We entered into a purchase contract on a condo with a contigency that allowed for our (buyer) inspection of a condo disclosure document (verifying no special assessments, etc) as well as condo association budget/reserve statements, meeting minutes with a right of disapproval/termination of contract based on our review of these documents. At the time of sale we were told that there were no current or planned specials. After waiting about 5 weeks for these various condo documents we began receiving some but not all of them (we were told that they had been lost by the management company and various other stories). We discovered two special assessments that had been withheld from us and saw language in board minutes that would suggest a third was on the horizon. We eventually executed our option to terminate the contract; the sellers refused to return our earnest money and began threatening us saying that we were breaching contract. They also said that they would tie up our earnest money in litigation for as long as possible so we had just better go ahead and buy their condo. After waiting over three weeks for the return of our earnest money so we could put an offer on another condo, we were forced (due to timeline)into signing another lease. We feel as though this situation is fraud (the property was completely misrepresented to us) and that the sellers more recent actoins of withholding our earnest money and making threats as harassment. We have incurred attorney fees, home inspection fees, appraisal fees (on a property that was completely misrepresented to us by sellers) at the time of the sale . . . and for weeks and weeks after), and now on top of these costs we have to pay rent instead of put money towards a mortgage for another year. The sellers have found another buyer (we do not know if they have made the specials known to these folks) and so they are suddenly willing to release the earnest money provided we sign a mutual release indicating we won't sue. Should we sign this, get our earnest money that has been held hostage for nearly a month and move on, or should we be considering litigation?