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

Craig Blackmon craig at lawofficeofcraigblackmon.com
Wed Aug 6 12:25:01 PDT 2025


Eric, by my analysis, yes. The failure to repair the damage is itself a
breach of the contract. Upon breach, seller's sole remedy is retention of
the earnest money. If the earnest money exceeds the cost of repair, you
might have an issue. But this certainly seems like a claim that is
arguable, to say the least.

Craig
Craig Blackmon, Attorney at Law
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On Wed, Aug 6, 2025 at 12:04 PM Eric Nelsen <eric at sayrelawoffices.com>
wrote:

> 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
>
>
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