HELP ME! Sued for Breach of Contract

The long and short of my issue is that I bought a home, or I should say I went to buy a home. The contract states I have 3 options on inspections. The first to accept as is. The second to accept as long as the issue is fixed. The third is to be released. The house failed a Radon test miserably at 18 (4 is mandatory mitigation). I decided to choose option 3 for release.

They are holding my earnest money as hostage trying to claim they will only release me if I give them my money to pay for the fixing of their house. In no way am I liable for payment. So after their lawyer sent me the threatening letters I responded with lines of the contract telling him they have no case and that I would not give them my $1,000. They have decided to sue me for Full Damages due to time off the market (1 week, which I have the listings to prove it was never even off the market only in contingent status), the loss of 3 potential buyers (which in this market why would you turn anyone away when your current buyer isnt even approved yet!) and to recoop the costs of their home repairs.

Its total crap and they are just trying to push me into reconsidering on the home. My thoughts are if I do get served then I plan on counter suing for frivilous conduct (being sued just to harass another w/out actual legal cause). I am looking for any and all advice / input on this. The money I have invested is $1,000. To most its not much and they tell me to just give them the money and leave it. But Im a man of prinicple and what they are doing seems almost criminal. Hiring a lawyer will cost me more than what Im going to get back and Im told that due to this being a contract case and not personal injury I have almost 0% chance of getting my fees paid.

Am I ok to go to court w/out representation? I have the contract, all the emails and papers for release done with in contract time frames, I have the harrassment emails from their realtor, I have the listing showing they were never truly off the market. Everyone Ive talked to says they have absolutely nothing.

Another perfect case for small claims court, as long as your deposit is under their max claim amount and as long as you have documentation that you notified the owner you were opting out within the clearly stated inspection time period.

Make sure you have documentation for all your points and for all questions judge may ask you. Research real estate law in your area to show you are due your money and to show you know what your talking about.

A letter to them from an attorney may cost you a bit of cash but, it may save you lots of time.

Let us know how you make out.

good luck!