I was buying a house on the condition that the electrical service would be fixed by a licensed electrician. Six days before we were to close, they called and said that the work would not be done before the closing date so they were going to place money in an escrow account to cover it.
I refused. I said we will close when the work is done. I was willing to wait a month. They said no. So now all I want is my earnest money back and they get to keep it because I didnt buy the house.
Was I wrong?
They did get a quote but it was not on an official form. It was on a note pad from a local electrical supplier with the name of an electrician on the bottom. I am not from the area and he is a contractor, so to me it looks like he had a buddy sign something.
A:
Whether you get your money depends on the written offer and acceptance agreement. Was there a clause in the due diligence section of the offer and acceptance allowing for the inspection and work? If so was there a time limit for them to get the work done and for you to nullify or terminate if the work wasn't done by that date? Your contract will specify your duties and if you've fulfilled them then they can't keep your earnest money. You were correct to hold out for the work's completion in case the work led to additional problems and added costs. In my opinion you probably get back your earnest money, but again, I've not reviewed the Offer and Acceptance Agreement, which I would have to for a definitive answer to your question.
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