My question involves real estate located in the State of: Utah
I'm in process of purchasing a home and, after due diligence, I found the retaining wall to the west of the property (the parcel I am purchasing is on the uphill side) is failing. I've spoken with the neighbor and they claim the failure occurred recently when there was new concrete poured on the parcel I am purchasing for the driveway that runs along that retaining wall and leads to a newly built garage (as well as the floor in that garage). The wall in question does appear to be on the neighbor's property as well as at least a foot of the width of the driveway although no survey has been done. The neighbor is of the opinion that the owner of the property I am purchasing is liable to do the repairs (the concrete forms are still there and the neighbor's fence has not been reassembled as promised). The owner says he "shored up his side" and won't touch the retaining wall. The driveway extends all the way to the west edge of the property and covers the retaining wall (where it is not falling over). Prior to the garage being built the driveway was also this wide. The situation with the wall was not found by my inspector, and the seller answered "no" to all questions about awareness of earth movement or any property encroaching on neighboring property.
I actually would still like to buy the house, but want the seller to pay to rectify the situation (or I hold money back in escrow to take care of it). Past interactions make me think he is unlikely to agree to this. If he doesn't, can I pull out and still get my earnest money back based on his lack of proper disclosure? I'm supposed to sign in a few days.