Seller refusing to release earnest money

[James Thomas]

We were under contract for a property and the seller went into arbitrage due to an unknown lien on the house. We filed an extension for the inspection so they could figure it out. When that cleared, we completed the inspection. The house had some significant electrical issues, so we decided not to move forward. After we cancelled the contract, we found out the seller had never signed the inspection extension and are now refusing to release the earnest money. Do we have any recourse here? They still allowed the inspection past the original date. Would that be considered implied consent?

[John Clark]

Quote from @James Thomas:

We were under contract for a property and the seller went into arbitrage due to an unknown lien on the house. We filed an extension for the inspection so they could figure it out. When that cleared, we completed the inspection. The house had some significant electrical issues, so we decided not to move forward. After we cancelled the contract, we found out the seller had never signed the inspection extension and are now refusing to release the earnest money. Do we have any recourse here? They still allowed the inspection past the original date. Would that be considered implied consent?

My question is simple: How could you have not known that the seller hadn’t signed the inspection extension? Who told you that it had been signed?