Buyer is Backing out of contract

What is the name of your state? Missouri

On July 17th, we signed a contract to sell our house. We also had a $500 escrow note (We did not know what this note was at the time or we would not have accepted the offer) One July 22nd, the buyer had an inspection done on our house. The inspector gave our house a good rating for being a 50+ year old home. On July 23rd, our real estate agent advised us the buyer wanted to bring someone by to look at our crawl space because the inspector had indicated to her that there was water under the house and he did not know where it was coming from. We agreed to have someone look at it. They never showed. July 24th, my husband went under the house to see the damage. He said there was no water under the house except one damp area where a pipe was dripping. July 25th, we had a plumber and the buyers real estate agent at our house to inspect the problem. The plumber found no water but did see the leak in the pipe and said this could be fixed for around $100. We said we would pay to have it fixed. The plumber also said he could not find anything in the inspectors report anything about there being water under the house. On July 29th, our real estate agent called to tell us the buyer was backing out of the contract. Can they do this? They are not returning their real estate agent’s phone calls, so they don’t know the reason the buyer wants to back out. Can they do this? Do we have a case? Now the buyers do not want to give us the $500 escrow money! What can we do?

[HomeGuru]

Originally posted by tarameek
What is the name of your state? Missouri

On July 17th, we signed a contract to sell our house. We also had a $500 escrow note (We did not know what this note was at the time or we would not have accepted the offer) One July 22nd, the buyer had an inspection done on our house. The inspector gave our house a good rating for being a 50+ year old home. On July 23rd, our real estate agent advised us the buyer wanted to bring someone by to look at our crawl space because the inspector had indicated to her that there was water under the house and he did not know where it was coming from. We agreed to have someone look at it. They never showed. July 24th, my husband went under the house to see the damage. He said there was no water under the house except one damp area where a pipe was dripping. July 25th, we had a plumber and the buyers real estate agent at our house to inspect the problem. The plumber found no water but did see the leak in the pipe and said this could be fixed for around $100. We said we would pay to have it fixed. The plumber also said he could not find anything in the inspectors report anything about there being water under the house. On July 29th, our real estate agent called to tell us the buyer was backing out of the contract. Can they do this? They are not returning their real estate agent’s phone calls, so they don’t know the reason the buyer wants to back out. Can they do this? Do we have a case? Now the buyers do not want to give us the $500 escrow money! What can we do?

**A: let them out and find another Buyer. It is just not worth fighting over the small amount. You could hire an attorney for $2500 to collect your $500 if you wish.

I know an attorney who said he would help us for free. If we win, the buyer will have to pay legal fees. Should we still forget it?

[HomeGuru]

Originally posted by tarameek
I know an attorney who said he would help us for free. If we win, the buyer will have to pay legal fees. Should we still forget it?

**A: take advantage of the free service then.
Have this attorney review the contract to see if there are any contingencies that allow the Buyer to walk.
I am pretty sure there are.
Don't forgot to thank this attorney and maybe send a gift basket, flowers, or gift certificate to a restaurant or something.