I am the seller whose home was damaged by prospective buyer while under contract in search of asbestos.

With exception of a 1” hole in diameter in living room & four 1 to 2” goughes, the majority were the size of a ¼” drill bit. There are perhaps three dozen holes in all. The damage was not there before the buyer commandered the house for the month that it was under contract. Their rational for terminating under Loan Conditions was that the lender would not lend sufficiently to cover the costs of “asbestos repairs,” per their renovation plans. Nothing from the lender in writing to confirm this. My realtor advises I should return the earnest money. This happened yesterday, I’m meeting with an attorney today and will apparently have to shell out money to hire an expert to fix the damage they caused. A bit disappointed with the stance my realtor’s company is taking.

Answer:

You have a couple of issues, and you are absolutley correct in meeting with an attorney for advice. I assume that your contract was written on the contract form approved by the Colorado Real Estate Commission. The way I see it from the standpoint of a real estate broker (not an attorney), if the Loan Conditions Deadline has not yet arrived, the buyer has the right to terminate the contract due to the terms of the loan. If that is the case, the earnest money should be returned to the buyer. The contract also provides, though, that the buyer is responsible for any damages that they (or their inspector) cause to the property. Now the question becomes, "what will it take to repair the damage?" If the holes are in drywall, the cost to repair may not be worth the brain damage of trying to recover those costs. On the other hand, if the holes are in a structural component of the house, you may decide that the cost is significant enough to put forth the effort. Your attorney will be your best source of helping you decide how to proceed.