I live in NY and was in the process of buying a home. I put a "good faith deposit" down per the Purchase Agreement. Both myself and the seller agreed on the Purchase Agreement, including an inspection contingency. The home inspection turned up three main issues, the furnace will need to be replaced in the near future, part of the roof needs to repalced in the NEAR future, and there is a fireplace that turns out is "non-fuctional" (the chimney and flue have been removed). I feel the fireplace was misrepresented to me as it was not disclosed before the inspection that it was decorative only. The sellers and their realtor are refusing to return my good faith deposit as there defense is the issues I addressed are not "major structural issues". I have hired a lawyer, but wanted a second opinion as to my rights. I have NO desire to purchase this home and have looked at other homes on the market. My concerns are:
1) Why can;t I get my good faith deposit back?
2) I thought the home inspection contingency was to protect me? If yes, then I return to question #1.
3) I have been told if I walk away from the deal and let them keep my good faith deposit, than can pursue further legal action, correct?
4) I feel the home was misrepresented to me before the inspection (the non fuctional fireplace). Do I have a case for fraud?
(the ad for the home has since been changed to reflect the non fuctional fireplace).