I am buying a home in yuba city, ca it is a new construction. The home was completed on 12/23/04. The contracter canceled my contract to puchase the home stating that I breached the contract by entering the contruction site and wiring the home for alarm/surround sound system. This is untrue and I have proof also the home has appreciated about $40,000-$50,000 since I first signed the contract so this might be the motive. Per the contract I can demand arbitration. The problem is that I contacted a lawyer on 12/21/04 and told them of the situation and they were preparing a letter for me and and I deposited the checks I received back from the builder of $9k for upgrades and $5k from the titale company which was a deposit for the home. I was told that this makes my case very weak because by cashing/depositing the checks I agreed to the cancelation of the contract. I deposited the check because it was alot of money and I did not wan to hold it because it looked like we were going to go into arbitration. I did call attorney a few days before cashing check and they do have record of it. I really need some help to determine if I should go into the arbitration or not. It will be quite expensive because the loser has to pay all legal fees. I do have solid proof that I didn't wire the house but the check thing is scaring me. Please help! any info would be greatly appreciated.