In Dutchess County NY, we ALWAYS do inspections before the contract of sale is signed. We are attorney driven though, and we don't draw up contracts ourselves as brokers. If a seller decided not to sell to one of my clients after my buyer spent money on the inspection, I would absolutely encourage my clients to consult their attorney and request that he/she request the money back from the selling side. (I would hope that the seller was kind enough to offer this without having to go through attorneys, because it comes down to ethics at this point.) If I was personally selling a property and decided not to sell, I would refund the buyer's their money, if my reasoning was simply that I didn't want to sell. However, if the seller is aggravated at the buyers for some reason due to incidents that have occurred, then that of course would shed new light on things.
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