Contractual obligations

What is the name of your state?Arkansas

When selling our home we accepted an offer from a couple who was reported to us by their real estate agent to have been "preapproved" no problems buyers with $28,000 to put down. We stopped negotiations with another potential buyer to accept the contract of the "preapproved" good credit buyers. As time wore on it became obvious that the couple had more than their share of financial worries and we were misled as to their financial status. While trying to gain financing we gave the couple several extensions as each time we heard they were just waiting for "one piece of paper" etc etc. And by this time we were so far into this contract that we would be losing several thousand dollars if we cut them loose.

Finally we are approaching closing and it's about 2 days before closing and we find out that the buyers had told their mortgage company to stop the appraisal they wanted to find another mortgage company, however they were approved by the first mortgage company. Therefore at this time 2 days before closing all contractual obligations were fulfilled. In order to prevent a breach of contract lawsuit from me the seller the buyers agreed to a contract extension that read that they would pay all of my daily finance charges and fees associated with the extension of the closing past our agreed upon closing date for 14 days. This was to include the charges that would be incurred by me past their closing until my mortgage was paid off due to lag time of mailing etc.

The title company mistakenly only charged them for the interest for 10 days. Once I realized the title company's mistake I contacted my real estate office and their agent was contacted. I did not deposit the check with the incorrect amount so as not to agree upon that amount by accepting it. There was no response back from the buyers about the extra amount owed. A few weeks ago I was contacted through the real estate agency that the new owners wanted the old security code to the security system so they could get it reprogrammed. (First off I had no idea they would need my code, I had assumed that it was shut off when I disconnected my account for that residence.) I asked my agent to tell them when they paid me the money they owed me I would give them the security code.

After a couple of weeks I decided that I would never get the extra money from these people and deposited the check. The check was just returned to me as a stopped payment. I actually phoned the people to ask why they stopped the payment and here is what he said:

He said I was extorting the money from him by withholding the security code and that his lawyer advised him to stop payment on the check and use this money to have the system reprogrammed. His words to me were: Why would I send you $x of my money when I already had $x of your money.

My question is: Did I forfeit the right to the money that I was already paid by refusing to give the security code. Was it extortion to ask for the money owed in return for the code. Did he have the right to take the money and use it for that. And if so, if the reprogramming was not the full amount of the money he stopped payment on am I not entitled to the balance. Am I also not entitled to the amount he contractually agreed upon originally?

I hope this makes sense.

Thank you for your time.