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  1. #1
    Join Date
    Dec 2012
    Posts
    1

    Default Seller Refusing to Release Earnest Money

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

    I went under contract on 11/26/2012 on a residential property in Colorado. The real estate contract stated that the seller and buyer (me) would split the cost of a structural engineer to examine some basement issues, with no contingencies. We both paid $175 towards the inspection. I have since terminated my contract on the home and did so before the termination for inspection date. The seller is now refusing to refund my $4500 earnest money, they will only agree to return $4325 (earnest minus their half of inspection). They are claiming I canceled the contract in bad faith. There was no 'bad faith' on my part, I terminated within the guidelines of the contract. Any advice on what I can do to get my full earnest back?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Seller Refusing to Release Earnest Money

    Your contract governs your rights and obligations. I cannot tell you whether or not you're entitled to the money, as I have no access to your contract.

  3. #3
    Join Date
    Jul 2012
    Posts
    479

    Default Re: Seller Refusing to Release Earnest Money

    If they'll just send you a check for $4325 without any qualifiers on it or an accompanying letter to the effect that it's "in full settlement" or the like, I'd take the $4325 and, if it's quite important (you won't get time/trouble $$$ for example) then sue them for the other $175.

    "They are claiming I canceled the contract in bad faith."

    If that were true, then why would they be willing to part with ANY of it? Other than writing them a demand letter (pointing out that you terminated the contract in accordance with its terms -- presumably it was contingent on X-Y-Z acceptable assessment by this engineer ... or obtaining of Y financing or the like) and then suing them if they refuse to cough it up, not much to do.

    "Any advice on what I can do to get my full earnest back? "

    I suspect you already know that you can sue them.

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