Good Faith Deposit held indefinitely?

[asaadi]

New Jersey

In 2005, we put a $1000 good faith deposit on an old house we were interested in buying. An offer was made and accepted. Subsequently, the home inspection revealed asbestos, knob and tube wiring (?) and other problems. Our insurance company refused to insure the house as it was.

Through our lawyer we offered to go through with the deal if asbestos was professionally abated, if wiring was professionally replaced and other problems were professionally repaired. Key word: PROFESSIONALLY, which our insurance company demanded. This was agreed to by the seller. An amendment to the original offer was signed.

Long story short, in violation of the agreement, the owner "fixed" the problems himself -- by tearing out the asbestos by hand, attempting to hide the knob and tube wiring, etc. We walked away from the table thinking that our deposit would be returned.

Instead, we were told by the real estate company who was holding the deposit that it couldn't be returned without the approval of the seller's lawyer. It has been 3 years now. I believe the house has changed hands at least once.

Aren't we entitled to have the money back? It doesn't seem right that it should be held indefinitely without the lawyer's approval.

-A

[LindaP777]

I wonder who has the money?
I would file against all parties involved in small claims court and let a judge work it out.

[asaadi]

Thanks so much for your reply! The real estate company, Prudential, has the money.

You're right, maybe a judge could sort it out. I'm just concerned that court costs or legal fees might be greater than the deposit, $1000.

-A

[seniorjudge]

Also, the statute of limitations may have run. (I don't know for sure.)


But go to small claims and see what happens.