Seller Threatening To Sue After I Backed From 4plex Deal Due To Bad Sewer Line.

Location: Alaska

So, I have been under contract for a few months now on a rental property in Alaska. Not too long before closing I had my plumbing company inspect the sewer line in which they found that it was in need of immediate repair. So, we came up with an agreement to have the seller fix the line and he agreed. However, he didn’t want to use my plumbing company and found a cheaper alternative.

Then 3 weeks later I found out he had used the wrong pipe for the sewer line and did not pass the city inspection. I thought no big deal as he agreed to fix it. Another couple weeks goes by and he said the line was finished. So, I have my plumbing company inspect the line again in which they said it was an absolute terrible job and did not address the problems we had told him we wanted fixed. Again, I was patient and allowed him to fix the line again. Then, my plumbing company happened to swing by and notice he was doing it incorrectly AGAIN. Not only that he was using a coupling that was not allowed in the state for long time sewer line use.

This is when I lost my patience. Not once, not twice, but 3 times he had an opportunity to fix the line. Yes, he agreed to fix it correctly again but I gave him plenty enough opportunity to do it right the first time. How could I trust him after so many attempts?This was going 2 months past when we were supposed to close. So I called my realtor and said I want my earnest money back and I am moving on from this deal. The seller then told my plumbing company that he will be taking me to court because I was requesting my money earnest money back.

Does he have any grounds to sue? In my head if anything it would be a bad bet for him and I could counter sue all the expenses and inspections I put into that place. He may just be bluffing because he is mad but does he have any chance? Never been in this situation.