[iandwk]

The way the sales agreement reads is that the seller has no choice but to allow the contract to be cancelled under certain circumstances. Repairs totaling more than 1 1/2 % of the sales price of the house can be refused by the seller, but the buyer then has the right to cancel the contract. Other reasons are inability to get insurance and inability to get financing. The wording of the contract is very clear on these things, but the seller still does not have to sign a release for the earnest money. The options then are mediation, but neither party has to agree with the mediator, and they must split the costs of mediation, and arbitration. Both parties must accept the decision of the arbitrator and also split the cost of the fees involved. Since the seller was clearly in viloation of the contract it would have been stupidity to have carried it that far. According to the contract, if I won arbitration I still would have the right to go after the seller for money lost, including extra rental on a house, meals, and so on. I think it was all a matter of us calling their bluff. The house was in a trust, by the way. I suspect it was the children of the owner trying to show they were properly taking care of their mama.