demand to go ahead with purchase after terminating purchase contract

[Kristin Solbach]

Well this is unexpected. We terminated a contract for a property in Idaho Falls two days ago because of too many red (illegal) flags and things that came up during the appraisal. The seller never signed the termination and instead we now got a letter from their attorney giving us the following options: They’ve laid out three possible courses of action:

1. Specific Performance – Forcing our LLC to complete the purchase.
2. Monetary Damages – If they sell to someone else at a lower price, they could claim the difference and legal fees.
3. Earnest Money Forfeiture – they’re keeping the $1,000 (which we instructed Title to do anyway)
4. Closing date is set to tomorrow (it was a 3 weeks closing) and title still has it on their schedule. Does anyone have any advice and/or an attorney in Idaho for me that could help? 
   
5. 
   Thanks a million, Kristin

[Chris Seveney]

Quote from @Kristin Solbach:

Well this is unexpected. We terminated a contract for a property in Idaho Falls two days ago because of too many red (illegal) flags and things that came up during the appraisal. The seller never signed the termination and instead we now got a letter from their attorney giving us the following options: They’ve laid out three possible courses of action:

1. Specific Performance – Forcing our LLC to complete the purchase.
2. Monetary Damages – If they sell to someone else at a lower price, they could claim the difference and legal fees.
3. Earnest Money Forfeiture – they’re keeping the $1,000 (which we instructed Title to do anyway)
4. Closing date is set to tomorrow (it was a 3 weeks closing) and title still has it on their schedule. Does anyone have any advice and/or an attorney in Idaho for me that could help? 
   
5. 
   Thanks a million, Kristin

 What are "too many red flags" and "what things" came up during appraisal?

What contingencies did you have in the purchase and sale agreement. It sounds off the cuff they have a legit case against you for walking away, but typically that recourse is the deposit you put down which they keep the $1k and cannot go after you for anything else - but the contract would dictate the EMD was sole and only remedy.