Backing out after hidden yard slippage on the same street

What is the name of your state? Ohio

My wife and I signed a contract to buy a $250K home in Cincinnati, and paid a $2.5K earnest money. We learned (in hours after signing the contract) from the seller's agent that, on the same street, some homes' yards are losing grounds. All homes, including our purchase, are close to a ravine. The city has started to investigate the whole area and will unlikely get to a conclusion before our closing date (in 2 months).

The seller did not disclose such information. We have been really angry and hope to back out. The seller apparently does not want to sign the mutual release form unless we forfeit the earnest money. Does anyone know if we can get our earnest money back? Thanks.

[JETX]

Originally Posted by mike_the_buyer

The seller did not disclose such information. We have been really angry and hope to back out. The seller apparently does not want to sign the mutual release form unless we forfeit the earnest money. Does anyone know if we can get our earnest money back? Thanks.

Yep. Go talk with an attorney who can review the contract, evaluate whether the (non)disclosure is material and advise what, if any, options might be available to terminate the contract and return of the earnest money.

[Ummonx]

check your contingencies on your offer. I hope you placed your offer contingent on passing home inspection.

[HomeGuru]

Originally Posted by mike_the_buyer

What is the name of your state? Ohio

My wife and I signed a contract to buy a $250K home in Cincinnati, and paid a $2.5K earnest money. We learned (in hours after signing the contract) from the seller's agent that, on the same street, some homes' yards are losing grounds. All homes, including our purchase, are close to a ravine. The city has started to investigate the whole area and will unlikely get to a conclusion before our closing date (in 2 months).

The seller did not disclose such information. We have been really angry and hope to back out. The seller apparently does not want to sign the mutual release form unless we forfeit the earnest money. Does anyone know if we can get our earnest money back? Thanks.

**A: I agree. You should be able to terminate the transaction and get your money back.