how to get earnest money back?

[Sa1man]

Hello everyone,

I recently encountered a problem while purchasing a property, and I’m hoping to get some advice on how to proceed.

We found a house with solar panels and were informed by the seller's agent that if we didn’t like them, they could be removed. We proceeded with an offer, which was accepted by the seller, and our earnest money check was cashed by the seller’s agent.

During the attorney review period, we learned that the solar panels were leased, meaning we would have to take over the lease as part of the purchase agreement. Additionally, the house's roof was nearly 20 years old, although the solar panels were only installed 2 years ago. We discovered that the removal and reinstallation of the solar panels would cost approximately $7,500 if the roof needed replacement.

We asked the seller for two things:

1. A $5,000 rebate at closing to help offset the $7,500 cost of potential future roof work.
2. Information regarding the output of the solar panels.

The seller countered with a $3,500 rebate but provided no information about the solar panel output. Given the confusion around the solar panels and their profitability, we decided to cancel the deal.

The seller’s realtor has since stopped responding despite multiple requests by my realtor agent as well as my attorney (who represented me during the contract review) and has not returned our earnest money. The house has now been sold to someone else, but we are yet to receive our earnest money back.

What steps should we take to recover our earnest money and address this situation? Any advice or similar experiences would be greatly appreciated.

Thank you!

 

[Zigner]

As I pointed out on the other site you posted this to, you were told you could remove the panels, and you can. I don't see why you would be entitled to receive your earnest money back.

 

[Sa1man]

Thank you for taking the time to reply.
I guess it's not obvious from my post:
1. They initially said solar panels could be removed. This turned out to be incorrect. The panels were leased (20-year lease) and could not be removed.
2. We still were within the attorney review period. Therefore, it was within my rights to cancel the deal.

 

[LdiJ]

As I pointed out on the other site you posted this to, you were told you could remove the panels, and you can. I don't see why you would be entitled to receive your earnest money back.

I disagree. They apparently were not informed that the solar panels were on a lease and that they would have to take over the lease. In addition, it appears that the age of the roof was not disclosed either prior to the point where they backed out. I don't even think that they were at the inspection stage yet. All those were reasons to back out of an accepted offer. Their earnest money should have been returned.

In addition, they seller and the seller's realtor just went silent on the issue of the earnest money. No actual claim against it was made.

OP, how much earnest money did you put down? You may have to take this issue to court. Small claims might be possible depending on the amount of the earnest money.

 

[Sa1man]

I disagree. They apparently were not informed that the solar panels were on a lease and that they would have to take over the lease. In addition, it appears that the age of the roof was not disclosed either prior to the point where they backed out. I don't even think that they were at the inspection stage yet. All those were reasons to back out of an accepted offer. Their earnest money should have been returned.

In addition, they seller and the seller's realtor just went silent on the issue of the earnest money. No actual claim against it was made.

OP, how much earnest money did you put down? You may have to take this issue to court. Small claims might be possible depending on the amount of the earnest money.

4K$

 

[Just Blue]

What state is this in?

 

[adjusterjack]

Not that simple. I have come across solar panel leases. Removing the panels could be quite costly.

I agree that the OP may lose his earnest money if he did not properly conduct due diligence but he should be having his lawyer review the purchase contract and the solar lease before giving up.

 

[Sa1man]

What state is this in?

IL

Not that simple. I have come across solar panel leases. Removing the panels could be quite costly.

I agree that the OP may lose his earnest money if he did not properly conduct due diligence but he should be having his lawyer review the purchase contract and the solar lease before giving up.

My attorney believes that we are within our rights to cancel the deal and should get the earnest money back. His firm asks 7500$ as a retainer..

 

[AlmostThere]

What does your signed contract say about the solar panels?

 

[Litigator22]

My attorney believes that we are within our rights to cancel the deal and should get the earnest money back.

Then why are you asking total strangers?!

Incidentally, the dollar limit in Illinois small claims court is $10K. So go for it and sue the then purported owner and his or her or its agent.

Also, submit a formal complaint/gradience with the Illinois agency, department or authority governing the licensing and conduct of real estate brokers and such agents.

But stop looking for solutions to magically appear on your laptop!

 

[Zigner]

Thank you for taking the time to reply.
I guess it's not obvious from my post:
1. They initially said solar panels could be removed. This turned out to be incorrect. The panels were leased (20-year lease) and could not be removed.

...and the can be removed. You failed to inquire about the cost.

2. We still were within the attorney review period. Therefore, it was within my rights to cancel the deal.

Then it really doesn't have anything to do with the solar.

 

[Zigner]

I disagree. They apparently were not informed that the solar panels were on a lease and that they would have to take over the lease.

That wasn't the question that was asked by the OP. In any case, it's a moot point based on the additional information the OP provided.

 

[STEPHAN]

Where is the money? It should be on an escrow account. Do you have a title company involved? Does the realtor hold the deposit?