Expert: Hans Weber, Licensed Broker Associate - 11/8/2005

Question
Dear Mr. Weber,

I am in a really awful situation, and I need a second opinion on from a total stranger so that I may make a more informed decision as to my next move.

I recently entered into a Purchase Contract with the intention of buying my literal dream home, and, believing that I would have no problems at that point, I sent off a HUGE deposit to the Seller so that he would FINALLY stop considering other offers.  However, it has been nothing but a nightmare since, and it just keeps getting worse.

Per the language in the contract, after we signed, I had FIVE DAYS to get an attorney to review it and decide whether or not it was truly acceptable.  Therefore, I hired a lawyer, and after we went over it together, we both decided that there were MANY changes that needed to be made in order to better protect my interests.  Consequently, my attorney gave the Seller's attorney written notice that we wanted to make changes on the FOURTH day of the five day period.
Then we negotiated for almost a month and a half and still could not agree on things, and therefore, my attorney told them that we were declining and to return my deposit.

Well, they are saying that WE DID NOT DISSAPROVE of the contract ... we merely asked for CHANGES, and therefore, I am not ENTITLED to my deposit back.

My attorney says they're full of it, and I agree, because CLEARLY, if we asked for CHANGES, we did NOT accept it the way it was, making it null and void, but they are willing to take this all the way to court.

Are we right, or do they have a leg to stand on?

Many Thanks,

Dionna

Answer
Hi Dionna,

Thank you for your question.

This one sounds like it will become a legal matter.

Based on your explanation my opinion is with your side, however this looks like it will go to court.  Both of you delayed to contract by renegotiating for so long.  The seller is angry because they may have missed the market.  You may best serve your interests by sueing the seller to close so you still get your dream home.

The court may see it differently.

Let me know how it goes.

Hans