can they take any amount of my deposit?

[LUCKY40]

hi. i am in california. a little over a year ago i signed a contract to buy a house with contingencies. the seller was both the owner and real estate selling agent. he explained that if we couldn't agree on anything he would return my deposit . after receiving the inspection report i found out a lot of things were wrong and the inspector recommended that electrical and plumbing repairs be done by licensed professional. i discussed the problems with sellers and they said they will fix to the best of their abilities. a couple days later i received the termite report and then decided i cannot live in this house. i cancelled the contract within the specified time. my buying agent was disappointed and tried to convince me that i could do minor repairs later and the seller might give me a insurance protecton for a year. i insisted to cancel and he has sinced stopped communication. when i called the escrow company for my deposit they told me the seller wants 1/2 of my $2,000 deposit for repairs they had started. i found out they sold the house a few months later for $4,000 or more above what we had agreed on. i tried to negotiate with the seller but he refuse to come down. is this fair?
is there a way i can get back my full deposit? thanks for your time.

 

[gottago]

Sned the seller a demand letter via certified, return receipt mail. Give them 10 days to return your deposit in full, or you'll file a lawsuit in small claims court.

If they don't respond within 10 days of receiving your letter (the date on the return receipt), file a lawsuit in small claims court. Your local court will have instructions on how to file the suit.

 

[LUCKY40]

thanks for your reply.

am i allowed to file in small claims even though the contract had stated something about arbitration? i will send the demand letter as advise.

 

[HomeGuru]

i appears that you were protected by the inspection and repair contingencies.
File a complaint against the Realtor's real estate license.
In the contract, there is an arbitration clause so you cannot litigate in court and must mediate first then arbitrate if there is no settlement.