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Sellers Refusing to Return Deposit Money -- Backed Out After Bad HOA

Hello All,

The other week we entered contract to buy an apartment. After sending deposit (>$50k), we entered into the HOA review period, which was 5 days. On/about the 2nd day, we requested additional information since the building's replacement fund had declined by nearly half over the past year, they had been underfunding the replacement fund and the included report slated the building's future replacement items were several millions of dollars over the next decade. After requesting an extension of time and additional information, including an updated report outlining future expected expenditures, they rejected the timeline extension. They did; however, supply more historical documents which only showed more negative operating income each year. On the morning of the 5th day, we stated we were backing out because we were uncomfortable with the HOA financials, in line with the HOA provision outlined in our contract, deeming it was the buyer's assessment to determine instability of the HOA and that deposit monies were to be returned immediately.

Sellers' attorney is stating our claims to terminate the deal are "baseless" and that his clients are owed for their "time and money," also claiming we were not legitimate buyers. Please note that during the period after we concluded the initial contract/rider review, we secured an interest rate for our mortgage, conducted the inspection (which checked out fine), put a notice to back out of our rent--all items supporting we had every intent to proceed.

Sellers' attorney is being belligerent, according to our attorney, and our attorney is recommending that for the purpose of not going to court, which could be expensive, we request our deposit monies back less a few thousand dollars.

The entire thing has been a huge distraction and I simply want my money back per the contract. Please help!

submitted by /u/LessStrength4
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source https://www.reddit.com/r/RealEstate/comments/oay98d/sellers_refusing_to_return_deposit_money_backed/

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