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Buyer submitted the October 2022 Residential Buyer’s Inspection Notice and Seller’s Response to seller identifying items disapproved and elected to provide seller an opportunity to correct or address the disapproved items by submitting an Addendum requesting a credit.  Seller refuses to give buyer a credit but agrees to fix the list of disapproved items.  Buyer does not want items corrected and cancelled the contract.


Who is entitled to the earnest money deposit? 


See discussion. 


Pursuant to section 6j of the October 2022 Purchase Contract, “[i]f Seller is unwilling or unable to correct or address any of the items disapproved, Buyer may cancel this Contract within five (5) days after delivery of Seller’s response or after expiration of the time for Seller’s response, whichever occurs first, and the Earnest Money shall be released to Buyer.”  Assuming the buyer cancelled within five (5) days after the seller declined to give the buyer a credit, the buyer is entitled to a return of the earnest money deposit.