Seller Attempting to Keep Escrow

[conlah]

I was in contract to purchase a home. I had a rider on the contract which stipulated that the private well must be in proper working order and meet DOH water regulatory standards. The water test came back with an iron content of 0.46mg/l which exceeds the DOH water quality iron levels, the published DOH standards for iron content are 0.3-0.99mg/l. I have an infant and I need to use this water to make his bottles. The water is drinkable and the iron levels supposedly have no health impact (unless you are a person who absorbs too much iron), but the indicated levels will stain housing fixtures, discolor clothing, etc). I did not want to purchase the home without a filtration system being installed to correct the water problem. I asked the owner to put in a filtration system to correct the water problem and they rejected my request so I requested that the contract be cancelled. The owners rejected my request to terminate the contract and are trying to keep my $45,000 which is in escrow. I did not want to go to court and incur legal additional legal fees so I attempted to offer a settlement of 3 months mortgage, taxes and seller legal fees, the seller rejected my settlement request and have stated that they will not return the funds in escrow. How should I proceed? If I go to litigation what are my chances of getting my money back? Please advise if you would like to see contract rider, water test results, and DOH standards document.

 

[lwpat]

No way to really tell how it will turn out for you. You should have clsoed and then sued for the cost of a filtration system. The money could have been held in escrow for a decision. Now you need to hire an attorney whether you want to or not.

 

[conlah]

I don't understand why I should have closed on the house if the contract rider stiplulated that I have the right to back out of contract if the water test results don't meet DOH regulatory limits? Otherwise what is the purpose of the rider at all? If I go to litigation on this what is the liklihood that the owner could be rewarded the full funds in escrow? Is it more likely that they would be awarded a portion of it if they rule in their favor? I am trying to decide if it's worth paying litigation fees to try and recover the money or if I should just take the financially devastating hit and let them take the money. As I stated I offered a settlement of 3 months mortagage carrying charges, legal fees and taxes I thought that was a fair offer. Apparently they didn't and instead of countering they said they were no longer willing to settle (i'm sure the current financial environment had something to do with this decision). I would like them to come to an equitable settlement but I think that them taking 45,000 is irrational. There is no way I have caused them that much financial hardship, we were only in contract for 2 months. Please advise.