Expert: Karyn Foley - 4/7/2010

Question
I put down my earnest money yesterday when I put in my bid. I don't feel like I was represented correctly by my agent. I faxed and emailed my agent to cancel at 7am this morning which was 5 hours before the 24 hours of my orginal bid can I get all of my money back? My agent told me that I could hire an inspector and know matter what the outcome of the inspection, I could deny it but I do not trust this man? What are my options at this point. The seller did respond yesterday afternoon.

Answer
Dear Lisa:  I don't have a copy of your contract, and do not know what state you are from.  Your contract probably has a clause that gives you approximately 21 days to have inspections and remove your contingencies.  With your disapproval, you are entitled to deposit returned.  I would say that if the seller understands your feelings and firm objections to purchasing the home, the seller would be wise to let you out NOW.  No one wants a written objection stating faults or findings that could put other buyers on notice.  Twenty four hours is something I do not understand.  Why would that be important?  As a seller or an agent, I would want no part of continuing with a buyer who is intent upon not going through with the deal.  It is much better to just get rid of the buyer immediately who has cold feed rather than put an unwarranted disapproval on any of the appliances or systems of the home; especially if it was only for the purpose of cancelation and not really valid.  In most states and in most contracts, the seller is obliged to give a new buyer any and all inspections done on the home.  No smart seller would want to involve you or your findings.   If you submitted a check, you could always stop payment.  If your agent is being so foolish to insist on an inspection, perhaps it should be discussed as to why.  The reasons could be valid.  You could also "discover" some problem with the neighborhood that was not told to you, et cetera.  But your honesty up front should be respected and thus monies returned so that the property does not get a black mark against it due to your later inspection.  If your agent has a good enough reason to insist on the inspection, it might be worth a couple of hundred dollars or so to get an inspection.  You will always discover problems or issues with any home.  You did not tell me why you feel you were not represented correctly or why you do not trust your agent.  Call your agent's office manager/owner and discuss it further if your agent is not cooperating.  At this point - with no bad mouthing intended - everyone should be glad to get rid of a buyer who will not go through with the deal.  Next time, please try to be more comfortable with a home you write an offer on.  Otherwise, it is not fair for everyone involved, seller, agent, and especially yourself.  Also, take another look at your contract.  Purchasing a home is a business transaction and your should be better informed.  Let me know what happens and if I can answer any more questions.  If this proves to be a continuing unresolved problem, you should seek legal direction from a licensed attorney.
Karyn Foley