re: Backing out of Purchase Agreement

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The spirit of the contract was not broken. They notified you via your agent that they were exercising their right to walk away within the alloted time frame. You didn't suffer anything. You knew.

They don't have to give you the report. Besides, you don't want it... if it does show something, now you know and have to legally disclose it to the next buyer.

I'm telling you, what happened was your buyer told his/her agent that they were going to exercise the out clause, and their agent said "OK, I'll handle it" and contacted your agent. Your agent did not require it to be in writing.

The buyer's agent and your agent "failed", if anyone did. If anything, fire your agent and contact the broker of the buyer's agent and complain, and if you are really mad enough, contact the state licensing board.

BTW, where is the deposit currently being held? My guess is, you would be able to keep it, because of that "black and white" you mention. And if your agent is worth a damn, it's either at his brokerage or it's at an escrow company. The fact that they "refuse to willingly give up the deposit" is moot since, they don't have the deposit.

To recap:

What I would do: return the deposit and move on.

What is acceptable to do: keep the deposit and move on

What is being a prick: keep the deposit and file a lawsuit

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All of that.

But the OP's contention on the contract being broken hinges on the buyer's not giving written notification, not on the reason for them backing out. I agree the spirit of the contract wasn't broken and the failure lies with the agents/brokers. Both should have known the terms and asked for the reason in writing. My guess is most people just accept it and move on, so the agents didn't feel it necessary to follow that part of the contract to the letter. The OP wants to be a stickler, and that is his right I guess.

I seriously can't believe posters are advising the OP to file a lawsuit. I can't wait to see how this plays out.

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I want to make sure I'm understanding this correctly. So it's expected of me to let the buyers off the hook? Regardless that a written contract was broken? If I don't let them off the hook, it makes me an arse? What's the point of even having a purchase agreement if buyers can take a dump on it and not be liable in any way after the inspection period is over? Isn't there a reason the inspection period is X number of days? If not, you could just say, "yeah, that's cool, just show up for closing if you want to. If not, don't sweat it."

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Over the course of a lifetime, the average person is involved in probably two or three home sales. Based on those limited experiences, some may think that most people are just doing the best they can and mistakes happen. And mistakes should be forgiven. Maybe so. Mistakes do happen. But just like if I punch the wrong symbol and buy the wrong stock, a mistake can be costly. Additionally, some mistakes are honest boo-boos and some are based on someone trying to be slick. Having been involved in hundreds of real estate transactions over the years, and having had my faith in mankind pretty much dissolved because of some wild, weird experiences, I'll stand by what I said previously. Depending on the laws and practices in your state, return of the earnest money deposit (especially if it's being held in escrow) may not be solely your decision. But at least in my state, until there is a meeting of the minds on this situation and releases are signed, that money isn't going anywhere. At least here, that is a solid fact. I don't care if they have a kid named Tiny Tim who needs new crutches. I just follow the terms of the contract and don't get into who is good, who is bad, who deserves a break today and who doesn't.

Until contract releases are signed, it sounds as if there is still a valid contract in place. So if the purchasers change their minds again (maybe the house they REALLY want falls through), they're still entitled to purchase your home. Contracts to purchase real estate are written to protect both parties. I've seen too many people experience convenient memory losses about what was or was not said too many times. And I do NOT assume that even the sweetest looking couple isn't floating multiple offers around town, inserting weasel clauses into each one, so that they can get the pick of the litter. I don't know. I don't care. Dealing with too many ditsy housewives from 30 years ago, who felt entitled to change their minds every fifteen minutes, is a big reason why I have the attitude I have now about enforcing clauses in real estate contracts.

Make it easy. Call a meeting with your agent's broker. He likely has a say in how this plays out too, since his agent was the procuring cause of sale. And he'll likely have a chat with the other agent's broker. If they're not in the mood to fight, it likely won't be worth your time to pursue any sort of court action. As for the back and forth about who told what to whom, how and when, I lost track of that in the thread. But don't think for a second that you should feel bad because someone else f'ed up. Maybe you don't have to "go Roman" on them, but don't ever feel bad about enforcing the terms of a valid contract.

If you do more deals in the future, sooner or later you'll deal with an investor. And if you have a soft, squishy heart, he'll bend you over in a New York second. And I promise you, he won't lose any sleep that night.

Good luck to you. I hope it works out and you get it sold.

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I like how in the OP he says he doesn't want to be a jerk, then spends 3 pages being a jerk.

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OP already had his mind made up and thought he would get some sort of reassurance and praise in this thread. I'm sure he is a great guy to do business with.

Thanks.

Logical advice. Exactly what I was looking for.

I am an investor btw.

Prepare to come out behind by the end of this Mr Investor. Hope it's worth the headache and hassle.

Glad to see you're taking the high road.

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He thinks because they broke the contract, he can scare them into going forward.

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If they don't know the law, he might.
There's a reason why damages begin and end with actual economic loss in 90% of contract cases.

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I'm in this to make money, not "take the high road".

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And seeking $30k for "damages" makes you an a-hole. Deal with it.

ETA: Clearly you want to be a jerk, so just remove that part of your OP and I have no issue.