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  1. #1
    Evan123 Guest

    Return of "Good Faith Deposit"

    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).

    Please help...
  2. #2
    HomeGuru is offline Senior Member
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    You have a right to your deposit back.
    Have your attorney send a demand letter to the Seller.
  3. #3
    Evan123 Guest
    Thank you for your quick response and the advice.
  4. #4
    HomeGuru is offline Senior Member
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    No problem and keep us posted.
  5. #5
    JETX is offline Senior Member
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    Re: Return of "Good Faith Deposit"

    Originally posted by Evan123

    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).

    Please help...
    Did you keep a copy of the ad before the change?? If not, try to get one and keep it and all other documents in a safe place.
  6. #6
    Evan123 Guest
    Yes. I have copies of the old ad and of the new ad.
  7. #7
    Evan123 Guest
    UPDATE - My good faith deposit is being held in an escrow account thru my realtor and her agency, which is not the same realtor or agency that the seller is using. Therefore the seller and their realtor do not techincally have my money, so shouldn't my realtor be returning the good faith deposit to me since this is a dead deal or must I wait for a release from the purchase offer by the sellers to have my money returned to me?

    What if they refuse to release me?

    Can I/Is it safe to enter into another Purchase Offer if I find another home? I am just afraid the seller is going to sue me, as I do not trust them, even though I did nothing wrong. I feel as though they are forcing me to buy their house, and if I don't they will sue for breach of the purchase offer.
  8. #8
    JETX is offline Senior Member
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    The purpose of holding money is escrow is to protect both parties to the contract. The money can't be released to EITHER party without the express approval of the other. And if he doesn't give this permission willingly, then you will have to go to court for a release.

    As for your concerns about him forcing you to buy his house, that just won't happen. The worst thing that could happen to you would be that he would have a right to recover the 'ernest money' that was posted in escrow. In the event of your breach, that would be the only liability that you could have.
  9. #9
    Evan123 Guest
    Thank you Halket. Your input was appreciated more than you know.

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