I am also not sure whose fault it was that it was not made clear that this was a short sale. Sometimes, a listing becomes a short sale because of a pre-payment penalty that was not known to the listing agent and sometimes even the borrowers are not aware of the pre-payment penalty (yes, that is possible). So, without knowing more about the circumstances of your particular situation, it's really impossible to render an opinion on who should pay for what. If you have not already cancelled the agreement, I would say there's a good chance that the owner is still bound by the terms of the agreement and may have to come up with the money to close escrow. You can't unilaterally change the terms of the agreement just because you found out that you owe more than you thought you did. If this was an innocent mistake, it's possible that the seller is not short by much. If it was information that was intentionally withheld from you, I personally think that someone should reimburse you for the cost of the inspections. To me, it does not make sense that someone would purposely enter into a contract that does not address the short sale contingencies when they know that they can't perform because they don't have the money to close escrow. You should consult with an attorney about your remedies. However, frankly, unless you intent to force the performance of the original contract that you entered, I am not sure you'd want to spend money on getting legal advice on how you'll be able to recover a few hundred dollars. I am just trying to be practical here as I would not want you to spend as much money as you'd be able to recover. Good luck to you.
This must be a real let down for you. Before you do anything, you should consult an attorney. Usually a seller will not sign a Purchase and Sales Agreement if the short sale isn't disclosed as part of the Purchase and Sales agreement. This would be a huge oversight for everyone involved.
Best of Luck!
To view it as just a bit of change is completely out of line. Expecting a consumer who had two agents make either an error or an omission, to "forgive" money thrown away is not the right advice.
The ideal outcome would be to see one or the other (Realtors) offer to pay for the inspection because it would it's the right thing to do.
Legally? A lawyer can provide a simple answer.
Are you sure the sellers agent was aware of the short sale? If the sellers were aware of the short sale situation , and did not disclose it, the sellers have breached the agreement by agreeing to accept an offer knowing they could not deliver the title.
You would need to contact a real estate attorney to explore your remidies under the law.
Another possibility would be to submit a lower offer, see if it gets accepted and wait for the short sale to close.