In Wisconsin, if after an inspection is done, the Buyer feels that the defects found are ones that they do not want corrected...the Buyer sends a signed "Notice of Defects" and it is accompanied by anolther document called a "Cancellation and Mutual Release." The notice lists the defects...It is a notice..not an amendment...not a counter offer...nothing that requires the Seller's agreement.
The Cancellation and Mutual Release is a document that releases the earnest money from the Listing Agent's trust account and sends it back to the Buyer and the Seller is required to sign it for the money to be released.
What Happens When the Seller Refuses to Sign the
Release ?
The Selling agent can request it...the Broker for the Selling agent can request it...If the Seller still refuses....it is on to Small Claims...or as some people refer to it, "Small Brains Court." Which is a needless waste of time and money...the Seller can't win....he/she has no legal basis not to have the money 
refunded. The Seller cannot sell the property to anyone else...the Agent must keep the status as "Active with Offer" in MLS until the Seller signs the cancellation and/or loses the needless court battle that can't be won.
Claiming that the Seller still "wants to sell the Buyer the property" is a futile arguement...the Buyer decides to buy or not buy...the Seller has no choice.
If you have a Seller who "wants to sell" a property...counsel him/her to do it ethically....fairly...prepare the property to be sold with "workmanlike repairs" and above all...Honor the system and the process. It is not a choice to agree or
disagree....it is the way it is...be professional and do the right thing.
Amen and Women.
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