Buyer suing seller for return of inspection money

[spup345]

What is the name of your state? NY

Me (buyer) and seller both signed an offer to purchase with purchase price/closing date stated and the typical mortgage/inspection contingencies.

I spent $680 on the home inspection which revealed central air & furnace issues. I indicated to seller that I would not purchase the house unless these were fixed. They spent $135 to fix it. I then signed the official contract drawn up by seller's attorney & gave it back to seller's attorney along w/ 10% deposit check. About 3-4 days passed and then we were told by the seller they received a higher offer. Our real estate agent was told by their agent that if we met the price, they would sell to us. We decided to meet the higher offer but they then said they still do not want to sell to us. They had never signed the official contract OR cashed our deposit check.

I filed a small claims case to sue for the reimbursement of our inspection costs plus the $130 in additional attorney's fees we had to pay for his time spent on the deal, total of $810. They counterclaimed for the cost of the repair services they performed along with "unnecessarily incurred legal fees and services" for a total of $385. The seller, by the way, is a former family court judge and an attorney. She is willing to call everything off if I am willing to drop the matter as well.

Any recommendations? Do I stand any chance of getting the inspection money back or do I have to accept the fact that the seller's were complete a-holes and we just have to accept the loss of our $810 in inspection costs and legal fees?

[BelizeBreeze]

Originally Posted by spup345

What is the name of your state? NY

Me (buyer) and seller both signed an offer to purchase with purchase price/closing date stated and the typical mortgage/inspection contingencies.

I spent $680 on the home inspection which revealed central air & furnace issues. I indicated to seller that I would not purchase the house unless these were fixed. They spent $135 to fix it. I then signed the official contract drawn up by seller's attorney & gave it back to seller's attorney along w/ 10% deposit check. About 3-4 days passed and then we were told by the seller they received a higher offer. Our real estate agent was told by their agent that if we met the price, they would sell to us. We decided to meet the higher offer but they then said they still do not want to sell to us. They had never signed the official contract OR cashed our deposit check.

Then why are you not suing for specific performance?

I filed a small claims case to sue for the reimbursement of our inspection costs plus the $130 in additional attorney's fees we had to pay for his time spent on the deal, total of $810. They counterclaimed for the cost of the repair services they performed along with "unnecessarily incurred legal fees and services" for a total of $385. The seller, by the way, is a former family court judge and an attorney. She is willing to call everything off if I am willing to drop the matter as well.

well no wonder. If you had an attorney they would tell you WHY this seller is willing to call everything off.

Any recommendations?

Yes, see my first answer.

Do I stand any chance of getting the inspection money back or do I have to accept the fact that the seller's were complete a-holes and we just have to accept the loss of our $810 in inspection costs and legal fees?

Why are you settling for peanuts? If you want the house at the AGREED UPON CONTRACT PRICE, then sue for specific performance.

[spup345]

But from what I have been told....a simple binder to purchase the house is not considered a fully executable contract. Supposedly the binder/offer to purchase, even if signed by both the buyer & seller, means nothing at all in NY. It's not until an officially drawn-up contract is signed by the buyer & seller that specific performance can be claimed....unless I've been misinformed?

Is a binder, with no money down, signed by buyer & seller, BEFORE the official contract is signed by both, still have legal standing in NY?

[HomeGuru]

Originally Posted by spup345

But from what I have been told....a simple binder to purchase the house is not considered a fully executable contract. Supposedly the binder/offer to purchase, even if signed by both the buyer & seller, means nothing at all in NY. It's not until an officially drawn-up contract is signed by the buyer & seller that specific performance can be claimed....unless I've been misinformed?

Is a binder, with no money down, signed by buyer & seller, BEFORE the official contract is signed by both, still have legal standing in NY?

**A: where is your Realtor and attorney?
Find them.

[PghREA]

If the Seller is an attorney, she probably has more of an idea of what is going on than you do. Hire your own attorney and go after her.

[HomeGuru]

I do not think we have been told the complete story. But we do not need it now.