Canceling Contract in CA
My wife and I have been shopping for our first house for several months now.
A few weeks back we happened across a nice place in the hills while we were out looking at open houses -- it was obviously in need of some updating, but we're okay with that. Talking to the agent showing the house, we learned that the place needed about $20k in work (new roof, an updated electrical panel, some pest report stuff) and that the seller didn't want a deal where they had to pay for any of this.
We have some cash set aside to spend on such things so we took this into account when we made our offer, which was accepted by the seller.
When we did our own inspections, however, we discovered that a major retaining wall on the property was in danger of "imminent failure" and replacing it would be a very expensive undertaking. We submitted a request for repair to the seller, which they rejected -- they told us that the only way they'd fix the wall is if we agreed to pay more for the house, which is unacceptable to us.
So, we need to cancel the deal. We're within our inspection period. I realize that you're not lawyers, but I'm curious if anyone has had experiences here that they can share -- I'm paranoid that the sellers might hold up our deposit or otherwise mess with us.