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tying up earnest money

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I am the seller in Texas. Buyer and I entered an Earnest Money Contract/all cash. Buyer gave builder money for "extras " he wanted in the house. 19 days later Buyer called and wanted out due to fall of stock market. I immediatedly call builder to stop any of the "extras" that were not yet completed. Buyer has sent notice to title co. not to release the earnest money to me until he gets his money back from Builder. Contract says we will go to mediation if problems can not be resolved, he refuses to go now. Bottom line, I took a "back up contract " on the same house today. Can I close with this Buyer #2, even though Buyer #1 refuses to close, or release earnest money. He kept my house off the market for 19 days so I am entitled to E.M. but can he keep me from selling the house, while the E.M. just sits at title co. Suing him could take months. I'm sure he is just waiting to see if i get another offer where he can say give him his earnest money back and the "extras" money he gave builder and he will walk. Help!!!
 



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