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I am sorry to hear about this situation. This all depends on whether or not you walking away from the contract was warranted.
If your walking away from the contract was warranted, then the seller has no one but themselves to blame for the money they put in anticipating the sale, but the sale not going through.
However, if the seller can somehow argue that your breach was not warranted, then they can pursue you for the money that they paid the contractors to fix up the property in anticipation of the sale.
So what someone in your situation wants to do is to send a letter (using an attorney is best), arguing that the breach of contract was warranted due to fraud and misrepresentation, and the seller has no one but themselves to blame for any money lost in repairs anticipating the would be sale.
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