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

[Craig Blackmon]

Indeed!
CB
Craig Blackmon, Attorney at Law
<https://www.mywsba.org/PersonifyEbusiness/LegalDirectory/LegalProfile.aspx?Usr_ID=000000029240>
92 Lenora St. #13, Seattle WA  98121
Office/Cell: (206) 369-5949
On the blog: Changes to Title and the QCD
<https://seattlepropertylawyer.com/blog/quitclaim-deed-explained>
<https://seattlepropertylawyer.com/>    <https://www.fsbolawyers.org/>
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On Wed, Aug 6, 2025 at 12:55 PM Eric Nelsen <eric at sayrelawoffices.com>
wrote:

> Thanks Craig! So your analysis is to focus on the general remedy clause,
> and assert Seller’s right to retain EM for breach (and the express Form 35
> term that says Buyer is responsible for damage caused by inspection);
> versus the Buyer’s emphasis on the Form 35 language emphasizing that a
> valid termination under the contingency requires return of the EM. Yes?
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> Sayre Law Offices, PLLC
>
> 1417 31st Ave South
>
> Seattle WA 98144-3909
>
> 206-625-0092
>
> eric at sayrelawoffices.com
>
>
>
> *From:* wsbarp-bounces at lists.wsbarppt.com <
> wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Craig Blackmon
> *Sent:* Wednesday, August 6, 2025 12:25 PM
> *To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
> *Subject:* Re: [WSBARP] Seller dispute earnest money over damage caused
> by buyer's inspector
>
>
>
> 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
> <https://www.mywsba.org/PersonifyEbusiness/LegalDirectory/LegalProfile.aspx?Usr_ID=000000029240>
>
> 92 Lenora St. #13, Seattle WA  98121
>
> Office/Cell: (206) 369-5949
>
> On the blog: Changes to Title and the QCD
> <https://seattlepropertylawyer.com/blog/quitclaim-deed-explained>
>
> <https://seattlepropertylawyer.com/>    <https://www.fsbolawyers.org/>
>
> CONFIDENTIALITY NOTICE: This communication is a private, confidential
> electronic communication encompassed by 18 USC 2510. It is for the sole use
> of the intended recipient and receipt by anyone other than the intended
> recipient does not constitute a loss of its confidential or privileged
> nature.  Any review or distribution by others is strictly prohibited. If
> you are not the intended recipient please inform the sender and destroy all
> copies.
>
>
>
>
>
> 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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