Original Message:
Re: HELP. Deposit has been made. Paperwork completed. Now the Buyer is trying to back-out of the sale. (by Carvan A.):
I agree with Ken that you should consult with an attorney and not rely on the advice of parties.
But, since you asked I will offer my opinion. I personally think you have a cause of action for a breach of contract. Typically the suit in this situation would be for specific peformance. That is a term for a suit that seeks to enforce the buyer to follow through with the terms of the contract and pay the purchase price. The buyer may have backed out because financing fell through but whatever the reasons you are entitled to specific performance or at the least monetary damages for the buyers failure to meet the terms of the contract.
If the facts are as you present them, you have a good case and should pursue this matter.
A lesson to be learned from this example for all sellers is to demand sufficient earnest money to discourage the buyer from backing out for a frivolous reason. At the very least the seller should demand an escrow payment of 10% of the purchase price or in this case $1,700.