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<p class="MsoNormal">I think if the Buyer's agent wrote those custom provisions, they should be construed against Buyer. The first term clearly says non-refundable. The second term "for information only" arguably implies that Buyer is going to accept and just
wants to do the inspection for "information" (which is silly but what other interpretation makes sense?).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Seller has possession of the $50K? If I represented the Seller, I'd probably advise to just hold onto the funds and let the Buyer sue if they want. Non-refundable means non-refundable. To the extent Buyer tries to argue that they didn't
mean "non-refundable" then they are basically arguing that they didn't mean what they wrote and were trying to commit fraud in the inducement. (They failed since it became a contractual term, but that's why we construe against the drafter.)<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I agree with Garl that Buyer's agent could have some liability to Buyer here, if Buyer genuinely didn't intend the $50K to be non-refundable.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Sincerely,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Eric C. Nelsen<o:p></o:p></p>
<p class="MsoNormal">Sayre Law Offices, PLLC<o:p></o:p></p>
<p class="MsoNormal">1417 31st Ave South<o:p></o:p></p>
<p class="MsoNormal">Seattle WA 98144-3909<o:p></o:p></p>
<p class="MsoNormal">206-625-0092<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:eric@sayrelawoffices.com"><span style="color:#0563C1">eric@sayrelawoffices.com</span></a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Anthony Gibbs<br>
<b>Sent:</b> Tuesday, November 17, 2020 9:59 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBARP] Research guidance requested<o:p></o:p></p>
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</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:Courier">A kind soul pointed out that I swapped buyer/seller… apologies. Buyer wrote documents, buyer cited inspection contingency, buyer wants earnest money back; seller understood earnest money to be non-refundable.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:Courier"><o:p> </o:p></span></p>
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<p class="MsoNormal">-- <o:p></o:p></p>
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<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Anthony F. Gibbs, Esq.</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Sounder Law PLLC</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">(206) 734-4374 [P]</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">(206) 212-7825 [F]</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"><a href="mailto:anthony@sounderlaw.com"><span style="color:#0563C1">anthony@sounderlaw.com</span></a></span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">sounderlaw.com</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">22014 7<sup>th</sup> Ave South, Suite 106</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Des Moines, WA 98198</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">15600 Redmond Way, Suite 101</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Redmond, WA 98052</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">**[IN-PERSON MEETINGS BY APPOINTMENT ONLY DUE TO COVID-19 AND AN ABUNDANCE OF CAUTION]**</span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">If you received this email by accident or by some other mistake, please immediately delete it and forget anything you might have read in it, which are probably all just lies anyway.
Thank you. I’d also appreciate you notifying me of the error.</span><span style="font-family:Courier"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:Courier"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:12.0pt;color:black">From:
</span></b><span style="font-size:12.0pt;color:black">Anthony Gibbs <<a href="mailto:anthony@sounderlaw.com">anthony@sounderlaw.com</a>><br>
<b>Date: </b>Tuesday, November 17, 2020 at 9:20 PM<br>
<b>To: </b><a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a> <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br>
<b>Subject: </b>Research guidance requested<o:p></o:p></span></p>
</div>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">I’m looking for some help with legal research and would appreciate any guidance or thoughts on the following scenario:</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">Standard form 21 MLS PSA with financing addendum form 22A, optional clauses addendum 22D, and inspection addendum form 35. Just under 5% earnest money. Both the financing contingency and the
inspection contingency are selected. BUT, at the bottom of form 22D, line 12 Other is checked and the following language is added:</span><o:p></o:p></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><span style="font-family:"American Typewriter"">Buyer hereby authorizes escrow to immediately release $50,000 of earnest money upon mutual acceptance directly to the Seller. This money
shall now be considered a non-refundable deposit towards the purchase of the subject property.</span><o:p></o:p></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo3"><span style="font-family:"American Typewriter"">Inspection is for buyers information only. PASS/FAIL</span><o:p></o:p></li></ol>
<p class="MsoNormal"><span style="font-family:"American Typewriter""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">The buyer’s agent prepared the form and all parties signed. Seller later cited the inspection contingency as the reason to terminate the contract and demands the $50k of earnest money back.
There is some indication that the buyer might also have had financing problems, but did not cite that as a reason for termination. Buyer understood the $50k to be non-refundable under any circumstances and that motivated them to accept the offer.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">What I am looking in to is whether that language, which is not standard form language but was added at the discretion of the parties and written in to the contract by the buyer’s agent, is
binding despite the contingencies. Items (1) and (2) seem to directly contradict the inspection contingency and the ambiguity ought to be construed against the buyer, since they prepared the forms; and the added language ought to control over the standard
contract provisions. </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">Am I missing something? It seems like the buyer’s agent might have made a major blunder here. Any thoughts are welcome.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter""> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">Yours, in gratitude,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter"">Anthony</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter""> </span><o:p></o:p></p>
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<div>
<p class="MsoNormal">-- <o:p></o:p></p>
</div>
<div>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Anthony F. Gibbs, Esq.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Sounder Law PLLC</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">(206) 734-4374 [P]</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">(206) 212-7825 [F]</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"><a href="mailto:anthony@sounderlaw.com"><span style="color:#0563C1">anthony@sounderlaw.com</span></a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">sounderlaw.com</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">22014 7<sup>th</sup> Ave South, Suite 106</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Des Moines, WA 98198</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">15600 Redmond Way, Suite 101</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">Redmond, WA 98052</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">**[IN-PERSON MEETINGS BY APPOINTMENT ONLY DUE TO COVID-19 AND AN ABUNDANCE OF CAUTION]**</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black"> </span><o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><span style="font-family:"American Typewriter";color:black">If you received this email by accident or by some other mistake, please immediately delete it and forget anything you might have read in it, which are probably all just lies anyway.
Thank you. I’d also appreciate you notifying me of the error.</span><o:p></o:p></p>
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