Expert: Dick Dennis - 9/26/2006

Question
I am due to settle on a new house on 20th October. When we did the indspection, several things were wrong, but after a fair bit of too-ing and fro-ing the seller agreed to sort them out (radon, basement mold, termites etc). We got a note through last week saying all this had been completed and the sellers agent allowed me into the house to check it out. When we got upstairs I was shocked to see significant mold on master bedroom wall. This is a new contrsuction.  This is a massive no-go for my wife and I and i want out of the deal. Seller is adamant that we cannot pull out, and if we do we will lose our deposit. He says he will fix - but will not allow me to be involved in this "fixing". I think we are justified in pulling out because this is a new serious issue.  I dont want to lose my $20K deposit.

I must note that we have not yet sold our current property so it might appear this is why i want out of the deal. but its not that at all. I just dont want to have a recurrent molod problem. There have been other more minor issues.

Answer
Your purchase agreement stipulates that the closing will take place on a certain date. If all the conditions of the purchase agreement are not met by that certain date and you have not agreed to extend the time, then you are eligible to receive your deposit back as you cancel the transaction, providing you are not at fault in fulfilling your requirements.

If necessary, you should engage a REAL ESTATE attorney to enforce your interests.

I do wish you well.

Dick Dennis             dixiedee13@aol.com