Legal Question in Real Estate Law in Indiana
We have an accepted offer with a buyer in which the contract outlines the inspection. After inspection the buyers agent w/buyer outlined 5 items requesting corrective action. In a cover memo, separate from the inspection response, agent informed selling agent to inform us of possible future repair request to be made by USDA. We agreed to the response agreeing to correct action of the 5 items. Contract agreement allowed for 15 days for inspections and buyer response. All of the above was accomplished in 8 days. Thirteen days beyond the established deadline date, buyers agent provided selling agent with a USDA list of required repairs inclusive of a re-roof. Selling agent took an additional 4 days to deliver said addendum to inspection response. This made the addendum 17 days delinquent to the agreed upon terms of contract. We rejected the request in total, stating the facts as outlined above on an addendum. The next day we received an addendum to the "agreement to purchase" adding most of USDA requested repairs. Also, since I had reminded agency that they had 4 days left to close this deal, they added a time extension request. My question would be do we have right to keep the earnest money? And is this an appropriate means for an agency to circumvent their lack of "due diligence" regarding the inspection as outlined with the accepted "Offer To Purchase" executed in full. This is a dual agency contract.
1 Answer from Attorneys
You MAY have grounds to claim breach of contract and forfeiture of the earnest money. But to give you an accurate opinion, all o the documents to which you have referred would have to be read and reviewed in their entirety. Your failure to object to the information about the possible future repair requests may be a factor too. I would not recommend keeping the earnest money until you have had all of the documents reviewed by an attorney versed in real estate law.
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