Seller Won't Release Earnest Money

[Milehighchick]

My question involves real estate located in the State of: Tennessee

My contract states I can terminate sales agreement if issues are shown with inspection. Seller is claiming that we are have missed the deadline to cancel our contract. However we missed date because sellers requested 2 more inspections. My question is, was the deadline extended by statement in addendum F04 and by all of the extra inspections requested by the sellers?

Agreement Dates and Proof
1. Counter offer was signed by both parties on 8/6/12, but the Binding Agree Date is 8/8/12 signed by seller’s agent (Agreement says I have 10 days to get inspections done and 5 days after that to decide to continue or terminate.)
2. Home Inspection completed on 8/13/12
3. BICR/N for this home inspection was signed 8/15/12 which included addendum F04 which states on line 22 that I would “arrange to have sewer line inspection by camera, Aug. 16, 2012”. Due to miscommunication by my agent, inspection was rescheduled for 8/17/12. However, the seller’s agent called me to say that the sellers would not be available to meet us there and would need to reschedule. Also (2)emails were sent to my agent regarding changes. Please note that I asked my agent in one of these emails if sellers would honor the findings of this inspection since we were passed the 10 day deadline.
4. Roto Rooter inspection was done on 8/21/12.
5. Sellers were not happy with the Roto Rooter inspection and decided to have their own plumber come out to do a second inspection on 8/22/12. I received a copy of this report on 8/24/12 which stated that absolutely no problem existed.
6. 8/24/12 the seller’s agent informed my agent that “Roto Rooter is going back out today to re scope” . I also have a disc that show the problem does exist despite the fraudulent inspection report by Mid South Plumbing Solutions.
7. On 8/27/12, I sent my agent an email stating that I wanted to cancel this contract and receive my earnest money back. (see attached)
8. On 8/28/12 my agent sends me the amendment F04-A and asked me to sign it. That same afternoon, I contacted the MAAR Ethics Hotline. At that point, he decided to write up the BICR/N.

[Mr. Knowitall]

It sounds like you're telling us you missed the deadline for withdrawing your offer based upon the inspections, and are looking for a loophole. For that, you need to run your contracts past a local real estate lawyer.

[jk]

After your inspection, you likely had a reasonable argument to be able to terminate even though the inspection was not performed within the 10 days as it was still within the overall 15 day period. You had the results of your inspection within that 15 days yet you did not terminated the contract. I think you missed your opportunity to cancel without losing your earnest money due to your actions alone.

If you wished to incorporate the sellers inspection in your decision, you needed an extension. You didn't request one. Your agent might have incurred some liability for failing to obtain the extension.