead of going through the expense of a renovation loan, (which I can do of course), why not use... MY REPAIR ESCROW LOAN??? We will give you up to $5,000.00 to FINANCE in your loan, above and beyond whatever your loan amount is. You DO NOT have to come out of pocket with these funds.
You simply submit the invoice from your contractor. If it is for $7,000.00 you will have to pay the difference when the job is done, but we will put up the additional 5K.
The only caveat is, the home MUST appraise for the additional escrow funds.
We are a bank and because of this, we can do things other typically can't.... WE WILL DO THE ESCROW LOAN ON ANY LOAN : VA / FHA / CONV / JUMBO / HOMEPATH You name it. ;)
Give me a ring, be glad to help.
No, we have not signed off contingency on the roof. There were also red flags on the inspection about electrical (no GFIs were installed anywhere in the house, including the kitchen and bathrooms), a sump pump that did not have a dedicated outlet (it was plugged into a screw-in light bulb socket with an outlet on the side of it, connected by an extension cord), and the wrong shut-off valve installed on a hot water tank gas line. We signed off on these because they were all corrected.
I would think that it should come back to you.
I really hope your EMD is with an Escrow Company, not with the Seller.
If it is, contact the Escrow company and notify them that you are not satisfied with the inspection results, and you wish to cancel.
Please, verify that your offer states that the purchase is contingent upon inspection; you should have no issues then with receiving your EMD back. Of course they are trying to scare you into agreeing... they know that if they lose you, they will have to go through the same thing with the next buyer. SO!... stick to your offer! If they refuse to return your EMD, contact your local real estate division.