[WSBARP] Seller dispute earnest money over damage caused by buyer's inspector

Eric Nelsen eric at sayrelawoffices.com
Wed Aug 6 12:04:40 PDT 2025


Colleagues-

Does the standard NWMLS Form 21 allow a Seller to dispute return of earnest money, if the Buyer's inspector causes damage to the property and then Buyer terminates the deal?

The Form 35 makes clear that the Buyer is responsible for all damage caused by inspection. BUT the contingency also expressly states that if it's a valid termination under the contingency, the EM goes back to the Buyer.

Is Seller's remedy for the damage limited to a separate lawsuit, or can Seller argue that the EM must be used to pay for the damage?

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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