I signed an agreement to purchase a home and put down ernest money. In the agreement, we had the right to inspect the property and did so. Subsequently we, under the contract to purchase, made several requests for repairs and bringing the house up to code. All this was through realtor's and never directly to the seller's. Having not heard anything for a week and a half and consistently contacting the realtor (we both had a realtor so there are four parties involved) to ask whether our requests were accepted or rejected or countered by the sellers we rescinded our offer. Immediately (same morning) the seller's a) signed the addendum (our requests for repairs) and then contacted a lawyer claiming we violated the contract. Needless to say, they would not sign a mutual release of the ernest money which is now tied up for three (yes three) years with no movement on it.

The realtor refuses to do anything for fear of being caught in the middle. I however believe that the contract (per a clause in the contract which actually says I can withdraw/rescind the offer as well as the contract being null and void after a certain date....which we were past) prior to acceptance by the seller and the contract becomes null and void. Thus I believe it is/was null and void.

Do I take the realtor to court for refusing to release the money? Or do I take the seller to court for refusing to sign the release of the money? Or both?

The house sold within a month of our recinding the offer and the seller lost nothing in the process other than a month. Had the seller or the agents in the case been more forthcoming on whether they were accepting or rejecting our requests for repairs under the inspection clause, we wouldn't have been in the dark and wondering and subsequently pulling the offer...but despite our persistent asking, no answers came until we pulled the offer.....

Who do we take to court???? Anybody? P.S. this is a small claims issue that could go to full court, but I doubt it.....

Consult an attorney because you may have a statute of limitations problem on this one. At this point in time, who you sue- well the party holding the money definitely and the realtor and the sellers who would not authorize release. At this point in time, however, talk to a local attorney because the statute of limitations may be a real problem here.