Dear Monty: On the morning of closing, the buyer did the final walk-through. Then his agent called, asking about the water valve replaced years earlier. They used this incident to extort $500 from my agent.

I wasn’t talking with this buyer. The sale of my house was contingent on him selling his home. While at the house doing the final walk-through, the buyer tore into the drywall, opening a hole five or six times the original size in order to do their fact-finding investigation.

The buyer no-showed at the closing, and my deal died. I go to the house, and the wall is a mess. Their agent states that their buyer says they didn’t do anything. The night before, I checked the place out, and there was no damage.

I should receive the $500, and I can’t believe a licensed agent would play so dumb and not act responsibly. I refused to sign the termination and release form (T&R) due to damage, and nobody accepted responsibility.

Am I on solid ground?

Monty: There are many unanswered questions based on your statement. It would be unusual for an agent to write a check for $500 without conferring with you, and they would only pay once the closing occurred. Consider asking your agent for a copy of the check, as you will need it as part of your argument.

Assuming T&R means a mutual release, you must also resolve the open T&R question. You want to avoid finding the next buyer and have the first buyer step in with a claim.

Did the buyer’s home not sell? The buyer may have had an out if it was a contingency in the contract. Not having read the agreement, it is impossible to determine if you are on solid ground.

If the agent wrote a check, the agent may have a better chance to recover the $500 than you would, as it sounds like the buyer defrauded him.

It also sounds like neither agent was at the final walk-through with the buyer. The buyer’s agent should have been at the final walk-through.

There appear to be several questionable errors or omissions in how they handled your transaction. These issues must be investigated before anyone could assure you.

Consider asking a contractor to give you a quote to repair the damage. You will need that to support your argument.

Your Options

• Sign the T&R.
• Put your home back on the market without T&R.
• Seek an attorney’s opinion.

Option 1

Pros: a) Get this incident behind you, b) first buyers cannot contest

Cons: a) You will lose any opportunity for revenge, b) you will lose specific performance options

Option 2

Pros: a) First buyer may not contest, b) specific performance still open, c) may sell home for more money

Cons: a) First buyer may contest, b) it may cost more money in a lawsuit, c) may sell home for less money

Option 3

Pros: a) Legal advice in your state trumps my experience, b) may be other options available, c) learn if you are on solid ground

Cons: a) Some cost to learn, b) if you have a claim, it will consume your time and energy