<p>There are some contracts without mortgage contingency.</p>
<p>If she is willing to forfeit the $1000 deposit, get all parties to sign a release agreement that releases each from all future claims. If the seller won’t sign a release, tell the seller that she is going to put a claim on the deposit and notify state real estate regulatory body that there is a dispute. That’ll speed things up maybe.</p>
<p>50% of purchase price is in escrow! Get a real estate attorney fast.</p>
<p>Is there any reason why your sister put 50% in escrow. Even if she was only financing 50% of purchase price, she could have given a deposit of 10% and paid remainder 40% at closing.</p>
<p>Yikes…she already has an attorney. She might need to see a better real estate attorney than the one she is now using.</p>
<p>Your sister can easily get out of the contract and get all her money back. Since she is still in the physical inspection period, and she has not released the inspection contingency, I’m guessing that the contractual time period for the inspection has expired.</p>
<p>She can cancel the contract based on her inspection findings, whether Seller agrees to repair or not. This is what inspection period is for. Buyer can back out at no liability if they are uncomfortable with condition found during inspection. They don’t even have to be specific on the reasons</p>
<p>Not every contract has a “Right to Inspect and Cancel” clause. In our state, an addendum is needed to be able to inspect and cancel for any reason. Additionally, there is usually a time limit on the inspection period which typically runs 10-15 days. </p>
<p>Any money held in escrow can not be released if either party disagrees to whom the monies should be released. At that point, the brokers have to turn the dispute over to mediation or their state real estate commission. </p>
<p>If the buyers’ attorney did not put certain repairs in writing, then the seller has no obligation to make those repairs. It’s too bad your SIL’s attorney left out certain repairs. </p>
<p>Playing the devil’s advocate here: Sounds like the seller has had the house off the market for 6 weeks. Because of the contract they have with your SIL, the sellers missed the end of the year rush of buyers who want to get in the house before the end of year to claim homestead exemption for next year (at least in my state). The seller may be able to prove they’ve been harmed if you SIL does not complete the sale, and the seller is not likely to easily give up 50% of the purchase price. If the seller has performed all WRITTEN obligations, then your SIL could be held liable for failure to perform if she does not close the sale. She could be forced to purchase the home. Just fuel for thought.</p>
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Not necessarily. In many states, unless the requests are part of the P&S, and later the deed, they are just that - requests. </p>
<p>The seller can seek damages in the form of costs for relisting, costs for carrying the property until resale, loss of a new property if the seller is scheduled to close on another property and was planning to use the proceeds of the current sale to fund the new property (this often happens with home sales). </p>
<p>It is not easy or, in most cases, cheap, to get out of a real estate contract.</p>