My question involves real estate located in the State of: Pennsylvania / zip 19018

Reasons for backing out were many. Knob and tube electrical wiring, could not get the property insured; rotten beam foundation; a whole lot of renovation was needed, but I was still interested in purchasing it.

The main reason I could not go through with it is related to a shed that was illegally built (per L&I) right against the deck of the property for sale by a neighbor to house multiple dogs. The township as well as the health department are in litigation with this neighbor. This info was not disclosed by the sellers, I found out about it from a township inspector.

I still wanted to proceed with the purchase, but felt that I was getting my family in the middle of a crossfire. This is a health and safety issue. The sellers are now refusing to release my earnest funds of $3,000.00 and are even threatening legal action. All suggestions/ideas are welcome.

Many thank in advance for the help!