How to get our earnest money back?

Question

We had an accepted offer for a house we are interested. However, the house didn't pass the inspection. The major issue is there are carpenter ants at basement, main floor and the second floor as well as rodents in the basement and attic. We don't want the house because of the carpenter ants we don't know how the owners could fix and we have young kids; we are afraid of the pesticides will have hearth threats to young kids crawling around. The sell's agent prepared the release form and we signed but the sellers didn't response to us for 5 days already. In the offer, we did say that the sellers have rights to cure. But this circumstance we never expected since the house looks neat and clean. Right now we want to know how to get our money back. Any help is appreciated.

Answer 1

Getting your money back will depend on circumstances you didn't explain. Any earnest money SHOULD have been held in escrow by a broker or neutral 3rd party. This is law pretty much everywhere in the US. Now, in the contract there would have been stipulations on both buyer and seller. If one of your stipulations was the property passing a home inspection, which it did not, then you are absolutely entitled to your earnest money back. This should be handled 100% by the seller's agent. The seller's should have NO access to that money until closing. Start with that agent. If he/she refuses then you will need to contact that agent's broker and speak to him/her personally. If you still receive no action, you should contact your state's real estate board. They will probably require a copy of the contract and the home inspection report. Remember, real estate agents and brokers are subject to very strict laws and regulations. Just start at the bottom and work your way up. In addition, find out if the agent is a member of the National Association of Realtors. If so, they may be able to help by advocating on your behalf directly to the agent/broker. However, if passing a home inspection was NOT a contingency in the contract, you probably have lost your earnest money. It does not matter whether or not you expected a situation like this or not. If this is the case, all you can do is learn from it. A contract is a contract. If you are not entitled to your earnest money back (and you have an agent as well) you should discuss this with your agent. He/she should have a major hand in what is happening throughout the entire process. With some persuasion, you may be able to get them to put up a portion of the earnest money for the next property you make an offer on, just for them to keep your business. You can phrase it something like "You should have better protected my interests...". If you feel it necessary to go that route, just keep in mind your agents legal responsibility is NOT to you, unless you have a "buyer's agent", specifically. This will usually require a contract saying he/she IS the buyer's agent.

Answer 2

The house did not pass. U should get it back!

Answer 3

Contact your realtor.  However, it sounds as if the sellers have the right to try to remedy the problems you've mentioned - you gave them that right.  If there are problems that cannot be remedied or they're not willing to do so, you'll get the $ back; however, it sounds as if they are within their rights.

Answer 4

File a Small Claims lawsuit against them .... or at least send them Notice of your intent to file a lawsuit for the Earnest deposit PLUS interest .... THAT should get their attention .