Duplex Misrepresented, Seller keeping Ernest Money Deposit Check

[Carly M.]

Question: My husband and I got a "duplex" in Twin Falls, Idaho under contract. We later found out after signing away the earnest money that the house was misrepresented. The egress windows did not meet city code. The sellers said it did, we went back, measured, and found out they were not to code. There would only one exit in case of a fire. The insurance company said we would be liable in the case of a fire. We called the city to verify it wasn't up to code and found out they never pulled permits to build the basement, and the city views it as a single-family dwelling.  We also found out that there is only one heat control, so the bottom apartment has no heat controls. 

We killed the deal and they are saying they are keeping the deposit. Our realtor is hardly representing us and will not go to the seller to ask for it back. Saying we forfitted it. 

It is now listed on the MLS as a single family. With realtor.com you can see the previous listing listed as multifamily.

Here is the listing: 

Do we have a case to ask for it back? 

Thanks, guys! 

[Jay Hinrichs]

@Jon Holdman  department of real estate in most if not all states do not get involved with EM disputes.. 

if the EM is at title.. then simply do not sign the release.. money then is stuck until buyer and seller finally agree.

If they never agree the title co. interpleads it to the court for disposition.. then both parties have to hire lawyers to go to court and argue who should get it.. its at that point both parties ( for the average 1 to 2k EM realize legal cost are greater than the money they are squabbling over and agree to split it... that's whats usually happened in my deals.. but like you say if its released to seller.. this is a tough one unless you have disclosures docs signed by seller that are simply untrue and should have easily been known.. problem again is with em the cost to hire attorneys does not justify how much is at risk MOST of the time.