Nanci - What has your attorney said about this? Your attorney is the one who can give you the details about what the buyers are able to do at this point, and what will happen with the earnest money deposit, based on your specific circumstances and the contract you signed.

It all depends if the problem you state was put intio writing an dthey accepted it prior to having their inspection. if they didnt sign off on it before then yes they can use that as an excuse. verbal conversations are not worth anything, it has to be in writing. i wish you luck in getting it worked out and getting your house sold.

Unfortunately, the CONTRACT, as stated already, determines whether they should get their deposit back or not. If they had the contingency of inspection WITHOUT exception of the existing problem, then it legally (and ethically) is their right to back out. If you did not want them to be able to back out because of the existing problem, then you could have had that in the contract. If you did have in the contract the inspection contingency with exception of the existing problem, then legally (and ethically) they should not receive their deposit back.

The point that everyone seems to be forgetting is that the purchasers entered into a binding contract fully knowing and accepting an issue they then used to renege on their obligation. The responsiblity and implications that go along with making an offer on someones home should not be taken lightly. We made a contingency offer on another home. We paid for inspections ourselves. Our realtor has been working like crazy for months and months to sell our home in this awful market and I am sure their realtor has been working like mad to sell them a home. If they did not want to buy our home then don't make an offer to purchase it. They made an offer and had us jump through hoops for them. They got cold feet in this market and instead of acting like adults with adult responsibilities, obligations and consequences, they are trying to take advantage of a "loophole" to try and get their deposit back. Well, they made the decision to make an offer on our home, they then made a decision to backout of that decision after the fact fully knowing the consequences. They now need to make the decision to accept the consequences of their actions. They caused an awful lot of heartache to an awful lot of people because of a flip flop decision - there should be a consequence for a decision made too fast and too lightly - that is the reason for the deposit in the first place - so people dont make these decision lightly. They should just walk away from their deposit with an apology to all they affected. Whatever happened to personal responsiblity? Do all you guys really want to encourage poor behavior by just wimping out when someone does wrong? We can concentrate on selling our home AND push for what is right at the same time. Come one guys - right is right! Poor ethics should not be acceptable to any of us!

Nanci
The only way this question can be answered is based on the contract.

In principle as long as the buyers have not removed contingencies they can usually back out for any reason.

I recommend focusing on getting the home sold than getting into a legal battle. Just my two cents.

Nanci - Ignore the answer about the "option period." That is a contractual issue that is unique to Texas and does not apply to Connecticut real estate.

It appears to me that if they backed out during their inspection contingency, then they may be within their rights to do so and to have their earnest money returned to them.

However, I do not know all the details of this deal and of your contract.

Here in Connecticut, you have an attorney representing you and your interests in this transaction. Speak to your attorney and follow his or her legal advice.

Some deals fall apart, and this can happen for any number of reasons. If the buyers are in fact within their rights to back out of the deal, then your best bet is to simply move forward and find a real buyer. Your focus and energies should be on selling your home to a legitimate buyer rather than worrying about a buyer that does not wish to move forward.

It appears the buyer took advantage of the inspection contingency as written in the contract. Unless other written agreements approved by the buyer and seller, the buyer had the right to void the purchase agreement. If written in the purchase agreement, the buyer gets the earnest returned.

If the seller back out during the option period that is open to either party. Sorry to hear your situation, however at least seller IF ALL IS TRUE did this during the contractual time period allowed.
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